Notes to the Accounts For the year ended 31 December 2007

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23. Commitments

Operating lease commitments

At 31 December 2007 the Group was committed to make the following payments in respect of non-cancellable operating leases:

Land and buildings Other
  2007
£'000
2006
£'000
2007
£'000
2006
£'000
Leases which expire:        
Within one year 2,562 1,034 449 284
Within two to five years 29,411 25,280 7,526 4,645
After five years 57,980 53,088
  89,953 79,402 7,975 4,929

The Group leases various offices under non-cancellable operating lease agreements. The leases have varying terms, escalation clauses and renewal rights.

The Group also leases various plant and machinery under operating lease agreements. The Group is required to give a varying notice for the termination of these agreements.

Capital commitments

The Group had contractual capital commitments of £1.2m as at 31 December 2007 (2006: £0.6m) relating to property, plant and equipment. The Group had contractual capital commitments of £3.4m as at 31 December 2007 (2006: £0.2m) relating to computer software.

VAT group registration

As a result of group registration for VAT purposes, the Company is contingently liable for VAT liabilities arising in other companies within the VAT group which at 31 December 2007 amounted to £7.6m (2006: £6.3m).

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