Savills plc - Investor relations

NOTES TO THE ACCOUNTSyear ended 31 December 2003Capital Share Profitredemption premium & loss21. Reserves reserve account accountGroup £’000 £’000 £’000At 1 January 2003 - 41,512 43,834New shares issued - 725 -Purchase of own shares 107 - (4,256)Profit transferred to reserves - - 14,433Exchange movement - - (2,304)At 31 December 2003 107 42,237 51,707The total cumulative goodwill relating to Group undertakings eliminated against reserves at 31 December 2003 amounted to £3,794,000 (2002 - £3,794,000).CapitalShare premium redemption Merger Profit & lossaccount reserve reserve accountCompany £'000 £'000 £'000 £'000At 1 January 2003 41,512 - 3,009 22,102New shares issued 725 - - -Purchase of own shares - 107 - (4,256)Exchange movement - - - 33Profit transferred to reserves - - - (798)At 31 December 2003 42,237 107 3,009 17,08122. Capital commitments - GroupCapital expenditure contracted at the year-end, which has not been provided for, amounted to £nil (2002 - £100,000).23. Contingent liabilitiesThe Company is a participator in the Surveyors Mutual Insurance Association (SURMIA). SURMIA currently has a deficit between net assets and estimated liabilities in respect of notified potential claimants. Potentialclaimants have an extended period in which to make a claim, and additional liabilities may continue to emerge. In the event of any other members of SURMIA being unable to meet their cash calls, a share of theadditional shortfall would revert to the Company.As at 31 December 2003, the Company has made a provision of £31,000 (2002 - £31,000), being Savills' share of the potential deficit based on current notified claims as advised by the professional managers ofSURMIA. It is not possible to estimate the extent of any additional future liabilities which may emerge.There were outstanding Company guarantees in respect of financial obligations of subsidiary undertakings £2.3m (2002 - £1.9m) and associated undertakings £nil (2002 - £3.2m).Property leases Other leases Total31 December 31 December 31 December 31 December 31 December 31 December2003 2002 2003 2002 2003 200224. Operating lease commitments - Group £'000 £'000 £'000 £'000 £'000 £'000Annual rentals payable on leases expiring:Within one year 298 924 138 241 436 1,165In one to five years 4,873 5,059 830 516 5,703 5,575After five years 2,476 2,595 - 36 2,476 2,6317,647 8,578 968 793 8,615 9,37168