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Financial information

The University retained an underlying operating deficit of £12.7m in 2022/23, before the change in USS pension provision.

2022/23 saw our total income grow to £636m, up from £634m in 2021/22. Our expenditure was £639m including non-cash pension fund credits of £10m.

Annual Report and Financial Statements 2023

Year ended 31 July 2023.

Underlying deficit

A bar graph showing how the University’s underlying deficit which totals 12.7 milIion pounds is made up. It shows operating costs made up of net expenditure of 639 million pounds and adding back non-cash pension fund credits of 10 million pounds to make total underlying costs of 649 million pounds. It also shows income of 636 million pounds.
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Operating costs(£m)
Add back non-cash pension fund credits10
Underlying operating costs649
Underlying operating costs-649
Underlying deficit-13

We generated £30m cash from operating activities and invested £57m to acquire premises and equipment for staff & students.

Cash and cash equivalents

A bar graph showing movements in the University’s cash & cash equivalents in 2022/2023. We started the year with £96.4m, generated 30.3m from operating activities, invested £76.2m and spent 13.9m on financing.
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Cash and cash equivalents(£m)
Opening cash96.4
Operating activities30.3
Investment (see below)-76.2
Closing cash36.6


A bar graph shows how the University invested its money in 2022 to 2023, spending 33.5 million on land and buildings, 23 million on equipment and 19.7 million on other investments. It totals 76.2 million pounds.
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Investing activities£m
Investment in land and buildings33.5
Investment in equipment23.0
Other investments19.7

Investment in buildings

A bar graph shows a breakdown of the University’s 33.5 million investment in buildings, with 7.42 million spend on the Translation Research Facility, 8.79 million on the relocation of healthcare and 17.2 million on investment in other buildings.
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Investment in buildings£m
Healthcare relocation8.79
Investment in other buildings8.79

Investment in equipment

A bar graph shows a breakdown of the University’s 23 million pound investment in equipment, with 9.49 million spent on research equipment, 5.36 million on computers and 8.15 on other investments.
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Investment in equipment£m
Research equipment9.49
Other equipment8.15

The financial year ending 31st July 2023 continued to challenge us, with new economic headwinds of inflation at levels not seen since the 1980s, especially in energy costs.

We experienced losses in the value of our investment portfolio but higher interest rates resulted in positive changes to our pension liabilities.

The challenge of inflation meant that both staff and students were impacted and we assisted through (amongst other things) one-off payments, accelerated pay awards and more student hardship payments.

We also experienced a reduction in tuition fee income largely as a result of not delivering our overseas recruitment targets offset by increases in research income.

Where our money comes from

We received 4.0% less than last year in tuition fees and education contracts, this was offset by higher research and income relating to commercial services. Research activity continued to grow during this financial year generating £134m of income.

Total income

A pie chart shows where the University’s total income of 636 million pounds comes from. 1.4 million pounds comes from donations and endowment, 310.6 million pounds comes from tuition fees and education contracts, 90.2 million from funding body grants, 113.6 million from funding body grants, 133.6 million pounds from research grants and contracts, 90.9 million from other income and 9.7 million pounds from investment income.
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Total income£m
Tuition fees and education contracts310.6
Funding body grants90.2
Research grants and contracts133.6
Other income90.9
Investment income9.7
Donations and endowments1.4
Total income636.4

What we spend our money on

In 2022/23, we spent £639m compared to £607m the previous year, the increase of £32m is largely due to increased premises expenditure and academic spend.

Average staff full time equivalent (fte) numbers increased by 3%, mainly in academic areas, as we strove to improve student experience and to deliver our research commitments. Staff cost as a proportion of income was 57.1% which is an increase on the previous year (54.2%).

Operating expenses increased by £13.4m to £226.3m in the year. We are investing further in supporting staff and students as well as maintaining a safe campus whilst Covid-19 variants still circulate in the general UK population.

Total activity spend

A bar graph shows what the University spent its money on in 2022-2023. It shows a total spend of 639 million pounds, of which 304 million was spent on academic and related expenditure, 91 million on research, 81 million on premises, 77 million on administration and central services, 66 million on other services, and 20 million on residences, catering and conferences.
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We opened our Translational Research Hub officially in May. The core purpose of this hub is to deliver scientific research that be translated rapidly into new products and processes that benefit society.

The hub will also create high-quality, graduate-level jobs and boost economic growth in our region.