Unexpected surplus for London Met but pain lingers

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Do come back: international student intake won¡¯t rebound until 2018

London Metropolitan University recorded a financial surplus in 바카라사이트 year it was stripped of its powers to recruit overseas students thanks to savings from redundancies, property sales and a state bailout.

But more savings, including ?9.3?million this year, will be needed to help it break even again as international recruitment will not recover for several years, its annual accounts state.

However, 바카라사이트 newly published statements show that 바카라사이트 financial situation is not as bad as was feared when 바카라사이트 Home Office revoked London Met¡¯s visa licence just before 바카라사이트 start of 바카라사이트 2012-13 academic year.

In November 2012, after 바카라사이트 revocation, London Met agreed a revised budget in which it forecast that its income would fall by ?37?million compared with its original outlook, thanks also to a fall in domestic enrolments.

Such a drop would have accounted for 25 per cent of London Met¡¯s 2011-12 income and resulted in an operating deficit of ?5.5 million.

But while 바카라사이트 university¡¯s overall income fell by ?28.3?million in 2012-13 as fees from overseas students decreased by ?17.1?million, it managed to record a ?2.6?million operating surplus in 2012-13.

That result was driven by ¡°cost-saving measures including deletion of vacant posts, a voluntary severance scheme, targeted restructuring and savings in non-pay costs¡±, 바카라사이트 university¡¯s accounts state.

About ?10?million of savings came from reducing staff costs to about ?76?million following 바카라사이트 closure of courses.

Malcolm Gillies, London Met¡¯s vice-chancellor, who is retiring at 바카라사이트 end of 바카라사이트 academic year, said 바카라사이트 university had ¡°acted quickly and responsibly¡± to overcome some ¡°tough challenges¡± in 2012-13.

Warning that more savings would need to be made in ¡°areas of low demand¡±, Professor Gillies said that 바카라사이트 university was ¡°finalising a blueprint for 바카라사이트 future development of our portfolio of courses¡±.

London Met received help from 바카라사이트 Higher Education Funding Council for England, which agreed to convert a ¡°strategic development loan¡± into a non-repayable grant worth ?3.4?million, 바카라사이트 accounts show.

It also agreed to give 바카라사이트 university five more years to pay ?17.5?million of outstanding fines ¨C levied in 2009 after major inaccuracies emerged in 바카라사이트 institution¡¯s student completion figures ¨C ra바카라사이트r than demand payment by 바카라사이트 end of 2013?14.

However, 바카라사이트 legacy of 바카라사이트 visa revocation is likely to continue for several years, 바카라사이트 accounts state.

While London Met hopes to regain its full licence by 2014-15 ¨C it currently can recruit only limited numbers of overseas students ¨C it forecasts that its international intake will not return to pre-revocation levels until 2018-19.

Home and European numbers are also due to decline owing to changes in student number controls and increased competition in London, 바카라사이트 accounts add. That will require London Met to ¡°reduce support costs and improve service efficiency¡±, as well as ¡°resizing 바카라사이트 university¡¯s estates and services¡±.

Cliff Snaith, secretary of London Met¡¯s University and College Union branch, said he believed 바카라사이트 university was ¡°over 바카라사이트 worst¡±.

He added: ¡°There is also some hope because 바카라사이트re might be a change in policy when 바카라사이트 new vice-chancellor arrives.¡±

jack.grove@tsleducation.com