Read the full version of the 2018 Annual Report online.
The year has been a successful one, with net income before gains of £4.2M: an increase of £2.8M compared to last year. This has been achieved through in-year legacies and donations of £6.7M – almost double the 2015/16 total – and the strong performance of the investment portfolio, generating £2.6M in income.
Our core income from tuition, research and accommodation has been steady compared to that of previous years. We continue to make the best use of our facilities, using the College buildings for conferences and external events in vacation periods, which has generated over £2M in income for the second successive year.
We remain committed to the financial support we offer to our students, giving £1.2M (around 7% of our total income) to students in prizes, scholarships, bursaries and other financial help. Much of the financial support to students is only possible because of the generosity of alumni today combined with the income from endowment gifts, some dating back to the 17th century.
Our total costs have increased by £1M, in line with our budget expenditure. Following a strategic review of the College estate, in 2014/15 the College embarked on a long-term refurbishment plan. Investment continued in 2016/17, with £1.6M being earmarked to this project in the year and a further £2M budgeted for 2017/18. Highlights of the programme in 2016/17 have included therefurbishment of Holywell Manor and the cleaning and repair of the Magdalen Street side of the main site. Work scheduled for 2017/18 includes repairs on the Hall roof and the continuation of the cleaning of the Broad Street façade.
During the year, planning permission was granted for the Master’s Field development and we have invested £3.3M in the developmentto date from cash surpluses generated in the period. This investment in the future will allow all our undergraduate students to live in College, if they wish, whilst enhancing the College estate and generating a positive cash return over the life of the project.
The College’s endowment has made a 10.2% average return over the last five years, which compares well against our peers, both in the UK and overseas. The total investment portfolio, which includes the proceeds from our bond raised in 2015 for the development of the Master’s Field but not yet drawn against, was valued at £149M at year end: a gain of £9.1M in the year. The portfolio is managed on a total return basis, allowing us to generate growth and income. During the year we reduced our spend rate
to 3.5% (from 3.75%) to preserve the portfolio for added security in the future. Through the generosity of donors and returns on the market the portfolio is now £112M (excluding the proceeds from our bond) compared to £78M in 2013. ‘A recent review of the College’s endowment showed that our performance over the last five years ranks well against our peers, both in the UK and overseas, outperforming universities such as Harvard and Stanford.’
Richard Collier, Finance Bursar
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