Financial Instruments (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Financial Instruments [Abstract]

Schedule of Financial Assets, Other than Cash and Short-Term Deposits

Set out below is an overview of financial assets, other than cash and short-term deposits, held by the Group as at June 30, 2023 and December 31, 2022:

	At June 30 2023 £’000		At December 31 2022 £’000
Financial assets at amortized cost
Trade receivables		18,888		24,475
Contract assets		263		248
Lease deposits		4,356		5,664
		23,507		30,387
Current		19,151		24,723
Non-current		4,356		5,664

Set out below is an overview of financial assets, other than cash and short-term deposits, held by the Group as at December 31, 2022 and December 31, 2021:

	At December 31		At December 31
	2022		2021
	£’000		£’000
Financial assets at amortized cost
Trade receivables		24,475		14,796
Contract assets		248		3,451
Lease deposits		5,664		5,124
Total financial assets		30,387		23,371
Current		24,723		18,247
Non-current		5,664		5,124

Schedule of Interest-Bearing Loans and Borrowings

Interest-bearing loans and borrowings

			At June 30 2023		At December 31 2022
	Interest rate %	Maturity	£’000		£’000
Current
Convertible Notes	2%	Within one year		1,248		1,301
Stocking loans	Base rate + 0.5% – 2%	On earlier of sale or 180 days		82,350		161,592
Subscription facilities	Base rate + 1.7%	Within one year		763		14,983
Secured asset financing	3% – 12%	Within one year		1,024		1,479
Bank loans		Within one year		—		30
Lease liabilities	1% – 13%	Within one year		17,972		28,596
				103,357		207,981
Non-current
Convertible Notes	2%	2027		275,169		265,631
Secured asset financing	3% – 12%	2026 – 2027		2,338		4,113
Lease liabilities	1% – 13%	2024 – 2042		76,056		88,864
				353,563		358,608

Financial liabilities: Interest-bearing loans and borrowings

	Interest rate		At  December 31 2022		At December 31 2021
	%	Maturity	£’000		£’000
Current
Convertible Notes	2%	Within one year		1,301		—
Stocking loans	Base rate + 0.5% – 2.2%	On earlier of sale or 180 days		161,592		169,170
Subscription facilities	Base rate + 1.7%	Within one year		14,983		10,188
Secured asset financing	3% – 7%	Within one year		1,479		—
Bank loans		Within one year		30		635
Mortgages				—		547
Lease liabilities	1% – 13%	Within one year		28,596		18,826
				207,981		199,366
Non-current
Convertible Notes	2%	2027		265,631		—
Stocking loans				—		8,809
Subscription facilities				—		56,987
Secured asset financing	3% – 7%	2027		4,113		—
Bank loans				—		815
Mortgages				—		1,502
Lease liabilities	1% – 13%	2024 – 2042		88,864		71,574
				358,608		139,687

Schedule of Other Financial Liabilities

Other financial liabilities

	At June 30 2023		At December 31 2022
	£’000		£’000
Financial liabilities at fair value through profit or loss
Warrants		16		515
Embedded derivative		78,978		82,108
		78,994		82,623
Current		—		—
Non-current		78,994		82,623

Other financial liabilities

	At December 31 2022		At December 31 2021
	£’000		£’000
Financial liabilities at fair value through profit or loss
Warrants		515		42,692
Embedded derivative		82,108		—
		82,623		42,692
Current		—		—
Non-current		82,623		42,692

Schedule of Warrants Outstanding

The warrants entitle the holder to purchase one Class A ordinary share of Cazoo Group Ltd at a current exercise price of $230.00 per share (after giving effect to the reverse stock split). Until warrant holders acquire the Class A Shares upon exercise of such warrants, they have no rights with respect to the Class A Shares.

