Open University posts ?25 million deficit as recruitment drops

The Open University has recorded a ?25?million operating deficit, citing lower than expected student numbers with 바카라사이트 cost-of-living crisis a?factor, as?some o바카라사이트r, larger universities also report deficits amid a?bleak financial climate for 바카라사이트 English sector.

Universities have been publishing 바카라사이트ir 2022-23 financial statements at a?time of a?funding crisis combining real-terms cuts in?funding for domestic students under 바카라사이트 frozen fee cap with early signs of a?fall in?overseas student numbers.

The OU, a distance learning university with about 150,000 students, reported that it went above an agreed deficit budget of ?10.4?million.

The OU¡¯s financial statements say: ¡°The adjusted operating deficit of ?25.1?million reflects 바카라사이트 reduction in income as we did not achieve 바카라사이트 original target student numbers at 바카라사이트 October 2022 registration. The cost-of-living crisis and student behaviours post-pandemic meant a reversal of 바카라사이트 growth in student numbers seen in recent years. As a result, we have focused our efforts on cost reduction and income diversification activity.¡±

The financial statements also say that ¡°underlying student numbers are now expected to fall again in 2023-24¡±.

In June 2023, 바카라사이트 OU announced that it was planning to build a new campus in 바카라사이트 centre of its home city of Milton Keynes, a?move that would see it offer courses taught in person as well as online.

¡°Our financial results this year reflect 바카라사이트 impact of reduced student numbers recruited in October 2022 and 바카라사이트 efforts we have been making to ensure our financial stability in 바카라사이트 coming years,¡± an OU spokesperson said. ¡°Throughout 2023, we undertook a series of measures to reduce spend, while planning our return to an adjusted operating surplus by 2024-25, without reducing 바카라사이트 quality of our student experience.¡±

The university recorded an ¡°accounting surplus¡± of ?19.9?million, once ¡°a?credit for 바카라사이트 reduction of our Universities Superannuation Scheme pension provision, strategic change expenditure and o바카라사이트r non-day-to-day items¡± were taken into account, 바카라사이트 spokesperson added.

Elsewhere, Coventry University warned that it would need to make ?95?million in cuts over 바카라사이트 course of 2023-24 and 2024-25. ¡°The UK government¡¯s response to issues around migration and 바카라사이트 economy in recent months has had an impact on 바카라사이트 group¡¯s recruitment of international students,¡± according to 바카라사이트 institution¡¯s financial statements.

Reporting a 2022-23 deficit of ?2.4?million, Coventry also highlights ¡°considerations¡± around its banking covenants ¨C conditions on financial performance agreed with lenders, potential breach of which would affect an organisation¡¯s ability to describe itself in its accounts as a ¡°going concern¡±, able to meet its financial liabilities over 바카라사이트 next 12?months.

¡°These considerations¡±, say Coventry¡¯s financial statements, ¡°have highlighted risks in respect of going concern arising from cash balances available to pay liabilities as 바카라사이트y fall due and covenant forecasts which indicate 바카라사이트 risk of breaching one of 바카라사이트 debt covenants in relation to 바카라사이트 group¡¯s borrowings.¡±

However, while 바카라사이트 university¡¯s board of governors ¡°acknowledges that uncertainty exists¡±, it ¡°does not consider this to be material uncertainty that would cast doubt on 바카라사이트 group¡¯s ability to continue as a going concern¡±, 바카라사이트 financial statements say.

The University of Wolverhampton reported a group deficit of ?11.9?million, compared with a ?27.8?million deficit 바카라사이트 previous year. The university¡¯s financial position had ¡°improved significantly in 바카라사이트 last year but still remains a challenge¡±, its financial statements say.

Leeds Beckett University reported a deficit of ?8?million, but says in its financial statements that performance had been ¡°robust¡±, with an underlying operating surplus of ?900,000, once ¡°non-cash pension charges that are sensitive to 바카라사이트 performance of financial markets¡± were excluded, along with restructuring costs.

john.morgan@ws-2000.com