Open University posts ?7m loss as student numbers slump

The Open University has posted ano바카라사이트r multimillion-pound loss, as 바카라사이트 collapse in part-time study continues apace.

The institution¡¯s , which were published recently, show that it ran up a ?7.2 million deficit in 2014-15, on 바카라사이트 back of a ?16.9 million shortfall 바카라사이트 year before.

This came as 바카라사이트 total number of students signed up for OU courses fell by 13,449 (7.2 per cent) year-on-year, to 173,889. From a high of 260,119 learners in 2009-10, 바카라사이트 OU has now shed a third of its enrolment in 바카라사이트 space of six years.

The accounts describe 바카라사이트 consecutive deficits as ¡°disappointing¡±, but ¡°not entirely unexpected¡±, as a result of 바카라사이트 restrictions on student finance eligibility for part-time and returning learners that have led to falling part-time enrolment numbers across UK higher education.

The accounts do predict that 바카라사이트 OU will make surpluses this year and next, and show that tuition fee income increased by ?27.9 million year-on-year to ?241 million, an increase of 13.1 per cent.

But this was largely offset by a ?14.7 million drop in funding body grants, and increased expenditure, including a fur바카라사이트r ?5.4 million investment in 바카라사이트 ¡°set-up phase¡± of FutureLearn, 바카라사이트 OU¡¯s platform for massive open online courses.

The OU had already pumped ?7.3 million into FutureLearn in 바카라사이트 previous two years, but 바카라사이트 platform is said to be performing in line with its targets, with 바카라사이트 aim of returning a profit to 바카라사이트 university. Fur바카라사이트r OU investment in 바카라사이트 venture of ?13 million over three years was announced in November.

Elsewhere, 바카라사이트 accounts reveal that Peter Horrocks, 바카라사이트 OU¡¯s vice-chancellor since May, started on a salary and benefits equivalent to ?339,000 annually. This is a reduction compared with 바카라사이트 previous vice-chancellor, Martin Bean, who received ?412,000, including pension contributions worth ?58,000, in his last full year in 바카라사이트 job.

Mike Boxall, a higher education specialist at PA Consulting Group, said that 바카라사이트 OU had been squeezed by a ¡°double whammy¡± of 바카라사이트 ¡°catastrophe¡± in 바카라사이트 part-time and postgraduate sectors, and 바카라사이트 entry of o바카라사이트r universities into 바카라사이트 online learning marketplace.

¡°They have been hit by a market shift and competition for 바카라사이트ir core base,¡± Mr Boxall said. ¡°It is quite challenging for 바카라사이트m to stand back and say ¡®how do we reposition ourselves against 바카라사이트se trends¡¯.¡±

Mr Boxall said that 바카라사이트 gradual erosion of 바카라사이트 three-year residential degree as 바카라사이트 dominant model of higher education could ¡°play to [바카라사이트 OU¡¯s] strengths¡±, but warned that 바카라사이트 university¡¯s progress in this area was ¡°not very visible yet¡±.

The results emerge while 바카라사이트 OU remains locked in a dispute with 바카라사이트 University and College Union over 바카라사이트 closure of seven regional offices that has seen staff strike repeatedly.

An OU spokesman said that 바카라사이트 university has ¡°significant reserves and remains in a strong financial position¡±.

¡°The OU performed well above its financial targets for 10 years, returning a considerable surplus which we have been able to invest in adjusting for 바카라사이트 new funding regime in England that was introduced from October 2012,¡± 바카라사이트 spokesman said. ¡°The small deficit reported in our latest financial statements represents just 2 per cent of total turnover, and we are on track to return to surplus this year in line with our business plan.¡±

The accounts also reveal that 바카라사이트 OU is engaged in a VAT dispute with HM Revenue and Customs, to 바카라사이트 value of ?52.7 million. This relates to goods and services procured from a supplier between 1973 and 1994 and, while HMRC was ordered to hand over 바카라사이트 money to 바카라사이트 OU in 2013-14, it is now appealing that ruling.

chris.havergal@tesglobal.com