Cazoo founder to step down as chief executive

Chesterman, who prior to setting up the online car retailer he created LoveFilm and Zoopla, will remain the company’s chief executive until April. He will, however, remain its executive chairman post April.  

This “customary” “splitting of these roles” will, according to the firm, allow Chesterman to focus on the strategic direction of the company and allow Whitehead to focus on the day-to-day operations of the business and unit economics improvements.  

It comes as the New York-listed company published both its fourth quarter and full year preliminary financial results for 2022, in which in the UK it reported revenues of approximately £315m in the fourth quarter and £1.2bn over the whole of 2022. It also sold around 17,750 retail units in the final quarter of 2022, and 65,000 across the full year.  

Additionally, the firm outlined its revised plans for 2023, in which it aims to sell around 40,000 to 50,000 retail units and expects to make “further headcount reductions”, as well as close some vehicle and customer centre facilities.  

Commenting on these results, Chesterman said: “I am pleased with our progress in the fourth quarter despite the challenging economic backdrop. We had another strong quarter of UK retail unit sales, up over 100% year on year, and we have now sold well over 100,000 cars entirely online in the UK in just 3 years since our launch. 

“We remain, however, extremely mindful of the current economic environment and believe the right course of action for 2023 is to focus on further improving our unit economics, reducing our fixed cost base and maximising our cash runway.  

“During 2022 we have proven our ability to buy and sell cars at scale. Our new 2023 plan, which includes more modest top line ambitions, ensures that we continue to improve our unit economics, reduces our fixed costs and conserves cash as we make continued progress towards our goal of reaching profitability, without the need to raise further funding over the next 18-24 months.”