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← University Of Edinburgh

2025-07-31-accounts

Annual Report and Accounts \ for the Year to 31 July 2025 www.ed.ac.uk 1 et

1 Annual Report and Accounts 2024/25

Our vision and purpose

Our graduates, and the knowledge we discover with our partners, make the world a better place.

As a world-leading research-intensive university, we are here to address tomorrow’s greatest challenges. Between now and 2030, we will do that with a values-led approach to teaching, research and innovation, and through the strength of our relationships, both locally and globally.

Table of contents

Overview

Strategy and value model

Operational review

Financial review

Governance

Audit

Financial statements

2 Annual Report and Accounts 2024/25

Overview Strategy & value model Operational review

Financial review

Financial statements

Governance

Headlines of 2025

University world league table rankings 1st The University of Edinburgh was again ranked first in the world, scoring 100 out of 100 ws for its contribution to United Nations Sustainable Development Goal 9, "Industry, Innovation and Infrastructure".

7th

The University was recognised for its leadership on environmental and social impact placing 7th in the world for Sustainability.

Student numbers including Online Distance Learning

2025: 49,640 QO7~0,0.0,0,0 Student numbers increase in the year was 0.3% overall . There IKARIA was little variance to prior year at UG, PGT and PGR levels. However, there was an increase in non-EU overseas students across domiciles that more than offset reductions in Scotland, rest of UK and EU students.

2024: 49,485. 2023: 49,740

Total income

2025: £1,477m

Total income increased by £43m . Tuition fees contributed the largest rise, growing £29m in the year. Other income and research income also grew while investment income has reduced.

2024: £1,434m. 2023: £1,385m

Earnings Before Interest, Taxation, Depreciation & Amortisation (EBITDA)[1] Capital expenditure

2025: £96m

2025: £207m

EBITDA achieved in the year was 6.5% of income, below budget set for the year. The financial review provides further commentary on income and expenditure in the year and resulting surplus and EBITDA.

Capital expenditure (including spend on intangibles) exceeded £200m , increasing by £21m in the year. Spend on land and buildings of £149m accounts for 72% of total spend with fixtures, fittings and equipment spend being £57m in the year.

2024: £84m. 2023: £148m

2024: £186m. 2023: £165m

1 In calculating EBITDA, adjustments are made for interest costs, capital grants and non-cash items such as depreciation and pension provision movements. A reconciliation of operating surplus to EBITDA is provided in the financial review on page 37.

1 Annual Report and Accounts 2024/25

Overview Strategy & value model Operational review Financial review Governance Financial statements

Senior Lay Member of Court’s foreword

Janet Legrand OBE KC (Hon) Senior Lay Member of Court

Amid a year of mounting pressures and great shifts across society, geopolitics and higher education, the University of Edinburgh has taken action with purpose and resolve.

As a member of the University Court, I am part of the governing body that provides strategic guidance and constructive challenge to the institution. We are acutely aware of the financial challenges being faced at Edinburgh, as with others across the sector. And we are clear-sighted about our commitment to steering the institution through these troubling times, ensuring it remains well-positioned to achieve its mission for many years to come.

The financial sustainability of the University is fundamental to our ability to continue delivering trailblazing research that improves people’s lives, and to creating graduates who will have a hugely important impact on our world.

To secure the University’s long-term future, carefully planned actions such as the introduction of a voluntary severance scheme and the temporary pause of selected capital projects, are essential. At the same time, it is crucial that we continue to invest in innovation to ensure we are able to meet our ambitions for the future.

The conclusion of the Data-Driven Innovation (DDI) initiative – a £661 million investment and innovation programme – marks a significant milestone. The opening of the Edinburgh Futures Institute and the Usher Institute at Edinburgh’s BioQuarter reflects the University’s commitment to fostering interdisciplinary collaboration and addressing global challenges through research and partnership.

This year also saw the launch of the Learning and Teaching Strategy 2030, centred on three core themes: developing a future-ready curriculum, engaging and empowering learners, and supporting inspiring teaching. This strategy underpins our vision

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that every learner will leave the University equipped to make a positive difference in the world.

care-experienced and estranged students, and the Access to Creative Education in Scotland programme.

Our commitment to our local community is equally important. The University reaffirmed this by signing the Edinburgh and South East Scotland City Region Community Wealth Building Pledge, demonstrating our dedication to inclusive prosperity through the growth and development of local businesses and community-based organisations.

Accessibility remains central to our mission. We continue to make strong progress in widening participation, meeting the Commission for Widening Access target that 10 per cent of our intake comes from the 20 per cent most deprived areas in Scotland.

“It is crucial that we continue to invest in innovation to ensure we are able to meet our ambitions for the future.

Globally, our focus on sustainability remains unwavering. The publication of the new Responsible Investment Policy Statement builds on the progress made since 2016 and introduces new priorities – including social investment and decarbonisation – shaped through extensive University-wide consultation.

As we look ahead, the University’s values-led approach with our commitment to excellence, integrity and respect, anchors us as we work to ensure this historic institution is fit for the coming 500 years of change, opportunity and challenge.

Every graduation is a moment of pride, and we are particularly pleased to celebrate the achievements of students supported through initiatives such as assistance for

2 Annual Report and Accounts 2024/25

Strategy & value model Operational review

Financial review

Governance Financial statements

Overview

Principal’s welcome

Professor Sir Peter Mathieson

Principal and Vice-Chancellor

This year’s Annual Report and Accounts reflect a period in which the University continued to deliver impactful teaching and research against a backdrop of financial challenges in the higher education sector.

We have taken a number of actions to ensure the financial sustainability of the institution and continue to implement longer-term changes to improve our ways of working and reduce costs.

Despite these difficult circumstances, we still have much to be proud of in this financial year, including world-leading research and ambitious partnerships.

This year, we profile the impact of our research in areas as diverse as artificial intelligence (AI), Alzheimer’s and dementia, sustainability and the social history of Scotland. Often these themes intertwine, showing the power of collaboration in addressing tomorrow’s greatest challenges today.

It was announced in June that the University will be the home of the UK’s next national supercomputer, with the UK Government contributing up to £750 million of funding, placing Edinburgh at the heart of computing research and innovation on a worldleading scale for scientists across the whole of the United Kingdom.

of the University’s historic links to slavery and racism. It was a landmark moment demonstrating our willingness and determination to learn from our past and present to shape our future. The review will inform ongoing dialogue and galvanise sustained, meaningful change, driven by the Race Review Response Group.

We had an inspiring new cohort of on-campus and online students joining the Mastercard Foundation Scholars Program this year, fostering the next generation of Africa’s climate leaders by opening opportunities to advanced sustainability studies.

The Education Beyond Borders programme has enabled refugees from countries such as Syria, Sudan and Afghanistan to further their studies in the UK. Our relationship with Taras Shevchenko National University of Kyiv (KNU) in Ukraine also continues with the donation of around 215 computers and other IT equipment for a new computer centre, replacing a facility destroyed in a missile strike in 2022.

“The University will be the home of the UK’s next national supercomputer... placing Edinburgh at the heart of computing research and innovation on a world-leading scale.

Reviewing all this important work, it is clear that the University has once again had an immense, positive impact on a global scale. Looking to the future, our distinctive international approach and continuous drive for transformation will serve us well as we navigate the next financial year.

The University was once again ranked first in the world for ‘Industry, Innovation and Infrastructure’ by The Times Higher Education Impact Rankings 2025. We are proud to run a number of sector-leading initiatives through our commercialisation service, Edinburgh Innovations, which enables collaboration between research and industry. This includes the launch of the Innovation Career Pathway – a new route to career development for academics wishing to focus on commercialisation and engagement with industry.

Our Race Review was also published in 2025, an academically-led examination

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3 Annual Report and Accounts 2024/25

Strategy & value model Operational review

Financial review

Financial statements

Overview

Governance

Our approach to reporting

In the production of the 2024/25 Annual Report and Accounts, the University has once again used Integrated Reporting as a reporting framework, bringing together the diverse but interconnected strands of reporting to demonstrate how we create value for our stakeholders.

By following this framework, we report a broader and more meaningful explanation of our performance, offering transparency on our use of, and dependence on, different resources. It also helps us to make better short and long-term decisions on how we create value now and in the future.

Our value model highlights our access to multiple resources, the value we create from these and the resulting positive impact on the University, its stakeholders, our environment and wider society.

The University of Edinburgh’s Strategy 2030 sets out our vision to make the world a better place. The value model in this year’s Annual Report and Accounts reflects the strategic performance framework of Strategy 2030.

The value of the University is influenced by these different types of resource:

Each resource creating value that is underpinned by:

The University’s reputation is embedded in all value created by the University.

In our future reporting, we will continue to advance the principles of integrated thinking and reporting as developed by the International Integrated Reporting Council (IIRC).

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Strategy & value model Operational review

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Overview

Governance

Material issues

In assessing what should be included in our integrated report, we applied the principle of materiality.

Material issues have been identified as those that:

Insight into how the material issues identified are managed and how they impact the University are signposted here.

The student experience

The University remains committed to improving student satisfaction as measured through the National Student Survey (NSS) as well as how we score in the Postgraduate Taught Experience (PTES) and Postgraduate Research Experience (PRES) surveys.

Our most recent rating in the NSS of 74.3 per cent (2023/24: 70.4 per cent) is an encouraging improvement, as are improvements in the latest PTES and PRES. While pleased to see annual improvements, we recognise that compared to our peers we still have more to do.

It is understood that survey ratings below the levels we strive for have the potential to damage our reputation, affect future student recruitment and retention and therefore potentially impact unfavourably on the University’s financial health. This is particularly the case at this time when, along with the wider sector, we have challenges in attracting new international students.

Student experience is prioritised in line with objectives set out in our Strategy 2030.

This is covered in the Strategic Plan performance framework on page 10, Understanding our Risks on page 15 and from page 30 of the Operational Review.

Financial and economic environment

The University closely monitors the changing macroeconomic environment and any challenges it presents. This includes inflation, which increased in the last year adding to pressures on the University cost base.

Interest rates have fallen over the same period, with this resulting in reduced investment income on our treasury funds. Future interest rates are uncertain but the direction is expected to be downwards, with an impact on the income the University generates.

Changes to UK National Insurance effective from April 2025 had a financial impact and resulted in a significant increase in our annual staff costs.

We carefully monitor the financial sustainability of the University through scenario modelling for University Court, taking account of macroeconomic and other known impacts.

This is covered in Understanding our Risks from page 13 and in the Financial Review from page 36.

Political and geopolitical uncertainty

As 2025 nears an end, there remains uncertainty around UK Government direction and policy on matters such as immigration and higher education. More clarity is needed on recent announcements on annual uplifts to tuition fees and a proposed levy on overseas fee income, with uncertainty about what both mean for Scottish Universities.

Recent UK Government budget announcements in November 2025 will lead to an increase in costs from April 2029. The anticipated increase is an outcome of National Insurance costs rising as a result of changes to the relief provided from salary sacrifice arrangements the University has in place.

Additionally, geopolitical tensions remain from the wars in Ukraine and the Middle East along with uncertainty from decisions and direction that the US Government takes. With approximately half of our student population from overseas markets, unfavourable geopolitical developments has the potential to impact negatively on our teaching income. Our cost base is also exposed to decisions and tensions across the globe.

This is covered in Understanding our Risks from page 13 of this document.

5 Annual Report and Accounts 2024/25

Strategy & value model Operational review

Financial review

Financial statements

Overview

Governance

Material issues (continued)

Climate change

The University has committed to become net zero carbon by 2040 and a strengthened approach to achieving this was approved by University Court in April 2025. Hitting this ambitious target is not without challenges that the University must overcome to meet evergrowing stakeholder expectations.

Current challenges include the size and age of the University estate, and energyintensive activity such as research and supercomputing where the University plays a world-leading role.

The financial cost of overcoming technical challenges and achieving net zero carbon is significant but the University remains fully committed to tackling the climate crisis.

This is covered in Understanding our Risks on page 16 and in the Operational Review from page 31.

Staff experience and industrial action

Our all-staff engagement survey ran in February 2025 with an improved score of 62 per cent, compared to 59 per cent when last run in 2023. This followed improvements in staff experience in the last couple of years, resulting from positive impacts of grade scale changes in 2024 and policy developments.

Staff costs are the University’s greatest single cost and initiatives to improve our financial sustainability through management of our cost base has resulted in industrial action impacting the University. Additionally, there have also been ballots for national action on pay.

There remains a need to closely monitor developments for potential impact on staff happiness and financial cost to the University.

This is covered in Understanding our Risks on page 15 and Financial Review from page 36.

Digital security

The University is exposed to significant cyber threats, presenting a risk to our data, how we operate and perform our core activities. These threats have potentially significant financial consequences for us and therefore mitigation will remain a key area of focus for the foreseeable future.

A continuing programme of capital investment in core IT infrastructure reduces our IT infrastructure risk in this area.

This is covered in Understanding our Risks on page 17.

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6 Annual Report and Accounts 2024/25

Strategy & value model

Operational review

Financial review

Financial statements

Overview

Governance

Strategy and value model

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7 Annual Report and Accounts 2024/25
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Overview Strategy & value model Operational review

Financial review

Financial statements

Governance

Our strategy

Strategy 2030 is led by a distinctive set of guiding principles and goals, and our focus is on making the greatest impact in whatever we do.

Our strong vision and values, coupled with our four key focus areas (People, Research, Teaching and Learning, and Social and Civic Responsibility), help us in our mission to deliver excellence to 2030 and beyond.

More information: Strategy 2030

To assess how well we are performing, our Strategic Performance Framework (SPF) sets out how we will achieve our goals over the period of the Strategy. Our SPF takes into account internal and external factors which influence or affect our work.

Aligned to our four focus areas is our commitment to the United Nations Sustainable Development Goals (SDGs). Strategy 2030 recognises that the University has the opportunity to contribute to the SDGs in different ways across our communities and across our different locations.

More information: Sustainability

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8 Annual Report and Accounts 2024/25

Overview Strategy & value model Operational review

Financial review

Financial statements

Governance

Our strategy (continued)

Performance framework

In Strategy 2030, we highlight that our vision to continue delivering excellence to 2030 and beyond is rooted in our values, with a focus on our four key areas. We have structured our key performance indicators (KPIs) around these four key areas (People, Research, Teaching and Learning and Social and Civic Responsibility) to reflect the University’s ambitions outlined in Strategy 2030 and to demonstrate how well we are performing against them.

The information below shows our performance in each of these focus areas. Unless indicated otherwise, data shown reflects 2024/25 performance.

Strategy 2030 focus area: People

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Our students,
staff, alumni 1. Widening 2. International 3. Staff equality,
participation: student diversity: diversity and
and friends are
inclusion: Gender,
our lifeblood. Number (and Ratio of largest ethnicity and
proportion) of international
disability pay gaps
undergraduate market to 5th (reported biennially)
entrants from an and 10th largest
SIMD20 (Scottish Index of Multiple overseas markets Average gender pay gap: 13.9%
Deprivation - most 2022/23: 15.3%
deprived 20%) area Ratio Average
to 5th: 23:1 ethnicity pay gap: 13.2%
2023/24: 25:1
2022/23: 10.3%
261
Ratio Average
11.3% to 10th: 42:1 disability pay gap: 5.2%
2023/24: 241 (10.7%) 2023/24: 38:1 2022/23: 8.1%
5. Staff satisfaction: Staff engagement:
58%
2024/25 staff survey 2022/23: 54%
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In development: 4. Efficient systems and user-friendly processes[1]

Strategy 2030 focus area: Research

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Our ethos of
6. Research quality/ 7. Research activity:
working without
competitiveness: REF Total research income
boundaries
performance, supported by a
will deliver a
between-REFs proxy including
step change in share of UKRI income (2023/24 data)
innovation and £375m
research. 5.64%
2022/23: 5.57% 2023/24: £365m
8. Research 9. Innovation & collaboration:
activity with Research and entrepreneurship
industry: Total £112.5m related City Region Deal TRADE targets
value of industrial Research Entrepreneurship
income: companies: 89
and translational Interactions: 114
research awards £187.3m 2023/24:
Entrepreneurship
companies: 108
2023/24: £150.8m 2023/24: £158.1m Interactions: 135
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1 The key performance indicator for efficient systems identifies eight processes which have been assessed to determine their current maturity levels.

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Our strategy (continued)

Strategy 2030 focus area: Teaching and Learning

Our teaching 11. Talent – 12. Student 13. Graduate will match the data skills: experience: outcomes: excellence of our research. People gaining Student satisfaction Graduates entering qualifications as reported in the graduate level We will improve and sustain via certified data NSS and other employment or student skills courses and national student further study satisfaction and MOOCs surveys NSS 2025 position: 65.2% wellbeing. (NSS2024: 60.6%) PTES PRES 83.1% 82.5% 87.4% PRES collected (2022/23 39,910 every second year graduating cohort ) 2023/24: PTES 79.1% 2023/24: 100,092 2022/23: PRES 77.2% 2021/22: 85.5%

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10. Curriculum transformation: we are refocusing our curriculum transformation efforts on a smaller scale to support our financial sustainability activities.

