The Crown Estate Announce Financial Results for The Rural Estate

The Crown Estate has announced today (Thursday 13 July 2006) that the gross revenue contribution of its rural estate has risen by £0.7 million to £16.1 million for the year ending 31 March 2006. Capital value has increased by 8.8% to £673 million.

The Crown Estate as a whole produced a net revenue surplus of £190.8 million, a 3.2% increase, paid to the Treasury for the benefit of all UK taxpayers. Capital value rose appreciably by 16.6% to £5,937 million.

The performance of our rural estate has been impressive given the challenges impacting on the rural economy over the past year, including low commodity prices and higher input costs, especially fuel. The serious delays in implementing the Single Farm Payment scheme have had a significant impact on cash flows, but we have sought to be flexible with our tenants when businesses have faced particular problems.

During the year we purchased the 945 hectare Ashby St Ledgers Estate in Northamptonshire. The estate comprises organic and arable farming, an organic dairy business, woodland, residential properties and a game business. We also gained revenue from our new limestone quarry at Cauldon Low in Staffordshire and realised new mineral assets on our Applegirth estate. We have sold 700 hectares of bare arable land on our Ewerby estate in Lincolnshire.

Christopher Bourchier, Director of the Rural Estate at The Crown Estate, said, “Our success has come from our active asset management programme, together with the results of working in partnership with our rural customers to enhance economic activity. The market for added value products is strong and we have encouraged new direct marketing ventures which are proving very successful. Looking to the future, the prospects for innovative and responsive rural businesses look positive for most sectors.”