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2025-07-31-accounts

Charity Name:

Cardiff Metropolitan University

Charity Registration Number: 1140762

Registered Office: Maritime House Llandaff Campus Cardiff CF5 2YB

www.cardiffmet.ac.uk

Contents

Introduction from the Chair of the Board of Governors ........................................................................................ 3 Introduction from the President and Vice-Chancellor ........................................................................................... 5 Report of the Board of Governors……………………………………………………………………………………………………………………..8 Key Facts and Figures ...................................................................................................................................... 8 Strategy and Performance ............................................................................................................................. 10 Corporate Governance and Statement of Internal Control ........................................................................... 12 Report from Remuneration Committee ........................................................................................................ 30 Operating and Financial Review .................................................................................................................... 35 The Board of Governors’ Responsibilities in Respect of the Annual Report and the Financial Statements .. 46 Independent Auditors’ Report ………………………………………………………………………………………………………………………..48 Statement of Principal Accounting Policies .......................................................................................................... 51 Consolidated and University Statements of Comprehensive Income and Expenditure ....................................... 58 Consolidated and University Statements of Changes in Reserves ....................................................................... 60 Consolidated and University Statements of Financial Position ............................................................................ 61 Consolidated Cash Flow Statement ...................................................................................................................... 62 Notes to the Financial Statements ....................................................................................................................... 64 US Federal Loans – Supplementary Schedule ....................................................................................................... 86

Cardiff Metropolitan University

Annual Report and Financial Statements 2024-2025

Introduction from the Chair of the Board of Governors

It has been an honour and a privilege to be the Chair of the Board of Governors over the last year. On behalf of the Board, I would like to thank the Vice Chancellor, managers, staff and students for their enthusiasm, commitment and continued hard work. Cardiff Metropolitan University has faced a challenging and demanding year, but through collective endeavour has ended it with strengthened fundamentals in place - including an excellent and innovative programme offer for students, an enhanced focus on student experience, and significantly improved finances. The University is now on the right path to meet future challenges and confidently embrace future opportunities.

The Board has sought to play its full part in ensuring that the University benefits from having robust and rigorous governance arrangements in place. This has been particularly important in helping the University meet its financial challenges - to achieve financial recovery and sustainability, and plan for transformation and future growth. Over the last year, the University has had to contend with rising operating costs, the decreasing value of tuition fees (due to inflation), and geopolitical instability. This was not a situation unique to our University as many universities (arguably most) have had to grapple with similar challenges. The Board has played an integral role in providing effective and constructive challenge to the University’s Executive in the development and implementation of proposals to manage and reduce costs, increase income, and ensure that the University is both resilient and financially sustainable for the long term.

The Board received regular reports from the University’s Executive on the implementation of the University’s Voluntary Severance Scheme and the development of proposals for organisational change and redesign. The Board is pleased to report that these proposals were implemented successfully to achieve cost savings whilst also retaining operational effectiveness of Schools and departments and ensuring that staff and students were supported through the process. The Board would like to place on record its thanks to the University’s management, trade unions, and staff for working together effectively and constructively in the interests of the whole University community.

The Board has worked in partnership with the Vice Chancellor on the design and implementation of the University’s new senior leadership structure. The new streamlined structure increased the University’s senior leadership capacity, spans of managerial control and agility/flexibility in decision-making whilst also achieving cost savings. As part of this work the Board was pleased to appoint Professor Katie Thirlaway as Deputy Vice Chancellor and Provost and Ruth Davies as University Secretary. There were rigorous and competitive recruitment processes for both positions with several high-quality candidates considered.

The Board introduced a new Board-level committee structure for 2024-25. The new structure included a new Finance Committee that had a specific focus on the financial health of the University. The Committee considers financial management, income generation, entrepreneurship, and sustainability. The new structure also included a People, Health and Wellbeing Committee that has a specific focus on people related matters. The Committee had a key task of looking at how the University is developing its culture. The Committee had a significant role in considering both staff wellbeing and student experience in what are pressurised times. The new structure ensured that the University’s governance arrangements aligned with the delivery of the University’s Strategy ‘Strategy 2030’ and that the Board provided maximum added value.

The Board was pleased to welcome the Chief Executive of Medr to an all Governor Briefing session in February 2025. The Board was also pleased to engage with Medr on its Strategic Plan 2030 consultation exercise later in the year. Whilst the Board recognises the financial and other challenges faced by the sector, it is committed to having a constructive, collaborative, and enduring partnership with Medr. The Board will continue to work to ensure that the interests of students and the ‘Learner Voice’ are placed at the centre of everything the University does.

The University has achieved noteworthy success across a variety of areas over the last year, far too many to mention them all here. It was particularly pleasing for Cardiff Met Students’ Union and the University to have been awarded the Outstanding Impact in Education award at the Mental Health and Wellbeing Wales Awards 2024. The University was also named as The Mail University Guide 2025’s Welsh University of the Year. The

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University also continues to demonstrate its credentials in addressing climate action and sustainability. The University has very recently won the Outstanding Contribution to Environmental Leadership at the Times Higher Education Awards 2025.

We should also not lose sight of the important contribution which the University is making to the economy of Wales and beyond through its applied research and working with partners such as Cardiff Capital Region. We also, despite all of the challenges of the last year, have continued to offer support to schools, colleges and the wider community.

I would like to conclude by highlighting the excellent work on student recruitment over the last year. The University has in September 2025 achieved its second highest ever intake of students. This is a noteworthy achievement given the increasingly competitive student recruitment market. This success was achieved through a combination of effective planning, hard work, innovation and of course the quality and variety of programmes offered. It has been wonderful to see so many new students at the University start their student journey with us.

John Taylor CBE Chair of the Board of Governors Cardiff Metropolitan University

1 December 2025

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Introduction from the President and Vice-Chancellor

Cardiff Metropolitan University delivers education that transforms lives, research that solves real-world problems, and collaborations that create success locally, nationally and globally. Over the past year the University has generated tangible positive outcomes for students, for our external partners and for society more widely through our teaching, research and civic engagement activity.

The University’s Strategy 2030 committed to putting student success at the heart of everything we do. We are therefore extremely proud that Cardiff Met ranks as the top university in Wales in the 2025 Graduate Outcomes survey, with 95% of graduates in employment or further study within 15 months. This success reflects our systematic approach to embedding employability skills across all our programmes of study, and to proactively preparing students for the world of work.

The University’s motto is ‘Gorau meddiant gwybodaeth’ - ‘the most valuable possession is knowledge’ - and our inclusive approach to widening participation in university study helps remove barriers and aid access to knowledge and skills for all. This year we added a new Degree Apprenticeship in Dental Technology to our existing degree apprenticeship programmes in data, statistical analysis, cyber and software engineering, increasing our commitment to diverse routes of study in subjects that make a difference. We see the outcomes from this focus on inclusivity every year at Graduation, and this year once again we heard stories from those who returned to education later in life, and those who had overcome significant adversity to achieve success.

Through our network of educational partners, including Further Education Colleges here in Wales and our partner colleges across the globe, we also open up access to Cardiff Metropolitan University degree programmes beyond our campuses, locally and internationally. Over 5,000 students graduated from our partner institutions in 2024/25, expanding our community, increasing our educational and societal impact, and supporting students to enhance their prospects with a Cardiff Met qualification wherever they are.

Student wellbeing underpins academic success. We were honoured that the University and our Students' Union jointly received the Outstanding Impact in Education award at the Mental Health and Wellbeing Wales Awards 2024 for our comprehensive support enabling students to flourish personally and academically. In addition, our partnership with the Artists’ Futures Fund supports artists to overcome barriers and succeed creatively and professionally, and one of our postgraduate Fine Art students was selected as a Breakthrough Artists Fellow for 2024. Further, in a sector first for Wales, Cardiff Met now provides bespoke anti-racist training to all undergraduate Initial Teacher Education students, equipping the next generation of teachers to champion inclusion in classrooms across the nation.

We have worked consistently over the past year to put our university and facilities at the heart of our communities. The School of Art & Design welcomed hundreds of visitors to the Community Day, where handson workshops fostered creativity and wellbeing through arts, crafts and making. As Wales’ Sporting University, we are committed to helping our communities move more, and our innovative Open Campus initiative continues to increase opportunities for physical activity and health and wellbeing improvements in the Cardiff City region and beyond. Over the past year there have been over 8,500 attendances including from 42 local schools, for free programmes of activity on and off campus. Last year saw us celebrate a decade of Met Community. For 10 successful years, the city of Cardiff’s sport development team has been based at the University, tackling inequalities through sport and physical activity, and positioning the University as the ‘go to’ body for health and wellbeing improvements through community sport partnership.

Students are at the heart of our community engagement, and we have been delighted to see individual students recognised on a larger stage. Molly Leonard won the King’s Trust Young Achiever Award at the 2024 Pride of Britain Awards. While suffering from a long-term illness that kept her in hospital far from home for long periods, Molly developed her crafting skills and used her passion for mindful making to help others with their wellbeing. Molly has gone on to set up a company providing sessions in schools, with youth services and in her community.

Our staff have also been recognised for outstanding work in the community. Liam Mackay, Youth Justice Sport Coordinator, was named Wales’ winner of the BBC Sports Personality of the Year 2024 Unsung Hero Award. Liam leads Cardiff Met Sport’s ‘Step into Sport’ project, an innovative partnership with the South Wales Police Youth Trust. The project uses the power of sport to address youth offending, offering early interventions to

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reduce crime and promote positive futures. By fostering confidence and motivation, Liam’s work through the project empowers young people in Caerau and Ely to overcome challenges and unlock their potential.

Cardiff Met's research improves the lives of people in Wales and further afield. Over the past year, we have strengthened our reputation as a hub for applied research and innovation, with a particular highlight in health and social care. Cardiff Met researchers secured over £1 million in Health and Care Research Wales funding, supporting pioneering projects in paediatric speech and language therapy and interventions for language development in children born with cleft palate. A Cardiff Met partnership secured £3 million from Health and Care Research Wales and the British Heart Foundation to co-lead the National Cardiovascular Research Network. This five-year initiative will advance prevention, diagnosis, and treatment of cardiovascular disease. Cardiff Met's International Centre for Design and Research, PDR, won twice at one of the world’s foremost and prestigious design award bodies, the 2025 iF Design Awards, for a pioneering personalised monitoring system for menopausal symptoms, and for co-creation in assistive technology, reinforcing PDR’s status as a global leader in applied design research. Further afield, podiatry researchers are working in India to educate people living with leprosy on the importance of foot care to health outcomes. The long-term aim is establishing a podiatric design and development facility in Hope Foundation’s leprosy care village.

Our commitment to working with business continues, and we were proud to celebrate the strengths of our expert staff. Professor Brian Morgan was awarded an OBE in the King's Birthday Honours List, recognising his outstanding contributions to business development, entrepreneurship and the Welsh economy. Through Circular Economy Innovation Communities (CEIC), Cardiff Met supports organisations across Wales to create innovation networks working towards a sustainable future. CEIC was highly commended as an Innovation Thought Leader in the Innovation Awards 2024. We are also proud of our entrepreneurial approach and the work undertaken to empower students and graduates to develop entrepreneurial skills and thinking. This includes the Changemakers Challenge designed to explore social entrepreneurship and purpose-led business, with students generating ideas to tackle social issues. Cardiff Met hosted 'Meet and Mingle: Community Through Business' in October, bringing together founders, students and local businesses to share insights and strengthen Cardiff's entrepreneurial ecosystem. In addition, a Cardiff Met spinout company focused on innovations in imaging technology secured investment from the Development Bank Wales to further its development.

Sport remains central to the University’s identity. The past year’s achievements reflect both elite performance and our commitment to inclusion in physical activity and wellbeing. Accolades have highlighted the University's commitment to developing talent and promoting equality in sport. Cardiff Met has become the first university in Wales to receive an Inclusive Employers Standard (IES) accreditation, an organisation making inclusion an everyday reality in the workplace. The Inclusive Employers Standard Sport category accreditation was awarded to Cardiff Met Sport, who scored above the industry average. We are working in partnership with Glamorgan Cricket to launch a new Glamorgan Girls' Academy for 2025. Additionally, for the 2025-26 season we have been granted Football Association of Wales Girls' Academi status, recognising the team's outstanding quality and commitment to developing young female footballers in Wales.

Cardiff Met Women's Rugby were crowned British Universities and Colleges Sport (BUCS) Super Rugby Milk Championship winners, marking an historic first in more than 25 years of women’s rugby at the University. Lisa Newton, Head Coach of Women's Rugby, was also awarded BUCS Coach of the Year following an outstanding season and in recognition of her player-centred approach. Cardiff Met was named Lawn Tennis Association's University of the Year 2025 in September 2024, and our men's cricket team became BUCS National Trophy Champions, reflecting the strength and growth of Cardiff Met's cricketing provision. In basketball, Phil Pratt led Team GB's men's Wheelchair Basketball team to an incredible silver medal at Paris 2024, and many of our athletes put in remarkable performances at the games. Off the pitch, Cardiff Met Sport TV made a stunning debut at the prestigious National Student Television Awards 2025, bringing home two golds and a bronze, and we were shortlisted for Educational Institute of the Year at the Fevo Sports Industry Awards 2025, alongside global sporting powerhouses such as Team GB and the Premier League.

Cardiff Met continues to invest in addressing climate action and advancing environmental sustainability. We are pleased to have been shortlisted for Outstanding Contribution to Environmental Leadership at the Times Higher Education Awards and to have moved significantly up the world QS Sustainability rankings from 1501+ last year, to 670 in 2025. We reinforced our commitment to community action supporting environmental sustainability on our campuses and are once more first in Wales, and 12th in the UK, for sustainability in the People & Planet University League. At the Association of University Directors of Estates (AUDE) Awards 2025

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celebrating the exceptional achievements of estates and facilities professionals in the UK higher education sector, Cardiff Met was awarded silver for our substantial improvement journey in on-campus sustainability.

Our talented staff have earned accolades and recognition with too many to list. It is however worth highlighting some noteworthy achievements. Professor Nick Clifton and Professor Delyth James, along with Board of Governors members Paul Matthews and Menai Owen-Jones, have become Fellows of the Learned Society of Wales. They were chosen because of their expertise and experience in public life, and their research and knowledge leadership. Their election is a significant honour both for them personally, and for Cardiff Met. In addition, Professor Gary Beauchamp was awarded the Learned Society of Wales’s prestigious Hugh Owen Medal for his outstanding educational research in Wales.

Like many universities across the UK, the past year at Cardiff Met has required us to navigate a very challenging financial landscape characterised by rising operating costs, the decreasing value against inflation of tuition fees, and global geopolitical instability. In response, we have taken proactive steps to manage our costs and increase our income, to ensure the University remains financially sustainable and resilient for the long term, recognising the imperative to provide strong stewardship through difficult times.

Despite the past year’s challenges, this annual review provides a flavour of just how successful, entrepreneurial and innovative our university community continues to be. Our commitment to supporting our students’ and stakeholders’ success is unwavering. Over the year to come, we will continue our journey to address long term financial sustainability as we strengthen our reputation as an innovative, supportive partner and deliver on our ambitions as a leading modern university that creates significant positive impact for our students, our community, and the wider world.

Professor Rachael Langford President and Vice-Chancellor 1 December 2025

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Report of the Board of Governors

Key Facts and Figures

2024-2025

Financial Performance

Financial Performance
Operating accounting deficit £3.9m
Operational cash surplus £7.9m
Long term debt as % income 11.1%
Student Numbers
Postgraduates 2612
Undergraduates 8669
International students 16.6%
Cardiff Met HESA student data 2023-24
Staffing
Total staff (head count) 1897
Academic staff (head count) 912
Full-time equivalent (FTE) 1566
Cardiff Met HESA staff data 2023-24

Student Success

Highlights from the July 2025 National Student Survey include:

Graduate Outcomes

Cardiff Met is ranked as the top university in Wales in the 2025 Graduate Outcomes survey, which showed 95 per cent of Cardiff Met graduates are in some form of work or further study 15 months after graduating.

Research

Results from the Research Excellence Framework 2021 showed that 70% of our overall submission was judged to be either Internationally Excellent or World Leading.

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Report of the Board of Governors continued

Key Facts and Figures continued

Postgraduate Research Experience Survey (PRES)

Cardiff Met once again performed well, with an 85% general satisfaction rate. This is 2% higher than the average satisfaction rate across HEIs.

Further highlights were the 90% satisfaction rate for Research skills and Supervision, 89% for Online Learning Resources, 86% for On Campus Resources and 84% for Professional Development, landing us in the top quartile for all these areas.

Postgraduate Taught Experience Survey (PTES)

The overall rate of satisfaction is 87% with areas of best practice including:

UK league tables

World university league tables

Sustainability

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Report of the Board of Governors continued

Strategy and Performance

Strategy 2030 was refreshed in 2024/25 to support the then recently appointed Vice-Chancellor. Its clear focus on the four strategic pillars – Learning, Teaching and Student Success; Research and Innovation; International; and Civic Mission – are supported by cross-cutting missions putting students at the heart of the University and providing a framework to help prioritise decision-making. There are 14 key performance indicators (KPIs) which measure and benchmark performance in strategically important areas, they provide focus and ensure accountability. Performance in the KPIs is monitored annually by the Board of Governors and sense checked to ensure they still provide challenge and stretch. The KPIs relate to the strategic pillars, financial and environmental sustainability and institutional culture.

