Buccleuch Group cuts debt but profits dip

The results for the period to 31 October last year show pre-tax profit fell to just over £1.1m from a total of £1.72m for the previous 12 months, reflecting higher repair and maintenance costs on its estates and difficult trading conditions in agriculture.

Net debt has also been cut by about £10.7m to £126.7m, which the group said was in line with its long term strategy.

Turnover at the group, excluding its share of joint ventures, edged up to £38.2m from £37.9m in the year to October 31 2015.

The results also highlighted a number of key investments by the firm chaired by the Duke of Buccleuch.

The Group said the figures highlighted its long-term strategy of debt reduction and resource re-allocation, with profits from property disposals re-invested within its rural portfolio and significant investment in energy projects and a major redevelopment at Dalkeith Country Park.

Chief Executive Officer John Glen said: “As a business, we are committed to playing a leading role in stimulating economic development in the rural economies in which we live and work.

“A number of major initiatives and investments have been made in the hospitality, leisure and energy elements of the business.

“A new multi-million pound food, drink, retail and wellness space, named the Restoration Yard is being created within Dalkeith Country Park’s former stable yard, alongside a spectacular new adventure playground.”

He said more than £7m of private money would be invested in the project, which was due to open this summer and should create more than 40 new jobs.

He said “significant steps” had also been taken to convert the opencast coal site at Glenmuckloch near Kirkconnel in Dumfries and Galloway into an energy park.

He claimed plans for a pumped storage hydro scheme on the site could create 270 construction posts for a period of five to seven years.

The group has also announced scoping for two further potential wind farms in the North Lowther Hills and at Hopsrig, both in Dumfries and Galloway.