Restructuring sees rural college slip into the red

SRUC: Redundancy costs main factor in £511,000 deficit

Scotland’s agricultural college edged into a financial deficit as it embarked on a significant restructuring which its leaders believe will make it fit for the 21st Century.

Scotland’s Rural College (SRUC) enjoyed a 6% increase in income, including grants and donations, to £83.1 million for the group, which includes the SAC Commercial division as well as the charitable SAC Foundation.

An underlying operating surplus of £500,000 was “better than we had budgeted for”, according to the principle’s report signed by Professor Wayne Powell.

However, £1.1m in severance costs paid out to redundant staff under the restructuring saw the college book a small deficit of £511,000, according to its report and financial statements to the end of March 2019.

This compared to a surplus of £2.1m in 2018.

Prof Powell said the college has taken “bold – and not always easy – steps” toward its goal of achieving official university status and becoming a “rural enterprise university” that could deliver a £4.5 billion boost to the Scottish economy.

He said the majority of restructuring costs would be recognised in 2019-20.

The report included mention of a number of milestones achieved in the year, including the opening of the £5.6m Allermuir Avian Innovation and Skills Centre near Edinburgh and the new SRUC Veterinary and Analytical Laboratory at the Moredun Research Institute.

SRUC operates six campuses across Scotland at Aberdeen, Ayr, Broxburn, Cupar, Dumfries and Edinburgh.

The number of staff reduced from 1,139 to 1,107 in the year.

The number of staff at SRUC’s six campuses fell from 1,139 to 1,107.