Strategy 2030 Refresh

Our ambition is to be renowned as a leading modern university that is distinctive and progressive.

We will build and maintain a strong reputation for excellent student experience and outcomes, innovative professional partnerships, and significant local, national and global reach and impact.

Our high-quality teaching and learning experiences will be informed by excellent applied research and innovation, transforming lives and communities in Wales and the wider world.

Cultural change will be a significant part of the transformation programme. We will embed a culture of dignity and respect at work and study, and be as transparent as possible in our decision making.

There are four strategic pillars:

1. Learning, Teaching and Student Success

We will deliver an outstanding student experience, widening access and inclusion by extending learning opportunities beyond our traditional undergraduate and postgraduate offers through short courses, degree apprenticeships and micro-credentials, including through the medium of Welsh and via transnational education.

We will design our learning and teaching experiences, including learning spaces, to develop a sense of belonging that supports learners to reach their academic potential and maximise their graduate outcomes.

2. Research and Innovation

We will enhance our research and innovation profile through a strengthened research environment and improved quality, intensity, reach and impact in our research and innovation outputs.

We will work within Wales and the UK to support initiatives that benefit social, economic, physical and mental wellbeing, contributing to a fairer and greener economy that benefits all.

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Report of the Board of Governors continued

Strategy and Performance continued

3. International

We will shape our high-quality, strategic, off-campus transnational educational partnerships to extend our impact, reach and reputation, to support the development of skills and capacity overseas and contribute to the wellbeing of individuals, economies and societies globally.

We will proactively support our international on-campus students to increase success, improving retention, engagement and progression, and promoting the benefits of engaging as graduate members of active global alumni networks.

4. Civic Mission

We will extend our civic mission activity to enrich economic, social, environmental and cultural wellbeing. Through partnerships and collaboration, we will support communities, businesses and industries to prosper by expanding access to our facilities, talents and resources.

Cross-cutting missions

Our four pillars of activity are supported by four cross-cutting missions, which will allow us to prioritise activity:

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Report of the Board of Governors continued

Corporate Governance and Statement of Internal Control

The University is committed to high standards of corporate governance. The University is a higher education corporation formed by statute and has charitable status. The University wants to demonstrate that its governance is undertaken in an open and accountable manner and that it complies with best practice within the higher education sector.

This Statement describes the way the University has applied the principles set out in the Committee of University Chairs Higher Education Code of Governance (September 2020) both during the year and up to the date of approval of the financial statements. Its purpose is to help the reader of the annual report and financial statements understand how these principles have been applied.

The University’s Board of Governors carries the overall responsibility for ensuring there is a sound system of risk management, control and governance. This system is designed to manage rather than eliminate the risk of failure to achieve business objectives and can only provide reasonable and not absolute assurance against material misstatement or loss. The Governors discharge this responsibility through the following elements:

The University complies with the Committee of University Chairs Higher Education Code of Governance (published September 2020). The approach for the effective management of risk is set out below:

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Report of the Board of Governors continued

The Audit Committee agreed a three-year Audit Strategy and an annual Internal Audit Plan for 2024-25 at the start of the financial year with its Internal Auditors. The Internal Audit Plan set out the proposed risk-based approach to internal control, the audit strategy methodology and the rolling programme of audits that covered business, operational and compliance risks as well as financial risk. The Audit Committee re-approved an Internal Audit Charter as part of its Audit Strategy and Internal Plan for 2023-24. This was in line with Public Sector Internal Audit Standards (PSIAS). The Audit Committee regularly reviews the adequacy of the process of risk management at the University as it continues to be developed.

The Internal Auditors conducted 16 planned internal audit reviews during 2024-25. These were designed to ascertain the extent to which the internal controls in the system were adequate to ensure that activities and procedures were operating to achieve the University’s objectives. The Internal Auditors provided an opinion that the University had achieved a ‘reasonable’ level of assurance overall in its risk management arrangements. The Internal Auditors advised that the University had reasonable and effective risk management, control and governance processes in place. Of the 16 internal audit reviews undertaken, 10 achieved Substantial assurance and 6 achieved Reasonable assurance. No reviews achieved Limited or No assurance.

The Board is of the view that there was an ongoing process for identifying, evaluating and managing the University’s significant risks in place for the year ended 31 July 2025 and that this process is still in place up to the date of approval of the Financial Statements and Annual Review. The process is regularly reviewed by the Board and accords with the internal control guidance for directors on the UK Corporate Governance Code as amended by the British Finance Directors Group.

The University’s Internal Auditors directly assessed the University’s corporate governance arrangements as part of an Internal Audit review of Strategic Controls during 2022-23. A ‘substantial’ level of assurance was achieved and no Strategic Controls review was undertaken in 2024-25. The Board of Governors will continue to keep its risk management and corporate governance arrangements under regular review. This accords with guidance for directors contained within the UK Corporate Governance Code as amended by the British Finance Directors Group.

The University’s Board of Governors comprises members appointed in accordance with the University’s Articles and Instrument of Government. The Board is comprised of a majority of independent (lay) members, and elected staff and student governors. The Vice-Chancellor is also an ex-officio member. Members who served on the Board during 2024-25, including photos and their attendance, are listed below. All Governors were members of the Board for the entire reporting period other than where indicated.

The majority of Governors are lay independent members with relevant knowledge and experience in business and the professions. The role of the Chair of the Board is separated from the University’s President and ViceChancellor. Those matters specifically reserved to the Board for decision are set out in the University’s Articles and Instrument of Government. This is supported by a wider governance framework which includes the University’s agreed Scheme of Delegation, terms of reference for individual committees and financial regulations. The Board holds to itself the responsibilities for the ongoing strategic direction of the University, the effective and efficient use of resources and the approval of major developments, and receives regular reports from senior management.

The University ensures the independence of its Lay Members of the Board of Governors by ensuring that each of these individuals have no material relationship with the University nor any related persons. The University manages conflicts of interest through carrying out an annual review of its Register of Interests, asking members to update their declaration whenever there is a change, and to announce any conflict prior to the start of any Board or Committee meetings. The University asks the following individuals to complete an annual return for the Register of Interests: all members of the Board, all senior University staff at Levels 1 to 3, as well as other key staff who work in close enough proximity to the University’s decision-making, contract, or procurement processes.

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Report of the Board of Governors continued

The Board met five times during 2024-25. During this time, the Board had six governor-level Committees within its structure, these were:

All committees were formally constituted, with terms of reference and membership comprised exclusively or mainly of independent members of the Board.

The Board and its committees had a clear schedule of meetings and an agreed work programme for 2024-25. Additional meetings were convened on an exceptional basis to meet the University’s decision-making exigencies as required.

Board meetings were primarily held as in-person meetings during 2024-25. There was also an option for participants to join Board meetings remotely. All Committee meetings continued to be held remotely during 2024-25.

Statement of Internal Control

The Audit Committee reviews the process for ensuring the effectiveness of the financial and other (nonacademic) internal control systems. In doing this, the Audit Committee makes recommendations on the appointment of internal audit, reviews their reports, including follow up reports on implementation and the scope and effectiveness of their work. The Audit Committee also makes recommendations on the appointment of external audit and reviews the financial statements of the University prior to submission to the Board. The Audit Committee reviews the management letter and receives and considers progress reports on areas of significant risk identified by the Executive. In addition, the Audit Committee receives and considers reports from the Medr as they affect the University’s business and monitors adherence with regulatory requirements.

The Chair of Audit Committee is an independent member of the Board of Governors who is an experienced member of the Committee. In addition to the Chair and two Independent members, the Audit Committee also included two external co-opted members who were not members of the Board and who thus provided additional externality to the Committee’s deliberations. In line with Financial Management Code requirements, no Audit Committee members were permitted to serve on the Finance Committee. Whilst senior members of the Executive attended meetings of the Audit Committee as and when required, they were not members of the Committee.

The Audit Committee met four times during 2024-25 with attendance by the University’s internal and external auditors as appropriate. The Committee also met privately with the University’s Internal Auditors before each meeting and with the External Auditors as required.

Specific Work to Support Good Governance

The Board undertook specific work during 2024-25 to support good governance. This included the work below:

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Report of the Board of Governors continued

Scheme (which had been agreed by the Board in April 2024). As part of the work on Financial Recovery, the Board held a Special Meeting in March 2025 to specifically consider and endorse headline principles for organisational change prior to formal collective consultation with the Trade Unions. The Board, through its committees, also provided detailed scrutiny and assurance on the University’s finances and related borrowings and arrangements for submitting audited accounts to Medr.

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Report of the Board of Governors continued

Governance Charter for Universities in Wales and Commitment to Action

The University has adopted the Governance Charter and Commitment to Action for Universities in Wales (published February 2020) and has implemented all the Charter’s recommendations.

Confirmation of Compliance with the CUC Code

The University confirms that it is compliant with the requirements of the CUC Code of Governance (published September 2020) and the related CUC HE Senior Staff Remuneration Code (published November 2021).

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Report of the Board of Governors | Corporate Governance and Statement of Internal Control | Statement of Internal Control continued

Board of Governors - membership

Board member Category Attendance
John Taylor CBE Chair of the Board and Independent Governor 5/5
Kellie Beirne Independent Governor 5/5
Charlie Bull Professional Services Staff Governor 4/5
Nick Capaldi OBE Independent Governor (until October 2024) 1/1
Vaishnavi Chopde Student Governor (from July 2025) 1/1
Róisín Connolly Independent Governor 5/5
Kevin Coutinho MBE Independent Governor 5/5
Fergus Feeney Independent Governor 4/5
Karen Fiagbe Independent Governor 3/5
Daniel Flaherty Jr Student Governor (until April 2025) 3/4
Dr Clare Glennan Academic Staff Governor 4/5
Dr Iva Gray Independent Governor 5/5
Peter Kennedy Independent Governor 3/5
Professor Rachael Langford President and Vice Chancellor 5/5
Professor Helen Marshall OBE Independent Governor 4/5
Paul Matthews Independent Governor 2/5
Menai Owen-Jones Independent Governor 5/5
Souparnika Parameswaran Student Governor (from July 2025) 1/1
Namboothiri
Kirsty Palmer Academic Board Representative Governor (until November 2/2
2024)
Christopher Pilgrim Independent Governor 2/5
Dr Giri Shankar MBE Independent Governor 2/5
Matthew Tossell Vice Chair of the Board and Independent Governor 5/5
Rewathi Viswanatham Student Governor (until June 2025) 5/5
Scott Waddington Independent Governor 3/5
David Warrender Independent Governor (until November 2024) 2/5
Dr Cathryn Withycombe Academic Board Representative Governor (from December 4/4
2024)

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Report of the Board of Governors | Corporate Governance and Statement of Internal Control | Statement of Internal Control | Board of Governors continued

John Taylor CBE

Kellie Beirne Charlie Bull

----- Start of picture text -----
Vaishnavi Chopde
Nick Capaldi OBE
----- End of picture text -----

----- Start of picture text -----
Kevin Coutinho
Róisín Connolly
MBE Fergus Feeney Karen Fiagbe Daniel Flaherty Jr
----- End of picture text -----

Dr Iva Gray

----- Start of picture text -----
Dr Clare Glennan
----- End of picture text -----

Peter Kennedy Professor Rachael Professor Helen Langford Marshall OBE

Paul Matthews

Souparnika Menai OwenParameswaran Jones Namboothiri

Kirsty Palmer Christopher Pilgrim

Dr Giri Shankar MBE

Matthew Tossell

Rewathi Viswanatham

Scott Waddington

David Warrender

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Dr Cathryn Withycombe

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Report of the Board of Governors | Corporate Governance and Statement of Internal Control | Statement of Internal Control continued

Audit Committee

The Audit Committee is responsible for ensuring the University’s operations are conducted ethically, efficiently, and effectively. This oversight includes evaluating risk management and governance systems, reviewing whistleblowing mechanisms, overseeing internal and external audits, scrutinising financial statements, and assessing investment and procurement decisions. By fulfilling these responsibilities, the Audit Committee plays a crucial role in safeguarding the University’s assets, maintaining its reputation, and promoting accountability.

The Committee met four times in 2024/25 and considered the following key items of business:

The Membership of the Audit Committee was as follows:

Member
Scott Waddington (Chair and Independent Governor)
Colin Arnold (External Co-opted Member of Audit Committee)
Dr Iva Gray (Independent Governor)
Professor Helen Marshall (Independent Governor)
Paul Matthews (Independent Governor)
Menai Owen-Jones (Independent Governor)
Matthew Tossell (Independent Governor)
Lisa Winstone (External Co-opted Member of Audit Committee)		 Meetings Attended
4/4
2/2
1/2
3/4
1/4
2/2
2/2
2/4

The Chair, Staff and Student members of the Board of Governors are not members of Audit Committee. Furthermore, Audit Committee members are not members of the Finance Committee. At least one member of the committee has relevant experience.

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Report of the Board of Governors continued

Finance Committee

The Finance Committee advises the Board on matters related to the University's financial matters. This includes financial management, income generation, entrepreneurship, corporate sustainability, value for money procurement, capital expenditure approvals and oversight of the financial strategy. For capital projects, the Committee reviews the University's capital plans to ensure they align with the agreed strategy

The Committee met three times in 2024/25 and considered the following key items of business:

The Membership of the Finance Committee was as follows:

----- Start of picture text -----
Member Meetings Attended
Matthew Tossell (Chair and Independent Governor) (from December 2024) 3/3
David Warrender (Chair and Independent Governor) (until November 2024) 1/1
Roisin Connolly (Vice-Chair & Independent Governor) 2/2
Kevin Coutinho (Independent Governor) 3/3
Fergus Feeney (Vice Chair and Independent Governor) 2/3
Daniel Flaherty Jr (Student Governor) (until April 2025) 2/2
Professor Rachael Langford (Vice-Chancellor) 2/3
Kirsty Palmer (Academic Board Rep Governor) (until November 2024) 1/1
Dr Giri Shankar (Independent Governor) 1/3
Dr Cathryn Withycombe (Academic Board Representative Governor) (from 2/2
December 2024)
----- End of picture text -----

The Finance Committee did not have any members with specific professional finance and or accountancy qualifications during 2024-25. However, some members of the Committee did have significant financial experience gained from working in other senior director level roles that involved financial management responsibilities.

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Report of the Board of Governors continued

Governance and Nominations Committee

The Governance and Nominations Committee is responsible for ensuring that the University adheres to best practices in corporate governance. This includes overseeing the recruitment and development of skilled governors, ensuring succession planning to address skill gaps, establishing a framework for evaluating governor performance, and working with other committee chairs to assess committee effectiveness and recommend improvements. By fulfilling these responsibilities, the Governance and Nominations Committee contributes to a more effective governing body that can effectively guide the University towards its strategic objectives.

The Committee met three times in 2024/25 and considered the following key items of business:

The Membership of the Governance and Nominations Committee was as follows:

Member
Menai Owen-Jones (Chair and Independent Governor)
Charlie Bull (Professional Services Staff Governor)
Karen Fiagbe (Independent Governor)
Dr Iva Gray (Independent Governor)
Professor Rachael Langford (Vice-Chancellor) (from February 2024)
Paul Matthews (Independent Governor)
Kirsty Palmer (Academic Board Representative Governor)
Rewathi Viswanatham (Student Governor)
David Warrender (Independent Governor)
Dr Cathryn Withycombe (Academic Board Representative Governor)		 Meetings Attended
3/3
3/3
3/3
3/3
2/3
1/3
1/1
3/3
1/1
2/2

Where required, the Chair of the Board also attended in support of the work of the Committee.

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People, Health and Wellbeing Committee

The Committee advises the Board on the People and Culture elements of Strategy 2030, ensuring a focus on staff and student wellbeing, health and safety. Providing oversight that the University discharges its commitment to the 2010 Equality Act.

The Committee met three times in 2024/25 and considered the following key items of business:

The Membership of the People, Health and Wellbeing Committee was as follows:

----- Start of picture text -----
Member Meetings Attended
Peter Kennedy (Chair and Independent Governor) 2/3
Kevin Coutinho (Vice-Chair & Independent Governor) 3/3
Charlie Bull (Professional Services Staff Governor) 3/3
Daniel Flaherty Jr (Student Governor) (until April 2025) 2/2
Dr Clare Glennan (Academic Staff Governor) 2/3
Professor Rachael Langford (Vice-Chancellor) 3/3
Menai Owen-Jones (Independent Governor) 2/3
Dr Giri Shankar (Independent Governor) 0/3
Rewathi Viswanatham (Student Governor) (from May 2025) 1/1
----- End of picture text -----

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Remuneration Committee

The Remuneration Committee is responsible for overseeing the compensation and benefits of senior University staff. This includes reviewing appointments, appraisals, suspensions, and dismissals, determining terms and conditions of service, and establishing a pay framework for all employees. The committee ensures that compensation arrangements align with the University's strategic goals, facilitate the recruitment, motivation, and retention of senior staff, and comply with relevant regulations and best practices.

