Announcement • May 23
Cazoo Receives Non-Compliance Notice from NYSE Regarding 20-F Filing Delinquency Cazoo Group Ltd. (“Cazoo” or “the Company”) announced receipt of a written notice (the “Notice”) from the New York Stock Exchange (the “NYSE”) on May 16, 2024 stating that the Company is not in compliance with the NYSE continued listing standards set in Section 802.01E of the NYSE Listed Company Manual, which requires timely filing of all required periodic reports with the Securities and Exchange Commission (the “SEC”), because of the Company’s failure to timely file its Form 20-F for the fiscal year ended December 31, 2023 (the “2023 Form 20-F”). As previously disclosed on May 1, 2024, Cazoo was unable to file its 2023 Form 20-F on or before the prescribed filing date without unreasonable effort or expense. As a result of the significant amount of time devoted by management to pursue strategic initiatives, and the Company’s pivot to the marketplace model, which has also required a dedication of the Company’s limited personnel and resources, and because of our liquidity concerns whereby we would not be able to demonstrate our ability to continue as a going concern in the medium- to long-term, the Company was unable to complete the preparation and review of its financial statements and disclosures for the 2023 Form 20-F. Moreover, as a result of the foregoing, the Company does not currently intend to file the 2023 Form 20-F. In accordance with Section 802.01E of the NYSE Listed Company Manual, the NYSE will closely monitor the status of the Company’s late filing and related public disclosures for up to six months from the date of the filing delinquency (the “Initial Cure Period”). The Company’s Class A ordinary shares will continue to trade on the NYSE during the Initial Cure Period, subject to the Company’s compliance with other continued listing requirements. Notwithstanding the foregoing, if circumstances warrant, the NYSE may commence delisting proceedings at any time. Announcement • May 03
Cazoo Group Ltd announced delayed 20-F filing On 05/01/2024, Cazoo Group Ltd announced that they will be unable to file their next 20-F by the deadline required by the SEC. Announcement • Mar 06
Paul Whitehead to Step Back as CEO of Cazoo Group Ltd Cazoo Group Ltd. announced that following the conclusion of the Board’s review of the business and with a new strategic direction agreed and in place, Paul Whitehead has made the decision that now is the right time to step back as CEO. Paul has been with Cazoo for more than five years, having joined at its inception as Chief Operating Officer. Since his appointment as CEO, Paul has successfully focused Cazoo on the business’s core UK retail opportunity, delivered improved gross profit per unit quarter on quarter, significantly reduced costs and extended the company's cash runway. He oversaw completion of a restructure of the company's debt before leading the Board’s recent strategic review of Cazoo’s business model. Paul will step back as CEO at the end of March but will remain with Cazoo until at least mid-May as a strategic adviser to support its transition to the new business model. New Risk • Mar 03
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2023. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (19% average weekly change). Negative equity (-UK£78m). Earnings have declined by 45% per year over the past 5 years. Shareholders have been substantially diluted in the past year (over 11x increase in shares outstanding). Minor Risks Latest financial reports are more than 6 months old (reported June 2023 fiscal period end). Market cap is less than US$100m (US$22.5m market cap). New Risk • Feb 18
New major risk - Revenue and earnings growth Earnings have declined by 45% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (20% average weekly change). Negative equity (-UK£78m). Earnings have declined by 45% per year over the past 5 years. Shareholders have been substantially diluted in the past year (over 11x increase in shares outstanding). Minor Risk Market cap is less than US$100m (US$23.2m market cap). Announcement • Dec 12
Cazoo Group Ltd Announces Duncan Tatton-Brown Has Stepped Down as Non-Executive Director Trainline plc announced that Duncan Tatton-Brown has stepped down as a Non-executive Director of Cazoo Group Ltd. with effect from 7 December 2023. Duncan will continue his appointment as Chair of the Audit and Risk Committee of Trainline plc. New Risk • Dec 11