Strategy 2030 focus area: Social and Civic responsibility

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Our vision is
to make the 14. Social impact: Community 15. Innovation: Number of
world a better Grants awarded start-up companies
place, so we
will ensure that
17 micro
our actions grants awarded 60
and activities £8,244 55 student start-ups
deliver positive 18 community 5 staff start-ups
grants awarded
change locally, £82,567
regionally and
globally.
2023/24: 122:
116 student start-ups
6 staff start-ups
2023/24: £100,673 total grants
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16. Net zero: Absolute (and relative to £m turnover) carbon emissions (tCO2)

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Absolute carbon 81,723 Relative carbon 55.2

emissions (CO2): tCO2 emissions: tCO2/£m 2023/24: 78,720 tCO2 2023/24: 54.9 tCO2/£m

10 Annual Report and Accounts 2024/25

Overview Strategy & value model Operational review Ld

Financial review

Financial statements

Governance

Our value model

The University is committed to integrated thinking and has adopted the principles of Integrated Reporting within this annual report.

Our approach

Our Value Creation Model is a fundamental part of our annual report. The model shows how we use and influence resources to create and sustain value for our many stakeholders.

The case studies throughout this annual report demonstrate how we maximise the potential of our resources to create value for our stakeholders. Our model has at its centre the overall strategic objectives of the University with research-led teaching and learning flowing through all of the outputs.

We are continuing to explore how our model can align and report on the United Nations’ Sustainable Development Goals.

How we create value

We deliver impact for society. As a truly global university, rooted in Scotland’s capital city, we make a significant, sustainable and socially responsible contribution to the world. Our mission to discover, develop and share knowledge is at the heart of everything we do.

We teach students from across the world. We equip our students with the knowledge, skills and experience to become successful graduates who contribute to society.

The research we conduct is of the highest standard across a broad spectrum of disciplines. This brings together world-class researchers who provide world-leading outputs and insight.

We seek to convert our research findings and knowledge capital into successful commercial activities to create wealth and improve society.

The University of Edinburgh – Delivering Impact for Society

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REPUTATION
WE DRAW FROM WE IMPACT
PEOPLE
Students, Staff, PEOPLE Students at the Centre,
Alumni, Friends
Distinguished Alumni
KNOWLEDGE
KNOWLEDGE
Expertise, Intellect,
Innovation in Teaching,
Insight, Intelligence,
City Region Deal
Information “O
NETWORKS NETWORKS
AND RELATIONSHIPS AND RELATIONSHIPS
Society, Business, Transformative
Industry, Local, Global Scholarships
NATURAL RESOURCES
YS
Our City Edinburgh, NATURAL RESOURCES
Sustainability, Solving Global Challenges,
Stewardship, Investing Responsibly
Responsible Investment
FINANCE PHYSICAL ESTATE VIRTUAL INFRASTRUCTURE
Tuition Fees, Funding, Buildings, Purpose built research facilities, IT infrastructure and networks,
Research Grants, Donations Modern teaching campuses IT software and equipment, Datasets
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11 Annual Report and Accounts 2024/25

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Our value model (continued)

The value created

The memorable moments highlighted throughout this integrated Annual Report demonstrate real examples of how we continue to create value and contribute to the global Sustainable Development Goals from our resources, having a positive impact on society. In our operational review, we have directly aligned these stories with the relevant Sustainable Development Goals to illustrate how we support these important benchmarks.

We have also illustrated how our approach to understanding our risks supports these goals.

Protecting our planet

Art show sparks cultural climate conversations

An exhibition of historic and contemporary artworks sparked conversation about environment, ecology and the entangled relationship between economic and colonial legacies and the climate crisis.

Supporting our community Arcadia celebrates 10 years caring for families

Arcadia Nursery at King’s Buildings celebrated its 10th anniversary with a fun-filled day for children and families in August 2024.

Research

Live brain cell test reveals protein link to Alzheimer’s

Scientists using living human brain tissue have shown for the first time how a toxic form of a protein linked to Alzheimer’s can stick to and damage the connections between brain cells.

People Students ace the arts

Access to Creative Education in Scotland (ACES) supports eligible S4 to S6 students in local state secondary schools, who are considering studying art, design or architecture.

Revolutionary partnership

Education Beyond Borders

In September 2024, the University welcomed the first cohort of students through its new Education Beyond Borders (EBB) postgraduate scholarship programme for refugees and displaced people.

Learning and teaching The University of Edinburgh Learning and Teaching Strategy 2030

Showcased for the first time at the Learning and Teaching Conference in June 2025, the strategy focuses on three central themes; developing a future-ready curriculum; engaging and empowering learners; and supporting inspiring teaching.

Our Strategy and Value Creation Model is assured by effective governance Read more: Financial Review, page 35 Corporate Governance Statement, page 42 Independent Auditors’ report to Court, page 51

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Understanding our risks

“Controlled risk-taking enables the University to take advantage of opportunities in the pursuit of research, education, knowledge exchange and innovation.

Risk is the effect of uncertainty on objectives and, when crystallised, can take the form of adverse consequences or unexpected opportunities.

Research-intensive universities have long been acknowledged as experimental by nature and a dynamic enterprise like the University of Edinburgh must take proportionate risks in pursuit of its evolving objectives.

We have a mature approach to risk management, articulating our objectives and what might prevent or promote their achievement, which we consider together with possible unintended consequences in our planning and decision-making. This approach increases the probability of successful outcomes, while protecting the values, reputation and sustainability of the University.

Risk management

The University aims to minimise its exposure to reputational, compliance and financial risk, while recognising that controlled risk-taking enables the University to take advantage of opportunities in the pursuit of research, education, knowledge exchange and innovation. This dynamic is detailed in our Risk Appetite Statement.

More information: Risk Management Policy and Risk Appetite Statement

“This approach increases the probability of successful outcomes while protecting the values, reputation and sustainability of the University.

Process

The University operates a process for the identification, evaluation and management of risks at the Local (School and Departmental), Operational (College, Professional Services Group, and Major Programme) and Strategic (University) levels. These strategic risks are selected based on several considerations including their relationship to our strategic objectives and the United Nations Sustainable Development Goals, rating of likelihood and impact, their proximity to our stated appetite and the extent to which they may be representative of similar risks across the University.

Strategic risks are recorded in the University Risk Register, where they are monitored and reviewed by the Risk Management Committee (RMC) throughout the year. The RMC tracks the implementation of risk management strategies, informs the University Executive and reports the Committee's findings to the University Court's Audit and Risk Committee and, through it, the governing body, the University Court, itself.

External benchmarking and horizon scanning help us consider emerging risks from across higher education, the wider public sector, and globally.

Internal Audit supports this process and undertakes reviews of key risk areas and the risk management process according to a rolling audit plan.

More information: Audit and Risk Committee

Our Risks

The higher education sector in the UK is facing well-documented risks – even more pronounced now than in the last

few years with a challenging existing funding environment, exacerbated by falling international postgraduate student demand to study in the UK. In turn, this introduces risk to our capacity to invest in capital and other substantial programmes aligned to the University’s mission and intended to support long-term financial sustainability. Our sector, like others, remains a target for international and domestic cyber-crime, something which has to be addressed in the context of our strategic imperative to remain globally networked with key partners and influential on the academic world stage. Our international profile – encompassing education, research, innovation and the pursuit of our social and civic commitments – is at the core of our mission and geopolitical changes introduce volatility to this.

Student experience, including capacity to provide wellbeing support, continues to be a key thematic discussion for the sector. The University of Edinburgh, like its peers, wrestles with these risks among many. It has been gratifying in 2024/25 to see improvements in a number of student survey results, particularly in those areas where we have focused specific efforts. We remain, however, less well placed than many peers and this remains a key priority.

We have made many improvements in staff experience in the last couple of years, including pay and policy developments. Given our initiatives to improve our financial sustainability, however, we have seen industrial action return locally, and recent ballots for action nationally over pay have also complicated the position. Universitywide grade scale changes continue to have a positive impact on aspects of our People risks.

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Understanding our risks (continued)

Our digital infrastructure replacement project made major advances in the stability and reliability of our IT systems, lowering risks to our digital estate.

Energy prices and material costs remain high, and the cost of maintaining and developing our large and historic estate place stress on our financial sustainability, which we are addressing through better utilisation and some rationalisation of our assets. The projects in buildings affected by Reinforced Autoclaved Aerated Concrete (RAAC) – something many organisations have yet to grapple with - are now substantially complete.

Looking ahead

The University is presently facing significant financial pressures, including challenges in attracting new international students in an increasingly competitive global market, rising staff and utility costs, the effects of inflation and supply chain disruptions. Additionally, the persistent underfunding of Scottish-domiciled and other UK students, and challenges to the funding model for much of our excellent research, exacerbates these issues. As the growth in our expenditure continues to outpace growth in our income, we are implementing a programme of change to adapt our operating model and ensure long-term financial sustainability. It is gratifying that UK and Scottish Governments are acknowledging these challenges now more than has been evident in recent years and we intend to ensure that the voice of research-intensive, globally competitive institutions is heard as we move into an

undoubtedly challenging period ahead.

Polarisation of debate on wider social issues continues as an emerging risk, albeit one we believe we are managing effectively as we remain committed to upholding academic freedom and freedom of expression, including the right to engage in lawful protest.

We express this commitment by facilitating an environment where students and staff can discuss and debate challenging topics free from intimidation and undue disruption, challenging as that effort can sometimes be. 2024/25 brought challenges in the form of disrupted graduation ceremonies and other protest and 2025/26 has begun in similar vein, with protest activity related to the conflict in Gaza particularly prominent.

The coming year will see continued focus on maintaining our enviable reputation as a premier world research university as we seek to better define and manage risks to research funding and industrial and international partnerships. We will pursue opportunities in established and emerging fields and through new collaborations, including those which are enshrined in our Regional Innovation Action Plan, developed in conjunction with Scottish Enterprise, City of Edinburgh Council and Innovate UK.

There is no doubt that the higher education landscape faces many risks, but there are also enormous opportunities. We were delighted to be chosen in June 2025 as part of the UK Government’s Spending Review, as the host of a new national Supercomputer.

The significant investment represents a huge endorsement of the University and its future as a world-leader in supercomputing and AI, recognising the strength and value of our expertise. The new supercomputer will give UK scientists access to compute power on a world-leading scale, which, in turn, will increase the impact of their research on the world.

Strategic change programmes are critical to our capacity to remain the strong and influential university we have been for the last four centuries. 2025/26 is an important year for us to prosecute our priority projects and we are planning and resourcing this work carefully and with resolve.

We are acutely aware of the challenge posed to an institution with significant education, research, social and civic ambition in a constrained financial environment: we recently approved our Regenerative Sustainability Strategy, which will demand capital and revenue capacity. We are operating in a geopolitical environment characterised by instability and fluidity: a multipolar world with rising nationalism and authoritarianism which influences our global position. There will be risks currently unknown to us and we will work to identify and address these decisively. In monitoring our overall risk environment, we will work hard to ensure that in addressing our financial sustainability challenge, we do not unduly increase other risks we face. Our intent to secure our financial sustainability is more important than it has ever been in order than we can survive – and thrive – into the future.

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Understanding our risks (continued)

Strategy 2030 focus areas and core functions:

Teaching and Learning

Risk description: Student experience Failure to improve student experience.

Risk management: We recognise the significant improvements required in our student satisfaction evidenced by national survey resuIts, which have the potential to damage our reputation, affect student recruitment and retention and ultimately challenge the University's financial health.

Accordingly, we are prioritising student experience in line with the objectives of Strategy 2030 with our targeted strategic programmes and underpinning improvement work.

Our Student Support Model is now in place and is being overseen and monitored via the Student Lifecycle Management Group (SLMG) and Colleges/Schools from September 2024.

We have continued implementation of Assessment and Feedback Principles

and Priorities set in academic year 2022/23. The criticality of their implementation is highlighted in the recently approved Learning and Teaching Strategy, owned by Senate Education Committee. Its initial focus has been to monitor assessment and feedback turnaround times and the provision of assessment rubrics. Our revised Assessment and Feedback Strategy Group, reporting to Senate Education Committee, now oversees and supports the implementation of the wider Assessment and Feedback Principles and Priorities.

In-year monitoring of progress continues via School Annual Quality Reports and Internal Periodic Reviews.

This improvement work is essential in meeting requirements set by the

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Supports Strategic KPI 12: Student experience

Quality Assurance Agency as part of our Quality Enhancement and Standards Review (QESR) action plan responding to concerns in this area of student experience.

We are committed to improving student satisfaction as measured through the National Student, Postgraduate Taught Experience and Postgraduate Research Experience Surveys). We will also monitor the success of our work, initially through student feedback via focus groups and internal surveys and against our key performance indicators. While actions underway have promise, we recognise that positive impacts may take time to embed across our whole community.

People

Risk description: People

People risk linked to failing to achieve strategic commitment to be an employer of choices.

Our biennial all-staff engagement survey ran in February 2025 and the overall engagement score increased from 59 per cent to 62 per cent Our response to survey feedback focuses on implementing change effectively, including consultation with staff and partnership working with our nominated trade unions.

Risk management: Sectoral,

international and local issues have changed the focus of this risk. Already low staff turnover rates have fallen further except where we have taken specific actions to reduce headcount, such as by voluntary severance.

We remain an attractive destination for high-quality staff, which was reinforced by an Internal Audit review.

We are committed to creating an environment in which everyone feels safe to participate fully in the life of the University, as demonstrated through our work on Equality, Diversity and Inclusion, and on Academic Freedom.

More important is retention and motivation of key staff as we work through what is a challenging time for everyone.

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Supports Strategic KPI 5: Staff satisfaction

Benefits and remuneration enhancements in 2024 continue to have a positive impact, with 90 per cent of staff receiving a salary increment at the start of the new financial year. Equalising annual leave for all grades, reducing staff pension contributions, and ongoing improvements to employment policies, have reinforced our position as a leading employer.

We recognise that much remains to do and staff motivation, morale and wellbeing remain at the heart of all discussions about the achievement of our strategic goals.

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Understanding our risks (continued)

Strategy 2030 focus areas and core functions:

Social and Civic Responsibility

Risk description: Social responsibility and sustainability Failure to meet climate change objectives by 2040.

Risk management: A strengthened approach to achieving net zero by 2040, with appropriate 5-year carbon budgets covering all three scopes was approved by University Court in April 2025. We remain committed to achieving our 2040 goal and our focus is now on meeting our 2030 and 2035 interim targets.

  1. Estate-related revenue and capital requirements, local grid upgrade timescales, and a large and complex estate.

To address these risks, we:

On those goals, we are currently offtrack having for example used 64 per cent of our scope one and two carbon budget from 2018/19 to 2023/24, with only 36 per cent left until 2030/31.

Our emissions consist of three material categories: the things we buy; our travel; and our estate. Our challenges include:

  1. A long-term trend of growth on supply chain spend.

  2. An increasing post-Covid-19 rebound in international aviation, alongside the increasing importance in international student income (with associated emissions increases).

  3. have achieved a significant reduction in domestic flights via the sustainable travel policy but

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Supports Strategic KPI 16: Net Zero

with limited sustained impact on international travel. We are currently exploring further levers to build on the sustainable travel policy to avoid a postCovid-19 international aviation rebound via a sub-committee of the Travel Oversight Group.

Despite technical and financial challenges, we are making progress but need a step change if we are to achieve our 2030 and 2035 interim targets.

Research

Risk description: Quality and competitiveness of research Exposes the University to potential loss of research excellence standing, adversely impacting reputation and income.

affecting the National Institutes of Health, in particular, had repercussions for our own researchers and critical research programmes.

Risk management: International

engagement is crucial to the success and impact of our research. However, the changing geopolitical climate also brings challenges we must respond to in order to ensure our research continues work across borders.

Colleagues within Edinburgh Research Office and Edinburgh Global are implementing recommendations from the Trusted Research Evaluation Framework via a two-year action plan, overseen by the Dean of Research for the College of Science & Engineering.

Our international funding portfolio naturally exposes us to decisions taken by overseas governments. In 2024/25, decisions taken in the US,

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Supports Strategic KPI 7: Research activity 8: Research activity with industry

Our Due Diligence processes are being reviewed and updated in line with latest guidance. Additionally, the implementation of the Foreign Influence Registration Scheme on 1 July 2025, saw a further tightening of guidance on political interference. We have detailed guidance and support in place for staff and students in order to protect our capacity to engage internationally compliantly and with confidence.

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Strategy 2030 focus areas and core functions:

Research

Risk description: Collaboration with external partners Exposes University to security-related loss of reputation, revenue, or to legal liability.

implementation of the National Protective Security Authority’s (NPSA) 'Trusted Research Framework' across the University. This is the UK government’s national framework for universities with regard to research security. The group is chaired by the Dean for Research, College of Science and Engineering and includes all key stakeholders from relevant professional services and senior academic leads.

