The Uk Law Gazette reports…. One of the UK’s biggest legal educators lost £400,000 in 2022-23 as it wrote off former students’ debts, an annual financial statement has revealed.
University of Law Limited followed up a bumper 18-month period to May 2022, when pre-tax profits were £39m, to record the losses in the 12 months to 31 May 2023. This was on revenues of £163.3m for the year, a pro rate rise on the £233.1m inofthe previous 18 months. Net assets remained almost unchanged at £103m.
The company, which owns the University of Law and subsidiaries in Scotland and Hong Kong, said the 2022-23 losses stemmed mainly from writing off £15.6m that was classed as aged debt.
Financial statements outlined that in the previous year, management identified issues around deferred income and outstanding term fees of former students. A so-called ‘student data cleanse exercise’ was carried out and the future income levels reduced.
Loss allowances were based on ‘estimates around risk of default and expected loss rates using the group’s past history’.
Company costs had also been lower in the previous 18 months as teaching was done online and the university was helped by rent rebates and lower utilities costs. In 2022-23 operating costs were back to normal levels and hit by inflationary pressures.
The company added: ‘The revenue and gross margins have improved which is a positive sign, however the university is taking measures to ensure operating costs are controlled wherever possible to ensure the university is operating efficiently and maximising the available resources.’
Student numbers rose by 6% to 16,555 in the year. ULaw operates through eight of its own UK campus locations plus the campuses of nine partner universities in Hong Kong and Berlin. It works exclusively with more than 60 law firms and has established programmes to prepare students for the solicitors’ qualifying examination as well as the legal practice course, which is being phased out by 2032.
Total directors’ pay increased from £1.17m to £1.55m, with the highest-paid director Professor Andrea Nollent receiving £314,000, a 35% increase on the previous year. Nollent rejoined the university as vice-chancellor and chief executive in June 2022 after leaving in August 2021.
Staff numbers across the company rose from 1,048 to 1,283.
