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Insider UK
Business
Peter A Walker

Buccleuch reports significant 2022 profit hit

Buccleuch has reported group turnover falling from £93m to £87.1m year-on-year, with operating profits also reducing, from £4.4m to £1.7m.

Parent company MDS Estates published its results for the financial year to 31 October 2022, which also revealed that profit after tax dropped significantly, from £37.1m to £6.3m.

This was largely due to rural property revaluation, which was particularly high in the 2021 accounts.

However, net asset value rose from £304m to £314m during the period.

Benny Higgins, executive chairman at Buccleuch, said: “Over the year, Buccleuch Property invested in both income producing properties and development opportunities for the long-term.

“The team will approach each new investment cautiously, ensuring there remains the appropriate blend of sector-type and property location, across the UK and North America.

“We can see glimmers of hope, however, with emerging opportunities as a result of the fall in values as markets react to higher interest values and inflationary pressures.“

He added: “The rural businesses also performed well, with both farming and forestry reporting individual profits, despite uncertainty around agricultural subsidies and food production, and the continuing battle against the long-term effects of Storm Arwen.”

In late 2022, Buccleuch also reported the sale of the pumped storage hydro and wind projects at the former opencast coalmine at Glenmuckloch in Dumfries and Galloway to a developer with the capacity to take the project to the next phase.

Next month, Glenmuckloch will play host to Extreme E, an electric car race, which should raise the profile of the area and local community environmental projects.

Within the annual accounts, Buccleuch noted that it successfully concluded an unsecured private placement in November 2021, locking in a long-term source of funding with a blended maturity of circa 32 years, at a fixed cost of debt.

Higgins concluded: “The foundation of a strong balance sheet and secure long-term capital structure means Buccleuch approaches the new financial year with cautious optimism, whilst acknowledging the uncertain economic backdrop.

“The group will continue to invest and reinvest in its core assets across the estates and projects which ensure the business remains sustainable for the future.”

Buccleuch’s business interests span forestry and agriculture, renewable energy, commercial property, visitor services and heritage, focussing on sustainable land use across these.

Operations are based mainly within four estates, in central Scotland, the Scottish Borders and rural Northamptonshire, employing just under 500 people.

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