Buccleuch storms back to profit

SCOTLAND’s second-largest landowner, the Buccleuch Estates, has stormed back into profit after three years of losses, disposal and slimdown.

Results from the group – which spans hospitality and tourism, biomass energy generation and commercial property in Aberdeen, Edinburgh and central London – are due to be released tomorrow and will show a profit of just over £700,000 after tax in the year to 31 October.

This compares with a loss of £5.6 million in 2010 and £17.7m in 2008 before the financial tsunami struck.

The return to profit is understood to have been achieved despite continuing property impairment charges of about £4.7m.

Balance sheet debt is also believed to have been cut by £4m with a £10m fall in the group’s share of debt in joint ventures.

The business, which is the banner group for a diverse range of companies owned by the Duke of Buccleuch, has been slimmed down to three core areas: agriculture, tourism and hospitality, including Dalkeith Palace and an estate in Northampton; energy, where the group has been expanding in biomass; and commercial property.

Chief executive John Glen said: “These encouraging results are a significant step in the right direction for the group.

“Our strategy has resulted in substantial debt reduction and a return to profit after three very challenging years.

“This was the second year in which we re-focused on our core activities while developing our competencies and capabilities in growth markets and we will continue on this path.”

Glen added: “The results are a big psychological boost for us. Over the past three years, we have taken some £31m off the balance sheet. We have further to go, but now we are able to sell projects that have arrived at maturity.

“Property will have its role within the group, but we are taking the opportunities to reduce and looking to the two other areas for expansion.”

Buccleuch BioEnergy completed another major project with the installation of a biomass steam boiler at the NHS Forresthill Energy Centre in Aberdeen.

The group will continue to focus on biomass installations to both the public and private sectors.