Financial highlights – YE 2013/14
• Turnover up 14% from £117.6m to £134.4m
• EBITDA up 16% from £54.5m to £64.4m
• Occupancy at 100%, up from 99.5%
• Total rooms under management, operation and in construction 30,000
Sean O’Shea, UPP Group Limited Chief Executive Officer, said:
“We are delivering on our plan to unlock the capital markets and create a platform for growth. Our approach is helping universities to benefit from historically low rates of borrowing and investors to benefit from long dated investment grade corporate notes. UPP Group is looking forward to injecting investment into the UK’s great universities and helping them to achieve their long-term ambitions.”
UPP Group Holdings Limited (trading as University Partnerships Programme), the UK’s leading provider of campus infrastructure, student accommodation and specialist residential services, today reports its results for the year ending 31 August 2014.
The results reflect UPP delivering on its plan to unlock the capital markets and to deliver growth in turnover, EBITDA and bed numbers. For the year ending 31 August 2014, UPP recorded a turnover of £134.4 million, up 14% on the previous financial year and an EBITDA of £64.4m, up 16%.
UPP continued to define its platform for growth and unlocked additional investment from the capital markets. The market conditions remain strong for investment both in the UK’s Higher Education institutions and in the UPP’s business model. There remains an estimated £5bn funding gap for backlog maintenance to the UK HE estate that must be filled. Set against the backdrop of a need to improve both academic and residential facilities to meet the growing expectations of students, increasing numbers of students following the on-going relaxation of the cap on student numbers and significantly reduced capital funding from HEFCE (Higher Education Funding Council for England); the demand for further investment is clear. Interim UCAS statistics show applicant numbers up on last year in each domicile group apart from Wales where applicant numbers remain flat.
Following the YE August 2014, growth continued and UPP launched its second tranche of index-linked senior secure notes – in a £149.7m deal with the University of Exeter.
This transaction was another sign that UPP is delivering on its plan to link long-dated borrowing to the long-term business model of UPP and UK universities. This expansion of the bond programme means that the vast majority of operational beds are now on long-term funding.
The financial year also saw the Group continue its bidding and development activity.
• UPP’s £46 million scheme with the University of Reading was delivered ahead of schedule. The accommodation, 649 bedrooms and a new café, junior common room and office suite - opened its doors to students on the campus for the start of the academic year 2014/15.
• UPP closed a £140.7 million deal with the University of London for a 1,200 bed student accommodation scheme in the heart of Bloomsbury, London.
• Construction has started on this landmark scheme in London. The development, delivered in partnership with University of London, will entail the redevelopment of three existing University residences and the complete refurbishment of a fourth, making this the largest student accommodation scheme in Central London.
• UPP reached financial close on a £50.5 million transaction with the University of Kent – it’s third transaction with the institution.
Over the next five years, by continuing to make the case for investment in university infrastructure, UPP will invest a further £1billion in delivering the very best student experiences, in long term partnership with great universities - expanding our portfolio to more than 40,000 beds.