UC annual result for 2015
24 February 2016
The University of Canterbury's annual result for 2015 shows encouraging financial progress towards a return to surplus by 2019, reports Vice-Chancellor Dr Rod Carr.
The University of Canterbury’s annual result for 2015 shows encouraging financial progress towards a return to surplus by 2019, reports Vice-Chancellor Dr Rod Carr.
UC’s audited result for the year to 31 December 2015 was a $3.5 million surplus. This is after building demolition and write off costs as the University continues through its post-earthquake rebuild and renewal programme, but with offsetting additional interest income arising from the investment of the insurance settlement proceeds received in January 2015.
The result compares to the 2014 surplus of $433.3 million, which included $370.3 million from the final insurance settlement negotiated in December 2014, and a $66.6 million net gain attributable to further reviews of impairments and revaluations of buildings, all consequential effects of both the earthquakes and of the subsequent remediation work.
Dr Carr says that while challenges remain in bringing about the recovery of student numbers in a competitive market, the first major pieces of an ongoing campus transformation programme are near completion and that, with continued support from Government as planned, the University remains on track for a forecast return to a normal operating surplus in 2019.
The Vice-Chancellor says that while 2016 might be the year when Christchurch’s central city really kicks off, the University’s progress is already well advanced and well in hand. The propensity of Canterbury high-school leavers to come to UC has returned to pre-quake levels.
“The University is determined to build on its proud 143-year history and to endure as one of the rocks on which the continuing and future success of Canterbury is built,” says Dr Carr.
The quality of UC’s core business – world-class research-informed teaching and learning – remains high and has continued to improve, he says. In 2015, UC’s QS ranking increased 31 places to 211 in the world, retaining UC’s ranking well inside the top 3% of the world’s universities.
“Twenty-one disciplines taught at UC are ranked in the top 200 in the world. We are focused on retaining our place among the top three universities in New Zealand.”
UC continues to put considerable effort into student recruitment. The “pipeline” effect of lower student numbers in previous years is reducing, but continues to have an impact. While there has been significant progress growing revenues and reducing and containing operating costs, UC still has work to do to return to sustainable operating surpluses, particularly as these results incorporate significant additional Government Student Achievement Component (SAC) funding to support UC’s recovery.
This year’s result more closely reflects normal operations. The budgeted operating deficit for 2015 was $9.5 million before insurance revenue receipts.
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