Cazoo Group Ltd Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

Inventory

Inventory

12 Months Ended

Dec. 31, 2021

Disclosure of inventories [text block] [Abstract]

16. Inventory

	At December 31 2021		At December 31 2020		At December 31 2019
	£’000		£’000		£’000

Finished goods and work in in progress		336,501		114,694		42,970
Goods in transit		28,084		-		-

Inventory		364,585		114,694		42,970

At each reporting period the Group recognizes any necessary adjustments to reflect vehicle inventory at the lower of cost or net realizable value. Further detail on the estimates made in the calculation of net realizable value is set out in Note 4.2.

As at December 31 the inventory provision is stated as follows:

	At December 31 2021			At December 31 2020			At December 31 2019
	£’000			£’000			£’000

Gross inventory		369,532			118,203			43,969
Inventory provision		(4,947	)		(3,509	)		(999	)

Inventory		364,585			114,694			42,970

During the year £447.2 million (2020: £161.2 million) was recognized as an expense for inventory carried at net realizable value. This is recognized in cost of sales.

The sensitivity of the inventory provision, based upon a 2% change in the expected selling price of inventory input, is as follows:

	Change in expected selling price estimate		Change in inventory provision 2021			Change in inventory provision 2020
	%		£’000			£’000

Inventory provision		+2		1,417			882
Inventory provision		-2		(1,904	)		(1,132	)

As at December 31, 2021 inventory of £273.3 million (2020: £96.3 million) was held as a security against stocking loans.