Risks and uncertainties

The operational risks facing the Group for the remaining six months of the financial year are consistent with those outlined in the Annual Report for the year ended 31 March 2007. The outlook for the property market and the economy is weaker than in March 2007, but the risk mitigants listed in the 2007 Annual Report are still appropriate. Our development letting risk exposure has reduced materially since March 2007 as a result of the progress we have made on development lettings over the half year.