Organisers of the Royal Highland Show have warned of the 'significant impact' of higher costs across its day-to-day operational activity.
The Royal Highland and Agricultural Society of Scotland (RHASS) said that while overall income had recovered since the pandemic, the society was facing an 'escalation in costs'.
Members attending the RHASS annual general meeting on 27 April were presented with accounts for the year ended November 2022.
Overall income recovered to £11m, up from £8.2m in 2021 following the pandemic, with membership revenues increasing to £0.6m and sponsorship contributing £0.7m.
However, despite the increased income, the overall annual deficit grew to £1.2m, up from £0.8m in 2021.
The society said this reflected the "significant impact" of higher costs across the day-to-day operational activity.
It also warned of the "escalation in costs" associated with staging the annual Royal Highland Show.
RHASS chief executive, Alan Laidlaw said: “The return to normal post-Covid has been taxing due to the challenging economic climate.
“We are however heartened by the significant increase in revenue generated by the Royal Highland Centre, which is set to continue into next year.
“We were pleased to host a full Royal Highland Show in 2022 despite the ever-changing Covid landscape, with sold-out days on Friday and Saturday reflecting the continued appeal of the event.
“Additionally, the society’s charitable activities continued with total grants awarded totalling £227,664."
Looking to 2023 and beyond, the society said it continued to seek to increase income and contain costs to ensure its financial stability.
RHASS explained that this included exploring new income streams within the charity and the group.
RHASS chairman, Jim Warnock said the society knew it was going to be a difficult year following the pandemic.
"However, we are confident that the financial outlook is positive and in line with expectations, with plans to bring the society back to a positive financial footing."
However, Mr Warnock said he "remained realistic" as to what to expect for the next twelve months.
He warned: “The impact of reduced household income and the increased cost of doing business remains very real.
"However, under our directors’ careful stewardship, I am confident that RHASS will continue to be a financially secure organisation supporting rural Scotland.”