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 189% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (21% average weekly change). Negative equity (-UK£78m). Shareholders have been substantially diluted in the past year (189% increase in shares outstanding). Minor Risks Currently unprofitable and not forecast to become profitable over next 2 years (UK£138m net loss in 2 years). Market cap is less than US$100m (US$25.6m market cap). New Risk • Dec 10
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: US$9.04m This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (21% average weekly change). Negative equity (-UK£78m). Market cap is less than US$10m (US$9.04m market cap). Minor Risk Currently unprofitable and not forecast to become profitable over next 2 years (UK£138m net loss in 2 years). Announcement • Oct 26
Cazoo Group Ltd Provides Production Guidance for the Fiscal Year 2023 Cazoo Group Ltd. provided production guidance for the fiscal year 2023. For the year, the company expects 50,000-52,000 total unit sales, of which 40,000-42,000 Retail units; Full-year Retail GPU approaching £1,250. Announcement • Oct 12
Cazoo Group Ltd to Report Q3, 2023 Results on Oct 25, 2023 Cazoo Group Ltd announced that they will report Q3, 2023 results Pre-Market on Oct 25, 2023 New Risk • Oct 01
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 2.1% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (17% average weekly change). Negative equity (-UK£78m). Minor Risks Currently unprofitable and not forecast to become profitable over next 2 years (UK£127m net loss in 2 years). Shareholders have been diluted in the past year (2.1% increase in shares outstanding). Market cap is less than US$100m (US$21.2m market cap). New Risk • Sep 25
New major risk - Revenue and earnings growth Earnings have declined by 45% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (17% average weekly change). Negative equity (-UK£78m). Earnings have declined by 45% per year over the past 5 years. Minor Risk Market cap is less than US$100m (US$22.5m market cap). Announcement • Sep 22
Cazoo Group Ltd announced that it expects to receive $200 million in funding from Viking Global Investors LP Cazoo Group Ltd announced that it has entered into transaction support agreement with certain noteholders representing more than 75% of its $630 million aggregate principal amount of 2.00% Convertible Senior Notes due 2027 and shareholders representing more than 25% of its outstanding Class A ordinary shares, the company will cancel all $630 million aggregate principal amount of its Convertible Notes in exchange for the issuance to the current holders of the Convertible Notes of $200 million aggregate principal amount of new senior secured notes due February 2027 and Class A ordinary shares of the company which will represent 92% of the company’s outstanding Class A shares after completion of the transactions on September 20, 2023. The transaction will include participation from returning investor, Viking Global Investors LP, certain funds, accounts and entities managed or advised by Farallon Capital Management, L.L.C, certain other holders of the Company’s 2.00% Convertible Senior Notes due 2027 and individual investors such as Alex Chesterman and Daniel Och. Major Estimate Revision • Aug 11
Consensus EPS estimates fall by 28% The consensus outlook for fiscal year 2023 has been updated. 2023 expected loss increased from -UK£5.11 to -UK£6.52 per share. Revenue forecast unchanged at UK£783.7m. Specialty Retail industry in the US expected to see average net income decline 7.6% next year. Consensus price target of US$2.17 unchanged from last update. Share price fell 11% to US$1.22 over the past week. Announcement • Aug 03
Cazoo Group Ltd Provides Earnings Outlook for the Year 2023 Cazoo Group Ltd. provided earnings outlook for the year 2023. For the period, the company reiterated 50,000-60,000 total unit sales, of which 40,000-50,000 Retail units. New Risk • Aug 03
