A message from Alison Jarvis, Executive Director of Finance
Dear Colleagues
Our University financial statements for 2023/24 are published today.
The report carries our financial statements in full, together with a strategy and performance overview and a summary of the activities contributing to our Public Benefit.
The University ended the year on 31 July 2024 with a surplus before other gains and losses (“operating surplus”) of £216.3 million, which compares to an operating surplus of £85.8 million for 2022/23. The movement in the surplus was mostly accounted for by the release of the Universities Superannuation Scheme (USS) deficit accrual as a result of the latest valuation showing that the USS scheme is no longer in deficit.
Our adjusted operating surplus excluding the movement in the USS deficit accrual was £22.3 million for 2023/24, compared to £54.0m in 2022/23 and a budgeted 2023/24 operating surplus target for the year of £14.5m. Whilst our actual surplus exceeded budget, our result includes £11m of underspend relating to strategic projects which, if spent, would have seen a shortfall against budget of just over £3m.
The narrowing of the surplus is as a result of the University’s cost base growing by 8% against income growing at a slower rate of 3% when compared to 2022/23. Income growth was mainly driven by higher tuition fee income and income from research grants. The increase in expenditure included an increase of £35.6 million relating to staff costs due to a combination of growth to support higher student numbers and pay increases, as well as an increase in other operating expenditure of £18.2 million relating to higher costs for utilities, rent and hire of facilities and costs incurred for the demolition of the Faraday Building.
Despite the challenges faced by the University with increasing costs, it demonstrated strong financial management during the year with a net cash inflow from operating activities in 2023/24 of £72.4 million which is above the current strategic Key Performance Indicator (KPI) target of £70.0 million.
These results are still encouraging, and our continued commitment to strong financial management will ensure we are able to continue to invest in our education, research and knowledge exchange & enterprise, as well as continuing to invest in our people and our student and staff facilities in line with the University Strategy.
I would like to thank all our staff for their support and contribution to our strong financial management.
Best wishes,
Alison Jarvis
The following report has also been published: