About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Cazoo Group Ltd (NYSE: CZOO) opened about 30% up today after going live as a marketplace. Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.Cazoo to go up against CarGurus and Auto TraderCopy link to sectionThere are a total of about 12,000 cars listed on the platform as of Wednesday.  The company based out of London, United Kingdom had first announced plans of quitting as a used car retailer and going up against the likes of CarGurus and Auto Trader in ...

Shares of online car retailer Cazoo (NYSE:CZOO) have been flying higher since the midweek session, likely on speculation tied to the company’s tiny float. As a result, the operator of the New York Stock Exchange halted trading multiple times on Thursday. What’s particularly intriguing is that the spike in CZOO stock lacks any explanatory company-specific catalyst.Earlier this month, the U.K.-based enterprise — which aims to make the process of buying and selling cars as simple as any other e-commerce transa ...

LONDON & NEW YORK--(BUSINESS WIRE)--Cazoo Group Ltd (NYSE: CZOO) (“Cazoo” or “the Company”), the UK online used car platform which makes buying and selling a car as simple as ordering any other product online, announces its intention to transition to a marketplace business model, leveraging the strength of the Cazoo brand and the market-leading ecommerce platform it has built in online automotive retailing for the benefit of the 13,000 car dealers operating in the UK’s highly fragmented used car market. ...

Loading...Loading...The most oversold stocks in the consumer discretionary sector presents an opportunity to buy into undervalued companies.The RSI is a momentum indicator, which compares a stock's strength on days when prices go up to its strength on days when prices go down. When compared to a stock's price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered oversold when the RSI is below 30, according to Benzinga Pro.Here’s the latest ...

Capital Restructuring - The company plans to exchange $200 million of Convertible Notes for senior secured notes and Class A ordinary shares, resulting in the new shares representing 92% of the outstanding Class A ordinary shares post-exchange[2]. - The company plans to exchange $200 million of its 2.00% convertible senior notes due 2027 for new senior secured notes and Class A ordinary shares, resulting in the holders of the convertible notes owning 92% of the outstanding Class A ordinary shares post-transaction[14]. - The company aims to improve its capital structure, reduce indebtedness, and enhance its ability to raise capital through the proposed transactions[56]. - Cazoo is seeking shareholder approval for several proposals to improve its capital structure and enable profitable growth[44]. - The company aims to improve its capital structure and reduce debt through the proposed Transactions[106]. Shareholder Approval and Meetings - The Extraordinary General Meeting is scheduled for November 21, 2023, to approve the proposed transactions and amendments[13]. - The company requires shareholder approval for the proposed transactions, including the reverse stock split and share increase, to proceed[15]. - The extraordinary general meeting is scheduled for November 21, 2023, to vote on these proposals[28]. - The affirmative vote of at least 66 2/3% of Class A ordinary shares is required to approve the Transactions Proposal and Articles Amendment Proposal[83]. - The Reverse Stock Split Proposal requires an affirmative vote from more than 50% of Class A ordinary shares present at the meeting[84]. New Board of Directors - The company will replace its board of directors with a new seven-member board, with six members chosen by Convertible Noteholders and one by the existing board[5]. - The company aims to replace the current board with a new seven-member board, with six members chosen by Convertible Noteholders and one by the existing board[44]. - The new board will consist of seven directors, with six chosen by holders of Convertible Notes, potentially impacting future business strategies[139]. Reverse Stock Split - A reverse stock split will consolidate every 100 Class A ordinary shares into one new share, adjusting the authorized share capital to $435,500 divided into 1,650,000 Class A ordinary shares[3]. - A reverse stock split will be proposed, consolidating every 100 Class A ordinary shares into one new Class A ordinary share, increasing the par value from $0.002 to $0.20[15]. - The Reverse Stock Split will consolidate every 100 shares into one share, subject to shareholder approval[44]. - The Reverse Stock Split Proposal aims to consolidate every 100 shares into one share, increasing the per share trading value to attract institutional investors[47]. New Warrants - The company will issue three tranches of New Warrants to existing shareholders, with the first tranche exercisable if the company's equity value reaches $525 million, allowing for 422,098 shares at an exercise price of $99.50[5]. - The second tranche of New Warrants will be exercisable if the equity value reaches $1.025 billion, allowing for 462,298 shares at an exercise price of $177.37[5]. - The third tranche of New Warrants will be exercisable if the equity value reaches $1.5 billion, allowing for 510,961 shares at an exercise price of $234.85[5]. - New Tranche 1 Warrants allow existing shareholders to acquire 422,098 Class A ordinary shares at an exercise price of $99.50 if the company's equity value reaches $525 million[141]. - New Tranche 2 Warrants permit acquisition of 462,298 Class A ordinary shares at an exercise price of $177.37 if the company's equity value reaches $1.025 billion[142]. - New Tranche 3 Warrants enable acquisition of 510,961 Class A ordinary shares at an exercise price of $234.85 if the company's equity value reaches $1.5 billion[143]. Financial Performance and Risks - The company has a history of losses and may not achieve profitability in the future, raising concerns about its ability to continue as a going concern[151]. - The company has an accumulated loss of approximately £1,427 million as of June 30, 2023, with cash and cash equivalents of £194.6 million and unused capacity under stocking loans of £97.6 million[168]. - The company expects to breach the liquidity covenant of £50 million during the second half of 2024 without raising additional capital[167]. - The company may continue to incur losses in the future due to various factors, including competition and economic conditions[179]. - The company has faced substantial doubt about its ability to continue as a going concern due to uncertainties in forecasting operating performance[185]. Market Conditions and Economic Factors - The automotive business is facing risks from the larger ecosystem, including consumer demand shifts towards electric vehicles and global supply chain challenges[199]. - Economic conditions, including rising interest rates and vehicle prices, may negatively impact vehicle purchase demand[200]. - Negative trends in the UK economy and other factors, such as stock market volatility and increased unemployment, may further reduce vehicle demand[200]. - Increases in gasoline prices may adversely affect consumer demand for vehicles, impacting sales and valuations[199]. - The lingering impacts of COVID-19 continue to constrain the supply of new cars, which may lead to a decline in the supply of used cars over time[199].

