Future of city university 'uncertain', auditors say

Independent auditors have questioned Coventry University Group's "ability to continue" following the publication of the group's latest financial report.

The group, which includes the city's university and its campuses in Coventry, London and Scarborough, announced on Thursday that it would have to cut more than 60 full-time jobs.

Nearly 250 full-time equivalent roles could also be cut at Coventry University, while more than 185 jobs would be created elsewhere in the group, they said.

Prof John Latham CBE, vice-chancellor of the university, said it still had "significant cash reserves and a strong balance sheet".

The independent auditors' report highlighted that the university group made a £59.3m loss between 2023-24 and that "uncertainty exists" towards "its ability to continue".

"Underperformance against forecast student recruitment numbers and cost savings could result in non-compliance with a debt covenant, which could trigger a demand for repayment of the private placement debt," the auditors added.

On Friday, the University and College Union called for "immediate transparency" from the group and said it was "seeking urgent clarification from senior management on the full implications of the report".

It added that the union would meet with the university's leaders on Monday to "demand greater transparency and assurances for staff".

The university's Board of Governors maintained that cash balances were "very healthy" and said the group had the "flexibility" to engage in "considered and strategic reorganisation", which would enable expenditure to be reduced to a "sustainable level".

The board also sought to reassure that they had enough finances to continue to operate for the next 12 months.

"The Board is assured that the group has adequate resources to remain in operation for the foreseeable future and at least for the next 12 months from the date of the financial statements," they said.

"The group is forecasting much better results for 2024-25 and beyond as it realises the full benefits of the steps that have been taken to address the challenges that have arisen in 2023-24," they added.

The university also added that it was "on track" to deliver nearly £100m in cuts that it set out to achieve over a two-year period in December 2023.

The number of international students who studied at the Coventry campus dropped by 24% between 2022-23 and 2023-24.

"This decline added to financial challenges created by Brexit, a seven-year freeze on UK student tuition fees and unsustainable pension contributions," a university spokesperson said.

Prof Latham added "resizing of the workforce to match the decline in student numbers in Coventry" would lead to a small deficit in the next financial year.

He said: "Like most of the sector, we are having to adapt to a new financial reality created by circumstances beyond our control.

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