The Royal Highland and Agricultural Society of Scotland (RHASS) has reported a deficit of £1.2 million in the year to November 2022, on the back of an £800,000 loss in 2021.
Members were told at its AGM this week that its latest set of accounts were ”confident” and that its deficit had grown due to the significant impact of higher costs across the day-t0-day operational activity.
The society also pointed the finger at the escalation in costs associated with staging the Royal Highland Show at Ingliston which had already been impacted greatly by the pandemic.
RHASS reports a £1.2 million deficit against £800,000 the previous year
However, overall income recovered to £11 million, a rise of £2.8 million on the year, with membership revenues increasing to £600,000 and sponsorship contributing £700,000.
Long-term loan repayments resumed in mid-2021 resulting in a reduction of debt to £8.7 million (2021: £9.3 million) despite interest increases from £143,000 to £299,000 in the year.
Meanwhile, an independent report detailing the Royal Highland Show’s contribution to Edinburgh’s economy was calculated at £39.5 million annually – more than Edinburgh’s Hogmanay.
The Highland Centre Limited, RHASS‘s wholly-owned trading company, generates income to support RHASS’s charitable remit and returned a higher-than-budgeted profit due to an increased number of high-profile live events, coupled with non-event business including Royal Mail and the NHS vaccination use.
Overall income recovered to £11 million, a rise of £2.8 million on the year
Total grants awarded totalled £227,664 (2021: 259,362) with over £167,000 in prize money additionally awarded to Royal Highland Show competitors.
RHASS chairman, Jim Warnock said: “The directors knew that this was going to be a difficult year as we returned to normal after Covid-19. However, we are confident that the society’s financial outlook is positive and in line with expectations, with plans to bring the society back to a positive financial footing.
“We would like pay tribute to our members who have remained steadfast in their support throughout the difficult times – it is very much appreciated.”
However, Mr Warnock remained realistic as to what to expect for the next 12 months.
RHASS chairman, Jim Warnock paid tribute to members who have ‘remained steadfast in their support’
He said: “While we are confident that the appeal of the show will remain, and the Royal Highland Centre is on track to continue its upward trajectory, the impact of reduced household income and the increased cost of doing business remains very real.”
Alan Laidlaw, RHASS chief executive added: “The return to normal post-Covid has been taxing due to the challenging economic climate along with much-reduced availability of financial support, which was available through the pandemic.
“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-19 landscape, with sold-out days on Friday and Saturday reflecting the continued appeal of the event.
“Looking to 2023 and beyond, we continue to seek to increase income and contain costs to ensure the financial stability of RHASS. This includes exploring new income streams within the charity and the group.”