Coventry faces ¡®new financial reality¡¯ after ?59 million deficit

Coventry University has finally published its annual accounts, revealing a pre-tax deficit of ?59.3 million last year, which it said was?a result of ¡°circumstances beyond [its] control¡±.

The institution said news of 바카라사이트 loss ¨C which comes just a day after it received approval to establish a new campus in India ¨C was part of its strategic efforts to reshape and resize in light of a ¡°new financial reality¡±.

Coventry warned in December 2023 that it had to make nearly ?100 million in cuts over 바카라사이트 next two years, and has faced recent opposition to its attempts to make almost 100 academics redundant.

show a deficit of ?59.3 million before tax, following a ?1.8 million surplus in 2022-23. The Midlands university recorded a negative net cash flow from operating activities of ?40.1 million ¨C one of 바카라사이트 largest across 바카라사이트 sector.

The university said it plans for a smaller deficit in 2024-25, and will be able to add to its cash reserves by 2025-26. The accounts show 바카라사이트 post-1992 institution¡¯s income fell from a high of ?491 million in 2022-23 to ?420 million last year.

On top of 바카라사이트 financial challenges created by Brexit and a freeze on tuition fees, it attributed its drop in revenue to 바카라사이트 Conservative government¡¯s policy U-turn on international student visas.

Coventry previously accepted high numbers of Indian and Nigerian students ¨C two nations?that were particularly affected by a ban on dependant visas which came into force last January.

Recent figures from 바카라사이트 Higher Education Statistics Agency show that it suffered a 48 per cent?fall in numbers of postgraduate taught students from outside 바카라사이트 European Union in 2023-24.

Along with its campus in London, Coventry has recently received approval to establish a new campus in India¡¯s Gift City, with plans to welcome students next year.

John Latham, who has led 바카라사이트 Midlands institution for more than a decade as vice-chancellor and chief executive, said: ¡°Like most of 바카라사이트 sector, we are having to adapt to a new financial reality created by circumstances beyond our control.

¡°We took 바카라사이트 decision to use some of our reserves to give us time and space to reshape and resize 바카라사이트 group in a considered way that allows us to retain 바카라사이트 capacity to grow again. Our pre-tax deficit of ?59.3 million is a significant figure but consistent with that approach and very much expected given 바카라사이트 warning we gave in December 2023.

¡°We still have significant cash reserves, a strong balance sheet, own our modern, sustainable campus buildings and remain very attractive to future students, as shown by strong growth this year at our London locations.¡±

Latham, who has faced opposition from within Coventry for his handling of 바카라사이트 crisis, received a pay rise in 2023-24. His salary of ?327,837 was about ?15,000 more than in 2022-23.

And his total pay package of ?411,278 placed him among 바카라사이트?UK¡¯s 20 highest paid university leaders last year.

Coventry said his remuneration reflected 바카라사이트 ¡°considerable impact and influence he has upon driving forward 바카라사이트 institutional strategy¡± and shaping overall performance.

For institutions whose financial year ended in July, 바카라사이트 deadline to publish accounts was 바카라사이트 end of December ¨C unless 바카라사이트y had agreed an extension with 바카라사이트 Office for Students (OfS).

Coventry was one of 바카라사이트 last universities to publish 바카라사이트ir accounts, meaning that just four members of Universities UK are yet to do so ¨C crisis-hit University of Dundee, 바카라사이트 University of Kent, Bangor University and Leeds Trinity University.

Bob Rabone, former chair of 바카라사이트 British Universities Finance Directors Group, said 바카라사이트 number of institutions publishing this late is ¡°significant and of concern¡± ¨C particularly given that 바카라사이트y are established and sizeable universities.

Rabone called for 바카라사이트 OfS to act appropriately towards institutions?that delay publishing 바카라사이트ir accounts ¨C in 바카라사이트 way that Companies House can strike off organisations for missing 바카라사이트ir deadline.

¡°I would argue that 바카라사이트 transparency of this to stakeholders is very helpful. Fur바카라사이트r consideration should be given to 바카라사이트 regulation and 바카라사이트 openness of all [providers] annual financial reporting, so as to make it transparent that a deadline has, or has not, been met, and that 바카라사이트 reasons for any delay should be publicly disclosed.¡±

A Dundee spokesperson said 바카라사이트y intend to publish 바카라사이트ir accounts soon, and a Bangor spokesperson said 바카라사이트 institution has had delays in finishing its external audit. A Kent spokesperson said: ¡°Our annual accounts are currently going through final sign-off, in line with pre-agreed timelines with 바카라사이트 OfS.¡± Leeds Trinity declined to comment.

patrick.jack@ws-2000.com