Risk management: As a global university, we will see our research having a greater impact as a result of partnership, international reach and investment in emergent disciplines.

Internationalisation, however, can expose the University to risks resulting from competing geopolitical interests. Edinburgh Global and Edinburgh Research Office coordinate the University's response to the changing security and risk landscape across international collaboration. The Trusted Research Evaluation Framework Group (TREFG) coordinates effective

The TREFG meets regularly and has raised awareness of responsible global engagement through messaging to key colleagues and by

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Supports Strategic KPI 7: Research activity 8: Research activity with industry

developing an action plan - shared by colleagues across the University - to implement Trusted Research guidance. Edinburgh Global provides reporting on security risks to the Risk Management Committee, Audit and Risk Committee and to University Court.

Work to decrease this risk exposure will concentrate on improvements to better coordinate the security-related controls and oversight provided by our various offices responsible for international collaboration.

Core Functions

Risk description: Core IT infrastructure Disruption to basic network services.

The final remaining action is to decommission fully the old network. On completion of this task, the risk scoring will be reevaluated. Inclusion of core IT infrastructure replacement cycles within the Digital Estate plan will

Risk management: We are pleased to report that Information Services Group has completed a major replacement of core IT infrastructure this year, with the completion of the campus data network replacement programme.

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Supports Strategic KPI 4: Efficient systems

help ensure ongoing refreshment of critical platforms. Continued work on overall University Business Continuity Planning will provide mitigation to core IT Infrastructure platform failures.

Core Functions

Risk description: Information security / data breach Compromise of University information.

operational activities. We are aware of the ever-changing scale and nature of this risk and continue to implement improvements to our technology and day-to-day processes to counter them. We continue to identify risks

Risk management: Like many

organisations inside and outside our sector, the University continues to face a significant level of online risk to our digital services, systems and data that underpin our teaching, research and

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Supports Strategic KPI 4: Efficient systems

to key data-reliant activities, services and processes, working to reduce the potential impact with resilient business continuity plans in case of a data breach. This risk will remain a key area of focus for the foreseeable future.

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Strategy 2030 focus areas and core functions:

Core Functions

Risk description: International student recruitment Recruitment of international students diverges from our size and shape planning and fee income forecasting

Supports Strategic KPI 2: International student diversity

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Risk management: The University

is recruiting students in the context of increased global competition, a challenging global economy, changes to UK immigration policy, and concentration of demand from specific domiciles outside the UK and Europe, making us vulnerable to market swings and unfavourable geopolitics. This could impact tuition fee revenue, which would undermine the University's financial sustainability. Academic sustainability would be undermined if international recruitment shortfalls were to make some programmes unviable and/or impeded the research

pipeline. Over-reliance on one region/ sector could create vulnerability to foreign influence from particular source countries, with potential academic freedom, freedom of expression, security and data integrity risks.

While across higher education the sector is facing greater risk, the University of Edinburgh has taken measures such as making earlier offers and pursuing our strategic enrolment strategy that have mitigated the risk. We are, as a consequence, in a less vulnerable position than many of our peer institutions but have nonetheless set our intake targets and related income

expectations, acknowledging that any growth in year-on-year international intakes is likely to require growth in market share of UK international intakes.

The balance of international student enrolment (measured by the ratio of largest international market to 5th and 10th largest overseas markets), particularly in postgraduate taught, has improved but remains an issue. We continue to work towards an even better integrated, strategic enrolment model, and to deliver international student intakes with acceptable levels of reliance/diversification.

Core Functions

Risk description: Finance

Failure to maintain financial headroom required to pursue strategic priorities and ensure financial sustainability in the face of increasing financial pressures.

Financial Risk Appetite is our EBITDA should be in the range of 7-9 per cent over our five-year plan.

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Risk management: The University manages its financial risk by not breaching its risk appetite as described in its financial metrics. A key metric is that our Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) should be in the range of 7-9 per cent to remain sustainable.

The University has again achieved an EBITDA marginally below its 7-9 per cent target in the face of significant financial pressure, posed by an

increasingly volatile macroeconomic environment, inflationary pressures and an uncertain outlook on international tuition fee income.

To mitigate these risks, the University regularly produces financial stress testing, cash flow forecasting, and performance monitoring embedded within our financial management framework, which provides early warning of emerging risks and supports timely corrective action.

Furthermore, recognising the imperative to maintain financial sustainability and create capacity for future strategic priorities and achieve innovation potential, the University is implementing a comprehensive cost reduction programme.

Financial sustainability measures will be underpinned by robust governance structures and reporting, ensuring alignment with strategic priorities and risk appetite.

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Strategy 2030 focus areas and core functions:

Core Functions

Risk description: Estate

The physical estate fails to meet the needs of the University (volume, condition, and accessibility).

Does not directly support a specific Strategic KPI, but is essential in our achievement of many of them, particularly 4, 5, 7, 12, and 16*

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Risk management: During 2021/22,

the University formulated a new Capital Plan, which was approved by Court in February 2022. This six-year plan covers the period 2021/22 to 2026/27 and:

In addition, to strengthen the University response to the climate emergency and commitment to 'Zero by 2040', the Director of Estates Net Zero and Carbon Leadership is focusing on the decarbonisation of the physical estate.

The Capital Plan is monitored and reported to the Estates Committee, Policy and Resources Committee and Court through the normal governance cycle.

Given the current financial pressures, there is a risk that without careful management, the combination of limited long-term strategic direction, growth in staff and student numbers in the previous five years, and the

potential deferral of capital projects, could collectively impact the University’s ability to sustain a fit-for-purpose estate. If not addressed, these pressures may, over time, lead to building deterioration, increased future costs, and reduced viability of projects critical to supporting the University’s ambitions. A revised vision for the Estate is close to finalisation in 2025/26 and an associated refreshed capital plan will follow, taking account of the need to protect the infrastructure we have and to make the most effective use of the asset base.

Core Functions

Risk description: Strategic change Scope, pace and complexity of change negatively impacts both project success and staff wellbeing.

Supports Strategic KPI 4: Efficient Systems, 5: Staff Engagement 10: Curriculum Transformation 12: Student Experience

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Risk management: Implementation of major change initiatives is challenging for any organisation. The University has identified the requirement to manage and better coordinate the delivery of major strategic programmes, particularly in light of the lessons learned during implementation of a major new HR and Finance system called People and Money. The external review of People and Money, published in December 2023,

made recommendations which are reflected in the evolving approach to planning of Strategic Projects. The University Initiatives Portfolio Board (UIPB) has collective oversight of these projects. With the establishment of the UIPB, oversight of the whole portfolio has been established and prioritisation of initiatives and ongoing assessment forms a core part of that Board’s remit. All strategic projects will be monitored going forward.

Particular attention is being focused on organisational capacity and development, resource management, decision-making and increased engagement during the life of a project. Understanding variations in practice across the University is important, to ensure appropriate support is in place to enable an effective transition to new ways of working. The current portfolio of projects has been prioritised in order to promote financial sustainability.

*4: Efficient systems. 5: Staff satisfaction. 7: Research activity. 12: Student experience. 16: Net Zero

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20 Annual Report and Accounts 2024/25
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Overview Strategy & value model Operational review Financial review Governance Financial statements

Operational review

Discover the stories that make us a world-leading research-intensive University. Our values-led approach to teaching, research and innovation allows us to address tomorrow’s greatest challenges, both locally and globally.

The Race Review will inform ongoing dialogue around these difficult issues and be a driver for sustained, meaningful change. To expedite this, the University has established a Race Review Response Group comprising a diverse range of staff, students and external partners.

This group will engage with the University community, embracing diverse perspectives to strengthen involvement. It will also monitor progress, advise on actions and ensure the University fulfils its commitment to enacting meaningful change in light of the Review.

Widening Participation

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...the Race Review is thought to be one of the most ambitious, wide-ranging and sustained consultations of its kind...

People

Race Review

The University published its Race Review in July 2025. An academicallyled examination of the University’s historic links to slavery and racism, it is thought to be one of the most ambitious, wide-ranging and sustained consultations of its kind, and is the result of more than four years of dedicated research, community engagement and collaboration.

It has brought to light important, confronting and often uncomfortable accounts of our historical ties to slavery and colonialism, the legacy of racist teachings and ideologies, and current challenges we face around race and inclusion.

The University continues to take a holistic approach to widening participation (WP), actively engaging with individuals from WP backgrounds prior to application, providing information, advice and guidance during the UCAS application process and ongoing support during their studies. This whole-University approach ensures we continue to meet the Commission for Widening Access target of 10 per cent of our intake representing the Scottish Index of Multiple Deprivation 20 (SIMD20) also known as the most deprived 20 per cent of areas in Scotland. This year, 11.3 per cent of entrants came from SIMD20 backgrounds, up from 10.7 per cent in the previous year.

There are also 54 care-experienced firstyear students and a cohort of 222 careexperienced students across all years of study at the University of Edinburgh.[1 ]

1 As of February 2025

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Corporate Parenting Plan Update

In February 2025, we published our University of Edinburgh Corporate Parenting Plan – Implementation Report 2021-2024, covering the progress we have made since the plan’s publication in 2021.

The Children and Young People Act 2014 (Scotland) names universities as corporate parents and legalises our statutory duty for the wellbeing of careexperienced students. The progress that the University of Edinburgh has achieved in celebrating, including, and supporting our care-experienced and estranged students from preapplication, point of application, on programme transition, and onwards to graduation since 2021 has taken a significant collaborative effort from all parts of the institution. Our key collaborators are our careexperienced and estranged students as well as external partners, the Hub for Success (HfS), Who Cares? Scotland and Stand Alone.

Key areas of progress. We have:

People

Students ace the arts

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“I was encouraged to experiment loads with materials and techniques, and to take inspiration from unexpected places.

Access to Creative Education in Scotland (ACES) is a national Widening Participation (WP) project, funded by the Scottish Funding Council (SFC) and part of the National Schools Programme (NSP). It supports eligible S4 to S6 students in local state secondary schools, who are considering studying art, design or architecture.

In 2025, eight former ACES Edinburgh students graduated (up on three in 2024) and they all achieved 2.1 or above, with three gaining a First-Class degree.

At ACES I was encouraged to experiment loads with materials and techniques, and to take inspiration from unexpected places. These skills have helped all through college and my degree as well!” said Chiara Watt, a Fourth-Year student at the Edinburgh College of Art.

“Attending ACES massively helped me build my confidence…I got to meet new friends, all artsy people all on the same wavelength...

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Revolutionary partnership Supercomputer announcement

The University of Edinburgh has been announced as the home of the UK’s next national supercomputer.

The significant investment represents a huge endorsement of the University and its future as a world-leader in supercomputing and AI, recognising the strength and value of Edinburgh’s expertise.

The UK Government has confirmed funding of up to £750 million for this vital piece of national infrastructure, which will be located at the University’s Advanced Computing Facility.

Announced as part of the Chancellor’s Spending Review, the new supercomputer will give scientists across the UK access to compute power on a world-leading scale.

It will enable researchers to undertake large-scale complex modelling, test scientific theories and improve products and public services in areas including medicine, climate change and national security.

It places the University, the city of Edinburgh and wider region at the centre of a nationwide effort to drive technological innovations and support industry using computing and AI.

Principal and Vice-Chancellor, Professor Sir Peter Mathieson, said: “This significant investment will have a profoundly positive impact on the UK’s global standing, and we welcome the vast opportunities it will create for research and innovation. Building on the University of Edinburgh’s expertise and experience over decades, this powerful supercomputer will drive economic growth by supporting advancements in medicine, bolstering emerging industries and public services, and unlocking the full potential of AI.”

“The Mastercard Foundation Scholars Program continues to prioritise underrepresented groups, especially women, refugees and people with disabilities. 99]

Mastercard Foundation Scholars Program: Phase Two

In September 2024, 46 on-campus Scholars and over 100 online scholars joined the Mastercard Foundation Scholars Program. This partnership

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is in its second phase (2023-2030) Revolutionary partnership and now focuses exclusively on Education Beyond Borders sustainability-related studies, preparing the next generation of climate leaders. Phase two was = TT a AZ ee ¥ Ps ae 4! designed to incorporate additional projects focused on capacity building. eeMR «Jedd sath at j ied ] a Tae oy wate ‘ The program continues to prioritise underrepresented groups, especially , : | ; 4 women, refugees and people with :’:/\=: disabilities, reinforcing its commitment to equity, diversity, and inclusion. The Mastercard Foundation Scholars Program Team was also awarded | the Principal’s Medal in November Ae a ‘ } . 2024 for its outstanding work, = NS> e.OS r _ & i =: /$ REDUCED recognising the team’s delivery of Ek = 10 weaves an innovative academic, social, and leadership program that addressed the climate crisis. a ee N16 Sines: a a ru { Bm rs aN OY Digital Education Practitioner Networks (DEPN)

Education Beyond Borders Scholars in Old College Quad

“This initiative reflects the University’s commitment as a University of Sanctuary and its mission to bridge the educational gap faced by displaced individuals.

In September 2024, the University welcomed the first cohort of students through its new Education Beyond Borders (EBB) postgraduate scholarship programme for refugees and displaced people. The cohort are 21 students studying across all three colleges, from Afghanistan, Yemen, Eritrea, Syria, Palestine, Sudan, Turkey, Sri Lanka and Ukraine.

Launched earlier in 2024, EBB aims to promote continued access to education for displaced scholars by delivering a programme of funding, support, and collaborative and community-led initiatives. EBB is the most generous programme of its kind in the UK, offering a sectorleading support package. This initiative reflects the University’s commitment as a University of Sanctuary and its mission to bridge the educational gap faced by displaced individuals.

In May 2025, EBB further extended funding, offering additional opportunities from September 2025. 20 more EBB postgraduate scholarship places will be offered exclusively for online learners to study at the University.

Through collaboration with partners, EBB will offer PhD opportunities for Palestinians and support two students from Levant region to come to UK for Masters study.

In addition to the new scholarship, in 2024, EBB expanded its existing fellowship programme to support academic staff who are at risk.

This initiative aims to enhance digital education in sub-Saharan Africa by building sustainable networks of practitioners to lead inclusive digital transformation in their institutions.

Participants undertake an MSc in Digital Education at the University. They then use their skills and knowledge to form regional and professional networks that promote peer learning and knowledge exchange across African HEIs. DEPN networks have been established in Uganda, Ghana, Liberia, and Sierra Leone.

The Wits-Edinburgh Sustainable African Futures (WESAF) Doctoral Programme

This is a collaborative initiative between the University of Edinburgh, the University of the Witwatersrand in South Africa, and the Mastercard Foundation which advances interdisciplinary sustainability research and builds research capacity among African academics. In November 2024, the first cohort of 50 WESAF Scholars graduated with more than half of that group progressing to doctoral study, co-supervised by Wits and Edinburgh.

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IT donation helps rebuild Ukraine partners’ computer centre

In September 2024, Taras Shevchenko National University of Kyiv (KNU) celebrated the opening of a newly equipped computer centre, made possible by a donation of IT equipment led by Edinburgh Global.

A second donation in June 2025 means that around 215 computers and more than 530 peripherals were donated by the University and shipped to Ukraine with support from a non-governmental organisation. The computer centre replaces a facility destroyed in a missile strike in October 2022 and will now provide essential resources for students, researchers, and academic staff to continue their work despite the ongoing conflict. The KNU–Edinburgh partnership which launched in 2022, is more than an academic exchange—it’s a lifeline for colleagues working under extraordinary circumstances. KNU’s Rector and Library Head expressed heartfelt thanks, recognising the partnership as a symbol of solidarity.

Commercialisation and industrial partnerships

Edinburgh Innovations

Our commercialisation service, Edinburgh Innovations, leads the University’s activities in industry engagement and business development, enterprise support for students and staff and the identification, management and commercialisation of University intellectual property.

By identifying opportunities and building partnerships, Edinburgh Innovations helps turn ideas into successful projects and thriving businesses that benefit the economy and society.

The University of Edinburgh was again ranked first in the world for ‘Industry, Innovation and Infrastructure’ by The Times Higher Education Impact Rankings 2025, which assess the performance of universities against the United Nations Sustainable

Development Goals (SDGs). The University scored 100 out of 100 for its contribution to SDG9, ‘industry, innovation and infrastructure’, which includes its research, patents citing University research, research income from industry and a number of University spinouts. This top ranking reflects the University’s flourishing culture of innovation and is testament to its ongoing commitment to delivering positive change through research, education and partnerships. Notably, student startup MiAlgae was a finalist in the Earthshot prize for ideas that could repair our planet.

In 2024/25, Edinburgh Innovations helped to launch 64 startup and spinout companies founded by staff and students. One thousand academic staff are now working on innovation activity across the University, and in 2024/25 172 patents were filed and 62 licences were entered into by those involved. A total of £113 million was invested in University-associated companies across the year, including £11.8 million into staff spinouts.