The Committee met four times in 2024-25 and considered the following key items of business:

The Membership of the Remuneration Committee was as follows:

----- Start of picture text -----
Member Meetings Attended
Christopher Pilgrim (Chair and Independent Governor) 4/4
Kellie Beirne (Independent Governor) 1/3
Dr Iva Gray (Independent Governor) 4/4
Peter Kennedy (Independent Governor) 4/4
John Taylor CBE (Chair of the Board and Independent Governor) 2/4
Matthew Tossell (Independent Governor) 3/3
----- End of picture text -----

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Strategic Planning and Performance Committee

The Strategic Planning and Performance Committee advises the Board on matters relating to strategic planning; the monitoring and evaluation of strategic priorities and performance against the Strategic Plan; the evaluation of progress relating to the overarching agenda of growth, diversification and improvement; and horizon scanning. The Committee also reviews the University’s performance in: the Research Excellence Framework, Academic Quality Assurance, and key league tables and surveys.

The Committee met three times in 2024/25 and considered the following key items of business:

The Membership of the Strategy, Planning and Performance Committee was as follows:

----- Start of picture text -----
Member Meetings Attended
John Taylor (Chair and Independent Governor) 3/3
Professor Helen Marshall (Vice-Chair & Independent Governor) 0/3
Kellie Beirne (Independent Governor) 2/3
Roisin Connolly (Independent Governor) 3/3
Fergus Feeney (Independent Governor) 1/3
Dr Clare Glennan (Academic Staff Governor) 2/3
Professor Rachael Langford (Vice-Chancellor) 2/3
Rewathi Viswanatham (Student Governor) 2/3
----- End of picture text -----

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Report of the Board of Governors | Corporate Governance and Statement of Internal Control | Statement of Internal Control |

Academic Board

The Academic Board is a Committee of the Board of Governors and is the University’s senior decision-making body. The Academic Board is responsible for delegations set out in the Articles of Government, as well as supporting, advising and assisting the Vice-Chancellor in the performance of their duties as delegated in the Articles, and advising the Board of Governors on relevant matters.

The Academic Board is both the University’s academic authority and its senior decision-making body for resources which support the University at a strategic level. The Academic Board is responsible for Financial Planning and Sustainability, Strategic and Academic Planning, Academic Quality and Assurance and Risk Management.

The Academic Board met seven times in 2024/25.

Membership of Academic Board as follows:

----- Start of picture text -----
Member Meetings
Attended
Professor Rachael Langford (President and Vice-Chancellor) 6/7
Mark Barry (Director of Commercial Services) (to end of 2024) 1/3
Rob Blagden (Director of Digital & Library Services) (to April 2025) 3/4
Professor David Brooksbank (Pro Vice-Chancellor for Business, Global and Civic Engagement) 6/7
Hywel Bufton (Head of Digital Services) 1/2
Ruth Davies (University Secretary) (from May 2025) 3/3
Anna Dukes (Director of Global Engagement) 7/7
Daniel Flaherty Jr (Students' Union President) (to April 2025) 3/4
Stephen Forster (Interim Chief Financial Officer) (from January 2025 to July 2025) 4/4
Dr Bethan Gordon (Dean of Cardiff School of Art & Design) 5/7
Dr Cecilia Hannigan-Davies (Acting Dean of Cardiff School of Education and Social Policy) (from 2/4
March 2025)
Professor Sheldon Hanton (Pro Vice-Chancellor Research, Innovation and Enterprise) 6/7
Mairwen Harris (Head of Strategy, Planning and Performance) 7/7
Dr Joanna Hendy (Director of Learning Enhancement) (to end of 2024) 3/3
James Hirst (Deputy Director of Student Services Employability) 4/4
Tracey Horton (Elected Professional Services Staff Member) (from December 2024) 5/5
Simon Landy (Deputy Director of Finance) 6/7
Mark Lester (Elected Professional Services Staff Member) (to November 2024) 2/2
Rebecca Lever (Chief Officer Marketing, Communications and Student Recruitment) 6/7
----- End of picture text -----

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Report of the Board of Governors | Corporate Governance and Statement of Internal Control | Statement of Internal Control |

----- Start of picture text -----
Graham Lewis (Chief Officer University Environments and Property) from December 2025 4/5
David Llewellyn (Chief Officer Resources) (to February 2025) 3/3
Professor Julia Longville (Dean of Teaching and Learning) 7/7
Professor Richard Neill (Deputy Director of Research 5/7
Ben O’Connell (Director of Sport) 6/7
Kirsty Palmer (Director of Student Services) (to end of 2024) 3/3
Professor Jon Platts (Dean of Cardiff School of Technologies) 5/7
Ben Rogers (Director of Registry Services) (to end of 2024) 3/3
Mark Samuels (Elected Academic Staff Representative) 5/7
Matthew Taylor (Director of Innovation) 5/7
Professor Katie Thirlaway (Deputy Vice-Chancellor and Provost) 5/7
Gaby Tobin (Head of Quality Enhancement) 4/4
Rewathi Viswanatham (Students’ Union Vice President) 6/7
Professor Christopher Wallis (Elected Professoriate Staff Member) (from November 2024) 5/6
Lowri Williams (Chief People Officer) 6/7
Dr Huw Wiltshire (Acting Dean of Cardiff School of Sport and Health Sciences) 1/1
Dr Cathryn WIthycombe (Elected Academic Staff Representative) 7/7
----- End of picture text -----

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Report of the Board of Governors | Corporate Governance and Statement of Internal Control | Statement of Internal Control | Academic Board continued

Several Committees and Working Groups reported to Academic Board (as the parent body) during 2024/25. These were designated as either Academic or Management Committees and are detailed in the structure chart below.

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Report of the Board of Governors | Corporate Governance and Statement of Internal Control | Statement of Internal Control continued

University Executive Group

The University Executive Group ( UEG ) is the senior leadership team of the University and assists the ViceChancellor in providing strategic leadership for all the Executive portfolios.

The UEG members in 2024-25 included:

President and Vice-Chancellor (Professor Rachael Langford)

Deputy Vice-Chancellor and Provost (Professor Katie Thirlaway from July 2025)

Pro Vice-Chancellor for Business, Global and Civic Engagement/Dean of Cardiff School of Management (Professor David Brooksbank)

Pro Vice-Chancellor for Student Engagement (Professor Jacqui Boddington until September 2024)

Pro Vice-Chancellor for Research, Innovation and Enterprise (Professor Sheldon Hanton)

Chief Officer Resources (David Llewellyn until February 2025)

Chief Finance Officer (Stephen Forster from January 2025)

Chief People Officer (Lowri Williams from January 2025)

Interim University Secretary and Chief Operating Officer (Jon Price until September 2024)

Dean of Cardiff School of Art and Design (Dr Bethan Gordon)

Dean of Cardiff School of Education (Professor Julia Longville until January 2025. Dr Cecilia Hannigan Davies from January 2025 as Acting Dean)

Dean of Cardiff School of Sport and Health Sciences (Professor Katie Thirlaway until June 2025. Dr Huw Wiltshire from July 2025 as Acting Dean)

Dean of Cardiff School of Technologies (Professor Jon Platts)

Dean of Teaching and Learning (Professor Julia Longville from January 2025)

*University Secretary (Ruth Davies from May 2025)

UEG generally meets weekly and focuses on the monitoring of financial performance, including budget setting, alongside general monitoring and oversight of strategy, operational performance and policy development.

*The University Secretary is not a University Executive Group member but is in routine attendance for meetings.

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Report of the Board of Governors continued

Report from Remuneration Committee

Introduction

The Remuneration Committee is responsible for determining the Reward strategy of the University and for setting the remuneration and the terms and conditions of the Vice-Chancellor and other senior members of staff.

The Remuneration Committee comprises independent lay members of the Board of Governors who possess relevant knowledge and expertise. The Vice-Chancellor and Chief People Officer are in attendance at Remuneration Committee meetings, but the Vice-Chancellor is not in attendance for and does not play a part in the discussions and decisions about their own remuneration. Furthermore, no member of staff is present for the discussion of their own remuneration.

The Remuneration Committee takes account of affordability and comparative information on the remuneration, benefits, and conditions of employment of the Higher Education sector, and wider where appropriate.

In determining the remuneration awarded, the Remuneration Committee considers the University’s approach to recognising performance for all roles in scope and refers to sector benchmarking information provided from the Universities and Colleges Employers Association (UCEA) Senior Salary Survey.

The Remuneration Committee ensures that it complies with its terms of reference and the requirements of the Committee of University Chairs (CUC) Higher Education Code of Governance and more specifically the CUC Senior Staff Remuneration Code which focusses on the three key elements: a) a fair, appropriate and justifiable level of remuneration; b) procedural fairness and c) transparency and accountability.

In line with the above, the remuneration for the Vice-Chancellor and the Senior Leadership team are reviewed annually using a fair and transparent process that reflects the performance of each individual in the context of the University’s performance.

Approach to Remuneration

The University’s approach to the remuneration of senior post holders is detailed in the Senior Staff Remuneration Policy Framework. The Framework is reviewed annually by the Remuneration Committee and was reviewed in February 2025.

Remuneration 2024-2025

Each year, People Services prepares for the Remuneration Committee a paper benchmarking the base salary of the Vice-Chancellor and other senior postholders against the annual salary of institutions of comparable size and scope. This data is drawn from the annual Universities and colleges Employer Association (UCEA) Senior Staff Remuneration Survey, and the annual CUC Vice-Chancellor Salary Survey.

The Remuneration Committee considers a number of factors when considering performance reward proposals. These include but are not limited to:

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Report of the Board of Governors continued

Report from Remuneration Committee continued

The senior postholder jobs are supported by the Hay job evaluation methodology and the posts were last reviewed in 2022. The Hay job evaluation methodology is the most widely used job evaluation scheme.

During the year 2024-25, the Remuneration Committee did not award any cost-of-living salary increase to the Vice-Chancellor and the Senior staff in August 2024.

Vice-Chancellor Remuneration

The Remuneration Committee decides the remuneration package of the Vice-Chancellor, taking account the breadth of leadership and financial responsibilities and delivery against the University’s strategic objectives.

In meeting the University’s vision as a progressive university, working with purpose, impact and compassion to make economies more prosperous, societies fairer, cultures richer, environment greener and communities healthier, it is essential that the University offers a competitive remuneration package for the Vice-Chancellor role. This also recognises the diverse and complex nature of the organisation with 11,281 campus-based students and 20,071 off campus students (2023-24 HESA data), more than 1500 (fte) paid staff (2023-24 HESA data) and an income of £148.6m.

In considering the Vice-Chancellor’s remuneration package, the Remuneration Committee considers the organisational context, alongside the Vice-Chancellor’s performance, general pay movement for all University staff, retention, and any relevant market considerations, and is informed by salary benchmarking information with comparator universities.

The Vice-Chancellor’s performance is assessed by the Chair of the Board of Governors after taking soundings and feedback from all members of the Board of Governors. It is based on leadership, the achievement of key strategic objectives, measurement against agreed targets, the overall performance of the University and the external context in which the university operates. Each year, the Remuneration Committee receives a report by the Chair of the Board of Governors on the Vice-Chancellor’s Performance and Development Review and agreed objectives for the following year.

The Vice-Chancellor’s base salary is reviewed in line with national pay awards for the Higher Education sector. Where supported by evidence, the Remuneration Committee may, at its discretion, agreed a consolidated increase to the Vice-Chancellor’s base pay. Any such increase would be reported through the financial accounts in the following year.

The University does not operate a performance-related bonus scheme.

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Report of the Board of Governors continued

Report from Remuneration Committee continued

The Vice-Chancellor's Reward package is detailed below:

----- Start of picture text -----
VC from 01.02.2024 VC from 01.02.2024 VC until 31.01.2024
Year Ended 31 July 2025 Year Ended 31 July 2024 Year Ended 31 July 2024
Emoluments of the Vice-
£ £ £
Chancellor
Salary 260,000 130,000 145,084
Pension contributions 74,568 35,117 -
Payments in lieu of
- - 25,915
pension contributions
334,568 165,117 170,999
----- End of picture text -----**

The Vice-Chancellor's basic salary in 2024-25 is 6.0 times the median pay of staff, compared to 6.0 times in 202324. The staff median salary in 2024-25 is £43,074.

The Vice-Chancellor's total remuneration is 7.6 times the median pay of staff, compared to 7.6 times in 202324. The staff median total remuneration in 2024-25 is £43,918.

----- Start of picture text -----
VC from 01.02.2024 VC until 31.01.2024
(pro-rated) (pro-rated)
Year Ended 31 Year Ended 31 Year Ended 31
July 2025 July 2024 July 2024
University University University
Vice-Chancellor Basic Total Basic Total Basic Total
remuneration as a Remuneration Remuneration
Salary Salary Salary Remuneration
multiple of the
median
Vice-Chancellor £260,000 £334,568 £260,000 £330,235 £290,168 £341,998
Median salary £43,074 £43,918 £42,978 £43,587 £42,978 £43,587
Pay multiple 6.0 7.6 6.0 7.6 6.8 7.8
----- End of picture text -----

The median total remuneration is calculated on a full-time equivalent basis for the total remuneration paid by the University to its staff. Agency and atypical staff have been excluded from the above calculations, as fulltime equivalent data is not available.

The Key Management Personnel are the University’s Executive Group. In 2024-25 the group comprised; the President & Vice-Chancellor, Deputy Vice-Chancellor, PVC (Research and Innovation), PVC (Business, Global and Civic Engagement), Chief Officer (Resources). In-year, this changed with the departure of the Chief Officer (Resources), and the Chief Finance Officer and Chief People Officer joined the University’s Executive Group membership.

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Senior Staff Remuneration

The performance of Senior members of staff is assessed by the Vice-Chancellor, after taking soundings and feedback from the Chair and members of the Board of Governors. It is based on leadership, the achievement of key strategic objectives, measurement against agreed targets, the overall performance of the University and the external context in which the university operates. Each year the Remuneration Committee receives a report by the Vice-Chancellor about the Senior Staff Performance and Development Reviews and agreed objectives for the following year.

The base salary for Senior staff is reviewed in line with national pay awards for the Higher Education sector. Where supported by evidence, the Remuneration Committee may, at its discretion, agree a consolidated increase to the Senior Staff’s base pay.

In 2024-25 the Remuneration Committee considered the pay of 3 members of Senior staff; the Vice-Chancellor; the Pro Vice-Chancellor (Research and Innovation); and the Chief Officer (Resources).

The numbers of staff paid above £100k per annum are published in the financial statements (note 7), broken down into £5k pay bands. In 2024-25, as a result of a structure change, there were 11 members of staff with a basic salary over £100k per annum, compared with 16 in 2023-24.

----- Start of picture text -----
Higher Paid Staff Year Ended Year Ended
31 July 2025 31 July 2024
No. No.
£100,000 to £104,999 1 3
£105,000 to £109,999 2 5
£110,000 to £114,999 2 1
£115,000 to £119,999 - 2
£120,000 to £124,999 4 1
£130,000 to £134,999 - 1
£140,000 to £144,999 - 1
£155,000 to £159,999 - -
£165,000 to £169,999 - -
£170,000 to £174,999 - 1
£175,000 to £179,999 1 1
£180,000 to £184,999 1 -
11 16
----- End of picture text -----

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Report of the Board of Governors continued

Payment of compensation for loss of office to higher paid staff was as follows:

Year Ended
31 July2025
Year Ended
31 July2025
Year Ended
31 July2024
Year Ended
31 July2024
£’000
Number of staff
£’000
Number of staff
Higherpaid staff: loss of office 384*
7
25
1

Remuneration for other staff groups

The majority of other staff are on the New JNCHES pay spine and covered by the University’s Grading Structure, which consists of nine grades. These grades are supported by the Higher Education Role Analysis (HERA) role evaluation methodology.

Staff on the New JNCHES pay spine gain incremental pay increases annually based on skills, knowledge and experience, until they reach the top of the grade’s range. They are also subject to any nationally agreed pay awards. The University deferred the implementation of the 24/25 national pay award by 11 months i.e. until 1st July 2025, with no backdating.

The University offers a comprehensive range of both financial and non-financial workplace benefits.

Living Wage Employer

The University is an accredited Living Wage employer and, as a result, all staff receive at least the Living Wage foundation rate of pay.

Exit Policy

All settlement agreements, including voluntary severance, for senior staff are agreed by the Remuneration Committee. Any redundancies related to academic and senior staff are subject to the University’s redundancy processes.

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Report of the Board of Governors continued

Operating and Financial Review

Scope of the Financial Statements

These financial statements relate to the year ended 31 July 2025 and represent the 32nd Annual Report of the University since its incorporation in April 1992. The financial statements consolidate the main activity of the University with that of its subsidiary companies and have been prepared in accordance with the Statement of Recommended Practice (SORP): Accounting for Further and Higher Education 2019 and in accordance with Financial Reporting Standard (FRS) 102.

Principal Activities

The principal activity of the University is the provision of higher education from campuses in Cardiff and through collaborative activities elsewhere in the UK and overseas. The University’s portfolio extends across undergraduate, postgraduate and research activities and is complemented by training, consultancy and other commercial spin offs which are provided to local, national, and international organisations. The University also provides conferencing and residential services, together with sports and catering facilities, for students and external users. Many of these commercial activities are carried out through a subsidiary company, Cardiff Met Company Ltd, which gifts any taxable profit back to the University through the Gift Aid scheme.

