Half-yearly result shows steady financial performance for UC

Thank you to all staff for your sustained effort in recruiting and retaining students, for the ongoing commitment to world-class excellence and research and the extraordinary work undertaken to transform both the physical campus and our services.

The University of Canterbury (UC) is continuing to show steady financial performance, the six-monthly result to the end of June 2018 shows.

UC has advanced its growth strategy, starting the academic year with a big increase in new-to-UC students and receiving a further boost with a 22% increase in mid-year enrolments.

Our aim is to continue to grow the number of students coming to the University and staying in Canterbury, to increase research efforts and academic and technical job opportunities, and to collaborate with institutions in the region.

In the last year, UC was the fastest growing New Zealand university, attracting record numbers of students from Auckland and Wellington, as well as students and researchers from around the country and the world.

In the last 12 months we have had a record number of postgraduate students, including over 1,000 doctoral students. UC also achieved a record level of research income, hosted the greatest number of academic visitors in our history and attracted record levels of philanthropic support for scholarships and research.

Emerging from the difficult post-quake environment, UC has learnt much in the past eight years. It has a deep understanding of how to respond to a crisis, it is much more open to collaboration, and it has developed tools to manage with constrained resources.

The six-monthly result to the end of June 2018 shows continued steady financial performance as the University competes strongly in the commercial environment of student recruitment locally and globally, while investing in exciting new, state-of-the-art facilities.

UC is completing over $1.1 billion of capital investment, largely in research and teaching infrastructure to support 21st century science and engineering, new business models and digital technologies.

The College of Science’s new five-storey Ernest Rutherford building and the College of Engineering’s state-of-the-art facilities are now fully open, while the University is completing the Rehua building for the College of Education, Health and Human Development, the MBA and Business Taught Masters Programmes and the Centre of Entrepreneurship led by the College of Business and Law, and Haere-roa, the new University of Canterbury Students’ Association (UCSA) building.

The University’s $5 million surplus represents the result of operations to 30 June 2018, which is not representative of the full year where the cycle of earnings is annual. The majority of student-related earnings are made in the first half of the financial year.  The current projection for the 31 December 2018 annual result is a surplus of $5 million.

For the first half of 2018, UC recognised revenue of $191.4 million (compared to 2016’s half-yearly result of $185.4 million). By the year end, UC is projecting to have increased its Equivalent Full Time Student (EFTS) numbers over 2017 in both domestic and full-fee paying (international) new-to-UC students, and in student numbers overall.

Operating expenditure was $186.4 million in the same period (30 June 2017: $172.2 million). 

The University continues to maintain adequate cash balances, with total cash holdings at 30 June 2018 (defined as current and term deposits) $295.3 million (30 June 2017: $349.0 million; 31 December 2017: $252.6 million).  The University receives the significant majority of its operating cash revenue early in the year during its main enrolment period. These balances are almost entirely committed to funding the University’s capital investment plan and EFTS expansion initiatives.

Net tangible assets per security ($1,000 face value) as at 30 June 2018 were $27,488 (30 June 2017: $27,878; 31 December 2017: $27,359).

Ngā mihi,

Dr Rod Carr
Vice-Chancellor | Tumu Whakarae