British car retailer Cazoo flags limited liquidity (updated)

Cazoo

18/12/2023 21:39

(Adds details on liquidity and background in paragraphs 2-5)
       Dec 18 (Reuters) - British online car retailer Cazoo
Group  CZOO.N  said on Monday it had limited liquidity and will
need to raise additional capital before the beginning of the
second half of 2024 to pursue its business objectives.
    The company expects to have cash and cash equivalents
between 100 million pounds ($126.41 million) and 115 million
pounds at the year end, and aims to cut back cash utilization to
between 25 million pounds and 35 million pounds per quarter
starting 2024.
    Cazoo currently utilizes between 30 million pounds and 40
million pounds in cash each quarter, according to a regulatory
filing.
    The company in August raised substantial doubt about its
ability to continue as a going concern amid a tough economic
backdrop across its UK and global markets. 

 ($1 = 0.7911 pounds)

 (Reporting by Deborah Sophia in Bengaluru; Editing by Shounak
Dasgupta)
 ((DeborahMary.Sophia@thomsonreuters.com))