University of Glasgow posts strong financial results
The financial position of the University of Glasgow has strengthened considerably over the past 12 months.
The University’s operating surplus for 2006/07 has increased by £4.3million to £6.3million, the second consecutive surplus after more than 10 years in the red.
And both research and endowment income also increased.
The results were warmly welcomed by Principal, Sir Muir Russell.
He said: “Good financial health is essential if we are to achieve the aims of our strategic plan and continue to compete with the best universities in the world.
“Staff have worked hard to enable the University to be in this healthy position and I am grateful for their substantial contribution. This performance was underpinned by strong income growth in the year which allowed the University to make strategic investments in staff, infrastructure and facilities.
“Our financial position is forecast to remain secure in the next few years despite the disappointing announcements for the Higher Education sector announced in the Scottish Budget and Spending Review in November 2007.
“The University of Glasgow intends to protect and enhance its financial sustainability through the generation of new income from non-funding council sources, by focusing resources on research and teaching strengths and in recruiting and retaining the best people.
“Our institution continues to be a major contributor to the economy through the transfer of technology to industry, through the provision of education to the current and future workforce and as an employer.
“Our research and commercialisation activity continues to grow. The value of awards from industry funded contracts and research councils increased substantially, placing us well inside the elite group of research intensive universities.
“The University of Glasgow is proud to be a major economic contributor and these latest results show that we are in a position, and have the intention, to raise our performance and standards still further.
“We are firmly committed to continuing to make the University of Glasgow both an academic and financial success.”
For more information please contact Ray McHugh in the University of
Glasgow Media Relations Office on 0141 330 3535 or email
Notes for Editors
Key points for The University of Glasgow’s Financial Statement 2006/07
• Operating Surplus finished the year at £6.3m - £4.3m ahead of 2005/06
• Scottish Funding Council income increased in the year by 10.8% including uplift for charitable research.
• The underlying increase on tuition fee income was 8.3% with growth in both undergraduate and postgraduate numbers across both home & overseas students.
• Research income grew by 8.4% in the year with growth in Research Council & EC awards offsetting reductions in UK government & overseas projects.
• Other income grew by 10.5% in the year with growth across all categories.
• Endowment & investment income increased by 18.2%.
• Staff costs increased by 7.6% in the year. The main movement was due to inflation in line with the sector wide wage settlement, augmented by the impact of modernisation and incremental drift as well as an increase in headcount in line with the University’s operating plan.
• Other operating expenses grew by 18.4% in the year. The main movements were an increase on expenditure on research grants and contracts, substantial additional investment in premises to
reduce backlog long term maintenance, and a number of strategic investments such as library back files and student IT clusters.
• Depreciation grew by 5.8% in the year in line with the capital investment programme of recent years.
Net assets increased in the year by £31.5m
• Buildings & equipment additions during the year were £28.8m. This was offset by depreciation for the year of £15.0m.
• Endowments & Investments increased by £9.9M in the year in line with the recent upward trend in market conditions.
• Working Capital reduced by £19.9m in the year with a reduction in debtors of £5.5m in the year and an increase in creditors of £14.4m.
• St Andrew’s campus was sold during the year with £10.6m of the total payment of £16.6m due to be settled in 07/08 and 08/09.
• The pension liability under FRS 17 has increased from £35.9m to £37.3m during the year. On a “like with like” basis, the pension liability decreased by £10.0m. This improvement was offset by a change in underlying assumptions of £11.4m. This was primarily due to an actuarial revision of mortality rates.
• Net funds increased in the year by £25.9m
• Operating cashflow was £9.4m which is in line with the positive historical cost surplus, adjusted for non cash items such as depreciation, deferred capital grants and revaluation reserve releases.
• Capital expenditure continued in the year with a net investment in the year of £9.2m after accounting for deferred capital grant receipts.
• Capital proceeds of £6.0m reflect the first payment associated with the sale of the St Andrew’s campus.
• Working capital movement of £19.9m reflects a reduction in debtors of £5.5m in the year and an increase in creditors of £14.4m.
Substantial restructuring over the past few years produced, in 2005/06, the first operating surplus in 12 years.
Given the strides made in our financial restructuring and our increased operating surplus in 2006/07 we are confident that a position of surplus will be maintained. Our new strategic plan signals how we use this for investment in a robust financial portfolio of research and the development of our learning and teaching.
And we will continue to manage our central administrative costs to ensure that they reduce as a proportion of expenditure.
Cumulative capital investment
We have a significant capital programme, the largest part of which in recent years has been on medical research and teaching.
The cumulative investment total from 2002 to the present is £163M. This also adds considerable value to the local and Scottish economy.
Of this £58M has come from the public purse through the Scottish Funding Council. The rest, £105M, has come from our fundraising activity and from the University’s own income generation.
The University has one of the most successful fundraising operations in Scottish higher education and the fifth most effective in the UK in terms of total philanthropic funding raised and in terms of cost-effectiveness.
First published: 25 January 2008