Financial Statements - Full Year 2005

Report of The Board of Govenors

On behalf of the Board of Governors I am pleased to present the University’s Financial Statements.

Scope of the Financial Statements

These are the consolidated statutory accounts of Liverpool John Moores University and its subsidiaries for the year ended 31 July 2005. Details of the Group are found within note 11.

Results for the Year

The University’s consolidated Income, Expenditure and Results for the year to 31 July 2005 are summarised as follows:

 

2004/05
£000

 

2003/04
£000

Income

121,680

 

 117,982

Expenditure

126,494

 

116,928

(Deficit)/Surplus after depreciation of assets at valuation and before tax

(4,814)

 

1,054

Profit on disposal of fixed assets

 3,124

 

-

Loss on disposal of discontinued operations

 (302)

 

 -

(Deficit)/surplus after depreciation of fixed assets at valuation and disposal of fixed assets but before tax

(1,992)

 

1,054

Taxation

 12

 

 14

(Deficit)/Surplus on continuing operations after depreciation of assets at valuation, disposal of assets and tax

(2,004)

 

1,040

Surplus/ (Deficit) for the year on a historical cost basis

(473)

 

2,165



 

 

 

 

 

 

 

 

 

 

 

 

 

The retained group deficit for the year was £473k. This deficit takes fully into account the losses and provisions for TTL, which was sold at the end of August. TTL will have no further impact on the accounts of the University Group. The accounts also reflect the profit of £3,124k on the sale of North Western Halls.

Increases in HEFCE funding, NHS funds and European income have been partially offset by reductions in tuition fees, and TTL sales income. Increases in expenditure have been greater than those in income as strategic investment continues in infrastructure and targeted staffing. Budgets have been strained in some areas as we have seen strong rises in both the operating and maintenance costs of buildings.

Income and Expenditure Reserves are now £7,947k. Total reserves have increased by £21m as the revaluation of University property has been taken into account. Student debt levels have reduced and cash balances remained stable.

 

Property

An exciting rationalisation of the University property portfolio has begun this year as design work has commenced on our £23.5m Design Academy and on a new Corporate and Professional Training Suite. A first tranche of property disposal has commenced which will deliver funding for new, fit for purpose contemporary buildings. Further rationalisation will continue in order to deliver a modern efficient environment for students and staff. 

In addition a new lecture theatre has been built at Byrom Street and major improvements made to the condition and feel of the buildings.
Sale of subsidiary

I am pleased to report the sale of TTL to Las Cumbres UK, the UK division of the Las Cumbres Observatory, a US scientific and educational foundation. This ensures the continued long-term viability of TTL and employment for its employees. LCO also has the financial resources to support the levels of investment needed to bring the astronomical ambition of developing a global network of telescopes one step closer to becoming a reality.


 

Strategy Progress

Despite a difficult financial year the University continues to deliver its strategic plan and the highlights for the year include:
Continuation of process reviews and process implementation, completion of phase 1 of the Science Park, successful bids for Centres of Excellence and HEIF funding, increases in research activity and OFFA agreement accepted.


 

Conclusion

The University has a difficult year ahead as it faces the challenges of its changing environment along with driving to deliver its strategy.

Finally may I thank all our staff for their commitment and support, which will deliver the strong and stable future we all desire.

 

Commodore R H Walker
Chair
7 December 2005



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