Financial and Investment Strategy

The University approved its revised and updated Finance Strategy during July 2023. The Strategy has the key objectives of growing and diversifying income; ensuring financial stability; and promoting long-term financial sustainability. The Strategy includes challenging performance objectives in support of the University’s aspirations for the future. The Finance Strategy is one of four enabling strategies that together with the People, Estates and Digital strategies, support the University 2030 Strategy.

Results for the Year

The University’s total income increased by £3.7m to £148.6m (2024: £144.9m), with student recruitment underpinning performance. During the year, the University undertook a significant transformation programme to improve the efficiency of its operations through a series of targeted workstreams. This transformation programme has realigned the cost base to future income expectations through targeted cost reductions of circa £14.5m. The financial results for the year show that the group delivered an accounting deficit of £3.9m (2024: deficit of £3.0m), with the accounting result being impacted by the £5.1m fixed asset impairment, and investment in a subsidiary company impairment of £0.6m. Had it not been for these charges a £1.8m surplus position would have been achieved. An operational cash surplus of £7.9m (2024: £3.2m) was achieved as outlined in the following table. The result also includes restructuring costs for the year of £3.6m (2024: £1.4m). The accounting result benefitted by circa £0.4m resulting from a lower than anticipated actuarial assessment of finance charges and current and past service costs for the Cardiff & Vale of Glamorgan Pension Fund (CVGPF). The university’s two defined benefit pension schemes, the CVGPF and the Universities Superannuation Scheme, remain in a surplus position, brought about by changed economic conditions which have resulted in increased interest rates and, by association, an increase in the discount rate (the amount by which future liabilities are discounted).

The group’s main income stream is derived from tuition fees from UK and EU undergraduate and postgraduate students that together amounted to £76.3m (2024: £71.1m) and accounted for 51% (2024: 49%) of total income. When international fees and educational contracts are included, this rises to £106.9m (2024: £107.3m) and accounts for 72% (2024: 74%) of total income. Full time undergraduate annual tuition fees for UK students increased to £9,535 (2024: £9,000) during the year, providing some mitigation against inflationary costs.

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Report of the Board of Governors continued

Operating and Financial Review | Results for the Year continued

The group invested £5.7m (2024: £11.7m) in its infrastructure during the year. Of this, £2.8m (2024: £5.8m) was invested in the estate, and included refurbishment and improvement investments in academic, residential, professional service, and sporting facilities. Expenditure amounting to £2.9m (2024: £5.9m) was also invested in equipment, fixtures and fittings, IT infrastructure, and corporate digital systems. During the year, an ‘Asset in the Course of Construction’ was impaired in full.The total costs capitalised relating to the system at 31 July 2024 were £4.6m, with further additions of £0.5m in-year, leading to a total impairment of £5.1m.

Net assets on 31 July 2025 amounted to £180.9m (2024: £185.6m).

Summary of Consolidated Results 2024/2025 2023/2024
£000 £000
Income 148,589 144,860
Expenditure 146,767 144,897
Surplus/(Deficit) for the year before exceptional
costs		 1,823 (37)
Impairment (5,683) (2,981)
Loss in subsidiary (333) (20)
Gain on disposal of subsidiary 304 -
Deficit for the year (3,889) (3,038)
Add back
Depreciation 6,275 6,680
Impairment and loss in subsidiary 6,016 3,001
Gain on disposal of subsidiary (304)
Pension Provision Credits (361) (3,577)
Annual Leave Accrual Movement 198 175
Operational Cash Surplus excluding Working
Capital Movements		 7,935 3,241

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Report of the Board of Governors | Operating and Financial Review | Results for the Year

continued

----- Start of picture text -----
Income Analysis 2024-25
9%
3%
4%
6%
10%
68%
Tuition fees and education contracts Other income
Residences, catering and conferences TNE income
Research grants and contracts Funding body grants
----- End of picture text -----

Expenditure Analysis 2024-25

----- Start of picture text -----
6%
8%
4%
42%
24%
3%
13%
Academic Departments Academic Services
Research Grants & Contracts Administration & Central Services
Accommodation, Catering & Conferences Premises
Other Expenses
----- End of picture text -----

Liquidity & Cash

The group’s cash and short-term investment resources at the year-end amounted to £44.2m (2024: £42.9m) and represents an improvement against budgeted expectations. Investments in the estate and infrastructure during the year were funded entirely by cash generated from operating activities. Loan repayments during the year totalled £1.95m thereby reducing the group’s long-term debt from £18.4m to £16.5m. The gearing ratio at the year-end amounted to 11.1% (2024: 12.7%). The modest decrease in the gearing ratio was due to an increase in income during the year coupled with capital repayments reducing the remaining loans. The strong cash base continues to provide a solid and stable operating base.

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Report of the Board of Governors | Operating and Financial Review continued

The Financial Outlook

The University continues to recruit well across Home and International domiciles and programmes of study. The development and expansion of ‘mid-year’ programme starts has been successful financially. The cost base has been rebalanced and further aligned to service delivery, with the University setting a modest surplus budget in 2025-2026. Bank covenants are forecast to be met at July 2026 and cash reserves are stable.

There remain higher rates of inflation in the economic system that present operational challenges to University activity and will require ongoing careful financial management. The full-time undergraduate tuition fee in Wales has been allowed to increase to £9,535 from September 2025, thereby aligning the fee charged by Welsh institutions to that charged by English institutions. This is welcomed, alongside the recent Welsh government announcement to raise the tuition fee cap in Wales for 2026-27. The University has also absorbed the effect of the increase in the employers’ rate of national insurance from 13.8% to 15%, combined with a £4,100 reduction in the salary threshold at which national insurance becomes payable, from £9,100 to £5,000. The Welsh Government has announced that the International Student Levy will not be applied in Wales, which is welcomed.

Charitable Status

The University became a Registered Charity (No. 1140762) on 10 March 2011 .

Membership of the Board of Governors

The membership of the Board for the year 1 August 2024 to 31 July 2025 is set out on page 17 of this report.

Over the reporting period, governors claimed £4,454 in expenses (2024: £2,965). This covered items such as mileage, public transport and parking fees to enable travel to meetings and other activities on behalf of the University. No other payments are made to trustees. Information about related third party transactions can be found in note 7.

Independent Auditors

The external independent auditors for the year were PricewaterhouseCoopers LLP. The internal auditors for the year were TIAA Ltd.

Equality of Opportunity

The University works to ensure compliance with equality legislation and is committed to proactively integrating the principles of equality into all its activities. A Strategic Equality Plan has been agreed and implemented. The University is active in widening access to education, and in providing an inclusive approach to learning, teaching, and research.

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Report of the Board of Governors | Operating and Financial Review continued

Health and Safety at Work

The health, safety and welfare of staff, students and visitors are essential to the success of the University. The University’s Health & Safety Committee considers all relevant aspects of health, safety and welfare. The Committee receives regular monitoring reports of periodic audits of schools/units’ health and safety management arrangements and of initiatives and/or issues emanating from School/Unit health and safety meetings. Additionally, the Committee disseminates updates on legislation and guidance on good practice and monitors accident/incident levels and work-related stress sickness. The Minutes of the Committee are presented to the Academic Board. An Annual Health and Safety Review is provided to the Board of Governors through People, Health and Wellbeing Committee, to enable it to meet its statutory obligation to ensure compliance with health and safety legislation.

Modern Slavery and Human Trafficking Statement

The University produces and publishes an annual Modern Slavery and Human Trafficking Statement. The University is committed to improving our business practices to combat modern slavery and / or human trafficking in our supply chains or in any part of our business to ensure that, wherever possible, we are not complicit in any human rights violations. The University’s policies and procedures demonstrate its commitment to acting ethically and with integrity in all its business activities, ensuring compliance with the requirements of the Modern Slavery Act 2015. The procurement function has had an Ethical Supply Chains Policy in place since 2011. The Policy is reviewed and updated in accordance with the University’s policy cycle and was last amended and updated in March 2024 to ensure it continues to reflect relevant good practice. The University’s employment and workplace policies and procedures have been reviewed and amended to ensure they reflect the intent of the Welsh Government ‘Ethical Employment in Supply Chain’ Code of Practice. These policies and procedures demonstrate the University’s commitment to acting ethically and with integrity in all its business relationships by helping to ensure that modern slavery and human trafficking do not occur within its UK and international workforces or business activities.

The University was accredited as a Living Wage employer by the Living Wage Foundation in November 2019 and has paid the Living Wage rate as a minimum to all staff since August 2018. The University is committed to ensuring that all staff pay grades are at or above the Real Living Wage and all key outsourced contractors who work at the university are paid the Living Wage. Guidance and training materials, to raise modern slavery awareness, is available on the University’s intranet site and existing training and guidance materials for new staff was updated and amended in the last financial year.

Criminal Finance Act Statement

The University and its subsidiary companies commit to ensuring that its employees, agents, and other associated persons acting on its behalf are not facilitating tax evasion by another party. The University regularly reviews its risks and associated processes and procedures to ensure that all steps are taken to prevent tax evasion. The University includes the risk of tax evasion on its Risk Register. The risk is reviewed and updated three times a year. This includes the review of controls to mitigate risks. The University reviews its policies and guidance in relation to the Criminal Finance Act on a regular basis, in line with similar policies (Anti-Bribery, Counter Fraud and Corruption, Anti-Money Laundering policies and Financial Regulations).

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Commitment to Sustainability

The University is committed to minimising its impact on the climate and the environment. Council has adopted a corporate commitment to achieve net-zero greenhouse gas emissions for Scopes 1–2 by 2030, alongside an additional target of a 30% reduction in carbon emissions by 2030 against a 2018/19 baseline (the last full year prior to the pandemic). These targets align with the Welsh Government’s ambition for the public sector to achieve net zero by 2030.

Progress against carbon targets is compiled and reported by the University Environments team. The data is submitted to the Higher Education Statistics Agency on an annual basis, in conjunction with reporting to the Board of Governors on progress. Annual auditing is undertaken as part of the ISO 14001 surveillance.

Our Carbon Management Plan 2024–2030 sets out the baseline, targets, actions and delivery approach. Delivery is underpinned by clear leadership and governance, robust analysis and planning, and active engagement with collaborators and stakeholders.

Environmental impacts are managed through our ISO 14001-accredited Environmental Management System (EMS). Objectives and targets are set annually, owners report termly, and the system is externally audited for assurance each year. The EMS covers all University activities—from energy and utilities to waste and recycling—and embeds education for sustainable development (ESD) within the curriculum, research and enterprise.

Investment over the coming years will prioritise energy demand reduction, on-site generation, removal of gas systems, and the refurbishment and repurposing of existing buildings and facilities, in preference to new build, to minimise whole-life carbon. The Dean of the Cardiff School of Art and Design is the executive lead for sustainability.

Climate Impact Public Benefit Statement

As an educational charity, the University advances public benefit by enabling collaborative learning and collective action on climate and sustainability for students, staff and the wider community.

On campus we have initiated a range of energy and carbon reduction schemes, increased our solar photovoltaic renewable energy installations by 548% from 40kWp to 259kWp, been replacing gas fired boilers with heat pumps, replacing incandescent lighting with energy efficient lighting, and run a fleet of electric vehicles. We expand skills and participation through Repair Workshops, Community Days, Green Workshops and Litter Picks, and we provide Carbon Literacy training for staff and students.

We are Fairtrade accredited, a Living Wage employer, and hold a Sustainable Restaurant Association (Food Made Good) 3-star rating for sustainable food practices. We support safer, fairer environments through the Can’t Buy My Silence pledge and have offered sustainability work placements for students.

Regionally, we are members of EAUC and the One Cardiff Climate Emergency Board, partnering across the Cardiff region. Our Internet of Things (IoT) programme improves understanding of space use and building performance, enabling carbon avoidance by reducing the need for new construction and guiding the improvement of existing stock. Findings have been published and shared externally to support wider publicsector decarbonisation.

Our earlier work using Internet of Things (IoT) technologies to inform our understanding of space use and performance has resulting in a significant reduction in plans to construct new buildings, and informed our prioritisation for the improvement of existing stock. The findings of this work have been set out through academic publication and presented externally resulting in public recognition through cross sector awards, through which we have shared opportunities to reduce carbon and cost we believe to be relevant across the public estate and beyond.

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Climate Impact Statement

During the year, the University established a Climate Action team within the University Environments portfolio to coordinate student and staff engagement, professional services and academic activity related to sustainability and carbon reduction. A Head of Climate Action joined in November 2025.

Operational efficiency.

Following our work in the prior academic year to understand space utilisation, a disconnect was identified between building occupancy and energy consumption. Whilst our energy consumption was already below sector benchmarks, our resultant “Halve the Half” initiative delivered over 20% reduction in gas, over 7% in electricity, and over 11% in water (academic year 2024/25 vs 2023/24), generating savings of over £1.0m versus prior-year utilities expenditure. Energy saved totalled 2.2 GWh and water saved comprised 9,776m[3] . The graph below shows the annual gas consumption across the estate, showing the scale of reduction in the prior 12 months.

Our research and professional services action taken is progressively revealing the scale of disconnect between occupancy and energy across the built environment. This research, coupled with our success in rapidly reducing energy cost and carbon without the need for significant capital investment, grid upgrades or planning permissions, has resulted in the development of a Phase 2 pilot project, to create a building benchmarking tool to reveal out-of-hours energy waste. The initiative has resulted in data-sharing agreements with 12 participating universities, including all eight Welsh universities. As well as reducing our consumption, our solar photovoltaic capacity has expanded by 548% in year, from 40 kWp to 259 kWp (~6.5×, +548%), further reducing grid dependency and demand.

Performance and recognition.

The University ranked 12th in People & Planet’s Green League 2024–25 (out of 149 universities) and achieved Food Made Good – 3 stars with exceptional scores (98% Society; 95% Environment). We also hold Fairtrade status.

Our earlier work on space utilisation that resulted in significant carbon avoidance was recognised as the Innovation Accelerator Winner at the Construction News TechFest Awards, Asset Management Best Practice at the Digital Construction Awards, and a Silver Award in the AUDE Sustainability Impact Initiative. We await the outcome of our shortlisting for The Times Higher Education Awards ‘Outstanding Contribution to Environmental Leadership, and the TechFest Best Use of Technology: Carbon Reduction in Construction and Management relating to our Halve the Half initiative.

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Partnerships and planning.

We are an active partner of the Cardiff Council Climate Emergency Board and work with Welsh Government Energy Service on funding options, having secured an Ynni Cymru grant for a direct current microgrid scheme, and await the outcome of our low-interest loan application for Digarbon Round 2 which would fund the delivery of refurbishment to S block and the installation of further significant solar PV and battery capacity.

Policies and investment.

The University maintains policies covering Business Travel; Ethical Investment and Banking; Ethical Supply Chains; Fairtrade; Sustainable Procurement; Clean Air; Energy and Carbon Management; Thermal Comfort; Environment and Sustainability; Sustainable Food; and Sustainable Seafood. Capital investment focuses on controls linked to occupancy, heating system upgrades, a comprehensive roll-out of LED lighting, mechanical ventilation where appropriate, and replacement of gas water heating with electric point-of-use heaters and heat pumps, subject to available resources.

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Public Benefit Statement

The University delivers professionally recognised degrees, together with impactful research and innovation, in art and design, business and management, education and public services, sport and health sciences, and technologies and engineering. The University is proud to have been awarded the Times Higher UK and Ireland University of the Year for 2021-22 and ranked 12th in the UK and 1st in Wales for sustainability in the People and Planet’s Green League 2024/25, a comprehensive and independent league table of all UK universities ranked by environmental and ethical performance.

The University seeks to advance higher education and research within South-East Wales, Wales, the UK and internationally. Its charitable objective is to inspire and enable individuals, organisations, and communities to succeed through innovation in high quality learning, applied, impactful research and enterprise. The benefit of this charitable objective is derived through the intellectual development of individuals and by providing the opportunity for them to enter professional life in many fields of public and private provision. The beneficiaries are the public at large to whom education is open and who our research and innovation activities ultimately benefit. The University’s provision has been aligned with the Welsh Government’s strategy for higher education and serves the public benefit by contributing to regional regeneration, preservation of the environment and promotion of social justice.

The University offers degrees in a range of subjects including health and social care, teacher education, and environmental management with over 50 professional bodies accrediting its courses. It also engages with partners in business, the public sector, and communities in a variety of ways. Specifically, during 2024/25 the University:

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Report of the Board of Governors continued

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Report of the Board of Governors continued

During the year, Welsh domiciled students at the University were able to access the Assembly Learning Grant and English domiciled students were able to access the Maintenance Grant; the University also offered its own bursaries. Various other schemes were also available to aid students to access higher education, and the University administered a discretionary contingency fund for those who required financial support to continue their studies. The University offered a wide range of accredited taster sessions at outreach centres and bespoke projects designed to raise the aspirations amongst disadvantaged/under-represented communities.

In common with other charitable higher education corporations in the UK, the University is overseen by a Board of Governors, the majority of whom are non-remunerated and otherwise independent of the University. The Board of Governors includes staff and student representation.

