28 Contingent assets and liabilities

The Group is involved in an arbitration with Finmeccanica SpA, the acquirer of the Group’s joint venture share in AgustaWestland, over the potential release of the £35 million set aside in escrow as deferred consideration on the disposal. An amount receivable will only be recognised on conclusion of the arbitration.

At 31 December 2007 the Group had contingent liabilities in respect of bank and other guarantees amounting to £7 million (2006 – £5 million). In the case of certain businesses, performance bonds and customer finance obligations have been entered into in the normal course of business.