Common use of LEASE COMMITMENTS Clause in Contracts

LEASE COMMITMENTS. The Group has entered into non-cancellable operating leases in respect of vehicles and equipment, the payments for which extend over a period of up to six years. The total annual rental for 1997 was (Pounds)7,131,000 (1996-- (Pounds)8,934,000). The lease agreements provide typically that the Group will pay all insurance, maintenance and repairs. In addition, the Group leases certain land and buildings on short- and long- term operating leases. The annual rental on these leases was (Pounds)12,547,000 (1996--(Pounds)12,756,000). The rents payable under these leases are subject to renegotiation at various intervals specified in the leases. The Group typically pays all insurance, maintenance and repairs of these properties. The annual rental commitments under the foregoing leases comprise: Vehicles and Property equipment ----------- ----------- (Pounds)000 (Pounds)000 1997 Operating leases which expire - --within one year 728 629 - --within two-five years 4,083 3,288 - --after five years 2,966 569 1996 Operating leases which expire 7,777 4,486 ===== ===== - --within one year 1,005 1,106 - --within two-five years 3,186 1,549 - --after five years 4,623 437