University Financial Performance 2022-23

We’ve now shared with the University Council our annual accounts for the financial year ending 31 July 2023. They are available to read online.

The University has delivered a strong financial performance despite facing the significant headwind of the highest levels of cost inflation in a generation. We are pleased to report an underlying surplus of £73.5m (£85.1m in 2021/22) – the overall reported surplus after adjusting for USS pension movements was £105.0m (deficit of £93.2m in 2021/22).

Here is an overview of our financial performance for 2022/23 in more detail:

• The University’s total income has grown by £60.4m to £839.4m despite the home undergraduate fee continuing to remain at £9,250. This record level of income is primarily due to above-target student recruitment particularly of overseas students, with tuition fee income now representing 54% of total University income.
• Research grants and contracts income continues to grow achieving £144.1m, up from £139.9m in the previous year, with several departments posting excellent results, led by WMG reflecting its continuing strong relationships with industry partners.
• Other income was £148.5m showing an increase of 10% from 2021/22, with levels of activity largely restored beyond pre-pandemic levels. The University’s income has also benefitted from rising interest rates with investment income of £14.6m up from £2m in 2021/22.
• Rising prices have hit the University’s expenditure, most notably energy costs which doubled to over £24m. However, total expenditure was lower than planned because of continuing difficulties in filling staff vacancies and associated lags in project expenditure.
• It should be noted that last year’s results were dominated by an adverse movement of £178.3m in the USS pension liability following the scheme’s 2020 valuation, turning the underlying surplus into a reported deficit of £93.2m. In contrast, the 2022/23 movement in the USS liability was a positive £31.5m boosting the underlying surplus of £73.5m to a reported surplus of £105.0m. The USS pension adjustment is a non-cash movement and does not impact the University’s day to day operations. The latest USS valuation is not reflected in these accounts but shows a large surplus.

Overall, the year-end result is a positive outcome. All surpluses go back into supporting the University’s charitable purposes.

In the year, we were able to make one-off payments to staff including a thank you payment as an additional reward for the achievements of staff in exceptional circumstances as we emerged from the pandemic and later in January a cost of living payment to assist staff on lower grades of £550 pro rata. The nationally negotiated pay award for 2023/24 was accelerated and in part paid early from February. Staff costs when adjusted to exclude USS movements as a percentage of expenditure increased to 57.5% (2021/22: 56.7%).

The recent excellent outcomes in the Research and Teaching Excellence Frameworks are the strongest indicators yet that the University is on course to deliver its strategic goal of being one of the world’s exceptional universities, helping to transform our region, country and world for the collective good.

Our ability to deliver strong financial results is a key enabler as we seek to build on these outstanding research and teaching outcomes and our surplus generation is essential to the University being able to begin its ambitious investments in science and social science.

Financial Statements for the Year Ended 31st July 2023

Full archive of financial statements

This includes copies of the Statutory Accounts from the first 50 years, which were made available online as part of the University's 50th Anniversary.

Financial information for students