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Report of the Board of Governors continued

The Board of Governors’ Responsibilities in Respect of the Annual Report and the Financial Statements

In accordance with the Education Reform Act 1988 the Board of Governors are responsible for the effective and efficient use of resources, the solvency of the University and for safeguarding its assets. To this end, the Board is responsible for keeping adequate accounting records sufficient to show and explain the University’s transactions and disclose the financial position of the University. It has responsibility for setting out the internal controls necessary for the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and to prevent and detect fraud and other irregularities which may occur.

Articles of Government and the Instrument of Government are the legal documents which govern the way Cardiff Met conducts itself and carries out its operation. These documents set out key responsibilities of the Board of Governors, Vice-Chancellor, and Academic Board, and the basis of which these responsibilities can be delegated, as well as procedural rules.

The Board has adopted a Statement of Primary Responsibility, as recommended by the Committee of University Chairs, which is published on the University’s website. It sets out the primary responsibilities of the Board of Governors at Cardiff Met.

The Board is responsible for approving the Annual Budget, the Annual Financial Statements, and the Corporate Strategic Plan. The Board of Governors has established a Finance Committee which has delegated authority from the Board in relation to financial matters. However, the Board cannot delegate the approval of the Annual Budget or its principal responsibility for the solvency of the University. The President & Vice Chancellor is the designated Accounting Officer for the University and is responsible to the Board for preparing annual budgets and financial statements and for the management of resources within those budgets. Except when provided to the contrary, the President & Vice Chancellor may delegate functions in line with the Scheme of Delegation which is approved by the Board of Governors, but may not delegate ultimate responsibility and accountability, to other staff.

The Board is responsible for preparing the Annual Report and the Financial Statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” and applicable law), the Accounts Direction issued by Medr, the Statement of Recommended Practice: Accounting for Further and Higher Education Institutions (2019), the Charities Act 2011 and other relevant accounting standards.

The Board of Governors is required to prepare financial statements which give a true and fair view of the financial position of the Group and University and of their income and expenditure, gains and losses and changes in reserves for that period. In preparing each of the financial statements, the university is required to:

In addition, the Board is responsible for ensuring:

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The Report of the Board of Governors was approved by the Board of Governors on 26th November 2025 and signed on its behalf on 1st December by

John Taylor (CBE) Chair of the Board of Governors

Professor Rachael Langford President & Vice-Chancellor

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Independent auditors’ report to the Governing Body of Cardiff Metropolitan University (the “university”)

Report on the audit of the financial statements

Opinion

In our opinion, Cardiff Metropolitan University’s group financial statements and University financial statements (the “financial statements”):

We have audited the financial statements, included within the Annual Report & Financial Statements (the “Annual Report”), which comprise: the consolidated and University Statements of Financial Position as at 31 July 2025; the consolidated and University Statements of Comprehensive Income and Expenditure, the consolidated and University Statements of Changes in Reserves and the consolidated Cash Flow Statement for the year then ended; the Statement of Principal Accounting Policies; and the notes to the financial statements.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities under ISAs (UK) are further described in the Auditors’ responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We remained independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, which includes the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

Conclusions relating to going concern

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s and University’s ability to continue as a going concern for a period of at least twelve months from the date on which the financial statements are authorised for issue.

In auditing the financial statements, we have concluded that the Governing body’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the group and University’s ability to continue as a going concern.

Our responsibilities and the responsibilities of the Governing body with respect to going concern are described in the relevant sections of this report.

Reporting on other information

The other information comprises all of the information in the Annual Report other than the financial statements and our auditors’ report thereon. The Governing Body is responsible for the other information. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except to the extent otherwise explicitly stated in this report, any form of assurance thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify an apparent

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material inconsistency or material misstatement, we are required to perform procedures to conclude whether there is a material misstatement of the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report based on these responsibilities.

Based on the responsibilities described above and our work undertaken in the course of the audit, ISAs (UK) require us also to report certain opinions and matters as described below.

Report of the Board of Governors

Under the Charities Act 2011 we are required to report to you if, in our opinion, the information given in the Report of the Board of Governors is inconsistent in any material respect with the financial statements. We have no exceptions to report arising from this responsibility.

Responsibilities for the financial statements and the audit

Responsibilities of the Governing Body for the financial statements

As explained more fully in The Board of Governors’ Responsibilities in Respect of the Annual Report and the Financial Statements set out on page 46, the Governing Body is responsible for the preparation of the financial statements in accordance with the applicable framework and for being satisfied that they give a true and fair view. The Governing Body is also responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Governing Body is responsible for assessing the group and University’s ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless the Governing Body either intends to liquidate the group and University or to cease operations, or has no realistic alternative but to do so.

Auditors’ responsibilities for the audit of the financial statements

We are eligible to act and have been appointed as auditors under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Based on our understanding of the University/industry, we identified that the principal risks of non-compliance with laws and regulations related to Medr Accounts Direction (Medr/2025/03), and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Charities Act 2011. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to the posting of inappropriate transactions designed to overstate the financial performance and/or position of the group or University.

Audit procedures performed included:

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher

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than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors’ report.

Use of this report

This report, including the opinions, has been prepared for and only for the University’s Governing Body as a body in accordance with Article 9(1) of the University’s Articles of Government and section 124B of the Education Reform Act 1988 as amended by section 71 of the Further and Higher Education Act 1992 and section 151 of the Charities Act 2011 and regulations made under section 154 of that Act (Part 4 of The Charities (Accounts and Reports) Regulations 2008) and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Other required reporting

Opinion on other matters prescribed in the Higher Education Funding Council for Wales (‘HEFCW’) (‘Medr’ from 1 August 2024’) Audit Code of Practice included within the Financial Management Code issued under the Higher Education (Wales) Act 2015 and Accounts direction to higher education institutions in Wales for 2024/25 (Medr/2025/03) issued by Medr

The regulation of the Welsh higher education sector was transferred from the Higher Education Funding Council for Wales ('HEFCW') to Medr, the Commission for Tertiary Education and Research on 1 August 2024. The Financial Management Code and Terms and Conditions of Funding 2024/25 issued by HEFCW remain in place at the date of our report.

In our opinion, in all material respects:

Sufficiency of accounting records and information and explanations received

Under the Charities Act 2011 we are required to report to you if, in our opinion:

We have no exceptions to report arising from this responsibility.

PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors Cardiff 1 December 2025

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Statement of Principal Accounting Policies

1 Basis of Preparation

These financial statements have been prepared in accordance with the Statement of Recommended Practice (SORP): Further and Higher Education 2019 and in accordance with Financial Reporting Standard (FRS) 102; the Accounts Direction issued by Medr and the Charities Act 2011. The regulation of the Welsh higher education sector was transferred from the Higher Education Funding Council for Wales (‘HEFCW’) to Medr, the Commission for Tertiary Education and Research on 1 August 2024. The University is a public benefit entity and therefore has applied the relevant public benefit requirement of FRS102. The financial statements are prepared in accordance with the historical cost convention (modified by the revaluation of fixed assets). The principal accounting policies have been applied consistently except as where described otherwise and are set out below.

2 Basis of Consolidation

The consolidated financial statements include Cardiff Metropolitan University and its wholly owned subsidiary undertakings, Cardiff Met Company Ltd and Cardiff Metropolitan University Football Club Ltd. In addition, at 1 August 2024 the University held a majority (55%) share interest in a spin out company Fovo Technology Ltd, the balance of the shares being held by two of the University’s academics. New shares were issued in Fovo Technology Ltd in March 2025, reducing the University’s share to 48%. This company’s activity is also consolidated into these financial statements until March 2025, and it is held as an investment in associate on the balance sheet in Cardiff Metropolitan Company Ltd from March 2025. The consolidated financial statements do not include the income and expenditure of the Students' Union as the University does not exert control or significant influence over policy decisions. Intra-group sales and profits are eliminated fully on consolidation.

3 Going Concern

The University’s activities, together with the factors likely to affect its future development, performance and position, are set out in the Strategic Review which forms part of the Annual Review. The Annual Review also describes the financial position of the institution, its cash flows, liquidity position and borrowing facilities.

The operating outlook for the HE sector remains challenging. The University has prepared cash flow forecasts, including consideration of downside risks, for the going concern assessment period, being 12 months from the date of approval of these financial statements. The University meets its day to day working capital requirements through existing unrestricted cash balances which are adequate to meet liabilities as and when they fall due for the foreseeable future. Financial forecasts demonstrate that the University will meet its loan covenants as at 31 July 2026.

To ensure longer term financial sustainability, the University undertook a transformation programme during 2024/2025 to improve the efficiency of its operations through a series of targeted workstreams. This transformation programme has realigned the cost base to future income expectations through targeted annualised cost reductions of circa £14.5m, thereby restoring financial stability prior to the commencement of the 2025/2026 financial year. That work supports ongoing covenant compliance and provides financial headroom for decision making aligned with the University’s long term strategic options. The University has set a modest surplus budget for 2025/2026, reflecting the financial improvement from the transformation programme coupled with positive income expectations. The University has strong liquidity going into the 2025/2026 financial year and is confident that it will continue to have sufficient funds to meet its liabilities as they fall due over the period of 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.

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Statement of Principal Accounting Policies | continued

4 Income Recognition

Income from the sale of goods or services is credited to the Consolidated Statement of Comprehensive Income and Expenditure when the goods or services are supplied to the external customers, or the terms of the contract have been satisfied.

Fee income is stated gross of any expenditure which is not a discount and credited to the Consolidated Statement of Comprehensive Income and Expenditure over the period in which students are studying. Where the amount of the tuition fee is reduced, by a discount, income receivable is shown net of the discount. Fee scholarships are treated as a discount and are deducted from income.

Investment income is credited to the Consolidated Statement of Comprehensive Income and Expenditure on a receivable basis.

a) Grant Funding

Grant funding including funding council grants; research grants from government sources; and grants (including research grants) from non-government sources are recognised as income when the University is entitled to the income and performance related conditions have been met. Income received in advance of performance related conditions being met is recognised as deferred income within creditors on the Consolidated Statement of Financial Position and released to income as the conditions are met.

b) Donations and Endowments

Non exchange transactions without performance related conditions are donations and endowments. Donations and endowments with donor-imposed restrictions are recognised in income when the University is entitled to the funds.

Income is retained within the restricted reserve until such time that it is utilised in line with such restrictions at which point the income is released to general reserves through a reserve transfer.

Donations with no restrictions are recognised in income when the University is entitled to the funds.

Investment income and appreciation of endowments is recorded in income in the year in which it arises and as either restricted or unrestricted income according to the terms of the restrictions applied to the individual endowment fund.

There may be four main types of donations and endowments identified within reserves:

c) Capital Grants

Capital grants are recognised in income when the University is entitled to the funds subject to any performance related conditions being met.

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Statement of Principal Accounting Policies | continued

5 Accounting for Retirement Benefits

The University operates three pension schemes for University staff: the Cardiff and Vale of Glamorgan Pension Fund (CVGPF), the Teachers' Pension Scheme (TPS) and the Universities’ Superannuation Scheme (USS). The CVGPF and USS are funded schemes.

The CVGPF is valued every three years by a professionally qualified actuary using the projected unit method, the rate of contribution payable being determined by the Administering Authority on the advice of the actuary.

The TPS is subject to an actuarial valuation every five years by the Government Actuarial Department using the age entry method. The rate of contribution for the TPS is determined by the Teachers' Pension Agency on the advice of the actuary. It is not possible to identify each institution's share of the underlying assets and liabilities of the scheme and hence contributions to the scheme are accounted for as if it were a defined contribution scheme. The cost recognised within the surplus for the year in the Consolidated Statement of Comprehensive Income and Expenditure is equal to the contributions payable to the scheme for the year.

The USS is a multi-employer scheme for which it is not possible to identify the assets and liabilities attributable to the University at member level due to the mutual nature of the scheme and therefore this scheme is accounted for as a defined contribution retirement benefit scheme.

However, in accordance with FRS102, a liability is recorded within provisions for any contractual commitment to fund past deficits within the USS scheme.

a) Defined Contribution Plan

A defined contribution plan is a post-employment benefit plan under which the University pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognised as an expense in the income statement in the periods during which services are rendered by employees. Given the nature of the TPS, contributions to that scheme are accounted for on this basis.

b) Defined Benefit Plan

Defined benefit plans are post-employment benefit plans other than defined contribution plans. Under defined benefit plans, the University’s obligation is to provide the agreed benefits to current and former employees, and actuarial risk (that benefits will cost more or less than expected) and investment risk (that returns on assets set aside to fund the benefits will differ from expectations) are borne, in substance, by the University. The group should recognise a liability for its obligations under defined benefit plans net of plan assets. This net defined benefit liability is measured as the estimated amount of benefit that employees have earned in return for their service in the current and prior periods, discounted to determine its present value, less the fair value (at bid price) of plan assets. The calculation is performed by a qualified actuary using the projected unit credit method. Where the calculation results in a net asset, recognition of the asset is limited to the extent to which the University is able to recover the surplus either through reduced contributions in the future or through refunds from the plan. The University does not anticipate being able to enjoy any refund, or any future reduction in contributions resulting from any reported surplus, and so has not recognised an asset in relation to this.

c) CVGPF – Local Government Scheme

The Cardiff and Vale of Glamorgan Pension Fund is a defined benefits scheme administered in accordance with the Local Government Pension Scheme Regulations 2013 and currently provides benefits based on career average revalued earnings. Contributions are set every three years as a

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Statement of Principal Accounting Policies | continued

result of the actuarial valuation of the fund required by the regulations. The latest actuarial valuation of the fund was carried out as at 31 March 2022 and has set contributions for the period 1 April 2023 to 31 March 2026.

The actuary has completed calculations for pension accounting purposes based on the following items of data, which were received from the Cardiff and Vale of Glamorgan Pension Fund.

The assets of the Fund are not segregated or separately allocated to employers within the fund. The asset balance included in the financial statements is therefore a notional allocation estimated by the actuary using the information referred to above. The allocation is rolled forward from that agreed when the employer was admitted to the Fund and is not recalculated at each triennial valuation.

6 Employment Benefits

Short term employment benefits such as salaries and compensated absences are recognised as an expense in the year in which the employees render service to the University. Any unused benefits are accrued and measured as the additional amount the University expects to pay as a result of the unused entitlement.

7 Operating Leases

Costs in respect of operating leases are charged on a straight-line basis over the lease term. Any lease premiums or incentives are spread over the minimum lease term.

8 Foreign Currency

Transactions in foreign currencies are translated to the respective functional currencies of Group entities at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the Consolidated Statement of Financial Position date are translated to the functional currency at the foreign exchange rate ruling at that date. Foreign exchange differences arising on translation are recognised in Surplus or Deficit. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. Nonmonetary assets and liabilities denominated in foreign currencies that are stated at fair value are retranslated to the functional currency at foreign exchange rates ruling at the dates the fair value was determined.

54

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Annual Report and Financial Statements 2024-2025

Statement of Principal Accounting Policies | continued

9 Fixed Assets

a) Land and Buildings

Certain items of land and buildings that had been revalued to fair value on or prior to the date of transition to the 2015 FE HE SORP, are measured on the basis of deemed cost, being the revalued amount at the date of that revaluation, less accumulated depreciation, and accumulated impairment losses.

Costs incurred in relation to land and buildings after initial purchase or construction, and prior to valuation, are capitalised to the extent that they increase the expected future benefits to the University.

Freehold land is not depreciated as it is considered to have an indefinite useful life. Freehold buildings are depreciated on a straight-line basis over their expected useful lives of between 20 and 75 years.

b) Equipment

Equipment costing less than £10,000 per individual item or group of related items is written off to the Consolidated Statement of Comprehensive Income and Expenditure in the year of acquisition. All other equipment is capitalised at cost. Capitalised equipment is depreciated on a straight-line basis over its useful economic life of between three and ten years.

Equipment purchased for research projects is treated and depreciated on the same basis as other equipment expenditure.

Depreciation methods, useful lives and residual values are reviewed at the date of preparation of each Consolidated Statement of Financial Position.

c) Assets under construction

During the construction phase, assets are capitalised at cumulative directly attributable costs minus impairment. Upon completion, these assets are then transferred to the appropriate asset category.

Assets under construction are not depreciated until brought into use.

d) Borrowing costs

Borrowing costs which are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised.

10 Investments

Non-current asset investments are held on the Consolidated Statement of Financial Position at amortised cost less impairment.

Investments in subsidiaries are carried at cost less impairment in the University's financial statements.

Current asset investments are held on the Consolidated Statement of Financial Position at amortised cost less impairment.

55

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Statement of Principal Accounting Policies | continued

11 Stock

Stocks are stated at the lower of cost and net realisable value and is measured using an average cost formula.

12 Cash and Cash Equivalents

Cash includes cash in hand, deposits repayable on demand and overdrafts. Deposits are repayable on demand if they are in practice available within 24 hours without penalty.

Cash equivalents are short term, with a notice period of three months or less, highly liquid investments that are readily convertible to known amounts of cash with insignificant risk of change in value.

13 Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised in the financial statements when:

The amount recognised as a provision is determined by discounting the expected future cash flows at a pre-tax rate that reflects risks specific to the liability.

A contingent liability arises from a past event that gives the University a possible obligation whose existence will only be confirmed by the occurrence or otherwise of uncertain future events not wholly within the control of the University. Contingent liabilities also arise in circumstances where a provision would otherwise be made but either it is not probable that an outflow of resources will be required, or the amount of the obligation cannot be measured reliably.

