Final results year ended March 31st, 2011
The Duchy of Lancaster has today announced its financial results for the year ended March 31st 2011.
During the year:
- Net operating income up by 7.9% to £13.9m
- The net surplus remained virtually unchanged at £13.3m
- Net asset value increased by 10.0% to £383.2m
- The Duchy achieved a net income yield of 4%.
“We are delighted that, in a gradually improving market, we have succeeded in increasing our net operating income by 7.9% and increasing our net asset value by 10.0%,” said Paul Clarke, Chief Executive and Clerk of the Duchy Council.
“This was achieved through solid underlying results across all of the portfolios, with particularly strong income and capital growth within the agricultural portfolio. In addition, our strong focus on efficient financial management has resulted in a reduction in our administration costs of 8%, whilst increasing our gross income by 9%.”
The Duchy of Lancaster is a private landed estate which provides the Sovereign of the day with a source of income independent from Government and the public purse. The Duchy is self financing and does not rely upon public funds in connection with its activities.
During the year, the Trustees of the two main Duchy charities, the Benevolent Fund and the Jubilee Trust, made grants at the same levels as in earlier years. In addition, the Duke of Lancaster Housing Trust committed just under £2.0m to its first housing project in Dunsop Bridge, Lancashire.
Mr Clarke believes that the Duchy has continued to improve the quality and mix of its portfolios which has put in it a strong position to build on its success in the years ahead.
“2012 is going to be an eventful year with, in particular, the Diamond Jubilee celebrations and also the London Olympics. Despite these exciting distractions, the Duchy will continue to follow its proven path of prudence and professionalism. The levels of returns seen during the early part of the last decade will not be repeated during the next five years, but we are confident that we will continue to see strong financial performance and enhanced asset quality across all our estates.”