Update on 2016/17 revenue
The Crown Estate’s results for the period 1 April 2016 to 31 March 2017 include gross revenue for its ‘historic’ Scottish operations and capital receipts and investment. The figures below relate to property assets in Scotland, the management of which was devolved on 1 April 2017.
Crown Estate Scotland (Interim Management), reporting to Scottish Ministers, now has responsibility for managing those Scottish assets. This is a new body, separate from The Crown Estate.
Revenue profit from Crown Estate Scotland will in future go to Scottish Government and the first annual report will be published in summer 2018.
More on The Crown Estate’s UK performance can be found here.
Overall 2016/17 gross revenue for Scotland at £18 million was higher than previous years (cf 2015/16 £14m). While this reflects an underlying strong and improved performance, much of the increase was due to the reconciliation of rental income for the period up to devolution.
The reconciliation of revenue mainly related to the treatment of aquaculture income, specifically from finfish farming, and stems from the requirements of The Crown Estate Transfer Scheme 2017 which provided for the devolution of The Crown Estate’s management role in Scotland.
Finfish rent is charged and payable in arrears. Previous accounting practice had been to account for income from finfish in the periods it was due to be paid rather than the period it related to.
With devolution, it was necessary to account for all income earned up to the end of March 2017 (when devolution occurred), including income which had not been received. As a result, finfish income in the 2016/17 accounts is higher to reflect this correction.
In 2017/18, aquaculture income for Crown Estate Scotland is likely to drop back from £6.6 million to a more typical figure (cf. 2015/16 £3.5m) and this will be reflected in the overall gross revenue figure.
Estimated net revenue for Scotland was £12.1 million. However, this figure should be treated with caution as The Crown Estate still provided some support services to the business in Scotland in 2016/17 such as IT, systems and communications. It is not possible to separate out all Scottish expenditure or to accurately calculate the standalone net profit of Crown Estate assets in Scotland.
The first annual report of Crown Estate Scotland will include net revenue profit.
Capital investments & receipts
Capital investment in Crown Estate assets in Scotland during 2016/17 was £7.7 million with capital receipts of £6.2 million. The total capital value of the estate in Scotland at 31 March 2017 was £275.7 million, an increase of £3.9 million (1.4%) on the previous year.
The Scotland specific figures provided above and in the attached are unaudited. They do however use financial information that forms part of The Crown Estate’s 2016/17 financial statements, which are audited.