| Discontinued operations |
12. Discontinued operations
On September 8, 2022, the Group announced the
conclusion of its strategic review of its business in mainland Europe. Following a review of a range of strategic options, Management
concluded that Cazoo would focus exclusively on its core opportunity in the UK. As a result, the Group commenced an orderly winddown
of its operations in mainland Europe. On October 31, 2022, the Group sold its Italian operations, Cazoo Trading Italy S.p.A., to Aramis
Group SA. brumbrum was previously acquired on January 31, 2022, refer to Note 14 for further details. On December 15, 2022, the Group
sold its Spanish subscription business, Swipcar 2017, S.L., to Renting Finders S.L.
At December 31, 2022, the EU segment was classified
as a discontinued operation. The comparative year ended December 31, 2021 has been restated to show the EU segment as a discontinued
operation. There was no EU segment in 2020.
In December 2022, management committed to a plan
to sell Cluno GmbH. Accordingly, Cluno GmbH is presented as a disposal group held for sale.
For the comparative year ended December 31, 2020,
the Imperial Car Supermarkets Limited (“Imperial”) dealership centers were treated as a discontinued operation in accordance
with IFRS 5. The dealership centers were converted to Cazoo Customer Centers in order to align with the Group’s online strategy.
Results of discontinued operations
| |
|
Year ended
December 31
2022
£’000 |
|
|
Year ended
December 31
2021
£’000 |
|
|
Year ended December 31 2020
£’000 |
|
| |
|
|
|
|
|
|
|
|
|
| Revenue |
|
|
158,384 |
|
|
|
12,391 |
|
|
|
27,194 |
|
| Expenses |
|
|
(325,779 |
) |
|
|
(29,098 |
) |
|
|
(30,315 |
) |
| Loss from operations |
|
|
(167,395 |
) |
|
|
(16,707 |
) |
|
|
(3,121 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Finance income |
|
|
19 |
|
|
|
1 |
|
|
|
- |
|
| Finance expense |
|
|
(4,019 |
) |
|
|
(1,053 |
) |
|
|
(688 |
) |
| Loss on sale of discontinued operations |
|
|
(14,509 |
) |
|
|
- |
|
|
|
- |
|
| Impairment loss on remeasurement of the disposal group |
|
|
(2,518 |
) |
|
|
- |
|
|
|
- |
|
| Loss before tax from discontinued operations |
|
|
(188,422 |
) |
|
|
(17,759 |
) |
|
|
(3,809 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Tax expense |
|
|
2,660 |
|
|
|
3,542 |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Loss for the year from discontinued operations |
|
|
(185,762 |
) |
|
|
(14,217 |
) |
|
|
(3,809 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
| Basic loss per ordinary share from discontinued operations |
|
£ |
(4.87 |
) |
|
£ |
(0.42 |
) |
|
£ |
(0.15 |
) |
| Diluted loss per ordinary share from discontinued operations |
|
£ |
(4.87 |
) |
|
£ |
(0.42 |
) |
|
£ |
(0.15 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Net cash flows from/(used in) discontinued operations: |
|
|
|
|
|
|
|
|
|
|
|
|
| Operating |
|
|
(79,232 |
) |
|
|
(122,646 |
) |
|
|
23,581 |
|
| Investing |
|
|
(57,127 |
) |
|
|
(38,109 |
) |
|
|
- |
|
| Financing |
|
|
(29,134 |
) |
|
|
29,110 |
|
|
|
(34,987 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Net cash outflow |
|
|
(165,493 |
) |
|
|
(131,645 |
) |
|
|
(11,406 |
) |
Effect of disposal on the financial position of the Group
| |
|
£’000 |
|
| |
|
|
|
| Property, plant and equipment |
|
|
(12,333 |
) |
| Right-of-use assets |
|
|
(5,720 |
) |
| Inventory |
|
|
(5,570 |
) |
| Trade and other receivables |
|
|
(6,020 |
) |
| Cash and cash equivalents |
|
|
(10,800 |
) |
| Trade and other payables |
|
|
3,424 |
|
| Loans and borrowings |
|
|
14,731 |
|
| Lease liabilities |
|
|
5,878 |
|
| Provisions |
|
|
770 |
|
| Net assets and liabilities |
|
|
(15,640 |
) |
| |
|
|
|
|
| Consideration received, satisfied in cash |
|
|
1,131 |
|
| Cash and cash equivalents disposed of |
|
|
(10,800 |
) |
| Net cash outflow |
|
|
(9,669 |
) |
Disposal group held for sale
The major classes of assets and liabilities of
Cluno GmbH classified as held for sale as at December 31, 2022 are as follows:
| |
|
£’000 |
|
| |
|
|
|
| Property, plant and equipment |
|
|
39,369 |
|
| Right-of-use assets |
|
|
878 |
|
| Intangible assets |
|
|
1,729 |
|
| Inventory |
|
|
7,865 |
|
| Trade and other receivables |
|
|
3,522 |
|
| Cash and cash equivalents |
|
|
12,442 |
|
| Assets held for sale |
|
|
65,805 |
|
| |
|
|
|
|
| Trade and other payables |
|
|
(4,504 |
) |
| Loans and borrowings |
|
|
(29,062 |
) |
| Lease liabilities |
|
|
(1,003 |
) |
| Provisions |
|
|
(5,033 |
) |
| Liabilities associated with assets held for sale |
|
|
(39,602 |
) |
| |
|
|
|
|
| Net assets directly associated with disposal group |
|
|
26,203 |
|
|