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ANNUAL REPORT AND FINANCIAL STATEMENTS 2011 | 103


34. Contingent liabilities


Ongoing business operations In the normal course of its business, the Group is subject to matters of litigation or dispute. While there can be no assurances, at this time the Directors believe, based on the information currently available to them, that it is not probable that the ultimate outcome of any of these matters will have a material adverse effect on the financial condition of the Group.


35. Commitments


Operating leases The Group has the following future minimum rentals payable in respect of non-cancellable operating leases and other contracts at the year end:


Premises


2010 £m


Other contracts


31 December 31 December 31 December 31 December 2011 £m


2011 £m


Not later than one year


Later than one year and not later than five years Later than five years


12.1 35.1 24.5


71.7


12.9 39.5 33.4


85.8


3.2 1.3 –


4.5


Commitments in respect of premises leases exclude service charges and other costs, which are variable in nature, and cannot be reliably estimated.


Obligations in respect of other contracts are stated gross and exclude amounts potentially recoverable from brokers under commission sharing arrangements.


Sub-lease receivables Future minimum rentals receivable under non-cancellable operating leases at the year end are as follows:


Premises


31 December 31 December 2011 £m


2010 £m


Not later than one year


Later than one year and not later than five years Later than five years


3.3


11.5 8.3


23.1 3.8


11.3 9.1


24.2


A contingent lease payment, based on a percentage of revenue, is receivable in addition to the minimum lease payments in respect of one property. The maximum amount receivable under this arrangement is £0.6m (31 December 2010: £0.6m) per annum.


Other commitments A number of third-party administration services are provided under contracts with a fixed-term duration. The actual amounts payable under these contracts vary according to the level of services received. The minimum amounts payable under the terms of the contracts are as follows:


Third-party administration


31 December 31 December 2011 £m


2010 £m


Not later than one year


Later than one year and not later than five years Later than five years


4.0


13.8 2.4


20.2


Capital commitments The amount of capital expenditure contracted for, but not provided for in the Financial Statements at 31 December 2011, was £0.1m (31 December 2010: £0.5m).


– – –





2010 £m


2.8 1.1 –


3.9


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