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Edinburgh Innovations supported the launch of the Innovation Career Pathway – a new route to career development for academics wishing to focus on commercialisation and engagement with industry. The pathway elevates innovation alongside traditional research metrics such as research output and teaching contributions, aiming to fulfil a commitment in the Research and Innovation Strategy 2030 to double the number of innovative-active academics. The pathway includes a new UK-first Competency Framework that sets out the skills, knowledge and behaviours required to support advancement.

A further four Innovation Fellows were appointed, bringing the total of innovation-focused, early-career academics to seven. EI also appointed Lizzie Withington to the newlycreated position of Director of Venture Creation, to support the generation of more transformational spinouts.

Old College Capital (OCC), the University’s in-house venture investment fund, supports the

University’s research, staff and students by investing in high-growth, earlystage businesses associated with the University, and follows a co-investment model by partnering with experienced private sector investors. Working closely with founders, investors, and the University representatives, OCC accelerates the journey of startups and spinouts that seek to make a positive impact on people and our planet. When a company exits, as biotechnology spinout Kynos Therapeutics did this year, OCC’s returns are reinvested into the University to support our most exciting emerging ideas and technologies.

University of Edinburgh Sport

We’ve made significant strides through strategic partnerships that have not only elevated our profile but expanded opportunities for all. From joining forces with the Scottish Action for Mental Health charity to pioneer exercise prescriptions for wellbeing, to deepening elite training pathways

through extended partnerships with Scottish Rugby and Scottish Rowing, collaboration has driven real change. New partnerships with leading bodies Aquatics GB, Scottish Swimming, Basketball Scotland, Scottish FA, Netball Scotland and others underscore our leadership in the national sporting landscape. Commercially, the launch of an industry leading partnership with energy drink brand Grilla has further energised both competitive sport and wellbeing initiatives.

Research

In the 2024/25 academic year, the University has maintained strong research funding application activity, submitting 2,878 applications with a combined value of £1.72 billion. This is 15 per cent higher than the application value achieved in the previous academic year (£1.5 billion). We recorded £399.7 million in total research awards, which is 18 per cent lower than the awards value achieved in the prior academic year (£486.9 million). This is primarily due

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to a change in the methodology for recording awards, which has resulted in last year’s award total (reported as £457 million) increasing to £486.9 million and this year’s award total decreasing by the same amount. This 6 per cent fluctuation is a one off and accounts for the 2024/25 awards figure being approximately 6 per cent lower than the three-year average figure for total awards of £426.4 million. The underpinning data shows a continuing strong performance in research awards.

This awards figure is driven by some significant successes including: £13.5 million from the Engineering and Physical Sciences Research Council to the College of Science and Engineering for a new hub to boost lung infection treatments; £10.4 million from the Legal and General Group PLC to the College of Medicine and Veterinary Medicine for the Advanced Care Research Centre; £10.2 million from the Arts and Humanities Research Council to College of Science and Engineering for Software Sustainability Institute - Phase 4, as well as a range of other major awards across all three Colleges.

Research highlights

AI to use high-street eye tests to spot dementia risk

Routine eye tests may be able to predict a person’s risk of dementia thanks to a digital tool developed by data scientists and clinical researchers in partnership with high-street opticians.

The project, NeurEYE, led by the University of Edinburgh with support from Glasgow Caledonian University, has collected almost a million eye scans from opticians across Scotland, forming the world’s largest dataset of its kind.

This resource will help develop software, which opticians will be able to use as a predictive or diagnostic tool for conditions such as Alzheimer’s. It will also help triage patients and refer them to secondary health services if signs of brain disease are spotted.

It could also potentially be used as a way to monitor cognitive decline, experts say.

Identifying people at risk of dementia could also accelerate the development of new treatments by pinpointing those who are more likely to benefit from

trials and enabling better monitoring of how they respond to treatment.

It could also help individuals and medical professionals modify the risk of developing dementia through lifestyle changes such as physical activity and diet.

Miguel Barbabeu, Professor of Computational Medicine at the University’s Usher Institute and NeurEYE co-lead, said, “In order to develop algorithms that are equitable and unbiased, we need to train them on datasets that are representative of the whole population at risk. This dataset, along with decades-long research at the University of Edinburgh into ethical AI, can bring a step change in early detection of dementia for all.”

Microbes transform plastic waste into paracetamol

Paracetamol production could be revolutionised by the discovery that a common bacterium can turn everyday plastic waste into the painkiller, a study reveals.

The new method leaves virtually no carbon emissions and is more sustainable than the current production of the medicine, researchers say.

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Research

Live brain cell test reveals protein link to Alzheimer’s

Dr Soraya Meftah preparing tissue in the lab

Scientists using living human brain tissue have shown for the first time how a toxic form of a protein linked to Alzheimer’s can stick to and damage the connections between brain cells.

Small pieces of healthy human brain tissue – collected during routine neurosurgery operations – were exposed to the protein, known as amyloid beta.

Unlike when subjected to a normal form of the protein, the brain tissue did not attempt to repair damage caused by the toxic form of amyloid beta, experts say.

The study also found that even small changes in the natural levels of amyloid beta – either increasing or decreasing – were enough to disrupt brain cells. This suggests the brain requires a finely tuned ‘sweet spot’ of the protein to function properly, experts say.

Researchers at the University of Edinburgh hope the discoveries will allow them to hone in on drugs that have the best chance of preventing the loss of synapses – connections which allow the flow of messages between brain cells and are vital to healthy brain function.

“This innovative approach offers a rare and powerful opportunity to investigate the early stages of Alzheimer’s.

Alzheimer’s disease attacks synapses and their loss strongly predicts reduced memory and thinking abilities.

Central to the early success of the Dyson RAD Dementia Research Acceleration Project has been the pioneering method that keeps tiny fragments of human brain alive in laboratory dishes for several weeks after collection, with the patient’s permission.

This innovative approach offers a rare and powerful opportunity to investigate the early stages of Alzheimer’s disease in living human brain cells.

Researchers also discovered that brain slices taken from the temporal lobe, a region known to be affected early in Alzheimer’s, released higher levels of another key disease protein,

called tau. This may help explain why this part of the brain is particularly vulnerable in the early stages of the condition, as increased tau release may enable faster spread of toxic forms of this protein between cells.

In addition, a number of the samples were found to contain early indicators of Alzheimer’s, such as amyloid plaques and tau tangles, demonstrating the potential of this model to study the disease before symptoms appear.

Experts say this innovative approach will make it easier to test experimental drugs before they enter clinical trials, increasing the chance of finding drugs that work in the human brain.

The study is published in Nature Communications and was supported by a fellowship from Race Against Dementia (RAD) – a charity formed by Sir Jackie Stewart following his wife’s dementia diagnosis – and a £1 million donation from the James Dyson Foundation – Sir James Dyson’s charity that supports medical research and engineering education. The donation helped employ two scientists, secure time from research nurses, and obtain the cutting-edge laboratory equipment needed for working with living human brain tissue.

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Learning and Teaching

The University of Edinburgh Learning and Teaching Strategy 2030

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Paracetamol is traditionally made from dwindling supplies of fossil fuels including crude oil.

Thousands of tons of fossil fuels are used annually to power the factories that produce the painkiller, alongside other medicines and chemicals – making a significant contribution to climate change, experts say.

The breakthrough addresses the urgent need to recycle a widely used plastic known as polyethylene terephthalate (PET), which ultimately ends up in landfill or polluting oceans.

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Students in a seminar
© Sam Ingram-Sills (Whitedog Photography)
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A major highlight of this year was the launch of the University of Edinburgh Learning and Teaching Strategy 2030. Showcased for the first time at the Learning and Teaching Conference in June 2025, the strategy focuses on three central themes; developing a future-ready curriculum; engaging and empowering learners; and supporting inspiring teaching. These three purposes of our Learning and Teaching Strategy are shaped by our institutional values set out in Strategy 2030, and underpinned by a set of enablers and partners that support our learning and teaching processes, our students’ wellbeing and academic development, and the development of our teaching staff.

The Learning and Teaching Strategy aligns with the Edinburgh Student Vision and the Skills for Success Framework that together set out a roadmap for the qualities, skills

“This collaborative approach ensures that the Strategy is put into practice across all areas of our University. ®

and capabilities required in the development of our students as learners ready to thrive in a changing world. This strategy will be enacted through an implementation plan, developed and delivered in partnership with Schools, Colleges and other University departments. This collaborative approach ensures that the strategy is put into practice across all areas of our University, fostering a unified commitment to student success.

The strong, lightweight plastic is used for water bottles and food packaging, and creates more than 350 million tons of waste annually, causing serious environmental damage worldwide.

PET recycling is possible, but existing processes create products that continue to contribute to plastic pollution worldwide, researchers say.

A team of scientists from the University of Edinburgh’s Wallace Lab used genetically reprogrammed E. coli, a harmless bacterium, to transform a molecule derived from PET known as terephthalic acid into the active ingredient of paracetamol.

Researchers used a fermentation process, similar to the one used in brewing beer, to accelerate the conversion from industrial PET waste into paracetamol in less than 24 hours.

The new technique was carried out at room temperature and created virtually no carbon emissions, proving that paracetamol can be produced sustainably.

Further development is needed before it can be produced at commercial levels, the team says.

Some 90 per cent of the product made from reacting terephthalic acid with genetically reprogrammed E. coli was paracetamol.

Lost score revives sound of music from centuries past

A fragment of ‘lost’ music found in the pages of Scotland’s first full-length printed book is providing clues to what music sounded like five centuries ago.

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Scholars from Edinburgh College of Art and KU Leuven in Belgium have been investigating the origins of the musical score – which contains only 55 notes – to cast new light on music from pre-Reformation Scotland in the early sixteenth century.

than needing to rely on importing texts from England or Europe.

The researchers say the composition is from the Aberdeenshire region, with probable links to St Mary’s Chapel, Rattray – in Scotland’s far northeastern corner – and to Aberdeen Cathedral.

Researchers say the tantalising discovery is a rare example of music from Scottish religious institutions 500 years ago, and is the only piece which survives from the northeast of Scotland from this period.

The discovery was made as researchers examined numerous handwritten annotations in the margins of the Glamis copy.

Of primary interest to the scholars was a fragment of music – spread over two lines, the second of which is approximately half the length of the first – on a blank page in a section of the book dedicated to Matins, an early morning service.

The scholars made the discovery in a copy of The Aberdeen Breviary of 1510, a collection of prayers, hymns, psalms and readings used for daily worship in Scotland, including detailed writings on the lives of Scottish saints. Known as the ‘Glamis copy’ as it was formerly held in Glamis Castle in Angus, it is now in the National Library of Scotland in Edinburgh.

The presence of the music was a puzzle for the team. It was not part of the original printed book, yet it was written on a page bound into structure of the book, not slipped in at a later date, which suggests that the writer wanted to keep the music and the book together.

Despite the musical score having no text, title or attribution, researchers have identified it as a unique musical harmonisation of Cultor Dei, a night-time hymn sung during the season of Lent.

In the absence of any textual annotations on the page it was not clear whether the music was sacred, secular or even for voices at all, the researchers say.

The Aberdeen Breviary came from an initiative by King James IV who issued a Royal Patent to print books containing orders of service in accordance with Scottish religious practices, rather

After investigation they deduced it was polyphonic – when two or more

Student recruitment and admissions

Entry to academicyear 2024/25 2023/24 2022/23
Undergraduate enrolments
Total applications 68,356 71,968 78,739
Total offers 31,480 28,275 26,548
Total enrolments 6,832 6,571 6,576
Applications to enrolments ratio 10.0 11.0 12.0
Matriculate rate (enrolments / offers) 21.7% 23.2% 24.8%
Postgraduate enrolments
Total applications 117,015 122,884 100,317
Total offers 36,997 30,377 29,432
Total enrolments 9,717 9,216 9,432
Applications to enrolments ratio 12.0 13.3 10.6
Total applications 185,371 194,852 179,056
Total offers 68,477 58,652 55,980
Total enrolments 16,549 15,787 16,008

These figures include Online Learning students. Visiting and undergraduate non-graduating students are excluded; PGDE programmes are categorised as undergraduate.

lines of independent melody are sung or played at the same time. Sources from the time say this technique was common in Scottish religious institutions, however very few examples have survived to the present day.

Looking closer, one of the team members realised that the music was a perfect fit with a Gregorian chant melody, specifically that it was the tenor part from a faburden, a three- or four-voice musical harmonisation, on the hymn Cultor Dei.

Learning and teaching

Our academic community, students and staff alike, has been dedicated to cultivating an innovative, supportive, and inclusive educational experience.

Results from the National Student Survey (NSS) were released in July 2025, an important measure for us and the sector. Our overall satisfaction score is 74.3 per cent, an improvement from 70.4 per cent last year. Our response rate this year was 69 per cent, compared to 71 per cent last year, and we continue to perform strongly in teaching, learning resources and academic support.

Areas we need to continue to prioritise include assessment and feedback and student voice. In particular, students highlighted the importance of receiving timely feedback which helps them improve their work, as well as clarity on how the feedback they give on their courses is acted on. This is a priority for the entire University and although our scores have improved in the last year, colleagues continue to actively work across every School to make further improvements in feedback responses for our students.

Excellence in learning and teaching is recognised and celebrated at the University. The Edinburgh University Students’ Association Teaching Awards are now in their 16th year, celebrating the very best in teaching and support at the University. Over 1,700 nominations were submitted by students.

Winners included Lynn McNair from the Moray House School of Education and Sport. Lynn won one of three Teacher of the Year awards for an

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influence that goes far beyond the classroom. Nominators said that from her exceptional, innovative, and thoughtful teaching to her unwavering commitment to mentoring and supporting students beyond their academic studies, she truly goes above and beyond in every way. As an educator, Lynn has fostered growth, built confidence, and nurtured a whole cohort of lifelong learners.

The Sabbatical Officers also awarded Tom Bruce, from the School of Engineering, with a Special Recognition Award. Tom has been described in nominations this year as kind, friendly, and someone who clearly cares about the work of their students. Over 16 years of the Teaching Awards, he has amassed a staggering 173 nominations celebrating his teaching, innovation, course organisation, exceptional feedback and student support.

Our estate

Over the past year, the University’s Estates team has continued to deliver strategic improvements to our built environment while responding to sector-wide financial pressures and ongoing demands for operational efficiency.

A key focus has been aligning resources with our highest priorities. A thorough review of operations revealed opportunities to reduce non-essential maintenance and cleaning services. Together with a recruitment freeze and a voluntary severance scheme, this has allowed us to streamline service delivery without compromising essential support. Although the estate has grown by 10 per cent over the past five years, maintenance staffing levels have remained constant. We are now advancing a priority project to develop tools and gather data that will improve our understanding of current and future estate needs. This initiative aims to optimise space utilisation and continue driving efficiency across estate management.

In parallel, 2024/25 saw significant progress in sustainability. The University’s Energy Masterplan neared completion, setting a framework to guide long-term investment in low-

in time for the 2025/26 academic year. Refurbishment of the historic Teviot Row House is also nearing completion, delivering new social and study spaces while conserving a cherished student landmark.

carbon and resilient infrastructure. This work supports our ambitious goal of achieving net zero carbon emissions by 2040. A multi-year programme of energy efficiency projects also advanced, with campus upgrades including improved lighting, insulation, ventilation, heating controls, solar PV, and waste heat recovery.

Other developments include the fresh redesign of the old reception changing rooms at the Pleasance gym to new surfaces on Peffermill’s hockey and MUGA pitches, we continue to invest in experiences that matter. The Easter Bush Gym has been fully revitalised, while Peffermill welcomed CrossFit 1583, a first in higher education, and upgraded five-a-side pitches. At Strathclyde Park a muchneeded boat store now supports our growing water sports community.

Major capital developments continue to reshape our estate. The Edinburgh Futures Institute was completed and opened ahead of the 2024 academic year following a complex redevelopment of the old Royal Infirmary. The building now hosts the Edinburgh International Book Festival, establishing a successful cultural partnership. The new Usher Institute, a flagship City Region Deal investment, was also completed and is supporting critical research in Population Health Sciences.

Looking ahead, progress continues on several key projects, including the new Engineering building (completion due early 2026), the phased redevelopment of Edinburgh College of Art, and ongoing improvements at the Queen’s Medical Research Institute.

In response to ongoing financial pressures, earlier this year we took the precaution of pausing several fully approved capital projects that had not yet reached contractual close. This allows us to focus on achieving operational financial savings, providing greater confidence to proceed with these projects in the coming year.

Voluntary

Severance Scheme

Due to financial challenges in the higher education sector, the University has been focussed on ensuring its long-term fiscal sustainability. As part

In student accommodation, phase one of the Tynecastle development opened

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Absolute carbon emissions
90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
2022/23 2023/24 2024/25
Fuels, water, waste
Electricity Gas Travel
and University vehicles
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Absolute carbon emissions have increased by approximately four per cent compared to last year, driven by an increase in carbon emissions associated with business travel. Note: Figures awaiting external verification at time of writing.

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of this, a voluntary severance scheme ran in 2025. Circa 345 colleagues were accepted for voluntary severance, leading to £18 million of recurring savings. On behalf of the Senior Leadership Team, we would like to extend our sincere thanks to colleagues who took voluntary severance for their valued contributions to the University.

