Online car retailer ‘may never achieve profitability’
By Sarah Wood | 9th May 2022
Online car retailer, Cazoo, has said that it cannot guarantee it will ever achieve a profit.
That's according to a report issued to the Securities and Exchange Commission (SEC), an independent agency of the US federal government, as reported by AM Online.
The admission comes just days after a trading update showed that Cazoo's gross profits and profit-per-unit both had both declined in the first quarter of 2022.
Cazoo reported a £550m loss in 2021.
The SEC report stated that the retailer hasn't been profitable since the business began in December 2019 and had an accumulated loss of around £664.3 million on December 31, 2021.
It said it expects to continue to incur losses in the future as it invests in the business. While Cazoo believes it will be come profitable in future, it cannot guarantee that will happen.
Last year, the company, which sponsors Aston Villa and Everton football clubs, spent £65.2m on marketing, advertising, customer experience and other marketing related costs.
Cazoo currently operates 21 customer centres and 10 vehicle preparation centres in the UK.
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