Interim results - 6 months ended 30 June 2006
Operating and financial review
Other operations
The Group’s other operations recorded an operating loss of £11 million (2005: loss of £6 million) on an IFRS basis. This comprises £20 million profit from RAC non-insurance operations (2005: £11 million), a loss from NU Life Services Ltd of £42 million (2005: £38 million loss) reflecting higher development costs, a £6 million loss resulting from the development of the Lifetime platform and £17 million profit from other non-insurance operations (2005: £21 million), including our Dutch banking division.
Operating profit from RAC non-insurance operations amounted to £20 million reflecting the inclusion of results for the entire period (2005: £11 million post acquisition). The sale of the Manufacturing Support Services division of RAC was completed in April, followed in May by the sale of our share of Lex Vehicle Leasing. Total proceeds were £354 million. Both operations were classified as held for sale at 31 December 2005 and the profit before tax on the disposals was £66 million. These businesses contributed an operating profit of £17 million in the period. This completes the disposal programme regarding the RAC non-core businesses.
On an EEV basis, operating profit from our other operations was £29 million (2005: £37 million) as this excludes the majority of NU Life Services Ltd losses which are incorporated within the life EEV operating return.
