Annual Report and Accounts 2009

Notes to the Consolidated Financial Statements for the year to 31 December 2009

16. Inventories

  2009
£m
2008
£m
Raw materials and consumables 1.6 1.5
Finished goods and goods for resale 12.1 34.4
Residential developments:
Land* 2,341.8 3,410.3
Development and construction costs 1,242.8 1,438.8
Commercial, industrial and mixed development properties 5.0 5.6
  3,603.3 4,890.6

* Details of land creditors are in Note 20.

The Directors consider all inventories to be current in nature. The operational cycle is such that the majority of inventory will not be realised within 12 months. It is not possible to determine with accuracy when specific inventory will be realised, as this will be subject to a number of issues such as consumer demand and planning permission delays.

Non-refundable land option payments of £81.2m (2008: £81.3m) are recorded within 'Residential developments: Land'.