Coventry University has finally published its annual accounts, revealing a pre-tax deficit of ?59.3 million last year, which it said was?a result of ¡°circumstances beyond [its] control¡±.

The institution said news of the loss ¨C which comes just a day after it received approval to establish a new campus in India ¨C was part of its strategic efforts to reshape and resize in light of a ¡°new financial reality¡±.

Coventry warned in December 2023 that it had to make nearly ?100 million in cuts over the next two years, and has faced recent opposition to its attempts to make almost 100 academics redundant.

show a deficit of ?59.3 million before tax, following a ?1.8 million surplus in 2022-23. The Midlands university recorded a negative net cash flow from operating activities of ?40.1 million ¨C one of the largest across the sector.

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The university said it plans for a smaller deficit in 2024-25, and will be able to add to its cash reserves by 2025-26. The accounts show the post-1992 institution¡¯s income fell from a high of ?491 million in 2022-23 to ?420 million last year.

On top of the financial challenges created by Brexit and a freeze on tuition fees, it attributed its drop in revenue to the Conservative government¡¯s policy U-turn on international student visas.

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Coventry previously accepted high numbers of Indian and Nigerian students ¨C two nations?that were particularly affected by a ban on dependant visas which came into force last January.

Recent figures from the Higher Education Statistics Agency show that it suffered a 48 per cent?fall in numbers of postgraduate taught students from outside the European Union in 2023-24.

Along with its campus in London, Coventry has recently received approval to establish a new campus in India¡¯s Gift City, with plans to welcome students next year.

John Latham, who has led the Midlands institution for more than a decade as vice-chancellor and chief executive, said: ¡°Like most of the sector, we are having to adapt to a new financial reality created by circumstances beyond our control.

¡°We took the decision to use some of our reserves to give us time and space to reshape and resize the group in a considered way that allows us to retain the capacity to grow again. Our pre-tax deficit of ?59.3m is a significant figure but consistent with that approach and very much expected given the warning we gave in December 2023.

¡°We still have significant cash reserves, a strong balance sheet, own our modern, sustainable campus buildings and remain very attractive to future students, as shown by strong growth this year at our London locations.¡±

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Latham, who has faced opposition from within Coventry for his handling of the crisis, received a pay rise in 2023-24. His salary of ?327,837 was about ?15,000 more than in 2022-23.

And his total pay package of ?411,278 placed him among the?UK¡¯s 20 highest paid university leaders last year.

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Coventry said his remuneration reflected the ¡°considerable impact and influence he has upon driving forward the institutional strategy¡± and shaping overall performance.

For institutions whose financial year ended in July, the deadline to publish accounts was the end of December ¨C unless they had agreed an extension with the Office for Students (OfS).

Coventry was one of the last universities to publish their accounts, meaning that just four members of Universities UK are yet to do so ¨C crisis-hit University of Dundee, the University of Kent, Bangor University and Leeds Trinity University.

Bob Rabone, former chair of the British Universities Finance Directors Group, said the number of institutions publishing this late is ¡°significant and of concern¡± ¨C particularly given that they are established and sizeable universities.

Rabone called for the OfS to act appropriately towards institutions?that delay publishing their accounts ¨C in the way that Companies House can strike off organisations for missing their deadline.

¡°I would argue that the transparency of this to stakeholders is very helpful. Further consideration should be given to the regulation and the openness of all [providers] annual financial reporting, so as to make it transparent that a deadline has, or has not, been met, and that the reasons for any delay should be publicly disclosed.¡±

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A Dundee spokesperson said they intend to publish their accounts soon, and a Bangor spokesperson said the institution has had delays in finishing its external audit. A Kent spokesperson said: ¡°Our annual accounts are currently going through final sign-off, in line with pre-agreed timelines with the OfS.¡± Leeds Trinity declined to comment.

patrick.jack@timeshighereducation.com