Scotland’s farming union reported a massive jump in profits last year despite a drop in turnover.
The latest accounts for NFU Scotland (NFUS), which cover the year ended October 31, reveal a 345% increase in pre-tax profits to £289,265, from £65,016 previously.
Turnover at the union, which has around 8,400 members, was back by £108,481 to £2.72million from £2.828million previously.
The union’s chief executive, Scott Walker, said the boost in pre-tax profits was a result of compliance with new accounting standards for the first time, which take into account theoretical gains on investment and property. This resulted in unrealised gains of £187,860 being included in the 2016 accounts.
Mr Walker said the adoption of the new accounting standards had also increased the value of the union’s reserves – this includes property values and shares – to £2.7million.
He said the union was continuing its drive to cut costs and administrative expenses, or running costs, in the year were down to £2.7million from £2.865million before.
“Savings have been achieved while NFUS has continued to deliver an exceptional flexible level of service and commitment to its members,” said Mr Walker.
“In 2016, our team of regional managers collectively travelled more than 130,000 miles supporting members while our officeholder team attended more than 160 local NFUS meetings throughout the year.”
Mr Walker confirmed a 2% increase to annual subscription fees for union members – this follows similar 2% increases last year and the year before.
He also hailed the strength of the union and its services and said the number of members taking advantage of membership discounts on vehicles had risen 30% in the year.
“No fewer than 577 pickups, ATVs and cars – valued at almost £12million – were bought by NFUS members this year, generating a collective member saving of £785,000,” added Mr Walker.
During the year 299 new farming, crofting and professional members joined the union and Mr Walker said he expected the majority of existing members to maintain their membership.
