Coventry University Group on track to break even this financial year
Coventry University Group is on course to break even this financial year following two years of planned reform
Coventry University Group is on course to break even this financial year following two years of planned reform, as the UK higher education sector continues to face a financial crisis.
Accounts for the year ending 31 July 2025 show a second predicted deficit, but costs were reduced by £39 million compared with the previous year.
The Group says a significant factor in the deficit was higher-than-expected student recruitment in spring 2025, with most income from these students expected in the current financial year.
Professor John Latham CBE, Vice-Chancellor and CEO, said: "There is a high level of confidence that the Group transformation and its focus on global and national innovative delivery means it is back on an upward trajectory at a time when OfS expects 45% of universities to be in the red.
"We were open and honest about how the sector problems would affect UK Higher Education and what we were going to do about it. The sector needed to reform and our teams have been incredible in their speed and agility to make the changes we needed happen.
"The required deficits are never easy, but inevitable as the scale of reforms we have implemented are now having a positive impact on our finances. After the first quarter of this financial year, we are ahead of where we planned to be. Student numbers are bouncing back and we now have a structure which will allow us to pursue sustainable growth.
"We still have substantial cash reserves and strong assets, which sends a strong and reassuring message to our stakeholders and the regulator.
"The OfS considers 24 providers to be financially at risk and could be forced to stop offering degree-awarding courses within the next 12 months. Our going concern statement demonstrates we are not in that unfortunate position, and our stakeholders can have confidence in our future.
"We have brought forward a wide range of reforms to what we do and how we do it, while protecting our TEF Gold-rated teaching. All of our post-graduate teaching has successfully moved to block teaching and the first round of feedback from students has been overwhelmingly positive.
"We are now pushing ahead with implementing block teaching across all undergraduate courses from September 2026 and moving to six intakes a year.
"This innovation in education was made in Coventry, successfully developed and delivered in our CU campuses in Coventry, Scarborough and London for more than 10 years and is now being widely copied across the country.
"We won’t stop innovating, diversifying and finding new sources of income in the UK and global markets, using our teaching, research and knowledge transfer activities to continue creating better futures.
"Everyone in Higher Education knows we operate in an uncertain sector with many challenges outside of our control. We are certain that we have the correct strategy and are on the right path."
The Group has introduced wide-ranging reforms, including moving postgraduate courses to block teaching, with plans to expand the approach to undergraduate courses by September 2026. Student numbers are increasing, and the University says the structure now supports sustainable growth.