THE Duke of Westminster’s homegrown business turned in a healthy profit of £5m last year.

Wheatsheaf Investments owns Alder Hall Farm, the Chester Grosvenor Hotel, Grosvenor Garden Centre, Cogent Breeding and an insurance brokers.

The business is separate from his vast property empire and Grosvenor, the company that built and owns Liverpool One.

Wheatsheaf turned over £21.6m, up from £18.3m the previous year.

Last March, the company acquired 100% of the share capital of Grosvenor Garden centre for £4.5m by issuing shares.

During the year, the Chester Grosvenor Hotel invested £3m in meeting and private dining facilities.

The directors’ report states: “Hotel turnover increased over the previous 12 months by 1% although it was lower than a normal trading year due to the period of closure for refurbishment of the conference and private dining facilities. This also affected occupancy which was 1.8% below the previous year which was an operating loss of £885,000.

“For Grosvenor Farms, the prolonged bear market in commodity agriculture came to a dramatic end as food surpluses turned to shortages. Prospects for both dairy and arable have improved significantly on the back of higher prices but cost inflation, particularly energy, feed and fertiliser, is a concern.”

Another poor summer in 2007 adversely affected productivity but this was more than compensated for by higher prices, income from diversified activities remained strong. The current strategy of efficient large-scale commodity farming and diversification will continue.”

Turnover at Cogent Trading, the bull stud business, increased by 47.6% generating an operating profit of £1.2m. An additional profit of £433,000 was also realised during the year on the sale of a trade investment held as a fixed asset.

The company employed a total of 239 staff with wages and associated costs of £7.5m. No directors’ emoluments were paid.

BARRY TURNBULL