Buccleuch has reported a fall in profit after tax from 64.7m in 2020 to £37m during 2021.
Parent company MDS Estates published its results for the financial year ended 31 October 2021, which also showed that it switched from a loss of £6.8m in 2020 to an operating profit of £4.4m last year.
However, both group turnover and net asset value rose from 2020 to 2021, up from £48.6m to £93m, and £268m to £304m, respectively.
Executive chair Benny Higgins said: “Despite the distinct challenges brought by the global pandemic over the last couple of years, Buccleuch is faring well.“
He described the underlying profit of £4m as “a marked improvement on the previous year“ and added that each of Buccleuch’s enterprises performed well “in often difficult and testing circumstances”.
While profit after tax is reported as £37m within the financial statements, this primarily reflects an accounting requirement to revalue rural property assets on an annual basis, rather than underlying performance.
Higgins said the challenges of the past two years are now being followed by an uncertain economic outlook, due primarily to extraordinary national and international circumstances, which may well continue for some time.
“We will tread cautiously as we navigate the global effects of inflation and interest rate rises, conscious that these will have an impact on our colleagues, customers and communities.
“Our commercial property enterprise significantly contributed to the overall profit this year, with the team being well positioned to monitor and react to emerging market trends,“ he continued.
“Our agriculture and forestry enterprises saw the benefit of higher than anticipated livestock and timber markets,“ stated Higgins. “The storms which hit the UK at the end of 2021 and beginning of 2022 were also unanticipated, however, the aftermath will likely impact on the financial performance of Buccleuch’s forestry enterprise within the financial year ending 31 October 2022.“
Buccleuch’s investment in holiday accommodation on the Queensberry and Borders Estates in the South of Scotland also benefited from the increase in ‘staycations’.
Higgins said that Buccleuch continues in its commitment to communities and the environment through initiative, from large scale projects such as peatland restoration, woodland planting and renewable energy, to smaller contributions such as species protection and local biodiversity projects.
The group recently extended the fundraising deadline for a bid to double the size of Langholm Initiative’s land - Scotland’s biggest community buy-out - which it has bought off Buccleuch.
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