Cazoo Group Ltd, the online car retailer, has posted a revenue increase of 521 per cent for the first half to end June 2021. It had sold 20,454 vehicles, achieving revenue of £248 million with a gross profit of £11 million.
It completed 3 acquisitions during H1 to accelerate its growth strategy and brought UK reconditioning in-house giving it full control of refurbishment operations. It had also prepared the ground for launches in France and Germany, whilst introducing a car subscription service in UK offering all-inclusive single monthly payment.
Alex Chesterman OBE, Founder & CEO of Cazoo, commented, “We achieved record results in H1 with continued strong growth in revenue and gross profit per unit. Consumers continue to embrace the selection, transparency and convenience of buying cars entirely online, generating record revenue of £248 million during the half, up 521 per cent year on year. Our gross profit per unit grew substantially during the first half, up £670 year on year, as a result of continued operational improvements. We expect operational efficiencies to continue to drive further gross margin improvement and we remain on track to achieve revenue approaching $1 billion in 2021.
“Following our acquisition of SFS in Q1 we brought vehicle reconditioning fully in-house in the UK in Q2 and recently expanded our capabilities with the acquisition of SMH earlier this month. The biggest constraint we face is being able to recondition vehicles in the volumes required to meet consumer demand and this latest strategic acquisition will de-risk our future growth by doubling our capacity and significantly enhancing our team of vehicle preparation and logistics staff, giving us the ability to meet our growth aspirations over the next two years.”
“Since the end of the period we completed our listing on the NYSE, raising proceeds of approximately US$836 million, net of fees to further accelerate our growth. In July, we launched our ‘car buying’ service, now offering consumers a better digital experience when selling their car as well as buying a car. We expect this to change our buying mix significantly over time, helping to further improve future margins. This month we also acquired Cazana, a leading automotive data insights platform, enhancing our data team and capabilities which will enable us to further optimise our purchasing and pricing of vehicles across the UK and Europe.”
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