We continue to review and improve our financial sustainability and have run a subsequent voluntary redundancy scheme in 2025/26.

Protecting our planet

The University published a new Responsible Investment Policy Statement. The updated policy recognises the significant progress made since the publication of the previous policy in 2016. It also incorporates several new commitments informed by the University-wide consultation which took place in 2024. This includes a commitment to social investment, recognising the University’s £8 million Social Investment Fund; decarbonising investment portfolios to meet the University’s net zero by 2040 target, following a 1.5°C pathway against a 2018 baseline; a commitment to exploring nature-positive investment strategies; and improving transparency and reporting processes.

The policy also commits to further addressing specific issues following guidance from the Responsible Investment Advisory Group.

The University committed a further £1 million to Social and Sustainable Capital (SASC) from its £8 million Social Investment Fund. SASC has already contributed significantly to Simon Community Scotland providing housing for 30 people who have experienced homelessness in Edinburgh.

The University’s Climate Strategy successor was approved by the University’s governing body, the University Court, in April 2025. The strategy, due to be published next academic year, reflects a step-change in ambition, and sets out how the University will seek to minimise negative environmental impacts while actively restoring natural, biophysical systems, to ensure a net

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||||||||| |---|---|---|---|---|---|---|---| |Key performance indicators| |2024/25|2023/24|2022/23| |Income (tonnes CO2e / £m)|55.2|54.9|54.6| |Staff (tonnes CO2e / staff FTE)|6.1|6.0|6.2| |Students|(tonnes|CO2e|/|student headcount)|1.6|1.6|1.5| |University waste breakdown 2024/25| |��|��������������| |���|��������������| |���|���������������|�������������| |������������| |���|�����������������| |��|���������������| |�����������������������| |��| |�����������������������������| |����������������������������| |���| |��������������������������|

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Volume of waste produced is broadly unchanged from prior year. There has been an increase in the percentage of residential waste mass anaerobic digestion, with a reduction in composted and recycled waste.

Note: Figures awaiting external verification at time of writing

The University was recognised for its leadership on environmental and social impact, placing seventh in the world in the 2025 QS World University Rankings for Sustainability.

positive environmental and social impact, through our learning and teaching; research and innovation; people and culture; and operations.

The Forest & Peatland Programme successfully completed the planting of the first two sites, at Drumbrae and Rullion Green, planting in excess of half a million trees that will sequester in the region of 100,000 tonnes of carbon over the life of the project. Six partnerships have now been agreed, which will provide the majority of the carbon required to meet the objective of one million tonnes of carbon across owned and partnership sites.

Supporting our community Contributing locally

The University became a signatory of the Edinburgh and South East Scotland City Region Community Wealth Building Pledge. The pledge was created by the Edinburgh and South East Scotland City Region Deal in 2022 following work with the Centre for Local Economic Strategies to explore community wealth building within its projects. It asks the region’s universities and colleges to support the growth and development of local businesses; support fair employment practises; and engage with community-based organisations and projects to build resilience and long-term security within the region.

The University published its annual review of innovation of activity, which for the first time, included information on climate and sustainability commercialisation. Case studies and the percentage of the University’s commercialisation activity focused on the themes of carbon, biodiversity, circular economy, water, and novel entities, where included, a first in the sector.

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City Region Deal

The Data-Driven Innovation (DDI) initiative is a 15-year, £661 million investment and innovation programme launched in August 2018. It secured £270 million in capital funding from the UK and Scottish Governments as part of the £1.3 billion Edinburgh and South East Scotland City Region Deal.

Protecting our planet

Art show sparks cultural climate conversations

The initiative developed a network of six hubs bringing together academic disciplines and external partners to solve some of the world’s most pressing issues.

The hubs connect private, academic, and public organisations to foster innovation opportunities around technology and data. For researchers and innovators, this presents an opportunity to benefit from the scale and resources of large organisations through collaboration, while delivering economic and social benefits in the regions where they reside and work.

The hubs are based at the University of Edinburgh and Heriot-Watt University and contribute 55,000 square metres of innovation space to the city region. Critically, they also provide a focus for increased collaboration across HE Institutions in the region, as evidenced by the joint leadership of the National Robotarium, based at Heriot-Watt University, as well as partnership working with FE Colleges, aligned to the Data Skills Pathway.

Over the past year, DDI has concluded its investment phase, with two final Hub headquarters completed. The Edinburgh Futures Institute has been transformed from the Victorian Royal Infirmary building on Lauriston Place into a centre for modern-day contagion of ideas and dialogue around real-world challenges. It is home to a suite of interdisciplinary centres, external partners, new companies, and students. The new Usher Building has also opened. Based in Edinburgh’s BioQuarter Health Innovation district, this Institute brings together specialists working at the intersection of data, health, artificial intelligence, social care and public health.

A key goal for this past year was ensuring the six hubs work together

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An exhibition of historic and contemporary artworks sparked conversation about environment, ecology and the entangled relationship between economic and colonial legacies and the climate crisis.

Rooting: Ecology, Extraction & Environmental Emergency in the University’s art collection showcases a range of artforms by 30 different artists acquired by the University and which, like the wider collections, are currently used to support and enhance research and learning. It is estimated to receive 20,000 visitors including international visitors attending the Fringe Festival.

“Taking inspiration from the meaning of ‘rooting’ – to grow, begin, or connect – our exhibition invites visitors to consider the entwined stories of art, history and nature across time and different artforms. We are really excited to have been able to showcase art works from the collection in this unique way and look forward to the conversations we hope it sparks with visitors around some of the most pressing issues facing the world today,” said Olivia Laumensch, Exhibition Curator.

Works by a range of world-renowned artists were on display. These

“Our exhibition invites visitors to consider the entwined stories of art, history and nature across time and different artforms”.

Olivia Laumensch Exhibition Curator

included Ian Hamilton Finlay, Joan Eardley, Hew Locke, and Alberta Whittle, alongside a number of contemporary artists who are graduates of Edinburgh College of Art (ECA), including Katie Paterson, Daisy Lafarge and Ruth Ewan.

The next generation of leading artists are championed through works from recent ECA graduates including Clarissa Gurd, Ffion Williams and Valentina Lobos Muñoz.

The exhibition featured audio and interactive elements which highlight several research, teaching and operational programmes across the University that are contributing to a more sustainable future.

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Supporting our community

Arcadia celebrates 10 years caring for families

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“We look forward to many more years of creating memorable experiences for families and

Arcadia Nursery at King’s Buildings celebrated its 10th anniversary with a fun-filled day for children and families in August 2024. Festivities included a barbeque and a petting zoo, ensuring a memorable day for all the family.

All proceeds from the event supported Dads Rock, an Edinburghbased charity focused on supporting fathers and families across Scotland.

empowering children to thrive.

The nursery has long been known for its child-led approach to learning, emphasising the importance of outdoor play, exploration, and the development of each child’s unique potential.

Ian Macaulay Director Nurseries

staff, parents, and the community that has made Arcadia a leader of early childhood education. We look forward to many more years of creating memorable experiences for families and empowering children to thrive,” said Ian Macaulay, Director Nurseries.

Over the past decade, Arcadia Nursery has built a strong reputation for its inclusive and nurturing environment, where children feel valued and supported.

The 10th anniversary celebrates the hard work and dedication of the staff, parents and community that have made Arcadia a leading early childhood education centre.

“As we celebrate Arcadia’s 10th anniversary, we reflect on a decade of care and nurturing education. This milestone is a testament to our collective partnership approach of

to maximise their impact as a single outward-facing DDI ‘platform’. By leveraging this innovation platform, the University has enhanced the capacity of the institution and the city region to drive inclusive economic growth, share experience and knowledge, and avoid competition over external engagement.

DDI’s key performance indicators are based on Talent, Research, Adoption, Data, and Entrepreneurship (TRADE). The most recent verified KPIs were signed off by University Court in June 2025.

This marked a successful year for course completions under the talent stream, with DDI surpassing its endof-programme target by 16 per cent. The programme has now recorded 160,000 completions since 2017.

£187 million in research activity was recorded with a 18 per cent increase compared with 2023/24. The initiative delivered £744 million of activity in total, which represents 81 per cent of DDI’s total research target.

In the adoption stream, the programme generated £17 million of income, surpassing its end of programme by 80 per cent. DDI now has only one further end of programme to achieve, having surpassed the other five.

Finally, DDI supported 89 early-stage data-centric companies in 2024/25, surpassing its unique company end target by 51 per cent. The initiative has also exceeded its end target for follow on funding by 714 per cent, with over £168 million being raised by companies within the region.

Annual Procurement Report

The University’s Annual Procurement Report acts as the foundation for annually assessing our delivery against our strategic aims and objectives, our regulatory compliance and the constant pursuit of value for money in all that we do. It details the performance and achievements of the Procurement Department, as well as the strategic and operational activities undertaken over the reporting period.

) More information: ~~_~~ Annual Procurement Report.

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Financial review

Financial statements

Overview

Governance

Financial review

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35 Annual Report and Accounts 2024/25
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Overview Strategy & value model Operational review Financial review

Financial statements

Governance

Finance foreword

The University of Edinburgh has recorded a surplus in the year however financial performance of core activities needs to improve to ensure financial sustainability in the future.

This Annual Report and Accounts covers the University’s financial performance for the year to 31 July 2025, with a detailed review of the key areas presented in the financial review section on pages 37 to 41.

Financial headlines

Our total income increased by 3.0 per cent in 2024/25, however our expenditure grew at a faster rate of 3.4 per cent. The outcome of expenditure growth exceeding income growth is that surplus before other gains and losses reported on our statement of comprehensive income and expenditure fell to £20 million (2024: £25 million).

In addition to reported surplus, we use Earnings Before Interest, Taxation, Depreciation and Amortisation (EBITDA) to measure our underlying financial performance. EBITDA can be used as a proxy for the cash generated from our internal operations – this is the cash we use to service our debt and fund important investment in equipment, our digital infrastructure and our physical estate.

Our EBITDA for 2024/25 was £96 million or 6.5 per cent of total income (2024: £84 million, 5.8 per cent of income). Although EBITDA has grown in the year, this compares to an operating surplus that reduced in the year as noted above.

See the table below for the reconciliation from EBITDA to surplus before other gains and losses.

Surplus and EBITDA achieved in the year have again been significantly supported by non-core activities including interest received on our treasury cash balances, returns from our accommodation, catering and events business, and strong performance across our subsidiaries. Although very helpful that our non-core activities make the contribution they do, future income and surpluses from these activities cannot be relied upon to continue into the future.

Capital investment

The University maintains a complex and sophisticated physical estate across five distinct campuses. Capital expenditure over the last year totalled £207 million, with £149 million of this towards our physical estate. Supporting our capital investment was receipt of £46 million of capital grant funding from sources including the Scottish Funding Council, our research funders and the UK Government towards the City Region Deal.

Capital investment increases the value of net assets and reserves we report on our statement of financial position, totalling £3.1 billion as at 31 July 2025. The vast

majority of these assets are used by the University to deliver its core activities of teaching and research. Although reduced capital investment and asset sales could improve short-term liquidity, they would not resolve the core issue of expenditure growth outpacing income growth.

Endowment fund

Our endowment fund recorded an increase in valuation at the end of the 2024/25 financial year with the fund now valued at £605 million (2024: £580 million). The endowment fund is invested for the long-term and while contributing to a growing University reserves balance there are restrictions on how this reserve can be used.

Conclusion

We can consider performance through an EBITDA lens of failure to meet our financial risk key metric that EBITDA is in the 7-9 per cent range or that expenditure continues to grow faster than income and surplus is consequently falling towards breakeven. However viewed, the conclusion is that we must improve the financial performance of our core teaching and research activities to remain financially sustainable and achieve our strategic objectives as set out in Strategy 2030.

2025 2024
£m £m
EBITDA
96		 84
Depreciation, amortisation and impairment
(108)		 (91)
Interest and other finance costs
(14)		 (22)
Capitalgrant income
46		 54
Surplus before other gains and losses prior to movement in USS provision
20		 25
Exceptional: Movement in USS provision
-		 352
Surplus before other gains and losses
20		 378

In calculating EBITDA, adjustments are made for interest costs, capital grants and non-cash items such as depreciation and pension provision movements.

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Financial review

The University delivered an EBITDA of 6.5 per cent this year.

The University uses Earnings Before Interest, Taxation, Depreciation and Amortisation (EBITDA) as one of our key financial metrics in measuring financial sustainability. University EBITDA in 2024/25 was £96 million. This is an increase of £12 million on the EBITDA reported last year (2024: £84 million). Further detail on income and expenditure follows in the commentary below. The summary table on this page reconciles EBITDA to numbers presented in the statement of comprehensive income and expenditure.

The University’s statement of financial position remains strong with total net assets amounting to £3.1 billion (2024: £3.1 billion).

Scope of the financial statements

These financial statements have been prepared in accordance with the Statement of Recommended Practice Accounting for Further and Higher Education Institutions 2019 (SORP 2019), the Scottish Funding Council’s 2024/25 accounts direction and with Financial Reporting Standard (FRS) 102.

Financial performance

Commentary on financial performance in 2024/25 and comparisons to the prior year exclude the impact of the non-cash credit to staff costs of £352 million that was reported in 2023/24. This related to movement on the USS pension provision in the year and was a result

of the University previously holding a provision on its balance sheet for our share of the USS Deficit Recovery Plan. The movement year-on-year (either up or down) does not represent cash moving in or out of the organisation as it is an accounting adjustment.

FRS 102 requires that unrealised gains and losses on the University's own pension schemes be reported as part of the statement of comprehensive income and expenditure. These gains and losses, which are not realised cash movements, form part of the total comprehensive income for the year of £74 million (2024: £393 million).

Summary I&E 2024/25
£m
2023/24
£m
Total income 1,477
1,434
Less: Capital grant income (46)
(54)
Income included in EBITDA1 1,431
1,380
Staff costs 829
756
Other operating expenses 506
540
Expenditure included in EBITDA1 1,335
1,296
EBITDA 96
84
Exceptional: Movement in USS provision -
352
Depreciation, amortisation and impairment (108)
(91)
Interest and other finance costs (14)
(22)
Capitalgrant income 46
54
Surplus before othergains and losses 20
378
Loss on disposal of fixed assets (3)
-
Gain on investments2 28
29
Taxation3 (1)
(1)
Surplus for theyear 44
406
Actuarialgain/(loss)in respect ofpension schemes4 30
(13)
Total comprehensive income for theyear 74
393
  1. Income and Expenditure for EBITDA exclude a number of items that are included in Surplus. These items are outlined in the section below EBITDA. 2. An unrealised gain or loss which is subject to the volatility of investment movements. 3. UK corporation tax charge on subsidiary’s profits. 4. This is the non-cash movement based on the difference, year on year, of revisions to the estimated value of the pension scheme assets and liabilities (excluding USS).

37 Annual Report and Accounts 2024/25

Overview Strategy & value model

Operational review

Financial review Governance

Financial statements

Financial review (continued)

Income

Total income in 2024/25 was £1,477 million (2024: £1,434 million). This represents an increase of three per cent from last year. The largest increases in the year were on tuition fees and other income contributing an additional £52 million income. Research income also grew but all other funding sources had reductions in the year.

The University has a broad range of income streams and the funding mix remains fairly consistent year-on-year. In total, tuition fees (38 per cent), funding body grants (14 per cent), research income (25 per cent) and other income (18 per cent) account for 95 per cent of the University’s total income. The remaining five per cent relates to investment income, donations and endowments. The notable longer-term trend is an increased income proportion from tuition fees and a reduced share from funding body grants.

Although challenges remain in student recruitment, income from tuition fees and education contracts grew by over five per cent in the year to £557 million (2024: £527 million). Our student headcount is slightly up by 0.3 per cent. Non-EU overseas students grew in number, offsetting reductions across all other domiciles. This small mix change has helped contribute to the growth in income in the year.

Funding body grants decreased in 2024/25 to £207 million (2024: £209 million). Movements on any specific category of grant funding were small. Recurrent teaching grants dropped by £4 million but this was largely offset by recurrent research grants growing by £3 million. Strategic funding also fell by over £1 million.

Research income grew by three per cent on the previous year to £375 million (2024: £365 million). The mix of income from funding sources changed in the year with research councils and UK sources growing by over £40 million. This contrasts with a reduction in income from EU and overseas funders that fell by over £20 million. Funding received from the Edinburgh and South East Scotland City Region Deal is nearing an end and reduced to £10 million in the year (2024: £15 million).

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----- Start of picture text -----
Sources of income
Total income Total income
2024/25 2023/24
£1,476.6m £1,433.8m
18%
17%
37% 38%
25%
25%
15%
14%
2024/25 2023/24
£m £m
Tuition fees and education contracts 556.5 527.2
Funding body grants 206.8 208.7
Research income 375.4 365.2
Other income 261.3 238.2
Investment income 54.3 64.4
Donations and endowments 22.3 30.1
----- End of picture text -----

Notes to the Financial Statements 3 to 8 provide further detail on sources of income.

interest received on our treasury and cash funds has decreased due to interest rates dropping and our treasury funds reducing across the year.