	Public		Private		Total
	Number		Number		Number
At December 31, 2021		20,124,748		21,129,818		41,254,566
At December 31, 2022		20,124,748		21,129,818		41,254,566

Schedule of Fair Value Measurement Hierarchy

The following table provides the fair value measurement hierarchy of the Group’s financial assets and financial liabilities as at June 30, 2023

	Level 1		Level 2		Level 3		Total
At June 30, 2023	£’000		£’000		£’000		£’000
Warrants		—		—		16		16
Embedded derivative		—		—		78,978		78,978
		—		—		78,994		78,994

The following table provides the fair value measurement hierarchy of the Group’s financial assets and financial liabilities:

	Level 1		Level 2		Level 3		Total
At December 31, 2022	£’000		£’000		£’000		£’000
Warrants		166		-		349		555
Embedded derivative		-		-		82,108		82,108
		166		-		82,457		82,623

	Level 1		Level 2		Level 3		Total
At December 31, 2021	£’000		£’000		£’000		£’000
Warrants		13,418		-		29,274		42,692

Schedule of Relevant In the Determination of Fair Value of the Private Warrants

The following information is relevant in the determination of fair value of the warrants and the embedded derivative at June 30, 2023

	Warrants			Embedded derivative
Expected term (years)		7			4
Expected volatility		81.1	%		79.6	%
Dividend yield		Nil			Nil
Risk free interest rate		4.08	%		4.38	%

The following information is relevant in the determination of fair value of the private warrants and the embedded derivative at December 31, 2022:

	Private warrants			Embedded derivative
At December 31, 2022
Expected term (years)		7			4
Expected volatility		93.4	%		62.3	%
Credit spread		N/A			25.9	%
Dividend yield		Nil			Nil
Risk free interest rate		3.9	%		4.1	%

	Private warrants
At December 31, 2021
Expected term (years)		7
Expected volatility		47.1	%
Dividend yield		Nil
Risk free interest rate		1.4	%

Schedule of Fair Value Movements

The fair value movements are set out as follows

	Warrants			Embedded derivative			Total
	£’000			£’000			£’000
At January 1, 2023		515			82,108			82,623
Fair value movement		(478	)		226			(252	)
Foreign exchange movements		(21	)		(3,356	)		(3,377	)
At June 30, 2023		16			78,978			78,994

The fair value movements are set out as follows:

	Public warrants			Private warrants			Embedded derivative			Total
	£’000			£’000			£’000			£’000
At December 31, 2020		-			-			-			-
Warrants issued upon acquisition of Drover		-			6,566			-			6,566
Fair value movement		-			102			-			102
Exercise of warrants		-			(6,667	)		-			(6,667	)
Warrants issued in the Transaction		22,475			46,887			-			69,362
Fair value movement		(9,057	)		(17,614	)		-			(26,671	)
At December 31, 2021		13,418			29,274			-			42,692
Issuances		-			-			251,287			251,287
Fair value movement		(14,799	)		(32,298	)		(198,769	)		(245,866	)
Foreign exchange movements		1,547			3,373			29,590			34,510
At December 31, 2022		166			349			82,108			82,623

Schedule of Profit Before Tax Is Affected Through the Impact on Floating Rate Borrowings

Interest rate risk management

	Change		Effect on profit before tax 2022			Effect on profit before tax 2021
	in basis points		£’000			£’000
Loans and borrowings		+100		(2,350	)		(1,393	)
Loans and borrowings		-100		1,754			95

Schedule of Exposure to Foreign Currency Changes for All Other Currencies is Not Material

The following tables demonstrate the sensitivity to a reasonably possible change in EUR exchange rate, with all other variables held constant. The impact on the Group’s profit before tax is due to changes in the fair value of monetary assets and liabilities. The Group’s exposure to foreign currency changes for all other currencies is not material.

