Canterbury Uni posts interim profit

00:37, Aug 28 2014

The University of Canterbury is forecasting a $10 million "business as usual" result for the year to December 31.

For the 2013 financial year the university reported its teaching and academic activities had a deficit of $3m.

A $6.2m deficit was recorded in 2012.

The university's buildings and student numbers were hit hard as a result of the 2011 Canterbury earthquakes.

The teaching institution said this year it still had work to do to return to sustainable operating surpluses by 2017.

In its preliminary half-year result for the six months to June 30, issued yesterday, the university said significant volatility remained in reported results as more earthquake remediation was done and the true costs of remediation were revealed.

The upcoming 2014 result was hard to forecast given the nature of year-end adjustments for property revaluations and impairments, it said.

The university said in a statement it was continuing to deliver a satisfactory financial performance while addressing remediation, recovery and rebuild projects, "which may not only affect service delivery and its financial position, but its staff and students".

Revenues of $188.1m in the six months to June 30, were up from $184.2m in the prior corresponding period.

The total included $40.7m of insurance reimbursements, down from $42.6m in the first half of 2013.

It reported a bottom-line profit of $42.9m for the six months, up from $24.9m in the six months to June 30, 2013.

The university said further analysis showed a small surplus from its primary operations.

"[This] reflects the higher earnings normally experienced in the first six months of the year, together with some deferral of expenditure to later in the year, which are purely timing differences," it said.

The audited annual result for 2013 was a $76.56m surplus, with the bulk of that surplus connected to earthquake recovery items.

The university council and management had been seriously engaged with the Government, Treasury and the Tertiary Education Commission on issues connected to the Crown's commitment of up to $260m towards a $357m investment in a complete refurbishment of the college of engineering and the building of a new regional science and innovation centre.

The university said it had not breached any of its philanthropic bond covenants as at June 30. It had no reason to believe payments to bondholders would be affected.