The University’s non-teaching and research income remains an important element of our funding model. Other income in 2024/25 increased by 10 per cent to £261 million (2024: £238 million). Income from our accommodation and catering business was a large driver of this increase, growing to £115 million (2024: £98 million).

Donations and endowments totalled £22 million in 2024/25 (2024: £30 million). This can be a volatile income stream across financial years and the reduction this year follows a large decrease we reported last year. New endowments income did grow versus last year but income from donations was £10 million lower.

Investment income fell by 16 per cent in 2024/25 to £54 million (2024: £64 million). After several years of growth,

38 Annual Report and Accounts 2024/25

Overview Strategy & value model

Operational review

Financial review

Financial statements

Governance

Financial review (continued)

Expenditure

Total expenditure in 2024/25 was £1,457 million (2024: £1,409 million), a three per cent increase on last year. This increase excludes the impact of £352 million non-cash staff costs credit relating to movement on the USS pension provision reported in 2023/24.

Staff costs for the year were £829 million (2024: £756 million), an increase of 10 per cent. Staff costs remain our largest expenditure item and account for a growing share of total expenditure at 57 per cent (2024: 54 per cent).

Salary costs, excluding employer on-costs, increased by 10 per cent in 2024/25. Cost increases resulting from nationally agreed pay awards and staff progressing through pay grade scales largely contributed to the rise. In addition, average staff FTE in the year increased by 1.5 per cent, which equates to circa 200 FTE. Although average FTE for the year increased from prior year, FTE at 31 July 2025 was circa 280 lower than at the start of the year.

Despite the salary costs increase, pension costs in the year fell to £128 million (2024: £133 million). Driving this was a full year of a lower employer contribution rate on USS and a further saving from a lower contribution rate on Edinburgh University Staff Benefit Scheme (EUSBS) in place since 1 January 2025.

Social security costs increased significantly in the year, rising 20 percent to £73 million (2024: £61 million). Contributing to this increase was the National Insurance rate and threshold changes introduced from April 2025.

There was no notable movement in our mix of staff costs across different activities. Academic and teaching departments account for 57 per cent of cost, research grants and contracts 18 per cent and the remaining 25 per cent covers our professional services and commercial staff that provide library, IT, premises and other administrative support.

In the spring of 2024, the University implemented a revised pay grade scale that adjusted the point at which grades start and end on the national pay spine points. Staff costs in 2024/25 included the impact of a first full year of increased cost resulting from this decision.

After staff costs, our next largest expenditure item is other operating expenses which significantly reduced by £34 million in the year to £506 million this year (2024: £540 million).

Other operating expenses includes the costs of supporting our academic and research mission as well as the costs of supporting our students through scholarships and bursaries and accommodation and library services. The cost of supporting our estate,

including utility and maintenance costs, and general administrative costs are also included in other operating expenses.

As a result of our staff costs growing but other operating expenses reducing, they now represent 35 per cent of total expenditure for the year (2024: 38 per cent).

The reduced other operating expenditure in the year is a reflection of work already undertaken to successfully deliver cost savings initiatives across many areas of the University.

The University’s depreciation, amortisation and impairment charge increased by 18 per cent to £108 million in 2024/25 (2024: £91 million). Our charge in the year includes circa £50 million for both land and buildings, and fixtures, fittings and equipment. Charge on intangible assets was £3 million and there was a £4 million impairment made to fixed assets in the year.

Interest and other finance costs were £14 million in 2024/25 (2024: £22 million). This includes the cost of servicing our long-term borrowing (see note 20 to the financial statements) which is being used to help fund our capital investment plans. The reduction in the year is predominantly due to a £7 million reduction in interest costs on pension schemes as a result of the 2023 USS valuation no longer showing a deficit position.

How we allocate our resources How we allocate our resources
0% 50% 100%
£821m Total £506m
£88m Administration and professional services £8m
£467m Academic and teaching departments £142m
£45m Library, computer and academic support services £22m
£145m Research grants and contracts £132m
£18m Other, including income generating operations £31m
£24m Residences and catering operations £62m
£34m Premises £108m
Staf costs (excluding severance and additional pension service costs) Other operating expenses

The chart shows our staff costs and other operating expenses, and the corresponding proportions, across different types of activity in 2024/25.

39 Annual Report and Accounts 2024/25

Overview Strategy & value model

Operational review

Financial review

Financial statements

Governance

Financial review (continued)

Net assets

Total net assets are £3.1 billion, having increased by £74 million in the year. The net book value of fixed assets increased by £99 million largely accounting for the increase in total net assets. This is a reflection of the University’s investment in its land and buildings and spend of close to £150 million in the year. Additionally, there was £57 million of spend on fixtures, fittings and equipment.

Endowments

In the year to 31 July 2025, the Endowment and Investment fund unit price grew by 11 per cent. The value of the Endowment and Investment fund grew to £605 million (2024: £580 million).

The Investment Committee regularly reviews the fund managers and asset categories in the unitised fund to diversify risk while optimising returns.

All of the University’s fund managers are signatories to the United Nations Principles of Responsible Investment (UNPRI).

More information: Responsible Investment Policy

Treasury and cashflow

The University manages its treasury funds through cash and cash equivalents balances and investments in both current and non-current assets. Management and investment of treasury funds allow the University to generate investment income that contributes to surplus achieved in the year.

Cash and cash equivalents reduced by £23 million in the year, however total treasury funds have reduced by a greater amount as amounts invested in non-current assets also reduced by £43 million in the year.

Driving the £66 million reduction in total treasury funds was investment in

capital expenditure of over £200 million, which exceeded £96 million EBITDA generated in the year.

The University cash and cash equivalents balance as at 31 July 2025 was £217 million (2024: £240 million) with movements reported in the statement of cash flows presented in the chart below.

The University is careful to manage its cash balances to ensure it is not in breach of financial covenants with any lenders; and also to ensure adequate resources are available to fund our ongoing obligations and investment plans.

It should be noted that a substantial amount of our cash and cash equivalents is restricted and must be used under the terms in which we received it. For example, research purposes or donations with specific requirements.

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----- Start of picture text -----
Cash flow statement
400
300
53
240
200 100
217
(169)
100
£m 0
Opening Cash Operating Fixed Asset [Other Investing ] Financing Closing Cash
1 August 2024 Activities [1] Investing Activities [2] Activities [3] Activities [4] 31 July 2025
Total Inflow Outflow
----- End of picture text -----

  1. Inflow on operating activities substantially reflects EBITDA generated and working capital movements in the year excluding new endowment cash received and the interest received on our treasury investments. 2. Fixed asset investing activities is payments made to acquire fixed assets, net of capital grant receipts and disposals. 3. Inflow on other investing activities relates to purchases and sales of non-current investments and the interest received on our treasury investments. 4. Outflow on financing activities relates to the new endowment cash we received and the payments made to service our debt.

40 Annual Report and Accounts 2024/25

Overview Strategy & value model Operational review Financial review Governance

Financial statements

Financial review (continued)

Actuarial gain

Update on Pensions

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----- Start of picture text -----
||| |---|---| |£m| |University of Edinburgh Staff Benefits Scheme (EUSBS)|26| |Lothian Pension Fund|1| |Strathclyde Pension Fund|3| |Total gain|30|

----- End of picture text -----

Pension schemes in the UK are required to undertake a formal valuation every three years to establish the scheme’s assets and liabilities. The assets represent investments that are made in order to fund pensions (funded by employer and member contributions) and the liabilities relate to the amounts expected to be paid out to pensioners over time.

this journey through a voluntary severance scheme that will result in reduced costs from 2025/26 onwards and in the last year our spend on other operating expenditure was notably reduced.

Certain assumptions are used to value the future liabilities and assets belonging to each pension scheme. These estimates reflect changes to the actuary’s assumptions as a result of another year’s experience. The actuarial gain of £30 million is broken down as per the table above (see note 33 for further details on the individual pension schemes).

The Universities Superannuation Scheme (USS) struck its latest valuation as at 31 March 2023. The 2023 valuation resulted in the scheme moving to a surplus position.

The University’s governing body, the University Court, has comprehensive arrangements in place to monitor, assess and ensure the institution’s on-going financial sustainability. We model various impact scenarios on the University’s financial position with a focus on existing and emerging risks and opportunities to test the University’s financial strength. Through careful management of our cost base and risks faced we are confident we will remain a going concern, meet our short and longerterm commitments and financially support strategic objectives set.

Following the conclusion of the valuation, the University is no longer required to make deficit reduction contributions or hold a balance sheet provision for future deficit reduction payments.

Institutional sustainability

Our financial statements are prepared on a going concern basis, which is an accounting term that means we have the resources to meet our obligations and continue to operate for a period of no less than 12 months from the date of approval of the financial statements. There are many challenges of both a financial and non-financial nature that we and the rest of the higher education sector currently face. Despite these, we remain confident that the University remains a going concern, and work continues to secure ongoing financial sustainability.

The most recent valuation for our inhouse Edinburgh University Staff Benefit Scheme (EUSBS) was as at 31 March 2024 and similar to USS, the scheme has moved from a deficit position at its last valuation to a small surplus position.

An outcome from the valuation is a change to employer and employee contribution rates with both the University and members now contributing to the scheme at a lower rate.

Outlook

Financial year 2024/25 has been another challenging year for the University and the sector. EBITDA achieved was below our key metric target and surplus before other gains and losses reduced.

The University has recorded an actuarial gain on its funded pension schemes of £30 million in the year (2024: £13 million loss). Actuarial gains and losses are non-cash movements and are an outcome from changes in the estimated value of the assets and liabilities in the University’s own defined benefit pension scheme. Any gain or loss is not a measure of the University’s operational financial performance.

Expenditure growth in 2024/25 again outpaced income growth, continuing the trend in recent years. There are many contributing factors, however such a trend is unsustainable over a prolonged period and is why the University is taking action to manage its cost base. We have started on

Without further management of our cost base, this position is forecast to worsen in 2025/26 as a result of the continuing impact of inflation, annual pay award and changes to pay scale implemented in 2024. It is for this reason that the University is actively and constructively addressing our cost base and has set financial budgets that grow our surplus and an outcome where growth in expenditure no longer exceeds growth in income.

The University faces a significant financial challenge, but through actions already taken and plans for the future, we are well placed to respond to these challenges through the next financial year and beyond.

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Collaborative working at the new Edinburgh Futures Institute building
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41 Annual Report and Accounts 2024/25

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Financial review

Financial statements

Overview

Governance

Governance

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42 Annual Report and Accounts 2024/25
'Women of Achievement' plaque for Jane Welsh Carlyle at 23 George Square
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Overview Strategy & value model Operational review Financial review Governance

Financial statements

Corporate governance statement

The University is committed to the highest standards of corporate governance relevant to the higher education sector. In the opinion of Court, the University complied with all the principles and provisions of the Scottish Code of Good Higher Education Governance (2023), throughout 2024/25.

University governance

The University of Edinburgh is constituted by the Universities (Scotland) Acts 1858 to 1966. The Universities (Scotland) Acts make specific provision for three major bodies in the governance of the University: Court, Senate and General Council.

University Court

From 3 February 2025, the University Court had 23 members.[1] The Rector, who is elected by staff and students of the University, presides over meetings of Court. The Senior Lay Member of Court is responsible for the leadership of the University Court and chairs the business items at Court meetings. The Senior Lay Member was appointed by an open, transparent recruitment process, managed by the Nominations Committee, which included involvement by staff and students, followed by an election with an electorate of all staff, students and Court members. In line with the Scottish Code of Good Higher Education Governance, the Intermediary Member of Court is responsible for leading the appraisal of the Senior Lay Member. The Principal is an exofficio member and acts as the Chief Executive Officer of the University and its Accountable Officer. The remaining members are: one elected academic staff member; one elected professional services staff member; one academic and one professional services staff member nominated by a trade union; two academic staff members elected by the Senatus Academicus; two student

members; one member nominated by the City of Edinburgh Council who is not to be a member of staff or student of the University; one member nominated by the Chancellor of the University; three members appointed by the University Court who are members of the General Council; and seven to nine members appointed by the University Court.

More information: Membership of Court

The University participates in the Perrett Laver Governance Apprenticeship Programme to improve the diversity of university governing bodies by placing a candidate from an underrepresented group who demonstrates great potential but has little or no board experience as a board apprentice for a 12-month period. A Governance Apprentice was appointed and attended Court meetings throughout 2024/25.

More information: Court members’ Skills Register

The University has a long-standing commitment to equality, diversity and inclusion and promoting a positive environment, which ensures fairness, challenges prejudice, and celebrates difference. The University’s Equality Outcomes 2025-29, approved by Court on 28 April 2025, align with Strategy 2030 and reflect the University’s priorities with regard to equality, diversity and inclusion.

More information: Equality Outcomes 2021-2025

Court has an Equality and Diversity Policy and a plan to improve the diversity of its membership. Court vacancies are widely advertised, including through the Women on Boards and Changing the Chemistry platforms; Court members submit equality monitoring information and a skills and experience selfassessment and this is used to inform the recruitment of new members; and all advertisements for new members include an equality and diversity statement, encouraging a diversity of applications and an offer to meet all reasonable expenses including childcare costs. This is reported in the publicly available Equality Outcomes and Mainstreaming Progress Report 2023:

More information: Equality Outcomes 2021-2025 and Mainstreaming Progress Report 2023

The University provides a report to the Scottish Government in April every two years in accordance with the requirements of the Gender Representation on Public Boards (Scotland) Act 2018. Training and development opportunities are made available as appropriate for all Court members throughout the year and an informal mentoring scheme for new Court members is also in operation.

Court is committed to ensuring ethical standards in public life. On joining Court, members are required to sign a statement confirming that they will comply with the University’s Code of Conduct, which includes the Nine Principles of Public Life in Scotland.

1 General Council Assessor Douglas Alexander stood down following his appointment as Minister of State at the Department for Business and Trade. There was an open and competitive recruitment process overseen by a joint University Court and General Council Selection Panel to appoint a successor.

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Financial statements

Governance

Corporate governance statement (continued)

Court maintains a Register of Interests of its members and senior University officers. The current interests of members of the Court are published on the University’s website.

More information: Register of Interests

Court met on six occasions during 2024/25. In addition to the five regularly scheduled meetings, which were held in-person, a special meeting was conducted via videoconference on the University’s approach to responsible investment. Between meetings, any urgent matters which required Court’s approval were dealt with by the Exception Committee, which has delegated authority to enable decisions to be taken between Court meetings. Court seminars were held in October 2024 and in February 2025 on:

Recognising the financial pressures across the sector, in June 2025 Court approved a 2025/26 and 2026/27 financial budget aligned with delivery of the University’s financial sustainability plan and continues to monitor delivery of this.

Members were kept informed, by electronic means, of any significant issues affecting the University between meetings.

At the start of 2025/26, Court considered the ‘lessons for the sector’ set out in the report into financial oversight and decision-making at the University of Dundee. Based on a detailed review, Court received reassurance that the University’s processes and practices were consistent with those recommended in the reports ‘lessons for the sector’. This reassurance was also taken in the context of the University's processes for continuous improvement. In the area of governance, these include annual internal reviews and quinquennial externally facilitated reviews.

Court has overall responsibility for the University’s strategic development. Strategy 2030 sets out our vision to

...overall, Court and its committee structure is effective. Court and its committees are discharging their responsibilities effectively and the overall structure is fit-for-purpose...

deliver excellence in 2030 and Court is actively engaged in monitoring progress of its delivery. At its meeting on 2 December 2024, Court reviewed the 2023/24 year end report on the agreed Strategy 2030 Performance Measures and at its meeting on 28 April 2025, Court considered a mid-year update on the Performance Measures for 2024/25.

Court News is published after each Court meeting on the University website, highlighting key items considered by Court. At each meeting Court receives a report from the Students’ Association President outlining activities and matters arising from the student body and also receives a separate report from the President of the Sports Union.

Performance evaluation

There was an external review of Court’s effectiveness in 2023/24 facilitated by Dr Veena O’Halloran, former University Secretary and Compliance Officer at the University of Strathclyde. The report was approved by Court on 17 June 2024 and is published on the University website. The report concluded: "Overall, Court and its committee structure is effective. Court and its committees are discharging their responsibilities effectively and the overall structure is fit-for-purpose."

The report included some recommendations of areas for consideration and Court agreed that Nominations Committee would act as a working group to consider these in more detail. At its meeting on 2 December 2024, Court

approved Nominations Committee’s change of name to Governance and Nominations Committee to reflect practice and to formally include in its remit consideration of governance arrangements relating to Court and its committees. At its meeting on 23 June 2025, Court approved reforms to the form and content of Court and committee papers, in response to recommendation from the external review and based on member feedback.

