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FINANCIAL SUMMARY | 23


2011 2010 (£m)


Income Expenditure including taxation Trading surplus


EXCEPTIONAL ITEMS: Impairment of Newton Rigg assets


Restructuring – staffing costs Restructuring – cost of onerous leases Restructuring – release of deferred income Exceptional item: Profit on sale of fixed assets Surplus / (deficit) for the year 86.3


(£m) 91.3


(79.6) (89.5) 6.6


1.8 0


(0.8) (2.2) 5.6 0.2


9.4


(7.0) (3.8) 0 0 0


(9.0)


2011/12 and in future years. Whilst the current contract with the Skills Funding Agency, which generated income of £4.2m in 2010/11, will cease, a significant amount of related costs will be also be removed. A number of staff were transferred to the new providers at the point of transfer and others have left the university under voluntary severance arrangements and these costs are disclosed within the £0.8m staff restructuring expenditure cost which is disclosed within exceptional items in the financial statements.


The other significant impact of the transfer of further education at the Newton Rigg campus is that the university was able to release a £5.6m grant it received from the North West Development Agency in 2007 for the purchase of the site.


The second key development in 2010/11 was the refinancing of some of the university’s long-term borrowing. The university was able to repay its £8.1m of loans with NatWest Bank Plc using a loan obtained from Barclays Bank Plc. The interest rates on this new £8.0m loan are greatly reduced from the rates payable to NatWest and will result in a significantly reduced interest cost each year. In order to repay the NatWest loans, the university incurred £2.8m of break costs and this is recorded within Interest and Other Financing Costs in the Income and Expenditure Account. This refinancing arrangement has led to substantially all the university’s borrowing being disclosed as long-term liabilities within the Financial Statements.


the numbers


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