9:06 am, January 6, 2023
‘Faff-free’ online used car retailer Cinch has posted a whopping pre-tax loss of £149m.
Latest accounts filed with Companies House for the year ended April 3, 2022 show Cinch Cars Ltd recorded a £149.1m pre-tax loss, or £126.7m after tax.
The pre-tax loss was a significant 578 per cent change from the £22m loss the firm made the year before.
Revenue stood at £815.6m while cost of sales were an £810.1m loss.
As of April 3, 2022, Cinch, which is part of Constellation Automotive Group, had a used car stock inventory worth £122.5m.
Its highest-paid director received a salary of £215,000.
During the year, Cinch increased its share of Automotion Events – the company behind the British Motor Show – by 18 per cent at a cost of £250,000, taking its ownership to 48 per cent.
Cinch said the losses were ‘consistent with the stage of development of the business, and ongoing investments in the Cinch online platform, marketing and operating scale’.
Directors said they have a ‘reasonable expectation’ that Cinch Cars Ltd ‘has adequate resources to continue in operational existence for the foreseeable future’.
They added: ‘During the year the company continue development of the Cinch online platform and supporting technology, designed to allow consumers to find, buy and sell a car based on their lifestyle requirements rather than purely based on technical specification or brand perceptions’
Looking to the future, Cinch said it will ‘continue to invest in promotional activities to grow brand awareness and will continue to provide a faff-free customer experience through further development of the digital platform’.
It added: ‘The company will explore opportunities for growth through new marketplaces and strategic investments and acquisitions.’
The accounts were published in the same week as the New York Stock Exchange suspended trading in warrants and started delisting proceedings for Cinch’s major rival, Cazoo.
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