	Increase/decrease			Effect on profit before tax from discontinued operations			Effect on pre-tax equity
	in EUR rate			£’000			£’000
2022		+5	%		(8,613	)		(6,516	)
		-5	%		8,613			6,516
2021		+5	%		(1,336	)		(1,170	)
		-5	%		1,336			1,170

Schedule of Financial Liabilities Based Upon Contractual Undiscounted Payments

The table below summarizes the maturity profile of the Group’s financial liabilities based upon contractual undiscounted payments:

	Less than one year		1 to 5 years		Over 5 years		Total
At December 31, 2022	£’000		£’000		£’000		£’000
Convertible Notes		10,411		554,366		-		564,777
Stocking loans		164,478		-		-		164,478
Subscription facilities		15,354		-		-		15,354
Secured asset financing		1,727		4,408		-		6,135
Bank loans		30		-		-		30
Lease liabilities		24,203		56,324		72,644		153,171
Trade payables		68,201		-		-		68,201
Total		284,404		615,098		72,644		972,146

	Less than one year		1 to 5 years		Over 5 years		Total
At December 31, 2021	£’000		£’000		£’000		£’000
Stocking loans		169,170		8,809		-		177,979
Subscription facilities		12,155		65,797		-		77,952
Bank loans		741		869		-		1,610
Mortgages		600		1,653		-		2,253
Lease liabilities		18,917		46,772		34,526		100,215
Trade payables		29,224		-		-		29,224
Total		230,807		123,900		34,526		389,233

Schedule of Changes in Liabilities Arising from Financial Activities

Changes in liabilities arising from financial activities

	Stocking loans			Subscription facilities			Secured asset financing			Bank loans			Mortgages			Lease liabilities			Convertible Notes and embedded derivative			Warrants			Total
	£’000			£’000			£’000			£’000			£’000			£’000			£’000			£’000			£’000
At December 31, 2020		86,709			-			-			-			3,494			48,048			-			-			138,251
New leases		-			-			-			-			-			26,228			-			-			26,228
Acquisition of subsidiaries		-			19,878			-			1,468			-			36,352			-			6,566			64,264
Issue of debt		665,325			107,683			-			30			-			-			-			-			773,038
Repayment		(574,055	)		(60,386	)		-			(48	)		(1,445	)		(18,597	)		-			-			(654,531	)
Terminations		-			-			-			-			-			(2,969	)		-			-			(2,969	)
Net accrued interest		-			-			-			-			-			1,338			-			-			1,338
Warrants issued and exercised		-			-			-			-			-			-			-			62,695			62,695
Fair value movement		-			-			-			-			-			-			-			(26,569	)		(26,569	)
At December 31, 2021		177,979			67,175			-			1,450			2,049			90,400			-			42,692			381,745
New leases		-			-			-			-			-			51,757			-			-			51,757
Sale and leasebacks		-			-			-			-			-			5,466			-			-			5,466
Transfers		-			-			-			-			-			(3,529	)		-			-			(3,529	)
Acquisition of subsidiaries		-			10,193			-			-			-			6,276			-			-			16,469
Disposal of subsidiaries		-			(14,731	)		-			-			-			(5,878	)		-			-			(20,609	)
Issue of debt		1,202,039			101,967			5,971			3			11			-			460,021			-			1,770,012
Repayment		(1,218,426	)		(120,559	)		(379	)		(1,423	)		(2,060	)		(29,198	)		-			-			(1,372,045	)
Terminations		-			-			-			-			-			(2,307	)		-			-			(2,307	)
Net accrued interest		-			-			-			-			-			5,245			33,425			-			38,670
Fair value movement		-			-			-			-			-			-			(198,769	)		(47,098	)		(245,867	)
Foreign exchange movements		-			-			-			-			-			231			54,363			4,921			59,515
Liabilities held for sale		-			(29,062	)		-			-			-			(1,003	)		-			-			(30,065	)
At December 31, 2022		161,592			14,983			5,592			30			-			117,460			349,040			515			649,212

Schedule of Stocking Loans are Used Specifically by the Group to Finance the Purchase of Inventory

The primary objective of the Group’s capital management is to finance operational and developmental activities. Stocking loans are used specifically by the Group to finance the purchase of inventory.

	At December 31 2022			At December 31 2021
	£’000			£’000
Inventory		232,565			364,585
Stocking loans		(161,592	)		(177,979	)
Net inventory		70,973			186,606
Cash and cash equivalents		258,321			192,629