Cazoo Group Ltd (NYSE:CZOO) Q4 2022 Earnings Call Transcript

Paul Woolf: Yes. No, happily. So the — I mean, as Alex said, it’s not with — there is a — the — we’re still evaluating the property side of it. So from — I mean, there’s obviously a difference between the P&L and the cash flow. From a cash flow side, it’s going to be — it’s some — a significant portion of the restructuring charges will be funded by the fact that we were running at a lower inventory. And we have, as you’ve been consistently told, significant cash tied up in inventory. So we’ll clarify all of the full results announcement. But it’s not a significant cash out over 2023 because of this sort of free up some inventory.

Adam Berlin: First what I’m trying to work out is if there’s £150 million of cash burn next year and that’s after the £75 million benefit you get from the subscription cars, inventory being sold? So that’s implying underlying £225 million cash burn in the U.K. business. I’m just trying to work out that’s all EBITDA mostly because as you say, you should be getting an inventory working capital benefit as well.

Alex Chesterman: The self-funded inventory doesn’t come down from £75 million to 0. The £75 million is an entirely on. So we will always €“ we’ll still have many, many thousands of cars, which are largely funded, but also have some self-funded. So you should expect that we will, throughout the year, continue to have £30 million or £40 million of cash tied up in our own inventory.

Operator: We’re showing no additional audio questions via the phone at this time.

Alex Chesterman: Great. Well, thank you, everybody, for joining, and feel free to reach out to Rob if anybody wants to follow up directly.

Operator: Thank you. Ladies and gentlemen, this does conclude today’s event. You may disconnect your lines at this time or log off the webcast, and enjoy the rest of your day.