A contingent asset arises where an event has taken place that gives the University a possible asset whose existence will only be confirmed by the occurrence or otherwise of uncertain future events not wholly within the control of the University.

Contingent assets and liabilities are not recognised in the Consolidated Statement of Financial Position but are disclosed in the notes.

14 Taxation

The University is an exempt charity within the meaning of Part 3 of the Charities Act 2011. It is therefore a charity within the meaning of Para 1 of schedule 6 to the Finance Act 2010 and accordingly, the University is potentially exempt from taxation in respect of income or capital gains received within categories covered by section 478-488 of the Corporation Tax Act 2010 (CTA 2010) or section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied to exclusively charitable purposes.

The University receives no similar exemption in respect of Value Added Tax. Irrecoverable VAT on inputs is included in the costs of such inputs. Any irrecoverable VAT allocated to fixed assets is included in their cost.

The University’s subsidiaries are liable to Corporation Tax in the same way as any other commercial organisation. No charge for taxation has been included in respect of the Subsidiary Companies' activities since the entire taxable profit of these companies is transferred to the University under the Gift Aid scheme.

Deferred tax is provided in full on timing differences which result in an obligation at the Consolidated Statement of Financial Position date to pay more tax, or a right to pay less tax, at a future date, at

56

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Annual Report and Financial Statements 2024-2025

Statement of Principal Accounting Policies continued

rates expected to apply when they crystallise based on current rates and law. Timing differences arise from the inclusion of items of income and expenditure in taxation computations in periods different from those in which they are included in financial statements. Deferred tax assets are recognised when it is more likely than not that they will be recovered. Deferred tax assets and liabilities are not discounted.

15 Reserves

Reserves are classified as restricted or unrestricted. Restricted endowment reserves include balances which, through endowment to the University, are held as a permanently restricted fund which the University must hold in perpetuity.

Other restricted reserves include balances where the donor has designated a specific purpose and therefore the University is restricted in the use of these funds.

16 Critical accounting judgements and estimation uncertainty

Pension schemes: assumptions used in the calculation of the CVGPF pension deficit provisions represent a key accounting estimate based on the sensitivity of assumptions (note 19 and note 24). Where the calculation results in a net asset, recognition of the asset is limited to the extent to which the University is able to recover the surplus either through reduced contributions in the future or through refunds from the plan. The University does not anticipate being able to enjoy any refund, or any future reduction in contributions resulting from any reported surplus, and so has not recognised an asset in relation to this.

Recoverability of Debtors: The University makes an estimate for the recoverable value of outstanding debt. In arriving at this value, the University considers the age profile of debts, knowledge of individual debtors and an assessment of prevailing economic conditions.

17 Exceptional Items

Transactions are classified as exceptional where they relate to an event that falls outside the ordinary activities of the group. These may include, but are not restricted to: restructuring and site closure costs, costs related to acquisitions and disposals, and other items due to their significance, size or nature.

57

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Annual Report and Financial Statements 2024-2025

Consolidated and University Statements of Comprehensive Income and Expenditure

year ended 31 July 2025
Note
Income
Tuition fees and education contracts
1
Funding body grants
2
Research grants and contracts
3
Other income
4
Investment income
5
Donations
6
Total income
Expenditure
Staff costs
7
Other operating expenses
Depreciation
10
Interest and other finance costs
8
Total expenditure
9		 Year ended 31 July 2025
Year ended 31 July 2024
Consolidated
University
Consolidated
University
£'000
£'000
£'000
£'000
106,889
106,861
107,349
107,331
12,767
12,767
9,761
9,761
4,851
3,641
4,543
3,189
22,684
15,000
21,424
15,866
1,394
1,394
1,765
1,765
4
-
18
11
148,589
139,663
144,860
137,923
99,937
93,264
95,192
88,926
39,545
37,931
41,983
40,445
6,275
6,275
6,680
6,680
1,009
1,009
1,042
1,042
146,766
138,479
144,897
137,093
Surplus/(Deficit) before exceptional
costs
Impairment of fixed asset
10, 11
Impairment of intercompany balances
14
Impairment of loan to associate
12
Loss in subsidiary
Gain on disposal of subsidiary
23		 1,823
1,184
(37)
830
(5,083)
(5,083)
(3,001)
-
-
-
-
(2,263)
(600)
-
-
-
(333)
-
-
-
304
-
-
-
Deficit for the year
Actuarial gain/(loss) in respect of
pension schemes
24
Total comprehensive expense for the
year		 (3,889)
(3,899)
(3,038)
(1,433)
(870)
(870)
370
370
(4,759)
(4,769)
(2,668)
(1,063)

58

Cardiff Metropolitan University

Annual Report and Financial Statements 2024-2025

Represented by:
Unrestricted total comprehensive
expense for the year attributable to
the Group and University
Deficit for the year attributable to:
Non-controlling interest 45%
Total Comprehensive expense for the
year attributable to:
Non-controlling interest 45%		 (4,609)
(4,769)
(964)
(1,063)
(4,609)
(4,769)
(964)
(1,063)
(150)
-
(1,704)
-
(150)
-
(1,704)
-

All items of income & expenditure relate to continuing activities.

59

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Annual Report and Financial Statements 2024-2025

Consolidated and University Statements of Changes in Reserves

eserves
year ended 31 July 2025
Consolidated
Balance at 1 August 2023
Deficit for the year
Other comprehensive income
Total comprehensive expense for the year
Balance at 31 July and 1 August 2024
Deficit for the year
Other comprehensive expense
Loss of control of subsidiary
Total comprehensive (expense)/income for the year
Balance at 31 July 2025
University
Balance at 1 August 2023
Deficit for the year
Other comprehensive income
Total comprehensive income for the year
Balance at 31 July and 1 August 2024
Deficit for the year
Other comprehensive income
Total comprehensive expense for the year
Balance at 31 July 2025		 Group
NCI
£’000
£’000
188,387
(99)
(1,334)
(1,704)
370
-		 Total
Reserves
£’000
188,288
(3,038)
370
(964)
(1,704)		 (2,668)
187,423
(1,803)
(3,739)
(150)
(870)
(1,953)
-
1,953		 185,620
(3,889)
(870)
-
(6,562)
1,803		 (4,759)
180,861
-		 180,861
Total Reserves
£’000
185,570
(1,433)
370
(1,063)
184,507
(3,899)
(870)
(4,769)
179,738

All reserves are unrestricted

60

Cardiff Metropolitan University

Annual Report and Financial Statements 2024-2025

Consolidated and University Statements of Financial Position

As at 31 July 2025

----- Start of picture text -----
As at 31 July 2025 As at 31 July 2024
Note Consolidated University Consolidated University
£’000 £’000 £’000 £’000
Non-current assets
Tangible assets 10 180,214 180,214 185,884 185,884
Intangible assets 11 - - - -
Investment in subsidiaries 12 - - - -
Current assets
Stock 13 139 139 142 142
Trade and other receivables 14 9,942 9,130 9,643 8,604
Investments 15 327 327 1,853 1,853
Cash and cash equivalents 20 43,856 42,257 41,029 39,725
54,264 51,853 52,667 50,324
Less: Creditors: amounts falling
due within one year 16 (36,385) (35,097) (34,537) (33,307)
Net current assets 17,879 16,756 18,130 17,017
Total assets less current liabilities 198,093 196,970 204,014 202,901
Creditors: amounts falling due after 17 (15,102) (15,102) (16,454) (16,454)
more than one year
Provisions
Pension provisions 19 (2,130) (2,130) (1,940) (1,940)
Total net assets 180,861 179,738 185,620 184,507
Unrestricted reserves
Income and expenditure reserve 180,861 179,738 187,423 184,507
180,861 179,738 187,423 184,507
Non controlling interest - - (1,803) -
Total reserves 180,861 179,738 185,620 184,507
----- End of picture text -----

The Financial Statements on pages 58 to 93 were approved by the Board of Governors on 26th November 2025 and signed on its behalf on 1st December 2025 by

John Taylor (CBE) Chair of the Board of Governors

Professor Rachael Langford President & Vice-Chancellor

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Annual Report and Financial Statements 2024-2025

Consolidated Cash Flow Statement

year ended 31 July 2025

ear ended 31 July 2025
Cash flow from operating activities
Deficit for the year
Adjustment for non-cash items
Depreciation
Impairment
Decrease/(Increase) in stock
(Increase)/Decrease in debtors
Increase/(Decrease) in creditors
Difference between pension charge and cash contributions
Adjustment for investing or financing activities
Investment income
Interest payable
Capital grant income
Gain on the disposal of subsidiary
Net cash inflow/(outflow) from operating activities
Cash flows from investing activities
Capital Grants receipts
Redemption of investments
Investment income
Payments made to acquire fixed assets
Purchase of investments
Net cash inflow from investing activities
Cash flows from financing activities
Interest paid
Repayments of amounts borrowed
Net cash outflow from financing activities
Increase in cash and cash equivalents in the year
Cash and cash equivalents at beginning of the year
Cash and cash equivalents at end of the year
Increase in cash and cash equivalents in the year		 Year ended
31 July 2025
£’000
(3,889)
6,275
5,683
3
(899)
2,751
(610)
(1,394)
1,009
(3,789)
(304)
4,836
3,789
1,853
1,394
(5,687)
(327)
1,022
(1,079)
(1,952)
(3,031)
2,827
41,029
43,856
2,827		 Year ended
31 July 2024
£’000
(3,038)
6,680
3,001
(43)
3,560
(5,489)
(3,960)
(1,765)
1,042
(965)
(977)
965
45,046
1,765
(12,292)
(1,853)
33,631
(977)
(786)
(1,763)
30,891
10,138
41,029
30,891

62

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Annual Report and Financial Statements 2024-2025

Consolidated Cash Flow Statement continued

onsolidated Cash Flow Statementcontinued
Reconciliation of net cash flow to movement in net funds
Increase in cash in the year
Decrease in investments
Repayments of amounts borrowed
Movement in net funds in the year
Net funds at 1 August
Net funds at 31 July		 Year ended
31 July 2025
£’000
2,827
(1,526)
1,952
3,253
24,476
27,729		 Year ended
31 July 2024
(restated)
£’000
30,891
(43,193)
786
(11,516)
35,992
24,476

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Annual Report and Financial Statements 2024-2025

Notes to the Financial Statements

1 Tuition fees and education contracts
Full-time home and EU students
Full-time & part time international
students
Part-time home and EU students
Transnational education income
Education contracts with NHS & Coleg
Cymraeg
Research training support grants		 Year Ended 31 July 2025
Year Ended 31 July 2024
Consolidated
University
Consolidated
University
£’000
£’000
£’000
£’000
74,600
74,572
69,602
69,602
20,946
20,946
25,837
25,837
1,707
1,707
1,534
1,534
5,760
5,760
6,256
6,256
3,702
3,702
3,765
3,765
174
174
355
337
106,889
106,861
107,349
107,331
2 Funding body grants
Recurrent grant
MEDR
Specific Grant Initiatives		 Year Ended 31 July 2025
Year Ended 31 July 2024
Consolidated
University
Consolidated
University
£’000
£’000
£’000
£’000
10,760
10,760
8,162
8,162
2,007
2,007
1,599
1,599
12,767
12,767
9,761
9,761
3 Research grants and contracts
Research councils
Research charities (UK and overseas)
Government (UK and overseas)
Industry and commerce (UK and
overseas)		 Year Ended 31 July 2025
Year Ended 31 July 2024
Consolidated
University
Consolidated
University
£’000
£’000
£’000
£’000
875
875
826
826
321
321
390
364
2,995
2,023
2,806
1,827
660
422
521
172
4,851
3,641
4,543
3,189

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Annual Report and Financial Statements 2024-2025

Notes to the Financial Statements continued

4 Other income
Other services rendered
Residences operations
Catering and conferencing
operations
Other EU grant income
Other operating income		 Year Ended 31 July 2025
Year Ended 31 July 2024
Consolidated
University
Consolidated
University
£’000
£’000
£’000
£’000
12,438
5,766
10,877
6,388
5,677
5,651
5,548
5,527
2,757
2,176
2,572
2,316
292
292
249
249
1,520
1,115
2,178
1,386
22,684
15,000
21,424
15,866

Included in the ‘Other services rendered’ figure above is an amount of £35k (2024: £63k) relating to the Turing Scheme. The Turing Scheme is the UK government’s global programme to study and work abroad. The scheme provides funding for international opportunities in education and training across the world supporting the government’s Global Britain objectives.

5 Investment income Year Ended 31 July 2025 Year Ended 31 July 2024 Year Ended 31 July 2024
Consolidated University Consolidated University
£’000 £’000 £’000 £’000
Other investment income 1,394 1,394 1,765 1,765
1,394 1,394 1,765 1,765
6 Donations Year Ended 31 July 2025 Year Ended 31 July 2024
Consolidated University Consolidated University
£’000 £’000 £’000 £’000
Donations 4 - 18 11
4 - 18 11

65

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Annual Report and Financial Statements 2024-2025

Notes to the Financial Statements continued

7 Staff costs
Salaries
Social security costs
Other pension costs
Severance Costs
Movement on USS provision
CVGPF costs below contributions		 Year Ended 31 July 2025
Year Ended 31 July 2024
Consolidated
University
Consolidated
University
£’000
£’000
£’000
£’000
73,668
68,355
75,255
70,202
8,234
7,686
7,921
7,442
14,778
13,966
14,279
13,545
3,548
3,548
1,379
1,379
-
-
(3,330)
(3,330)
(291)
(291)
(312)
(312)
99,937
93,264
95,192
88,926

66

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Annual Report and Financial Statements 2024-2025

Notes to the Financial Statements | Note 7 Staff Costs continued

Year Ended Year Ended Year Ended
31 July 2025 31 July 2024
Average staff numbers by major category: No. No.
Academic 668 669
Administrative, support and projects 911 928
Technicians 40 32
Ancillary 41 60
1,660 1,689
VC from 01.02.2024 VC until 31.01.2024
Year Ended 31 July 2025 Year Ended 31 July 2024 Year Ended 31 July 2024
Emoluments of the Vice-
Chancellor £ £ £
Salary 260,000 130,000 145,084
Pension contributions 74,568 35,117 -
Payments in lieu of
pension contributions		 - - 25,915
334,568 165,117 170,999
VC from 01.02.2024 VC until 31.01.2024
(pro-rated) (pro-rated)
Vice-Chancellor Year Ended 31 Year Ended 31 Year Ended 31
remuneration as a July 2025 July 2024 July 2024
multiple of the University University University
median
Basic Total Basic Total Basic Total
Salary Remuneration Salary Remuneration Salary Remuneration
Vice-Chancellor £260,000 £334,568 £260,000
£330,235		 £290,168
£341,998
Median salary £43,074 £43,918 £42,978
£43,587		 £42,978
£43,587
6.0 7.6 6.0
7.6		 6.8
7.8
Pay multiple

The median total remuneration is calculated on a full-time equivalent basis for the total remuneration paid by the University to its staff. Agency and atypical staff have been excluded from the above calculations, as fulltime equivalent data is not available. During 2023-24 a new Vice-Chancellor was appointed. The figures for

67

Cardiff Metropolitan University

Annual Report and Financial Statements 2024-2025

Notes to the Financial Statements | Note 7 Staff Costs continued

both the previous and the new Vice-Chancellor have been pro-rated to a full-year equivalent. Further details on VC remuneration are set out in the Report from the Remuneration Committee on page 30.

Higher Paid Staff
£100,000 to £104,999
£105,000 to £109,999
£110,000 to £114,999
£115,000 to £119,999
£120,000 to £124,999
£130,000 to £134,999
£140,000 to £144,999
£160,000 to £164,999
£165,000 to £169,999
£170,000 to £174,999
£175,000 to £179,999
£180,000 to £184,999		 Year Ended
31 July 2025
Year Ended
31 July 2024
No.
No.
1
3
2
5
2
1
-
2
4
1
-
1
-
1
-
-
-
-
-
1
1
1
1
-
11
16

Payment of compensation for loss of office to higher paid staff was as follows:

Year Ended Year Ended Year Ended Year Ended
31 July 2025 31 July 2025 31 July 2024 31 July 2024
Number of Number of
£’000 staff £’000 staff
Higher paid staff: loss of office
384 7 25 1

The Key Management Personnel are the University’s Executive Group. In 2024-25 the group comprised; the President & Vice-Chancellor, Deputy Vice-Chancellor, PVC (Research and Innovation), PVC (Business, Global and Civic Engagement), Chief Officer (Resources). In-year, this changed with the departure of the Chief Officer (Resources), and the Interim Chief Finance Officer and Chief People Officer joined the University’s Executive Group membership.

Group membership.
Year Ended Year Ended
31 July 2025 31 July 2024
£’000 £’000
Key management personnel remuneration
(excludes pension costs) 935 975

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Annual Report and Financial Statements 2024-2025

Notes to the Financial Statements | Note 7 Staff Costs continued

Due to the nature of the University’s operations and the composition of the Board, it is inevitable that transactions will take place with organisations in which a Member of the Board or a senior member of staff may have an interest. The financial regulations require an individual to declare an interest and to withdraw from discussions should a conflict of interest potentially arise. Written assurances are obtained annually from all Governors and key personnel in respect of themselves and their close family. For the financial year to 31 July 2025 the returns state that there has been no undue influence between the University and related parties (as defined by FRS102).