At its 2 December 2024 meeting, Court considered an internal review of Court’s effectiveness for the 2022/23 academic year which considered compliance with the Higher Education Governance (Scotland) 2016 Act and the Scottish Code of Good Higher Education Governance 2023). The review also included the outcome of individual discussions which the Senior Lay Member and Vice-Principal and University Secretary had held with Court members over the course of summer 2024.

Senate’s effectiveness

Senate conducted a review of its effectiveness in 2023/24 through a short questionnaire to Senate members and a separate short questionnaire to Senate Standing Committee members. Their responses were collated and feedback, analysis and proposed actions were presented to Senate on 9 October 2024 and subsequently to Court in December 2024.

In response to the Advance HE externally facilitated review of Senate effectiveness, which took place in 2022/23, Senate established the Senate External Review Task and Finish Group at its February 2024 meeting. This group was given responsibility for developing and taking forward actions in response to the recommendations in the Advance HE report. Throughout its period of operation, the Task and Finish Group provided reports to each meeting of Senate with Court receiving progress updates via the routine Senate Report to Court. The Group’s final report was presented to the 1 October 2025 meeting of Senate.

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Overview Strategy & value model Operational review

Financial review Governance

Financial statements

Corporate governance statement (continued)

Committee structure

Standing committees

Audit and Risk Committee

University Court

University Court, the University’s governing body, is a body corporate, with perpetual succession and a common seal. The present powers of the Court are defined in the Universities (Scotland) Act (1966) and include the amendment of the composition, powers and functions of bodies in the University and the creation of new bodies, the administration and management of the whole revenue and property of the University, internal arrangements of the University, staff appointments and, on the recommendation of Senate, the regulation of degrees, admission and discipline of students. It is responsible for ensuring that the Senate has in place effective arrangements for academic quality assurance and enhancement.

Joint Committee of Senate and Court

Convener: Douglas Millican, Lay Member of Court

The Audit and Risk Committee’s purpose is to review the effectiveness of the University’s corporate governance arrangements, financial systems, internal control environment and risk management arrangements and provide assurances where appropriate to Court on these areas.

Exception Committee

Convener: Janet Legrand OBE KC (Hon), Senior Lay Member

The Exception Committee’s purpose is, under delegated authority, to make decisions which would otherwise require Court approval between meetings of Court, subject to defined principles and on the understanding that any matter so referred can be referred to the full Court should this be the wish of the Exception Committee.

Nominations Committee/Governance and Nominations Committee

Convener: Janet Legrand OBE KC (Hon), Senior Lay Member

Governance and Nominations Committee’s purpose is to make recommendations to Court on the appointment of co-opted members of Court, the Court’s nominations of Curators of Patronage and the filling of vacancies as these arise in the Standing Committees of Court; and to consider governance arrangements relating to Court and its committees, as delegated by Court, and make recommendations to Court as appropriate.

Policy and Resources Committee

Convener: Janet Legrand OBE KC (Hon), Senior Lay Member

The Policy and Resources Committee’s purpose is to provide strategic oversight of the University’s financial, investment, estates and people affairs and to advise Court on any other business of particular importance or complexity.

Remuneration Committee

Convener: Hugh Mitchell, Lay Member of Court

The Remuneration Committee advises Court and oversees the preparation of policies and procedures in respect of salaries, emoluments and conditions of service including severance arrangements for the University’s senior management including the Principal and those at professorial or equivalent level and to keep these under review. Details of the operation of the Remuneration Committee and the policy adopted for senior pay, including that of the Principal are set out in the Remuneration Committee Framework.

Knowledge Strategy Committee

Convener: Vice-Principal Students Professor Colm Harmon, Senate appointee (interim Convener) The Knowledge Strategy Committee’s purpose is to oversee the University’s knowledge management activities in the areas of Library, Information Technology, technology enhanced learning, Management Information and e-Administration on behalf of Court; and to give initial consideration to and advise on any other Court business in respect of the University’s knowledge management activities. At its meeting on 23 June 2025, Court agreed that Knowledge Strategy Committee be stood down from 1 August 2025 with its business conducted by its existing three sub-committees and escalated to Senate and/or Court as appropriate, to reduce duplication and time demands on those serving on and supporting committees.

Education Committee

Convener: Vice-Principal Students Professor Colm Harmon

The Senate

The Senate is the academic authority of the University and draws its membership from the academic staff and students of the University. Its role is to superintend and regulate the teaching and discipline of the University and to promote research. The Principal presides at meetings of the Senate.

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The Education Committee is responsible, on behalf of Senate, for taught and research student matters, particularly strategy and policy concerning learning, teaching and the development of curriculum.

Academic Policy and Regulations Committee

Convener: Professor Patrick Hadoke, Director of Postgraduate Research and Early Career Research Experience (CMVM)

The Academic Policy and Regulations Committee is responsible, on behalf of Senate, for the University’s framework of academic policy and regulation, apart from those aspects which are primarily parts of the Quality Assurance Framework.

Quality Assurance Committee

Convener: Deputy Vice-Principal Students (Enhancement) Professor Tina Harrison The Quality Assurance Committee is responsible, on behalf of Senate, for the framework which assures standards and enhances the quality of the student learning experience.

Senate Exception Committee

Convener: Professor Sir Peter Mathieson, Principal and Vice-Chancellor

The Exception Committee’s purpose is, under delegated authority, to make urgent formal business decisions which would otherwise require Senate approval between meetings of Senate subject to defined principles and on the understanding that any matter so referred can be referred to the full Senate should this be the wish of the Exception Committee.

Senate Business Committee

Convener: Professor Kim Graham, Provost

The remit of the Senate Business Committee is to provide an effective and transparent agenda setting process for meetings of the Senate; and to scrutinise papers prior to consideration by Senate.

45 Annual Report and Accounts 2024/25

Overview Strategy & value model

Operational review

Financial review

Financial statements

Governance

Corporate governance statement (continued)

Standing Committees

Thematic committees

Risk Management Committee

Audit and Risk Committee

Convener: Dr Catherine Martin, Vice-Principal Corporate Services The role of the Risk Management Committee is to support and advise Audit and Risk Committee and through it the Court, on the implementation and monitoring of the risk management policy.

Estates Committee

Convener: Dr Frank Armstrong, Lay Member of Court

Policy and Resources Committee

The Estates Committee’s purpose is to oversee the University’s physical and digital estate in order that it can support world-class academic, teaching and research activity.

Investment Committee

Convener: Alastair Laing, External Member The role of the Investment Committee is to consider the corporate governance and other related implications of the University’s investments.

Each of these Committees is formally constituted with terms of reference and conducts its business both through regular meetings and by electronic communication when appropriate.

University Senate

The core function of Senatus Academicus (Senate) is to regulate and superintend the teaching and discipline of the University and to promote research. Senate is chaired by the Principal and Vice-Chancellor and meets at least four times per year. Business is conducted between meetings via meetings of Electronic Senate.

More information: Senate

General Council

The General Council consists mainly of graduates of the University of Edinburgh, includes eligible academic staff and a more limited number from other related categories. It has a statutory right to comment on matters which affect the well-being and prosperity of the University and to be consulted on Ordinances and Resolutions. In so doing, it ensures that graduates of the University have a continuing voice in the management of its affairs. There are three General Council Assessors on Court, appointed following an open advertisement and recruitment process overseen by a joint CourtGeneral Council Selection Panel. It is also responsible for election of the Chancellor. An Ordinance to update the membership of the General Council, including widening membership to those graduating with other academic awards and not only degrees and

offering parity of membership between academic and professional services staff was approved by the Privy Council on 5 February 2025 and will be implemented in the next academic year.

More information: General Council

University Executive

The University Executive is chaired by the Principal and is the main executive decision-making forum for the University. Membership includes the major budget holders in the University, Vice-Principals, senior professional services staff, the Students’ Association President and representation from Heads of Schools from each of the three Colleges. It brings together the academic, financial, human resources and accommodation aspects of planning and it is responsible for managing the University’s performance and for assisting the Principal in delivery of the University’s strategy. The University Executive also provides advice and views on proposals and reports and ensures a consistent approach to activity across the University.

The University’s system of internal control

The University Court is responsible for the University’s system of internal control and for reviewing its effectiveness. Such a 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 internal control environment includes delegated authorities, policies, procedural and system controls, planning and budgetary processes, professional capability in specialist areas, governance structures and management reporting. A Delegated Authority Schedule lists those committees or individuals to whom authority has been delegated by the University Court to commit the University to a contractual or quasicontractual arrangements within approved budget limits.

The senior management team receives regular reports on the University’s performance, including appropriate performance indicators, and considers any control issues brought to its attention by early warning mechanisms which are embedded within the operational units and reinforced by risk awareness training. The senior management team and the Audit and Risk Committee also receive regular reports from Internal Audit which include recommendations for improvement.

The University operates processes for the identification, evaluation and management of significant risks. The University’s Risk Management Framework consists of the standards, policies, culture, responsibilities, and governance and reporting structures within which the risk management

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Corporate governance statement (continued)

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process is applied. The risk management framework established in the University includes a Risk Management Committee which reports to the Audit and Risk Committee. The Audit and Risk Committee is a Standing Committee reporting directly to Court and has oversight of risk management arrangements based on advice and information from the Risk Management Committee. Strategic direction for Risk Management is set by University Court, and is detailed in the University of Edinburgh Risk Management Policy & Appetite Statement. Further information on the University’s Risk Management framework, policies, guidance and practical risk management tools can be viewed at:

° More information: ~~a~~ Risk management information

By its 1 December 2025 meeting, Court had received the Audit and Risk Committee Report for the year ended 31 July 2025 and information from the Risk Management Committee; it also had

taken account of relevant events since 31 July 2025. During 2024/25, the Audit and Risk Committee was responsible for advising Court on the effectiveness of policies and procedures for risk assessment and risk management arrangements. Court considers, on the recommendation of the Audit and Risk Committee, that a risk management process compliant with the guidance provided by the Scottish Code of Good Higher Education Governance has been in place throughout the year ended 31 July 2025. Specific guidance includes:

to take. The University should maintain a risk register and make a risk management disclosure in annual financial statements; and

Court’s review of the effectiveness of the system of internal control has also been informed by the following:

47 Annual Report and Accounts 2024/25

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Corporate governance statement (continued)

Charitable status

The University had charitable status (No. SC005336) under the legislative framework operative throughout the 2024/25 financial year. The University’s endowments are administered as the University of Edinburgh Endowment Fund, overseen by the Investment Committee. Professional fund managers are employed by that Committee on behalf of the University Court. Investment income is applied for the specific purposes of the relevant endowments, or in the case of other investment funds, for the University’s general purposes. All of those purposes are charitable for the purposes of the legislation.

Income derived from philanthropic donations and benefactions arising from the University’s Development activities are disbursed by a trust with separate charitable status, The University of

Edinburgh Development Trust. The Board of Trustees includes members of the University Court. All disbursements are applied for the specific purposes of the relevant donations and benefactions, or in the case of general donations and benefactions, for the University’s general purposes. All of those purposes are charitable for the purposes of the legislation.

Going concern

The University’s activities and the factors likely to affect its future development, performance and position are set out in the financial review. Its financial performance for the year to 31 July 2025, income and expenditure, assets, liquidity and cash flows are set out in more detail in the Notes to the Financial Statements.

The University has adequate financial resources and its current forecasts and projections show it to be able to manage its activities successfully having taken account of risks and uncertainties highlighted in the Annual Report and Accounts. Court considers that the University has adequate resources to continue in operation and for this reason the going concern basis continues to be adopted when preparing the Accounts. The University also prepared a severe but plausible downside scenario as part of the going concern assessment.

Responsibilities of Court

On 12 May 2014 Court adopted a Statement of Primary Responsibilities published on the University website. This was in operation throughout 2024/25.

More information: Responsibilities of Court

Statement of responsibilities relating to the reports and financial statements

The detailed requirements relating to financial matters are governed by law,

agreements and regulations as decreed by various bodies and are stated as follows:

Court is responsible for keeping proper accounting records, which disclose, with reasonable accuracy, the financial position of the University at any time and enable it to ensure that the financial statements are prepared in accordance with the Universities (Scotland) Acts 1858-1966, the Statement of Recommended Practice: Accounting for Further and Higher Education and other relevant accounting standards. In addition, within the terms and conditions of a Financial Memorandum agreed between the Scottish Funding Council and the Court of the University of Edinburgh, the University Court, through its designated office holder, is required to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the University and of the surplus or deficit and cash flows for that year.

In causing the financial statements to be prepared, Court has to ensure that:

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Janet Legrand OBE KC (Hon) Senior Lay Member of Court

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Corporate governance statement (continued)

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Membership of the University Court 2024/25 Committee Committee
Court meetings memberships memberships
attended 2024/25 2025/26
Rector Simon Fanshawe 6/6
Principal and Vice-Chancellor Professor Sir Peter Mathieson 6/6 [PRC] [EXC] [NC] [PRC] [EXC]
Senior Lay Member Janet Legrand OBE KC (Hon) 6/6 [PRC] [EXC] [NC] [RC] [PRC] [EXC] [RC]
Chancellor’s Assessor
Nominated by Chancellor Alastair Dunlop 6/6 ARC ARC
General Council Assessors
Three Assessors who are members of David Ovens (from 3 February 2025) 3/3 PRC
the General Council, appointed by a Jock Millican 4/6 PRC EXC IC PRC EXC IC
joint Court/General Council selection
panel for terms of ofice of four years Sarah Wolffe 5/6 NC
Senatus Academicus Assessors
Two Assessors elected by the Senate Dr Shereen Benjamin 6/6 KSC
for terms of office of four years KSC
Professor Richard Blythe 6/6
Academic Staff Member
Elected by academic staff for a Professor Tobias Kelly 5/6 RC RC
period of four years
Professional Services Staff Member
Elected by professional services staff Sarah McAllister 5/6 KSC NC
for a period of four years
Trades Union Members
One academic and one professional Mark Patrizio 6/6
services staff member nominated by a PRC EXC PRC EXC
Dr Kathryn Nash 6/6
trade union for a period of four years
City of Edinburgh Council Assessor
One Assessor nominated by City of The Rt Hon Robert Aldridge 1/6
Edinburgh Council
Co-Opted Members
Seven members appointed by Court Dr Frank Armstrong 4/6 PRC EC RC
for a term of office of four years Douglas Millican 6/6 ARC EXC NC RC ARC EXC [RC]
Hugh Mitchell 4/6 PRC EXC NC RC ARC EXC [RC]
Ruth Girardet 6/6 PRC PRC IC
Alistair Smith 4/6 EC
Rushad Abadan 5/6 ARC ARC
Kavi Thakrar 4/6
Student Members
Annually nominated by the Students’ Dora Herndon (to 8 June 2025) 5/5 PRC EXC NC RC PRC EXC [RC]
Association from among sabbatical Ruth Elliott (to 8 June 2025) 5/5
officers Ash Scholz (from 9 June 2025) 1/1 PRC EXC NC RC PRC EXC [RC]
Katya Amott (from 9 June 2025) 1/1
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Further information and biographies of Members of the University Court 2025/26 can be found on the Membership of Court.

Audit and Risk Committee ARC Knowledge Strategy Committee Estates Committee EC Nominations Committee Exception Committee EXC Policy and Resources Committee Governance and Nominations Committee Remuneration Committee Investment Committee IC

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Corporate governance statement (continued)

Attendance at Standing Committees 2024/25

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Audit and Risk Meetings
Committee attended
Lay Members of Court Douglas Millican 4/4
Rushad Abadan 2/4
Alastair Dunlop 4/4
External Members
Appointed through an Ross Millar 4/4
open advertisement and
interview process Grant Macrae 4/4
Nominations Meetings
Committee attended
The Principal Professor Sir Peter Mathieson 3/3
Senior Lay Member Janet Legrand OBE KC (Hon) 3/3
(Convener)
University Secretary Leigh Chalmers 3/3
Staff Member of Court Sarah McAllister 3/3
General Council Assessor Sarah Wolffe 2/3
Lay Members of Court Douglas Millican 3/3
Hugh Mitchell 3/3
Student Member of Court Dora Herndon 3/3
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Policy and Resources Meetings
Committee attended
Senior Lay Member Janet Legrand OBE KC (Hon) 5/5
(Convener)
The Principal Professor Sir Peter Mathieson 5/5
University Secretary Leigh Chalmers 5/5
Staff Member of Court Kathryn Nash 4/5
Provost Professor Kim Graham 4/5
General Council Assessor Jock Millican 4/5
Lay Members of Court Dr Frank Armstrong 5/5
Ruth Girardet 5/5
Hugh Mitchell 5/5
Student Member of Court Dora Herndon 5/5
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Knowledge Strategy Meetings
Committee attended
Chief Information Officer Gavin McLachlan 4/4
Students’ Association Dylan Walch 2/4
Representative
Members of Court Dr Shereen Benjamin 0/4
Sarah McAllister 3/4
Professor Richard Blythe 3/4
Members of Senate Professor Colm Harmon 4/4
(interim Convener)
Professor Tina Harrison 3/4
Professor Patrick Hadoke 3/4
Professor Siân Bayne 0/4
Melissa Highton 2/4
Remuneration Meetings
Committee attended
Senior Lay Member Janet Legrand OBE KC (Hon) 3/3
Lay Members of Court Hugh Mitchell (Convener) 3/3
Douglas Millican 3/3
Dr Frank Armstrong 3/3
Students’ Association Dora Herndon 1/3
Representative
Staff Member of Court Professor Tobias Kelly 3/3
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Exception Committee Meets by email circulation
The Principal Professor Sir Peter Mathieson
University Secretary Leigh Chalmers
Senior Lay Member Janet Legrand OBE KC (Hon)
(Convener)
Convener of Audit and Risk Douglas Millican
Committee
Convener of Remuneration Hugh Mitchell
Committee
General Council Assessor Jock Millican
Staff Member of Court Kathryn Nash
Student Member of Court Dora Herndon
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Full details of terms of reference and Committee membership are published on the Court and its Committees.

