22 | FINANCIAL SUMMARY
Financial summary RESULTS FOR YEAR
The university has recorded an operating surplus for the year of £6.6m (8% of turnover) and an overall surplus after exceptional items of £9.4m (11% of turnover).
From a financial management perspective this has been a significant year for the university:
The university’s direct involvement in loss-making further education activity has been discontinued;
The university’s expensive long-term debt with NatWest has been refinanced; and,
The university operated for nearly a full year post the major right sizing and restructuring carried out in summer 2010.
The university’s cash position at the end of the year was £9.7m (excluding £6.4m of cash held on behalf of the Energy Coast Campus programme).
£9.4m OVERALL
SURPLUS AFTER EXCEPTIONAL ITEMS
The Group operating surplus for the year, which incorporates the results of the university’s subsidiary companies, was £9.4m compared to a deficit in 2009/10 of £9.0m. This excellent result is primarily due to the action that was taken during 2010/11 to reduce the staffing base and in-year controls over pay costs. As a consequence, staffing costs fell by £7.1m compared to 2009/10 and in a year when income reduced due primarily to funding body cuts, the control over costs has been the driver for the improved financial performance in year.
Two key developments took place during 2010/11 which affected several
areas of the financial statements. Firstly, following a strategic decision by the University Board in 2009/10, the university ceased its further education provision at its Newton Rigg and Brampton Road campuses with effect from 31 July 2011. The provision at Newton Rigg was transferred to Askham Bryan College and the assets which were used in the delivery of further education and those which were used in the operations of the farms were sold to the new provider. This resulted in significant disposals which are recorded in the fixed assets note and a profit on the sale of fixed assets. The further education provision at Brampton Road was transferred to Carlisle College.
The cessation of further education will affect both the income and expenditure of the university in
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28