Other income other income net of cost of sales was 20

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Other incomeOther income, net of cost of sales, was £2.0 million (H1 2020: £1.4 million). Other income primarily relates to rent received fromMorrisons in respect of Dordon CFC rent recharges.11
Distribution and administrative costsDistribution costscomprise the costs of fulfilment and delivery operations which are recharged to Ocado Retail and Morrisons, andengineering and other support costs for the provision of the contracted services, for which fees are charged.Total distribution costs grew by 11.1% to £290.5 million (H1 2020: £261.4 million), against a growth in average eaches shipped perweek (total CFC throughput) of 16.2% to 25.8 million (H1 2020: 22.2 million eaches per week). Productivity improvements saw theaverage number of Units per Hour (“UPH”) in mature CFCs improve year-on-year to 172 in the period, with the Erith CFC seeing animprovement of 5.8% year-on-year. Trunking and delivery operations saw average deliveries per van per week improve across bothUK partners, driven by a smoother demand profile through the week enabling roster improvements. These productivityimprovements are shared with our UK partners through reduced cost recoveries.Distribution costs also include the engineering costs of operating CFCs for which a fee is charged to our UK partners. The Erith CFCconstitutes the largest portion of engineering costs, supporting the automated grid picking which results in reduced labour costs.Due to the significant increase in volumes in Erith, engineering costs have risen accordingly, but on a cost per each basis havereduced by around 45% compared to the same period last year, and continue to improve each period.Administrative costsconsist of direct and centrally allocated head office costs (some of which are recharged to Ocado Retail andMorrisons) and an allocation of central technology costs. Administrative costs grew by 19.8% to £38.7 million (H1 2020: £32.3million), primarily as a result of a higher allocation charge arising from investment in additional headcount and technologyresources to support and improve the platform and infrastructure required for UK growth.EBITDA*EBITDA* from UK Solutions & Logistics activities was £30.1 million, an increase of £6.4 million, driven by the growth in fees fromadditional Ocado Retail capacity and the re-entry of Morrisons into the Erith CFC. The value of Morrisons fees foregone prior tore-entry into Erith forms part of the business interruption insurance claim for Andover. Amounts recoverable under this claim areincluded in Exceptional Income, and therefore are excluded from the UK Solutions & Logistics segmental result.International Solutions£ millionH1 2021H1 2020ChangeFees invoiced50.273.7(31.9)%Revenue26.61.6n.mCost of sales(4.2)(0.2)n.mDistribution and administrative costs2(79.1)(41.1)92.5 %EBITDA*(56.6)(39.7)42.6 %1.Revenue includes £3.9 million contribution from Kindred Systems, and £3.3 million of equipment sales to retail partners recognised as revenue under IFRS 15. The costof this equipment is recognised in Cost of sales, with the resulting impact on EBITDA of nil2.

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