New major risk - Negative shareholders equity The company has negative equity. Total equity: -UK£78m This is considered a major risk. Being in negative equity means that the company's liabilities exceed its assets, meaning it owes more to creditors than it has in owned assets. While this doesn't mean the company is about to collapse, in the long-term, this is unsustainable. The company may have issues meeting financial obligations, is at risk of becoming insolvent and may have difficulty raising capital, especially more debt, if needed. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (15% average weekly change). Negative equity (-UK£78m). Minor Risks Currently unprofitable and not forecast to become profitable over next 2 years (UK£128m net loss in 2 years). Market cap is less than US$100m (US$63.4m market cap). Reported Earnings • Aug 02
First half 2023 earnings released First half 2023 results: Revenue: UK£419.0m (down 33% from 1H 2022). Net loss: UK£151.0m (loss narrowed 38% from 1H 2022). Revenue is forecast to grow 18% p.a. on average during the next 3 years, compared to a 5.8% growth forecast for the Specialty Retail industry in the US. Announcement • Jul 26
Cazoo Group Ltd to Report Q2, 2023 Results on Aug 01, 2023 Cazoo Group Ltd announced that they will report Q2, 2023 results Pre-Market on Aug 01, 2023 Announcement • May 20
Cazoo Group Ltd, Annual General Meeting, Jun 20, 2023 Cazoo Group Ltd, Annual General Meeting, Jun 20, 2023, at 13:00 Coordinated Universal Time. Location: 41-43 Chalton St London United Kingdom Agenda: To consider as an ordinary resolution to elect each of Paul Woolf and Duncan Tatton-Brown for a term of approximately three years as a Class II director of the Company, until the Company’s 2026 annual general meeting of shareholders and until their respective successors are duly elected and qualified; and to consider as an ordinary resolution to approve the re-appointment of Ernst & Young LLP, as the Company’s independent registered auditors for the year ending December 31, 2023 and until the Company’s 2024 annual general meeting of shareholders, and to authorize the Board to fix such auditor’s annual compensation. Announcement • May 16
The Platform Group GmbH & Co KG and Vive la Car GmbH completed the acquisition of Cluno GmbH from Cazoo Group Ltd (NYSE:CZOO). The Platform Group GmbH & Co KG and Vive la Car GmbH signed an agreement to acquire Cluno GmbH from Cazoo Group Ltd (NYSE:CZOO) on February 17, 2023. The agreement includes the Cluno brand along with the associated assets. Cluno GmbH had net assets of £26.2 million as at December 31, 2022. All employees of Cluno will transfer to ViveLaCar GmbH as part of the agreement. Cazoo has been paid for Cluno but the transaction has not yet completed.
The Platform Group GmbH & Co KG and Vive la Car GmbH completed the acquisition of Cluno GmbH from Cazoo Group Ltd (NYSE:CZOO) on May 15, 2023. Major Estimate Revision • May 01
Consensus EPS estimates fall by 32%, revenue upgraded The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast increased from UK£774.6m to UK£799.3m. Forecast EPS reduced from -UK£3.67 to -UK£4.84 per share. Specialty Retail industry in the US expected to see average net income decline 12% next year. Consensus price target down from US$5.15 to US$4.15. Share price fell 8.7% to US$1.78 over the past week. Reported Earnings • Apr 01
Full year 2022 earnings released Full year 2022 results: Revenue: UK£1.25b (up 87% from FY 2021). Net loss: UK£518.0m (loss narrowed 4.7% from FY 2021). Revenue is expected to decline by 2.7% p.a. on average during the next 3 years, while revenues in the Specialty Retail industry in the US are expected to grow by 5.8%. Announcement • Feb 18
The Platform Group GmbH & Co KG and Vive la Car GmbH signed an agreement to acquire Cluno GmbH from Cazoo Group Ltd. The Platform Group GmbH & Co KG and Vive la Car GmbH signed an agreement to acquire Cluno GmbH from Cazoo Group Ltd on February 17, 2023. The agreement includes the Cluno brand along with the associated assets. All employees of Cluno will transfer to ViveLaCar GmbH as part of the agreement. Major Estimate Revision • Feb 12
Consensus EPS estimates upgraded to UK£8.82 loss The consensus outlook for fiscal year 2022 has been updated. 2022 losses forecast to reduce from -UK£10.32 to -UK£8.82 per share. Revenue forecast unchanged from UK£1.32b at last update. Online Retail industry in the US expected to see average net income growth of 22% next year. Consensus price target down from US$4.86 to US$1.96. Share price fell 39% to US$3.16 over the past week. Seeking Alpha • Jan 18
Cazoo rises on Q4 updates, revised 2023 plan Cazoo Group (NYSE:CZOO) rose ~7% pre-market after the online car retailer updated on Q4 revenue and announced aims to rapidly improve the unit economics as part of revised 2023 plan.
