OPERATING PROFIT

In the 2007 financial year, operating profit before specific items of £2,713 million was 3% higher than the 2006 financial year. The increase in the 2007 financial year reflects the revenue growth of 4% offset by increased operating costs, described above. Operating profit of £2,633 million in the 2006 financial year was 2% lower than the 2005 financial year due to the higher operating costs.
Total operating profit after specific items for the 2007 financial year was £2,541 million compared to £2,495 million in the 2006 financial year and £2,992 million in the 2005 financial year.

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