Online car finance broker Zuto makes first pre-tax profit since 2015


An online car finance broker, which works with the likes of Auto Trader, Gumtree and Clearscore, has made a pre-tax profit for the first time since 2015.

Zuto has reported a profit of £5.3m for the 12 months to June 30, 2021, up from a loss of more than £1m in the prior year.

The last time the company, which has bases in Manchester and Macclesfield, was not in the red was during the 12 months to the end of February 2015 when it made a pre-tax profit of £889,474.

READ MORE: Auto Trader agrees to acquire new car leasing marketplace for £200m

Zuto has also reported a turnover of £27.9m for its latest financial year, up from £24.6m.

The company was founded in 2006 as Car Loan 4U by CEO James Wilkinson and Ryan Dignan and has been backed by Scottish Equity Partners since 2014 when it secured a £8m investment.

In August 2021, the company announced plans to create 100 jobs by the end of the year.

A statement signed off by the board, included in newly-filed documents with Companies House, said: “Zuto’s strong performance throughout the pandemic is reflected by overall turnover of £28m being up 13% and gross margin behind up 3% year on year.

“It is particularly encouraging that the record levels of monthly turnover and profitability being achieved in 2020 prior to the onset of Covid-19 have been surpassed in 2021 – this being achieved in a year where the ongoing effects of the pandemic have undoubtedly remained pervasive.

“This positive trading momentum has continued into the current trading year, underpinned by a highly scalable platform that matches the right customer to the right lender in seconds – with the best experience relevant to the customer’s circumstances.

“This growth is supported by a balance sheet that continues to go from strength-to-strength, with net assets increasing to £7m.”

It added: “The directors are especially proud of the progress made in 2021, with the business not just proving to be extremely robust through the ongoing challenges of the pandemic, but driving innovation and gearing up to accelerate growth and truly change the industry for the better.

“We are confidence we can achieve our growth plans, with macro-economic and leading consumer confidence metrics all demonstrating the opportunity is there; and current year financial performance once again outpacing our plan at both a revenue and profitability level.”


Source link