Directors at Northumberland Estates have hailed a resilient performance in the face of challenging conditions, with profits jumping to more than £10m.
The Alnwick company, which represents the business interests of the Duke of Northumberland, is focused on commercial and residential property investment and development, making its money through rental income in Europe, the Ƶ and the US, and property development in the Ƶ. Now accounts for the year show how work on several retail parks across the region and growing rental income has helped to boost turnover and profits.
The financials for the year ended March 2024 showed revenues increased from £18.1m to £18.4m as it maximised rental income, while post-tax profit amounted to £10.5m, an almost fivefold leap from £2.33m. A dividend of £5m was also paid during the year.
A breakdown of turnover showed 30% of its £18.4m rental income arose in Switzerland and 8% in Germany. Meanwhile, as of March 31, the value of the group’s investment property had grown from £288.6m to £295.1m.
A report within the accounts said: “Future property investment opportunities are continually being reviewed and assessed. Future investments along with realisations of development land at uplifted values, will further strengthen the group’s position going forward. The policy of maintaining properties to a high standard and enhancing their value will be continued during the forthcoming year.
“The group continued to maximise rental income from the re-gearing of leases, attracting tenants to vacant units, relocating and reconfiguring spaces for existing tenants.
“As part of the ongoing review of the property portfolio, the group developed various properties in the Ƶ and overseas. Core assets are held for rental income whilst others are realised or redeveloped. This continued program of development and acquisition has further strengthened the balance sheet.”
Last year the company – made up of a number of subsidiaries in the Ƶ, Switzerland and Germany – said it was looking to bolster the use of renewable energy across its portfolio. The business had already announced long-term plans to deliver roof-top solar energy and battery energy storage systems, as part of moves towards clean, domestically produced, renewable energy.
Following the year end in April, the company announced a partnership with Northumberland-based low carbon consultancy Reheat and SSE Energy Solutions, to explore the possibility of launching a clean energy network to supply businesses and public spaces in Alnwick.
Within the accounts, the group said it is continually looking at its impact on the community and environment, for example by building property using material that has been quarried from local quarries and cut from local forests owned by the wider Northumberland Estate, to reduce transport carbon footprint, continue local employment and maintain efficient costs.
Following publication of the accounts, CEO Rory Wilson highlighted work on three separate retail parks as well as renewable energy investments.
Mr Wilson said: “Our business decisions prioritise long-term sustainability, guided by values that promote growth benefiting communities, individuals, and the environment. Despite challenging market conditions—including high inflation, rising interest rates, and sluggish economic growth—our commercial activities have demonstrated resilience.
“We have remained focused on development opportunities, successfully obtaining planning permission and beginning construction at Wynyard Trade and Retail Park, while also expanding existing sites like Willowburn Retail Park in Alnwick and Northumberland Retail Park in North Tyneside.
“Additionally, we have invested in rooftop solar installations across many of our commercial properties, yielding positive results in terms of cost savings and feedback from our occupiers.”
