Buccleuch protects jobs and rents as loss deepens
Benny Higgins: strategy bodes well (pic: Terry Murden)
MDS Estates, parent group of property company Buccleuch, has posted a deeper operational loss of £5 million from £160,000 in the previous year, though it was able to protect jobs and tenant rents and remains confident for the future.
Turnover for the year to the end of October 2020 fell to £48.7m from £66.3m in 2019, while asset value increase and the debt was reduced to £79m from £87.4m.
Benny Higgins, executive chairman of Buccleuch, said that like all businesses, Buccleuch’s performance had to be viewed “through the prism of the global pandemic; with each area of our diverse business being impacted in differing ways.”
He added: “Throughout the period, our overall business performance showed strength and stability and our business strategy bodes well for the future.
“While we incurred an operational loss of £5m, rural jobs were protected and we worked constructively with residential and commercial property tenants to aid them through the uncertainties presented by the pandemic.
“Our financial statements record an overall profit for the year of £64m. This does not arise from operational activities, but primarily reflects an accounting requirement to revalue our investment property assets on an annual basis.
“A change in the valuation methodology resulted in a substantial asset value uplift.