The business arm of the Duke of Northumberland has seen profits hold relatively steady even as it saw a steep drop in revenues in a fluctuating property market.
The Northumberland Estates has published accounts for the year ending March 31 which show that turnover almost halved from £43.8m a year earlier to £23.3m. But operating profit was less affected, coming in at £10.1m compared to the figure of £11.5m in the previous 12-month period.
The Estates said that the drop in income was due to “the completion of the residential development sites acquired a number of years ago.” It said rental income grew by 12.9% to £15.4m and that it had acquired various UK properties for rental income and to redevelop during the year. It had also completed the development of a site in Switzerland.
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The Estates - which owns large amounts of land in its North East homeland, as well as further afield - said it would be working to provide more affordable housing, as well helping the UK’s net zero drive through the development of renewable energy schemes.
CEO Rory Wilson said: “Over the last year, we have continued to deliver against our strategic aims across all areas of the business and have reported a strong performance, driven for the most part by land sales, continued demand for commercial property in prime locations, and an increase in the valuation of the portfolio.
“Due to the nature of the development pipeline, we expect to see year-on-year fluctuations as further investments are made and projects complete, but the current position reflects a business which is well positioned for the future.
“Looking ahead we remain committed to working in partnership with communities to deliver long-term value, support the local economy and generate employment. We plan to extend the provision of affordable homes under our development, as well as fast-track our transition to a low-carbon future through the development and management of new renewable energy assets.”
The accounts reveal a profit on the sale of investments at £11.7m, while there was also a gain on revaluation of investment properties at £18.9m. That pushed the Estates’ profit for the financial year to £35.5m - a big increase on the £9.2m seen a year previously - but there was no dividend to shareholders.
The Estates’ headcount grew slightly to 17.
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