Car finance fintech hits record sales, but sees profits slide
North West-based car finance fintech Zuto has reported record sales growth, but has seen pre-tax profits shrink in the year to June 30, 2022.
The group, which has bases in Manchester and Macclesfield, achieved a 49% boost to turnover of £41.5m, which it said was attributable to customer volumes buoyed by a burgeoning market.
However, pre-tax profits dropped from £5.6m in 2021 to £4.9m. There were £127,520 of exceptional administrative expenses during the reporting period, compared with £18,987 the previous year.
The company was recognised with B Corp certification in April 2022.
In looking after its staff, or Zutonites, the firm sought to ease the impact of the cost of living crisis on its personnel through measures such as the roll-out of discounted transport/parking rates and free expert financial advice for all, as well as committing to paying the UK Living Wage as a minimum.
Zuto said it has maintained its relentless focus on technology-driven, customer-first products, coupled with human experience to support and educate customers through the car buying journey, adding it has doubled down on this to drive continued growth.
CEO, James Wilkinson, said: “Our financial success is underpinned by a focus on people and a wider purpose, exemplified by our B Corp certification in April 2022. In addition to maintaining a relentless growth mindset, the team has prioritised the wellbeing of our employees – who we call Zutonites, the development of the customer experience and nurturing close and long standing relationships with partners and lenders.”
The business continues to invest in its platform with an ongoing focus on utilising data to provide personalised offerings, returning real time rates and pre-approvals for customers at scale. The company said it is well prepared for the FCA-mandated Consumer Duty coming into force in July 2023, and welcomes the changes for the industry, as it will ensure good customer outcomes are at the forefront of all decision making.