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Financial Data and Key Metrics Changes - The company reported revenues of GBP171 million for Q2 2023, a 44% decrease year-on-year, attributed to lower volume as part of a focus on unit economics rather than volume [4][38] - Retail GPU improved from GBP596 in Q4 2022 to GBP1,290 in Q2 2023, indicating a significant enhancement in unit profitability [3][36] - Adjusted EBITDA loss for H1 2023 was GBP70 million, less than half the losses from the same period last year [25][51] Business Line Data and Key Metrics Changes - Retail units sold in H1 2023 were 22,438, a 22% decrease compared to the previous year, while total units including wholesale were down 29% [38] - Ancillary revenue for the first six months was GBP17 million, only a 2% decline despite a 22% drop in retail units, showcasing improved customer journey and competitive pricing [11][46] Market Data and Key Metrics Changes - The company has exited European operations and is now fully focused on the UK market, which is seen as having the largest opportunity [35][44] - The UK used car market is valued at GBP100 billion annually, with low online penetration and a fragmented retailer base, presenting a significant growth opportunity [44] Company Strategy and Development Direction - The company has prioritized unit economics, cash preservation, and optimization of the fixed cost base, resulting in a restructuring that generated around GBP100 million in annualized SG&A savings [33][45] - The strategy includes improving inventory management and targeting inventory based on desirability and GPU, which has led to price increases for certain vehicles [65][68] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in laying the foundation for profitable growth despite a challenging economic environment, emphasizing the appeal of their proposition to consumers [52] - The company anticipates that factors such as the cost of living and financing will continue to impact consumer behavior in the used car market [46] Other Important Information - The company has identified an additional GBP20 million in annualized cash savings expected to be realized in the second half of the year, benefiting performance in 2024 [10][49] - The cash position at the end of June 2023 was GBP195 million, with expectations of year-end cash between GBP110 million and GBP130 million [16][26] Q&A Session Summary Question: What percentage of the expense is fixed today, and what level of volume can the current cost structure support? - Management estimated that a little over half of SG&A costs are fixed, with the remaining portion being variable, indicating limited additional costs to support increased volume [54][58] Question: Can you elaborate on the average price per car in the retail segment and expectations for the full year? - Management noted a 5% year-on-year increase in average price per car in Q2, with improvements in GPU being a key focus [56] Question: Any updates on discussions with bondholders regarding potential restructuring? - Management confirmed ongoing discussions with bondholders, emphasizing the need for an improved capital structure to support future growth and profitability [60] Question: What trends are observed in unit sales growth in July? - Management reported continued focus on unit economics with improvements in GPU and variable costs, despite a challenging market [68]

Cazoo Group Ltd. (NYSE:CZOO) Q1 2023 Earnings Conference Call April 13, 2023 8:00 AM ET Anna Gavrilova – Head-Investor Relations Alex Chesterman – Founder and Executive Chairman Conference Call Participants Catherine O'Neill – Citi Greetings, and welcome to the Cazoo First Quarter 2023 Earnings Call. [Operator Instructions] As a reminder this conference is being recorded. Anna Gavrilova You will be able to find today's press release on our Investor Relations website at investor.cazoo.co.uk. We appreciate ev ...

Financial Performance - Revenue for Q1 2023 was £247 million, a decrease of 11% compared to £279 million in Q1 2022[6] - Gross profit reached £14 million, with a gross margin of 5.8%, up from 1.1% in Q1 2022[6] - Retail Gross Profit per Unit (GPU) improved significantly to £980, a 690% increase compared to £124 in Q1 2022[6] - Cash and cash equivalents decreased by 58% to £215 million from £525 million year-over-year[6] Sales Metrics - Vehicles sold totaled 17,447, down 7% from 18,679 in the same period last year[6] - Retail units sold increased by 4% year-over-year to 13,314, supported by strong momentum and inventory levels[10] - Ancillary revenue per retail unit sold rose by 10% year-over-year to £708, reflecting improvements in the company's offerings[10] - The finance attachment rate increased to 52.5%, up from 51.5% in Q4 2022[10] Operational Changes - The company incurred approximately £13 million in one-off costs related to rightsizing headcount and operational footprint as part of the Revised 2023 Plan[10] - Self-financed inventory was approximately £60 million as of March 31, 2023, down from approximately £75 million at the end of 2022[10]