Online car marketplace Cazoo is looking at ways to restructure its noteholders’ debt as it continues to shore up its balance sheet following an exit from the European market.
The firm has around $630m (£507.5m) in 2% convertible senior notes – which offer the investors the ability to earn interest – required in 2027.
In addition to the potential debt restructuring, Cazoo said it achieved a record retail GPU for last month and is predicted to surpass £1,200, up from £980 in Q1 2023.
“It is encouraging to see that the action points of our plan to improve unit economics and reduce costs are coming together, resulting in tangible progress every month,” said Paul Whitehead, CEO of Cazoo.
Cazoo reported at the end of April it had £215m in cash and cash equivalents.
The Q2 results come as the firm completes its exit from Europe to solely focus on its home market in the UK.
The business update states its £215m “excludes £6.8m of cash” for the sale of Cluno, which has not yet cleared.
“We have now completed our exit from the EU, allowing us to focus our efforts fully on the UK market, the largest in Europe,” said Whitehead. “We reiterate our guidance for 2023 and remain fully focused on improving our unit economics, optimizing our fixed cost base and maximizing our cash runway.”
Former COO Whitehead took over from Cazoo’s founder Alex Chesterman in April.