69

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Annual Report and Financial Statements 2024-2025

Notes to the Financial Statements continued

8 Interest and other finance costs
Loan interest
Net (credit)/charge on pension scheme
9 Total expenditure
Academic and related expenditure
Administration and central services
Premises (including service concession
cost)
Residences, catering, and conferences
Research grants and contracts
Other expenses
Other operating expenses include:
External independent auditors’
remuneration in respect of audit
services
External independent auditors’
remuneration in respect of non-audit
services		 Year Ended 31
July 2025
Year Ended 31
July 2025
Year Ended
31 July 2024
Year Ended
31 July 2024
Consolidated
University
Consolidated
University
£’000
£’000
£’000
£’000
1,079
1,079
977
977
(70)
(70)
65
65
1,009
1,009
1,042
1,042
Year Ended 31
July 2025
Year Ended 31
July 2025
Year Ended 31
July 2024
Year Ended 31
July 2024
Consolidated
University
Consolidated
University
£’000
£’000
£’000
£’000
81,099
81,099
85,025
86,759
35,987
32,502
31,518
28,042
11,705
11,705
12,207
12,207
5,293
4,943
5,393
5,196
4,091
1,251
3,914
1,448
8,592
6,979
6,840
3,441
146,767
138,479
144,897
137,093
£’000
£’000
£’000
£’000
104
87
89
60
53
53
19
19

Included in the ‘Administration and central services’ figure above is an amount of £21k (2024: £63k) relating to the Turing Scheme. The Turing Scheme is the UK government’s global programme to study and work abroad. The scheme provides funding for international opportunities in education and training across the world, supporting the government’s Global Britain objectives.

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Notes to the Financial Statements continued

10 Tangible Assets
Consolidated
Cost or valuation
At 1 August 2024
Additions
Disposals
Impairment
At 31 July 2025
Consisting of
valuation at:
1 August 2014
Cost
At 31 July 2025
Accumulated
Depreciation
At 1 August 2024
Charge for the year
Disposals
At 31 July 2025
Net book value
At 31 July 2025
At 31 July 2024		 Freehold
Land and
Buildings
Fixtures,
Fittings and
Equipment (re-
stated)
Assets in the
Course of
Construction
(re-stated)
Total
(re-stated)
£’000
£’000
£’000
£’000
207,927
36,624
4,562
249,113
2,830
2,336
521
5,687
-
-
-
-
-
-
(5,083)
(5,083)
210,757
37,641
-
249,718
72,268
-
-
72,268
138,489
38,961
-
177,450
210,757
38,961
-
249,718
38,310
24,918
-
63,228
3,200
3,076
-
6,276
-
-
-
-
41,510
27,994
-
69,504
169,247
10,967
-
180,214
169,617
11,706
4,562
185,885

71

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Notes to the Financial Statements | Note 10 Tangible Assets continued

Freehold Land Freehold Land Fixtures, Assets in the Total
and Buildings Fittings and Course of (re-
Equipment (re- Construction stated)
stated) (re-stated)
£’000 £’000 £’000 £’000
University
Cost or valuation
At 1 August 2024		 207,927 36,336 4,562 248,825
Additions
2,830 2,336 521 5,687
Disposals - - - -
Impairment - - (5,083) (5,083)
At 31 July 2025 210,757 38,672 - 249,429
Consisting of
valuation at:		 1 August 2014 72,268 - - 72,268
Cost 138,489 38,672 - 177,161
At 31 July 2025 210,757 38,672 - 249,429
Accumulated
Depreciation At 1 August 2024 38,310 24,631 - 62,941
Charge for the year 3,200 3,074 - 6,274
At 31 July 2025 41,510 27,705 - 69,215
Net book value At 31 July 2025 169,247 10,967 - 180,214
At 31 July 2024 169,617 11,705 4,562 185,884

As at 31 July 2025, freehold land and buildings included £52.598m (2024: £52.598m) in respect of freehold land and is not depreciated.

During December 2024 the University took the decision to cease development of a single digital IT system, and has accordingly recognised an impairment of total capitalised costs of £5.1m in the year ended 31 July 2025. This note has been restated to appropriately present the costs relating to the digital IT system as Assets in the course of Construction, where these had previously been included within Fixtures, Fittings & Equipment. The total costs capitalised relating to the system at 31 July 2024 were £4.6m, with further additions of £0.5m up to the point that the decision was taken to abandon the project. There are no further amounts identified as Assets in the course of Construction at 31 July 2025 or 31 July 2024.

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Notes to the Financial Statements continued

Notes to the Financial Statementscontinued
11 Intangible Assets Consolidated
University
£’000
£’000
2,403
-
577
-
(2,980)
-
-
-
-
-
-
-
-
-
-
-
Cost of Intellectual Property
At 1 August 2023
Additions
Impairment
At 31 July 2024
Cost of Intellectual Property
At 1 August 2024
Additions
Impairment
At 31 July 2025

The full amount of the intangible asset was impaired to nil during 2023-2024. This related to the intellectual property developed in Fovo Technology Ltd. The intangible impairment was included as an exceptional item in the Consolidated Statements of Comprehensive Income and Expenditure for 2023-24.

University
£’000
-
-
-
12 Investment in Subsidiaries
Cost or valuation and net book value
At 1 August 2024
Additions
Impairment
At 31 July2025 -
-
-
-
Cost or valuation and net book value
At 1 August 2023
Additions
Impairment
At 31 July2024
-

The investments represent shares in group undertakings (note 23). During the financial year 2024/25 there were no additions or impairments.

During the year Fovo Technology Ltd issued new shares in the company and as a result is no longer a subsidiary of the ultimate parent Cardiff Metropolitan University. From March 2025 the investment in Fovo Technology Ltd is held on the balance sheet in Cardiff Metropolitan Company Ltd as an investment in associate (note 23).

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Notes to the Financial Statements continued

13 Stock At 31 July 2025
At 31 July 2024
Consolidated
University
Consolidated
University
£’000
£’000
£’000
£’000
139
139
142
142
General consumables (Catering & other)
139
139
142
142
At 31 July 2025
At 31 July 2024
Consolidated
University
Consolidated
University
£’000
£’000
£’000
£’000
5,538
4,861
5,203
4,811
4,404
3,890
4,440
3,495
-
379
-
298
14 Trade and other receivables
Amounts falling due within one year:
Trade receivables
Prepayments and accrued income
Amounts due from subsidiarycompanies
9,942
9,130
9,643
8,604

During the year 2024/25 no impairment took place relating to intercompany balances (2024: £2,263k). Total provision against trade receivables in 2024/25 amounted to £3,730k (2024: £2,048k). During the year 2024/25 a loan to associate was impaired by £600k (2024: £nil).

15 Investments
Corporate Bonds		 At 31 July 2025
At 31 July 2024
Consolidated
University
Consolidated
University
£’000
£’000
£’000
£’000
327
327
1,853
1,853
327
327
1,853
1,853
At 31 July 2025
At 31 July 2024
Consolidated
University
Consolidated
University
£’000
£’000
£’000
£’000
102
102
102
102
1,250
1,250
1,850
1,850
4,849
4,525
4,848
4,968
1,999
1,999
1,907
1,907
28,185
27,221
25,830
24,480
16 Creditors: amounts falling due within one
year
Secured loans
Unsecured loans
Trade payables
Social security and other taxation payable
Accruals and deferred income
36,385
35,097
34,537
33,307

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Notes to the Financial Statements continued

17 Creditors: amounts falling due after
more than one year		 At 31 July 2025
At 31 July 2024
Consolidated
University
Consolidated
University
£’000
£’000
£’000
£’000
102
102
204
204
15,000
15,000
16,250
16,250
15,102
15,102
16,454
16,454
1,352
1,352
1,952
1,952
1,352
1,352
1,352
1,352
3,750
3,750
3,252
3,252
10,000
10,000
11,850
11,850
15,102
15,102
16,454
16,454
16,454
16,454
18,406
18,406
Amount
As at 31
July 2025
Amount as
at 31 July
2024
Repayable by
Interest
Borrower
£’000
£’000
204
306
2027
Variable
University
7,800
9,000
2038
5.10
University
8,450
9,100
2038
5.10
University
Pension
enhancement on
termination
(Note 24)
Defined Benefit
Obligations (Note
24)
Total Pensions
Provisions
£’000
£’000
£’000		 At 31 July 2025
At 31 July 2024
Consolidated
University
Consolidated
University
£’000
£’000
£’000
£’000
102
102
204
204
15,000
15,000
16,250
16,250
15,102
15,102
16,454
16,454
1,352
1,352
1,952
1,952
1,352
1,352
1,352
1,352
3,750
3,750
3,252
3,252
10,000
10,000
11,850
11,850
15,102
15,102
16,454
16,454
16,454
16,454
18,406
18,406
Amount
As at 31
July 2025
Amount as
at 31 July
2024
Repayable by
Interest
Borrower
£’000
£’000
204
306
2027
Variable
University
7,800
9,000
2038
5.10
University
8,450
9,100
2038
5.10
University
Pension
enhancement on
termination
(Note 24)
Defined Benefit
Obligations (Note
24)
Total Pensions
Provisions
£’000
£’000
£’000
Secured loans
Unsecured loans
Analysis of secured and unsecured loans:
Due within one year or on demand
Due between one and two years
Due between two and five years
Due in fiveyears or more
Due after more than oneyear
Total secured and unsecured loans
18 Lender
Secured and unsecured loans
NatWest
Secured loan
Barclays
Unsecured loan
Santander
Unsecured loan
19 Pension Provisions
Consolidated and University
At 1 August 2024 (1,940)
-
(1,940)
Utilised in year 320
-
320
(Addition)/release in year (90)
(288)
(378)
Actuarial (loss)/gain in year (420)
36,590
36,170
Unrecognised asset -
(36,302)
(36,302)
At 31 July 2025 (2,130)
-
(2,130)

USS deficit

The obligation to fund the past service deficit of the University’s Superannuation Scheme (USS) arises from a contractual obligation to fund benefits arising from past performance. This obligation is reassessed every three years using the scheduled triennial valuation of the scheme. In reassessing the value of the required provision during the current year management has used the March 2023 valuation of the scheme. No deficit recovery plan was required under the 2023 valuation because the scheme was in surplus on a technical provisions basis. The institution was no longer required to make deficit recovery contributions from 1 January 2024 and accordingly released the outstanding provision to the profit and loss account.

The latest available actuarial valuation of the scheme at 31 July 2025 was the March 2023 valuation.

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Notes to the Financial Statements continued

20 Cash and cash equivalents
Consolidated
Cash and cash equivalents		 At 1 August
2024
Cash Flows
At 31 July
2025
£’000
£’000
£’000
41,029
2,827
43,856
41,029
2,827
43,856
Consolidated
Cash and cash equivalents		 At 1 August
2023
Cash Flows
At 31 July
2024
£’000
£’000
£’000
10,138
30,891
41,029
10,138
30,891
41,029
21 Capital commitments At 31 July 2025
At 31 July 2024
Consolidated
University
Consolidated
University
£’000
£’000
£’000
£’000
Commitments contracted for 411
411
740
740
411
411
740
740

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Notes to the Financial Statements continued

22 Commitments under operating leases

At 31 July Cardiff Metropolitan University had future minimum lease payments under non-cancellable operating leases as follows:

leases as follows:
2025 2024
£’000 £’000
Not later than 1 year 83 157
Later than 1 year and not later than 5 - -
83 157
23 Subsidiary undertakings
Company Principal Activity Status
Cardiff Metropolitan Company Ltd Undertakes non primary purpose trading activities 100% owned
which are non-charitable.
Cardiff Metropolitan University Football A football club comprising of a Men’s team and 100% owned
Club Ltd Women’s team, competing in the relevant FAW
leagues. It also has a Junior academy.
Fovo Technology Ltd Developing a new technology that improves the 55% owned
nature of visual experience. until Feb 2025
48% owned
from March
2025

During the year Fovo Technology Ltd issued new shares in the company and as a result is no longer a subsidiary of the ultimate parent Cardiff Metropolitan University. From 12 March 2025 the investment in Fovo Technology Ltd is held on the balance sheet in Cardiff Metropolitan Company Ltd as an investment in associate. No consideration was received. The retained 48% interest has been recognised at its fair value of £nil. The gain on loss of control of £304k has been recognised within “Exceptional costs” in the consolidated statement of comprehensive income. The calculation is set out below.

£
Proceeds received -
Share of net liabilities disposed 303,794
Gain on disposal 303,794

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Notes to the Financial Statements continued

24 Pension Obligations

The contributions payable to the scheme were

Contribution for TPS
Contribution for CVGPF
Contribution for USS		 As at
31 July 2025
£’000
8,634
6,635
579
15,848		 As at
31 July 2024
£’000
7,806
5,715
758
14,279

The costs recognised within the University’s staff costs for the year were

Cost for TPS
Cost for CVGPF
Cost for USS		 Year ended
31 July 2025
£’000
8,634
6,344
579
15,557		 Year ended
31 July 2024
£’000
7,806
5,402
(2,572)
10,636

Cardiff & Vale of Glamorgan Pension Fund (CVGPF)

CVGPF is a local government superannuation scheme. The most recent full actuarial valuation was carried out as at 31 March 2022 and has been updated by independent actuaries to the Cardiff & Vale of Glamorgan Pension Fund to take account of the requirements of FRS102 in order to assess the liabilities of the Fund as at 31 July 2025. The next triennial valuation of the fund is expected to be reported during December 2025.

The principal assumptions used for the purposes of FRS102 are as follows

Year ended Year ended Year ended
31 July 2025 31 July 2024 31 July 2023
Discount rate 5.8% 5.0% 4.9%
CPI inflation 2.5% 2.6% 2.6%
Rate of increase to pensions in payment 2.5% 2.6% 2.6%
Rate of revaluation of pension accounts 2.5% 2.6% 2.6%
Rate of increase in deferred pensions 2.5% 2.6% 2.6%
Rate of general increase in salaries 3.5% 3.6% 3.6%

Mortality assumption

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Notes to the Financial Statements | Note 24 Pension Obligations continued

The mortality assumptions are based on the recent actual mortality experience of members within the Fund and allow for future mortality improvements. Sample life expectancies at age 65 resulting from these mortality assumptions are shown below.

Year ended
31 July 2025
Assumed life expectancy at 65 years
- retiring today male/(female)
21.9 (24.2)
- retiring in 20 years male/(female)
22.2 (25.0)
Asset Allocation
Equities
Property
Government bonds
Corporate bonds
Multi Asset Credit
Cash
Other
Total		 Year ended
31 July 2024
21.8 (24.1)
22.1 (24.9)
Value at
31 July 2025
66.2%
5.8%
7.8%
5.2%
5.4%
0.6%
9.0%
100.0%		 Year ended
31 July 2023
22.0 (24.2)
22.6 (25.3)
Value at
31 July 2024
68.1%
6.0%
7.9%
7.0%
5.2%
4.1%
1.7%
100.0%

Amounts recognised in income statement

Operating cost
- current service cost
- past service cost
Financing Cost
- interest on net defined benefit liability
- interest on unrecognised asset
Pension expense recognised in income
statement		 Year ended 31 July 2025
Year ended 31 July 2024
£’000
£’000
£’000
£’000
Funded
Unfunded
Funded
Unfunded
5,050
-
5,510
-
1,070
-
10
-
(600)
440
90
-
(110)
-
100
-
5,960
90
5,410
100

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Notes to the Financial Statements | Note 24 Pension Obligations continued

Amounts recognised in comprehensive income

Year ended
31 July
2025
£’000
Funded
Unfunded
Asset gains/(losses) arising during the period
9,082
-
Actuarial gains/(losses) due to changes in
financial assumptions
28,000
90
Actuarial gains/(losses) due to changes in
demographic assumptions
-
-
Actuarial gains/(losses) due to liability
experience
(1,230)
(510)
Adjustment gain/(loss) due to restriction of
surplus
(36,302)
-
Total amount recognised in comprehensive
income
(450)
(420)
Changes to the present value of the defined benefit obligation
2025
£’000
£’000
Funded
Unfunded
Opening value
161,620
1,940
Current service cost
5,050
-
Interest expense on defined benefit
obligation
8,000
90
Contributions by participants
2,300
-
Actuarial (gains)/losses on liabilities
(26,770)
420
Net benefits paid out
(5,680)
(320)
Past service cost/curtailment
1,070
-
Closing value
145,590
2,130
Changes to the fair value of assets
2025
£’000
£’000
Funded
Unfunded
Opening value
170,430
-
Interest income on
assets
8,160
-		 Year ended
31 July
2024
£’000
Funded
Unfunded
6,900
-
3,280
20
1,480
10
(420)
10
(10,910)
-
330
40
2024
£’000
£’000
Funded
Unfunded
154,330
2,200
5,510
-
7,530
100
2,430
-
(4,340)
(40)
(3,850)
(320)
10
-
161,620
1,940
2024
£’000
£’000
Funded
Unfunded
153,580
-
5,540
-

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Notes to the Financial Statements | Note 24 Pension Obligations continued

Remeasurement
gains on assets
9,082
-
Contributions by
the employer
6,410
320
Contributions by
participants
2,300
-
Net benefits paid
out
(5,680)
(320)
Closing value
190,702
-
Actual return on assets
Interest income on assets
Gain/(loss) on assets
Actual return on assets		 9,082
-
6,410
320
2,300
-
(5,680)
(320)		 6,900
5,830
2,430
(3,850)
170,430		 -
320
-
(320)
-
2024
£’000
5,540
6,900
12,440
190,702
-
2025
£’000
8,160
9,082
17,242

Reconciliation of funded status to Consolidated Statement of Financial Position

Fair value of assets
Present value of defined benefit
obligation
Funded Status
Unrecognised asset
Liability		 At 31 July 2025
At 31 July 2024
£’000
£’000
£’000
£’000
Funded
Unfunded
Funded
Unfunded
190,702
-
170,430
-
(145,590)
(2,130)
(161,620)
(1,940)
45,112
(2,130)
8,810
(1,940)
(45,112)
-
(8,810)
-
-
(2,130)
-
(1,940)

Virgin Media judgement

In June 2023, the High Court handed down a decision (Virgin Media Ltd v NTL Pension Trustees II Limited), which was subsequently upheld by the Court of Appeal in July 2024. The ruling potentially has implications for the validity of amendments made by pension schemes, including the LGPS, which were contracted-out on a salary related basis between 6 April 1997 and the abolition of contracting-out in 2016. The ruling related to the requirement on the trustees to obtain the scheme actuary’s confirmation that a scheme continued to provide a minimum level of benefits (known as a ‘reference scheme test’) following certain types of rule amendments. Without this confirmation (sometimes referred to as a section 37 confirmation, by reference to section 37 of the Pension Schemes Act 1993, which sets out that scheme rules can only be altered as prescribed in the relevant regulations), the amendment may be void and ineffective.

