Uclan sets aside £2.8m to cover losses overseas

University says that provision should be seen in context of a £10 million surplus across the institution as a whole

March 19, 2015

Source: University of Central Lancashire

The University of Central Lancashire has put aside £2.8 million to guard against further losses on its overseas campuses as its Cyprus branch lost more money and again drew criticism from the United Nations secretary-general.

Uclan’s Cyprus campus recorded a loss of £1.4 million in 2013-14, following on from a £1.7 million loss the previous year. The university blamed the losses on “disappointing” recruitment, which it says has now improved. Uclan had been planning a Sri Lanka campus, but now says that it is also looking at “alternative approaches”.

A deal for another planned campus in Thailand had previously collapsed before building started.

The £2.8 million deduction and separate Cyprus loss are revealed in Uclan’s 2013-14 accounts. The university said that they should be seen in the context of a “very strong” £10 million surplus across the institution as a whole. But the figures may raise further questions about the strategy pursued by Malcolm McVicar, its former group chief executive.

After Dr McVicar’s planned retirement last year, Richard Hext took over as group chief executive, arriving from a career in shipping.

Uclan Cyprus, recruiting mainly Greek Cypriot students, was built in the UN-policed buffer zone between the Greek Cypriot and Turkish Cypriot sides of the island. It is located in Pyla, one of Cyprus’ last mixed villages.

In his latest report on Cyprus to the UN Security Council, published in January, Ban Ki-moon, UN secretary-general, says: “Regrettably, the university in Pyla, the construction of which remains unauthorized, continues to operate with next to no Turkish Cypriot involvement.”

The Cyprus campus is operated by a joint venture between Uclan and a Greek Cypriot property developer, with the joint venture company leasing the building. Accounts for Uclan (Overseas) Limited detail the overall Cyprus losses in 2013-14, shared by the joint venture partner and Uclan. “As a result of the low recruitment losses for the year amounted to E3.6 million (£2.6 million), with accumulated losses now standing at E7.8 million,” the accounts say.

The accounts add that “a major financial restructure” of the Cyprus campus is under way, after which “the long term future of the campus will be secure”.

In last year’s Uclan group accounts, £3.2 million had been written down on the Thailand project, which collapsed after a dispute with its joint venture partner, a Thai businessman.

The 2013-14 Uclan (Overseas) accounts state that the settlement previously negotiated “has not been honoured by the Thai joint venture partner”. Attempts may be made “toward the recovery of further monies but whilst awaiting the outcome of this work, a prudent decision has been made to provide for the outstanding amounts”, the accounts add.

A Uclan spokesman said: “The new leadership team has taken a prudent view and advised provisions of £2.8 million against possible future losses on our investments in Cyprus, Sri Lanka and Thailand.” He added that “we expect Uclan Cyprus to become profitable in 2018-19 and, in academic terms, its performance is excellent”.

“There is absolutely no doubt that international activities will continue to remain core to our overall strategy,” he continued. “We also stress that our international ventures were not funded from UK public funds, and that the international losses will have no bearing on our ability to deliver the exciting £200 million campus redevelopment programme here in Preston that we recently announced.”

john.morgan@tesglobal.com

Times Higher Education free 30-day trial

You've reached your article limit

Register to continue

Registration is free and only takes a moment. Once registered you can read a total of 6 articles each month, plus:

  • Sign up for the editor's highlights
  • Receive World University Rankings news first
  • Get job alerts, shortlist jobs and save job searches
  • Participate in reader discussions and post comments
Register

Have your say

Log in or register to post comments

Featured Jobs

PhD Position in Archaeology and Cultural History

Norwegian University Of Science & Technology -ntnu

PhD position in Energy and Process Engineering

Norwegian University Of Science & Technology -ntnu

PhD position in Energy and Process Engineering

Norwegian University Of Science & Technology -ntnu

PhD position in Industrial Energy Efficiency

Norwegian University Of Science & Technology -ntnu

Postdoc in Traffic Engineering

Norwegian University Of Science & Technology -ntnu
See all jobs

Most Commented

Doctoral study can seem like a 24-7 endeavour, but don't ignore these other opportunities, advise Robert MacIntosh and Kevin O'Gorman

Matthew Brazier illustration (9 February 2017)

How do you defeat Nazis and liars? Focus on the people in earshot, says eminent Holocaust scholar Deborah Lipstadt

Improvement, performance, rankings, success

Phil Baty sets out why the World University Rankings are here to stay – and why that's a good thing

Warwick vice-chancellor Stuart Croft on why his university reluctantly joined the ‘flawed’ teaching excellence framework

people dressed in game of thrones costume

Old Germanic languages are back in vogue, but what value are they to a modern-day graduate? Alice Durrans writes