The company had consolidated its resources on the U.K. market in the past one year.
In the current economic environment, CZOO believes the right course of action for 2023 is to focus on further improving its unit economics, reducing its fixed cost base and maximizing its cash runway.
The 2023 top line ambitions have been reset to 40,000-50,000 U.K. retail units. Following the reset, retail unit sales are expected to return to growth in FY24 and beyond.
CZOO said its Q4 U.K. revenue came to ~£315M and FY22 revenue to £1.25M.
The company's U.K. retail units sold of around ~17,750 in Q4 and ~65,000 in FY22
U.K. retail GPU stood at ~£600 in Q4.
The company had cash, cash equivalents and self-funded vehicles of over £325M at year-end.
Additionally, CZOO appointed COO Paul Whitehead CEO, effective from the start of April.
The roles of executive chairman and CEO will be split, with Alex Chesterman continuing in the role of full time executive chairman.
Also, David Hobbs will step down from the board, effective from close of business on Jan. 31.
Mary Reilly will join the board as a class I director, effective Feb. 1.
Separately, the board has approved a share consolidation plan to bring the company's share price back into compliance with NYSE's listing standards.
Source: Press Release Recent Insider Transactions • Nov 23
Founder recently bought US$1.7m worth of stock On the 18th of November, Alexander Chesterman bought around 5m shares on-market at roughly US$0.32 per share. This transaction amounted to 3.0% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Alexander has been a buyer over the last 12 months, purchasing a net total of US$2.7m worth in shares. Board Change • Nov 16
High number of new and inexperienced directors There are 8 new directors who have joined the board in the last 3 years. The company's board is composed of: 8 new directors. 1 experienced director. No highly experienced directors. Founder, Chairman & CEO Alex Chesterman is the most experienced director on the board, commencing their role in 2018. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Reported Earnings • Sep 30
First half 2022 earnings released: UK£0.32 loss per share (vs UK£0.19 loss in 1H 2021) First half 2022 results: UK£0.32 loss per share (further deteriorated from UK£0.19 loss in 1H 2021). Revenue: UK£627.9m (up 153% from 1H 2021). Net loss: UK£241.5m (loss widened 137% from 1H 2021). Revenue is forecast to grow 30% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Online Retail industry in the US. Major Estimate Revision • Aug 10
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 expected loss increased from -UK£0.48 to -UK£0.56 per share. Revenue forecast unchanged at UK£1.41b. Online Retail industry in the US expected to see average net income growth of 5.7% next year. Consensus price target up from US$1.48 to US$1.60. Share price fell 5.8% to US$0.95 over the past week. Reported Earnings • Aug 03
First half 2022 earnings released First half 2022 results: Revenue: (down 100% from 1H 2021). Net income: (up UK£102.1m from 1H 2021). Profit margin: (up from net loss in 1H 2021). Over the next year, revenue is forecast to grow 75%, compared to a 15% growth forecast for the industry in the US. Board Change • Aug 02
High number of new and inexperienced directors There are 8 new directors who have joined the board in the last 3 years. The company's board is composed of: 8 new directors. 1 experienced director. No highly experienced directors. Founder, Chairman & CEO Alex Chesterman is the most experienced director on the board, commencing their role in 2018. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Board Change • Apr 27
High number of new and inexperienced directors There are 9 new directors who have joined the board in the last 3 years. The company's board is composed of: 9 new directors. No experienced directors. No highly experienced directors. CFO & Director Stephen Morana is the most experienced director on the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Reported Earnings • Apr 09
Full year 2021 earnings: Revenues in line with analyst expectations Full year 2021 results: Revenue: UK£668.0m (up 312% from FY 2020). Net loss: UK£550.0m (loss widened 456% from FY 2020). Revenue was in line with analyst estimates. Over the next year, revenue is forecast to grow 200%, compared to a 16% growth forecast for the retail industry in the US.