Major landowner Buccleuch has blamed the impact from the pandemic for its £5m operations loss.
The company reported in its annual results that its net assets value had increased to £268.14m from £206.81m.
The group’s turnover was more than £48m and managed to cut its debt by more than £8m from £87.35 to £79.03m, despite the pandemic.
The results - published by Buccleuch's parent company MDS Estates - run from November 2019 to October 2020.
Buccleuch executive chairman Benny Higgins said business has overall shown “strength and stability” and despite the loss the business strategy pursued by the group “bodes well for the future”.
Higgins noted the different areas of the business had been affected by the pandemic in “differing ways”.
“While we incurred an operational loss of £5m, rural jobs were protected and we worked constructively with residential and commercial property tenants to aid them through the uncertainties presented by the pandemic, he said.”
He pointed out that the £64m overall profit shown in the statements was mainly due to an accounting requirement as part of revaluing its investment property assets and did come from operational activities.
Higgins said: “Our colleagues within much of the rural sector were able to continue working throughout the period, in line with all relevant government guidelines, and our forestry and farming enterprises benefited from buoyant markets.
“We will, however, maintain a keen eye on these markets as we move through 2021 and anticipate there will be an eventual impact as a result of Brexit and changing legislation.”
The group’s commercial property, tourism and hospitality enterprises saw a “direct impact” from the pandemic which saw a downturn in “overall receipts” and that its retail and hospitality business was “heavily impacted” with trading being in parts “non-existent.
He described Buccleuch as an "ever-evolving business" which was aware of the impact its land use decisions had on "customers, communities, and the environment".
“Together with our more traditional business areas: agriculture, forestry, and commercial property, 2021 will see an increased focus on the commercial opportunities around hospitality and leisure on the estates”, he said. “Our recently launched self-catering accommodation has recognised success in booking figures and we will look to build on this and introduce new attractions to our destinations.”
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