Analysis of results by business

	Other operations

	The following section analyses the Group’s performance within the businesses, showing selected income and expenditure information extracted from the Group’s profit and loss account. As inter-business activities are included within these figures, the total income and expenditure for the businesses do not equate to the amounts reported in the Group’s results.

	Financial performance
		2000	1999	1998
		£m	£m	£m
	Property management	41	21	(17)
	Central services	(75)	(52)	(52)
	Management of Group capital	33	44	(98)
	Operating (loss)/profit	(1)	13	(167)

The increased surplus on Property management reflects an increase in the profit on disposal of properties (2000 £11m, 1999 £3m) and an increase in costs recharged to Group businesses. The Central services deficit for the year increased by £23m as a result of increased strategic investment in e-commerce and other infrastructure technology by Service Provision. The surplus reported in Management of Group capital is attributable to credits arising in transition businesses that are managed centrally. These have been partly offset by a deficit from the central management of Group capital, compared with a surplus in 1999. This is mainly attributable to increased interest allocations to business groups, reflecting higher short-term interest rates and increased usage of regulatory capital by individual businesses. The basis of allocation to the businesses remains in line with previous years. Lower average medium term rates have also had an adverse effect on the earnings from capital balances as have the costs of share buy-backs.