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Coventry University Group on course to deliver its planned savings after first year of two-year change programme
Coventry University's Lanchester Library
University news
Thursday 10 April 2025
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Coventry University Group is on track to deliver the change it had warned was needed after publishing its annual report showing a deficit for the financial year ending 31 July 2024.
The Group, which includes Coventry University, Coventry University London and CU Group campuses in Coventry, London and Scarborough, said in December 2023 that it needed to find savings forecast at £95 million over two years, largely due to a significant drop in revenue caused by the previous government’s policy U-turn on international student visas.
The higher education sector saw a 40% fall in international students last year and while Coventry University Group outperformed the sector, the decline added to financial challenges created by Brexit, a seven-year freeze on UK student tuition fees and unsustainable pension contributions.
The House of Commons Education Select Committee met this week (8 April) to “examine the perfect storm bearing down on institutions, including fluctuations in domestic and international student numbers, pension contributions, and the rate of tuition fees”.
The accounts for 2023/24 show the Group’s income dropped from a high of £491m in 2022/23 to £420m, although £18m of that was due to an accounting change in some income recognition. The result was a pre-tax deficit of £59.3m.
The Group is now in the second year of an accelerated change programme to reform and reshape the organisation for future growth, while also implementing separate resizing changes to match the forced decline in student numbers. Both are on target to deliver the required savings.
As a passionate advocate for widening participation, the Group was – and remains – against the rise in UK tuition fees as a way to bring more money into the higher education sector and continues to call for a national debate about the way the sector is funded.
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.
Our change programmes include resizing our workforce to match the decline in student numbers in Coventry, while maintaining TEF Gold standard teaching and support for our students. These changes will be reflected in our performance in the current financial year (2024/25), which will have a smaller deficit, and we are progressing as planned towards 2025/26, at which point we will be able to add to our cash reserves, which are already more than double what the regulator expects.
Alongside outstanding undergraduate and postgraduate education, we are a global education group delivering health education to a record number of nursing students, apprenticeships and teacher training, with a growing network of badged and branded campuses extending our educational reach and opportunity overseas.
We continue to pursue our 2030 Group Strategy, transforming our curriculum and the delivery of education, challenge-led research and knowledge exchange services. We will continue to develop the Group, with applications lodged to add a Further Education college to the Group and to register Coventry University London as a standalone provider of higher education.
While the challenges will keep coming for the sector, we have a strategy and, supported by our Board of Governors, our talented colleagues will deliver further success. We want to thank colleagues for their continued commitment and to highlight the amazing work they do across Coventry University Group as they continue to transform lives and communities. That this has been achieved in the most challenging period ever for the higher education sector is a testament to their talent and commitment.
Professor John Latham CBE, Vice-Chancellor of Coventry University and Group CEO