At time of writing the government has not yet confirmed that they have been able to locate the actuarial confirmations from the Government Actuary’s Department for all LGPS amendments between 1997 and 2016. There remains some uncertainty in this area and so, to give sponsoring employers clarity around scheme liabilities and member benefit levels, the Department for Work and Pensions announced on 05 June 2025 that legislation would be introduced to give affected pension schemes the ability to retrospectively obtain written actuarial confirmation that historic benefit changes met the necessary standards.

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Notes to the Financial Statements | Note 24 Pension Obligations continued

Given the uncertainty, no allowance for the possible impact of the ruling has been made, as it is currently unclear whether any additional liabilities might arise, and if they were to arise, how they would be reliably measured.

Valuation of the Teachers’ Pension Scheme

The latest valuation of the Teachers’ Pension Scheme took place, in line with directions issued by HM Treasury and using membership data, as at 31 March 2020. As a result of this valuation, TPS employer contributions rose by 5 percentage points to 28.68%, effective 01 April 2024, from 23.68% at the 2016 valuation.

Scheme Changes

The arrangements for a reformed Teachers’ Pension Scheme, in line with the recommendations made by Lord Hutton, in particular the introduction of a Career Average Revalued Earnings (CARE) scheme, were implemented from 1 April 2015.

In December 2018, the Court of Appeal held that transitional protection provisions contained in the reformed judicial and firefighter pension schemes, introduced as part of public service pension reforms in 2015, gave rise to direct age discrimination and were therefore unlawful. The Supreme Court, in a decision made in June 2019, have rejected the Government’s application for permission to appeal the Court of Appeal’s ruling. The Government’s remedy to address this discrimination against younger members of such pension schemes (The Mccloud remedy) came into effect for the TPS from 1 October 2023 and include provision for the cost of this remedy.

HM Treasury have been clear that the ruling has implications for the other public service schemes, including the Teachers’ Pension Scheme. These implications were reflected in the most recent scheme valuation, based on April 2020 data, and were implemented from April 2024 resulting in the increased employer contribution rate.

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Notes to the Financial Statements | Note 24 Pension Obligations continued

Universities’ Superannuation Scheme

The University participates in the Universities’ Superannuation Scheme. The Scheme is a hybrid pension scheme which provides benefits based on final pensionable salary for Final Salary members until 2016 (closed to new entrants in 2011); Career Revalued Benefits (CRB) up to an indexed salary threshold for new entrants since 2011 and for Final Salary members since 2016; and defined contribution benefits above the same salary threshold and for members wishing to make additional contributions. The assets of the scheme are held in a separate trustee-administered fund. Because of the mutual nature of the scheme, the scheme’s assets are not hypothecated to individual institutions and a scheme-wide contribution rate is set. As a result, the University is exposed to actuarial risks associated with other institutions’ employees and is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis and therefore, as required by section 28 of FRS102 “Employee benefits”, accounts for the scheme as if it were a wholly defined-contribution scheme. The amount charged to the Consolidated Statement of Comprehensive Income and Expenditure represents the contributions payable to the scheme for the year. A liability is also recorded within provisions for any contractual commitment to fund past deficits within the scheme. Movements in this provision can also give rise to charges to the Consolidated Statement of Comprehensive Income and Expenditure as shown in note 19 above.

The appointment of directors to the board of trustees is determined by the Company’s Articles of Association. Four of the directors are appointed by Universities UK; three are appointed by the University and College Union, of whom at least one must be a USS pensioner member; and a minimum of three and a maximum of five are independent directors appointed by the board.

Under the scheme trust deed and rules, the employer contribution rate is determined by the trustee, acting on actuarial advice.

The latest available complete actuarial valuation for the scheme was completed on 20 December 2023, valuing the assets and technical provisions as at 31 March 2023 (the valuation date). The 2023 valuation was the seventh valuation under the scheme-specific funding regime introduced by the Pensions Act 2004, which requires schemes to adopt a statutory funding objective, which is to have sufficient and appropriate assets to cover their technical provisions.

A deficit recovery plan was put in place as part of the 2020 valuation, which required payment of 6.2% of salaries over the period 1 April 2022 until 31 March 2024, at which point the rate would increase to 6.3%. No deficit recovery plan was required under the 2023 valuation because the scheme was in surplus on a technical provisions' basis. The institution was no longer required to make deficit recovery contributions from 1 January 2024 and accordingly released the outstanding provision to the profit and loss account.

The latest available complete actuarial valuation of the Retirement Income Builder is as at 31 March 2023 (the valuation date), which was carried out using the projected unit method.

Since the institution cannot identify its share of USS Retirement Income Builder (defined benefit) assets and liabilities, the following disclosures reflect those relevant for those assets and liabilities as a whole.

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Notes to the Financial Statements | Note 24 Pension Obligations continued

The 2023 valuation was the seventh valuation for the scheme under the scheme-specific funding regime introduced by the Pensions Act 2004, which requires schemes to have sufficient and appropriate assets to cover their technical provisions (the statutory funding objective). At the valuation date, the value of the assets of the scheme was £73.1 billion and the value of the scheme’s technical provisions was £65.7 billion indicating a surplus of £7.4 billion and a funding ratio of 111%.

The key financial assumptions used in the 2023 valuation are described below.

Price inflation - Consumer Prices 3.0% p.a. (based on a long-term average expected level of CPI, Index (CPI) broadly consistent with long-term market expectations) RPI/CPI gap 1.0% p.a. to 2030, reducing to 0.1%p.a. from 2030 Pension increases (subject to a floor Benefits with no cap: of 0%) CPI assumption plus 3bps

Benefits subject to a “soft cap” of 5% (providing inflationary increases up to 5%, and half of any excess inflation over 5% up to a maximum of 10%): CPI assumption minus 3bps Discount rate (forward rates) Fixed interest gilt yield curve plus: Pre-retirement: 2.5% p.a. Post retirement: 0.9% p.a.

The main demographic assumptions used relate to the mortality assumptions. These assumptions are based on analysis of the scheme’s experience carried out as part of the 2023 actuarial valuation. The mortality assumptions used in these figures are as follows:

Mortality base table 101% of S2PMA “light” for males and 95% of S3PFA for female Future improvements to mortality CMI 2021 with a smoothing parameter of 7.5, an initial addition of 0.4% p.a., 10% w2020 and w2021 parameters, and a longterm improvement rate of 1.8% pa for males and 1.6% pa for females

The current life expectancies on retirement at age 65 are:

Year ended Year ended
31-Jul-25 31-Jul-24
- retiring today male/(female) 23.8 (25.5) 23.7 (25.6)
- retiring in 20 years male/(female) 25.7 (27.2) 25.4 (27.2)

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Notes to the Financial Statements | Note 24 Pension Obligations continued

Creditor Balances

Cardiff Metropolitan University’s balances as at 31 July for each scheme are as follows:

TPS
CVGPF
USS		 2025
£’000
949
629
76
1,654		 2024
£’000
987
683
75
1,745

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US Federal Loans – Supplementary Schedule

25 Conversion to US GAAP format

This schedule has been compiled from the Section 3 Example Financial Statements included in the Federal Register/Vol. 84, No. 184 / Monday, September 23, 2019 / Rules and Regulations

Line Statement of Financial Position 2024-25 2023-24
£’000 £’000
1 Cash and cash equivalents 44,183 42,882
2 Accounts receivable, net 5,538 5,203
3 Other debtors and Prepaid expenses 4,404 4,440
4 Related party receivables - -
5 Contributions receivable, net - -
6 Student loans receivable, net - -
7 Investments in subsidiaries - -
8 Property, plant and equipment, net (includes Investment property & Heritage assets) 180,214 185,884
9 Lease right-of-use asset, net - -
10 Goodwill - -
Other intangible assets - -
11 Inventories 139 142
12 Total assets 234,478 238,551
13 Line of credit - short term - -
14 Line of credit - short term for CIP - -
15 Accrued expenses/Accounts payable 6,848 6,755
16 Accruals and Deferred revenue 28,185 25,830
17 Post-employment and pension liability 2,130 1,940
18 Line of credit - operating - -

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Notes to the Financial Statements | Note 25 US Federal Loans continued

19 Other liabilities - -
20 Notes payable - -
21 Lease right-of-use asset liability - -
22 Line of credit for long term purposes 16,454 18,406
23 Total liabilities 53,617 52,931
24 Net assets without donor restrictions 180,861 185,620
Net Assets with Donor Restrictions
25 Annuities - -
26 Term endowments - -
27 Life income funds - -
28 Other restricted by purpose and time - -
29 Restricted in perpetuity - -
30 Total Net Assets with Donor Restrictions - -
31 Total Net Assets 180,861 185,620
32 Total Liabilities and Net Assets 234,478 238,551
Changes in Net Assets Without Donor Restrictions
Operating Revenue and Other Additions
33 Tuition and fees, net 106,889 107,349
34 Funding body income 12,767 9,761
35 Investment return appropriated for spending 1,394 1,765
36 Other income 22,688 21,442
37 Research income 4,851 4,543
38 Total Operating Revenue and Other Additions 148,589 144,860

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Cardiff Metropolitan University

Annual Report and Financial Statements 2024-2025

Notes to the Financial Statements | Note 25 US Federal Loans continued

Operating Expenses and Other Deductions
39 Education and research expenses 139,482 137,175
40 Depreciation and Amortization 6,275 6,680
41 Interest expense 1,009 1,042
42 Auxiliary enterprises - -
43 Total Operating Expenses 146,766 144,897
44 Changes in Net Assets from Operations 1,823 (37)
Non-Operating changes
45 Investments, net of annual spending, gain/(loss) (333) -
46 Other components of net periodic pension costs (870) 370
47 Pension-related changes other than net periodic pension costs - -
48 Change in value of split-interest agreements - -
49 Other gains/(losses) (5,683) (3,001)
50 Sale of fixed assets, gains/(losses) 304 -
Taxation - -
Total Non-Operating Changes (6,582) (2,631)
51 Total Change in Net Assets (4,759) (2,668)
Change in Net Assets with Donor Restrictions
52 Contributions - -
53 Net assets released from restriction - -
54 Change in Net Assets with Donor Restrictions - -
55 Change in Net Assets without restrictions (4,759) (2,668)
56 Net Assets, Beginning of Year 185,620 188,288
57 Net Assets, End of Year 180,861 185,620

88

Cardiff Metropolitan University

Annual Report and Financial Statements 2024-2025

Notes to the Financial Statements | Note 25 US Federal Loans continued

Note for Line 9 - Lease right-of-use assets 2024-25 2023-24
A Lease right-of-use assets - pre-implementation - -
B Lease right-of-use assets - post-implementation - -
Total - -
Note for Line 21 - Lease right-of-use asset liability
A Lease right-of-use asset liability - pre-implementation - -
B Lease right-of-use asset liability - post-implementation - -
Total - -
Note for Line 8 - Net Property, Plant and Equipment
A Pre-implementation Property, Plant and Equipment 179,610 174,170
B Post-implementation Property, Plant and Equipment purchased with debt - -
FH LH L&B - -
LH improvements - -
Equipment - -
Investment property - -
Heritage assets - -
C Const'n in P'gress (4,562) -
D Post-implementation Property, Plant and Equipment - no debt (4,562) -
Total 170,486 174,170

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Cardiff Metropolitan University

Annual Report and Financial Statements 2024-2025

Notes to the Financial Statements | Note 25 US Federal Loans continued

Note for Line 14,20 and 22 - Long-term debt for long term purposes

A Pre-implementation Long-term Debt 16,454 18,406
B Allowable Post-Implementation Long-term Debt:
FH LH L&B - -
LH improvements - -
Equipment - -
Investment property - -
Heritage assets - -
C Construction in progress - debt - -
D Long-term debt not for the purchase of Property, Plant and Equipment or liability greater - -
than assets value
Total 16,454 18,406
A This is the ending balance on the last financial statement submission prior to the implementation of the
regulations - Less in repayments
B This is the lessor of actual outstanding debt or each asset value or the value of the asset
C All debt associated with Construction in progress up to the asset value for construction in process is
included
D Long-term debt not for the purchase of Property, Plant and Equipment

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Cardiff Metropolitan University

Annual Report and Financial Statements 2024-2025

Notes to the Financial Statements | Note 25 US Federal Loans continued

Supplementary schedule - Sterling £ ‘000

2024-25 2023-24

This schedule has been compiled from the Section 2 Example Financial Statements included in the Federal Register/Vol. 84, No. 184 / Monday, September 23, 2019 / Rules and Regulations

Lines Expendable Net Assets
24 Net assets without donor restrictions 180,861 185,620
30 Net assets with donor restrictions 0 0
4 Secured and Unsecured related party receivable 0 0
4 Unsecured related party receivable 0 0
8 Property, plant and equipment, net (includes Construction in 180,214 185,884
progress)
FS Note line 8A Property, plant and equipment - pre-implementation 179,610 174,170
FS Note line 8B Property, plant and equipment - post-implementation with 0 0
outstanding debt for original purchase
FS Note line 8D Property, plant and equipment - post-implementation without (4,562) 0
outstanding debt for original purchase
FS Note line 8C Construction in progress (4,562) 0
9 Lease right-of-use asset, net 0 0
Excluded Line 9 Note Leases Lease right-of-use asset pre-implementation 0 0
M9 Note Leases Lease right-of-use asset post-implementation 0 0
10 Intangible assets 0 0
10 Intangible assets 0 0
17 Post-employment and pension liabilities 2,130 1,940
14,20,22 Long-term debt - for long term purposes 16,454 18,406
M14,20,22, Note Debt A Long-term debt - for long term purposes pre-implementation 16,454 18,406

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Cardiff Metropolitan University

Annual Report and Financial Statements 2024-2025

Notes to the Financial Statements | Note 25 US Federal Loans continued

M14,20,22, Note Debt B Long-term debt - for long term purposes post-implementation 0 0
M14,20,22, Note Debt C Line of Credit for Construction in process 0 0
21 Lease right-of-use asset liability 0 0
Excluded Line 21 Note Pre-implementation right-of-use leases 0 0
Leases
Line 21 Note Leases Post-implementation right-of-use leases 0 0
25 Annuities with donor restrictions 0 0
26 Term endowments with donor restrictions 0 0
27 Life income funds with donor restrictions 0 0
29 Net assets with donor restrictions: restricted in perpetuity 0 0
Total Expenses and Losses
43 Total expenses without donor restrictions - taken directly from 146,766 144,897
Statement of Activities
(35),45,46,47,48,49 Non-Operating and Net Investment (loss) 5,492 866
(35),45 Net investment losses (1,061) (1,765)
47 Pension-related changes other than net periodic costs 0 0
Modified Net Assets 2024-25 2023-24
24 Net assets without donor restrictions 180,861 185,620
30 Net assets with donor restrictions 0 0
10 Intangible assets 0 0
4 Secured and Unsecured related party receivable 0 0
4 Unsecured related party receivable 0 0
Modified Assets
12 Total Assets 234,478 238,551
Excluded Line 9 Note Leases Lease right-of-use asset pre-implementation 0 0

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Cardiff Metropolitan University

Annual Report and Financial Statements 2024-2025

Notes to the Financial Statements | Note 25 US Federal Loans continued

Excluded Line 21 Note Pre-implementation right-of-use leases 0 0
Leases
10 Intangible assets 0 0
4 Secured and Unsecured related party receivable 0 0
4 Unsecured related party receivable 0 0
Net Income Ratio
55 Change in Net Assets Without Donor Restrictions (4,759) (2,668)
38, (35), 50 Total Revenue and Gains 147,499 143,095

93