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Independent auditors’ report to the Court of The University of Edinburgh (the “institution ” )

Report on the audit of the financial statements

Opinion

In our opinion, the University of Edinburgh’s group financial statements and institution financial statements (the “financial statements”):

We have audited the financial statements, included within the Annual Report and Accounts (the “Annual Report”), which comprise the Consolidated and Institution statement of financial position as at 31 July 2025; the Consolidated and Institution statement of comprehensive income and expenditure, the Consolidated and Institution statement of changes in reserves, and the Consolidated statement of cash flows for the year then ended; and the notes to the financial statements, which include a description of the significant accounting policies.

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 institution’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 Court’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’s and institution’s ability to continue as a going concern.

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

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Independent auditors’ report to the Court of The University of Edinburgh (the “institution ” ) (continued)

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 Court 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 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.

Annual Report

Under the Charities Accounts (Scotland) Regulations 2006 (as amended) we are required to report to you if, in our opinion, the information given in the Annual Report 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 Court for the financial statements

As explained more fully in the Statement of responsibilities relating to the reports and financial statement set out on page 48, the Court 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 Court 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 Court is responsible for assessing the group’s and institution’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 Court either intends to liquidate the group and institution 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 auditors under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Acts 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 institution/industry, we identified that the principal risks of non-compliance with laws and regulations related to employment laws , 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 and Trustee Investment (Scotland) Act 2005 and regulations 6 and 14 of the Charities Accounts (Scotland) Regulations 2006 (as amended). 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 overstatement of the reported surplus. Audit procedures performed included:

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Independent auditors’ report to the Court of The University of Edinburgh (the “institution ” ) (continued)

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of noncompliance 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 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 institution’s Court as a body in accordance with section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and regulations made under that Act (regulation 10 of the Charities Accounts (Scotland) Regulations 2006 (as amended) 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

Opinions on other matters prescribed in the requirements attached to the Scottish Funding Council’s Financial Memorandum

In our opinion, in all material respects:

Charities Accounts (Scotland) Regulations 2006 (as amended) exception reporting

Under the Charities Accounts (Scotland) Regulations 2006 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 Edinburgh 9 December 2025

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Financial statements

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54 Annual Report and Accounts 2024/25
Exterior of The Roslin Institute building at Easter Bush
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Overview Strategy & value model Operational review

Financial review Governance

Financial statements

Consolidated and Institution statement of comprehensive income and expenditure

For the year ended 31 July 2025


income and expenditure
For the year ended 31 July 2025

Note(s)		 2025 2024
Consolidated
£m
Institution
£m		 Consolidated
£m
Institution
£m
Income
Tuition fees and education contracts
3
Funding body grants
4
Research income
5
Other income
6
Investment income
7
Donations and endowments
8		 527.2
527.2
208.7
208.7
365.2
365.2
238.2
197.0
64.4
62.7
30.1
25.0
556.5
556.5
206.8
206.8
375.4
375.4
261.3
220.6
54.3
54.5
22.3
23.2
Total income 1,476.6
1,437.0		 1,433.8
1,385.8
Expenditure
Staff costs excl. movement on USS pension provision
9
Exceptional item: movement on USS pension provision1
9
Other operating expenses
10
Depreciation, amortisation and impairment
13 & 14
Interest and other finance costs
11		 755.9
727.3
(352.4)
(352.4)
540.2
528.4
91.0
88.6
21.6
21.6
829.4
799.7
-
-
505.6
505.7
107.5
105.8
14.0
14.0
Total expenditure 1,456.5
1,425.2		 1,056.3
1,013.5
Surplus before other gains and losses
Loss on disposal of fixed assets
Gain on investments
16		 377.5
372.3
-
-
29.0
27.8
20.1
11.8
(2.7)
(2.6)
28.0
28.7
Surplus before tax
Taxation
12		 45.4
37.9		 406.5
400.1
(0.8)
-
(0.7)
-
Surplus for the year
Actuarialgain/(loss) in respect ofpension schemes2
21		 44.7
37.9		 405.7
400.1
(12.9)
(12.9)
29.6
29.6
Total comprehensive income for theyear 74.3
67.5		 392.8
387.2
Represented by:
Unrestricted comprehensive income for the year
Endowment comprehensive income for the year
22
Restricted comprehensive(expenditure)/income for theyear
23		 336.4
332.0
20.6
20.6
35.8
34.6
60.7
56.0
24.4
24.4
(10.8)
(12.9)
74.3
67.5		 392.8
387.2

Notes to table

  1. The USS pension provision was fully released in the prior year following the conclusion of the 2023 actuarial valuation which determined that no further deficit recovery payments were due. The movement on the USS pension provision is not a measure of the University’s operational financial performance or surplus generation.

  2. The actuarial gain/(loss) is a non-cash movement that is derived from year-on-year revisions to the estimated value of the pension scheme assets and liabilities of the University’s defined benefit pension schemes. It is not a measure of the University’s operational financial performance or surplus generation.

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Consolidated and Institution statement of changes in reserves For the year ended 31 July 2025

Consolidated Income and expenditure account
Revaluation
reserve
£m
Total
£m
Endowment
£m
Restricted
£m
Unrestricted
£m
Balance as at 1 August 2023
Surplus from the income and expenditure statement
Other comprehensive income		 559.8
63.1
1,827.5
208.4
2,658.8
6.1
35.8
335.6
-
377.5
14.5
-
0.8
-
15.3
Total comprehensive income
for the year		 20.6
35.8
336.4
-
392.8
Balance as at 1 August 2024
(Deficit)/surplus from the income and expenditure
statement
Other comprehensive income
Transfers		 580.4
98.9
2,163.9
208.4
3,051.6
(5.7)
(3.3)
28.4
-
19.4
30.1
-
24.8
-
54.9
-
(7.5)
7.5
-
-
Total comprehensive income/(expenditure)
for the year		 24.4
(10.8)
60.7
-
74.3
Balance as at 31 July 2025 604.8
88.1
2,224.6
208.4
3,125.9

Institution

Institution Income and expenditure account
Revaluation
reserve
£m
Total
£m
Endowment
£m
Restricted
£m
Unrestricted
£m
Balance as at 1 August 2023
Surplus from the income and expenditure statement
Other comprehensive income		 559.8
40.7
1,806.5
208.4
2,615.4
6.1
34.6
331.6
-
372.3
14.5
-
0.4
-
14.9
Total comprehensive income
for the year		 20.6
34.6
332.0
-
387.2
Balance as at 1 August 2024
(Deficit)/surplus from the income and expenditure
statement
Other comprehensive income
Transfers		 580.4
75.3
2,138.5
208.4
3,002.6
(5.7)
(5.4)
22.9
-
11.8
30.1
-
25.6
-
55.7
-
(7.5)
7.5
-
-
Total comprehensive income/(expenditure)
for the year		 24.4
(12.9)
56.0
-
67.5
Balance as at 31 July 2025 604.8
62.4
2,194.5
208.4
3,070.1

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Financial statements

Consolidated and Institution statement of financial position As at 31 July 2025

Note(s) 2025 2024 restated*
Consolidated
£m
Institution
£m		 Consolidated
£m
Institution
£m
Non-current assets
Intangible assets
13
Fixed assets
14
Heritage assets
14 & 15
Investments
16
Pension asset
21		 26.4
26.4
2,151.3
2,138.5
217.5
217.5
969.5
970.3
-
-
23.9
23.9
2,249.9
2,238.4
218.1
218.1
951.7
952.9
21.5
21.5
3,465.1
3,454.8		 3,364.7
3,352.7
Current assets
Stock
Trade and other receivables
17
Investments
18
Cash and cash equivalents
25		 4.6
3.7
330.9
339.4
139.0
139.0
240.1
217.7
4.3
3.4
321.1
332.2
139.0
139.0
217.0
191.0
Creditors: amounts fallingdue within oneyear
19		 681.4
665.6		 714.6
699.8
(476.8)
(499.0)
(484.3)
(514.0)
Net current assets 197.1
151.6		 237.8
200.8
Total assets less current liabilities 3,662.2
3,606.4		 3,602.5
3,553.5
Creditors: amounts falling due after more than one year
20
Pension provisions
21
Otherprovisions
21		 (538.2)
(538.2)
(12.1)
(12.1)
(0.6)
(0.6)
(527.7)
(527.7)
-
-
(8.6)
(8.6)
Total net assets 3,125.9
3,070.1		 3,051.6
3,002.6
Restricted reserves
Income and expenditure reserve - endowment reserves
22
Income and expenditure reserve - restricted reserves
23
Unrestricted reserves
Income and expenditure reserve - unrestricted reserves
Revaluation reserve
24		 580.4
580.4
98.9
75.3
2,163.9
2,138.5
208.4
208.4
604.8
604.8
88.1
62.4
2,224.6
2,194.5
208.4
208.4
Total reserves 3,125.9
3,070.1		 3,051.6
3,002.6

The financial statements on pages 55 to 97 were adopted by Court on 8 December 2025 and were signed on its behalf by:

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Professor Sir Peter Mathieson Principal and Vice-Chancellor

Janet Legrand OBE KC (Hon) Senior Lay Member of Court

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Financial statements

Consolidated statement of cash flows

For the year ended 31 July 2025

Note(s) 2025
£m
2025
£m		 2024
restated*
£m
Cash flow from operating activities
Surplus for the year before tax
Adjustments for non-cash items
Depreciation
14
Amortisation of intangibles
13
Impairment
14
Gain on investments
16
Increase/(decrease) in pension and other provisions
21
Decrease in stock
Decrease/(increase) in debtors
17
Increase in creditors and accruals
19 & 20
Adjustments for investing or financing activities
Investment income
7
Interest payable
11
New endowments received
22
Loss on the sale of fixed assets
Capital grant income		 406.5
87.8
3.2
-
(29.0)
(359.4)
-
(79.8)
53.9
45.4
100.0
3.4
4.1
(28.0)
3.9
0.2
9.8
6.5
99.9 (323.3)
(64.4)
21.6
(5.8)
-
(53.8)
(54.3)
14.0
(8.3)
2.7
(46.1)
(92.0) (102.4)
Cash inflow/(outflow) from operating activities
Taxation
12		 53.3 (19.2)
(0.8)
(0.7)
Net cash inflow/(outflow) from operating activities 52.6 (20.0)

Cash flows from investing activities
Proceeds from sales of tangible assets
Capital grant receipts
Non-current investment disposals
16
Investment income
7
Payments made to acquire intangible assets
Payments made to acquire tangible assets
Non-current investment acquisitions
16
Decrease in short-term deposits
18
Lump sum pension contribution to EUSBS
21		 0.7
53.8
122.9
64.3
(1.0)
(192.5)
(386.6)
150.3
(1.5)
0.5
46.1
1,139.6
54.3
(0.9)
(214.4)
(1,093.8)
-
-

Net cash outflow from investing activities		 (68.6) (189.6)

Cash flows from financing activities
Interest paid
11
New endowments cash received
8
New unsecured loans
Repayments of amounts borrowed
20
Capital element of finance lease payments		 (14.3)
6.2
13.3
(11.2)
-
(14.0)
18.0
-
(11.0)
(0.1)

Net cash outflow from financing activities		 (7.1) (6.0)

Decrease in cash and cash equivalents in the year		 (215.6)
(23.1)

Cash and cash equivalents at the beginning of the year
25
Cash and cash equivalents at the end of the year
25		 455.7
240.1
240.1
217.0

58 Annual Report and Accounts 2024/25

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Governance Financial statements

Notes to the financial statements

1. Statement of Principal Accounting Policies

Basis of preparation

These financial statements have been prepared in accordance with the Statement of Recommended Practice Accounting for Further and Higher Education 2019 (‘the SORP’) and in accordance with Financial Reporting Standard (FRS) 102. The University is a public benefit entity and therefore has applied the relevant public benefit requirement of the applicable accounting standards. The financial statements are prepared in accordance with the historical cost convention (modified by the revaluation of heritage assets and investments).

The financial statements have been prepared on a going concern basis. Court considers this is appropriate as it has comprehensive arrangements in place to monitor, assess and ensure the institution’s sustainability. The University also prepared a severe but plausible downside scenario as part of the going concern assessment.

Judgements made by management in the application of these accounting policies that have a significant effect on the financial statements and estimates with a significant risk of material adjustment in the next year are discussed in note 2.

Basis of consolidation

The consolidated financial statements include the University and all its subsidiaries for the financial year to 31 July 2025. The results of subsidiaries acquired or disposed of during the period are included in the consolidated statement of income and expenditure from the date of acquisition, or up to the date of disposal. Intragroup transactions are eliminated on consolidation. The Group has taken advantage of the exemption within FRS 102 Section 33.1A and has not disclosed transactions with other Group entities where it holds 100 per cent of the voting rights. The Group has taken the exemption permitted under FRS 102 to not produce a cash flow statement for the Institution.

The consolidated statements do not include the income and expenditure of the Edinburgh University Students’

Association as it is a separate charity over which the University does not exert control or dominant influence over policy decisions.

Associated companies and jointly controlled entities are accounted for using the equity method.

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 external customers or the terms of the contract have been satisfied.

Tuition 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 course of an associated academic year following a student’s programme registration.

Bursaries and scholarships are accounted for gross as expenditure and not deducted from income.

Funds the University receives and disburses as paying agent on behalf of a funding body are excluded from the consolidated statement of comprehensive income and expenditure of the University where the University is exposed to minimal risk or enjoys minimal economic benefit related to the transaction.

Government grants, including funding council block grant and research grants from government sources, and other grants and donations, from non-government sources including research grants from nongovernment sources, are recognised within the consolidated statement of comprehensive income and expenditure when the University is entitled to the income and performance-related conditions have been met. Income received in advance of performancerelated conditions is deferred on the balance sheet and released to the consolidated statement of comprehensive income and expenditure in line with such conditions being met.

Other grants and donations from nongovernment sources, including research grants from non-government sources, are recognised within the consolidated

statement of comprehensive income and expenditure 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 deferred on the balance sheet and released to the consolidated statement of comprehensive income and expenditure when such conditions are met.

Donations and endowments are non-exchange transactions without performance-related conditions. Donations and endowments with donor-imposed restrictions are recognised within the consolidated statement of comprehensive income and expenditure when the University is entitled to the income. 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.

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 restriction applied to the individual endowment fund. Investment income is credited to the consolidated statement of comprehensive income and expenditure when received.

Donations with no restrictions are recorded within the consolidated statement of comprehensive income and expenditure when the University is entitled to the income.

Donations and endowments with restrictions are classified as restricted reserves with additional disclosure provided within the notes to the financial statements.

There are four main types of donations and endowments with restrictions:

  1. Restricted donations - the donor has specified that the donation must be used for a particular objective.

  2. Unrestricted permanent endowments - the donor has specified that the fund is to be permanently invested to generate an income stream for the general benefit of the University.

59 Annual Report and Accounts 2024/25

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Notes to the financial statements (continued)

1. Statement of Principal Accounting Policies (continued)

Income recognition (continued)

  1. Restricted expendable endowments - the donor has specified a particular objective other than the purchase or construction of tangible fixed assets, and the University can convert the donated sum into income.

  2. Restricted permanent endowments - the donor has specified that the fund is to be permanently invested to generate an income stream to be applied to a particular objective.

Where capital funding is received or receivable the income recognition is dependent on whether the University entitlement to the funds is subject to any performance-related conditions being met. Funding is recognised within the consolidated statement of comprehensive income and expenditure when any performance-related conditions have been met. Funding received in advance of performancerelated conditions is deferred on the balance sheet and released to the consolidated statement of comprehensive income and expenditure in line with such conditions being met. In the absence of performance-related conditions, capital funding is recognised as income in line with other donations with donor-imposed restrictions and recognised within the consolidated statement of comprehensive income and expenditure when the University is entitled to the funding. The income is retained within the restricted reserve until such time that it is utilised in line with such restrictions, at which point it is released to general reserves through a reserve transfer.

Accounting for retirement benefits

The University participates in three active pension schemes, the Universities Superannuation Scheme (USS), the University of Edinburgh Staff Benefits Scheme (EUSBS) and the National Employee Savings Trust (NEST). We also participate in other legacy schemes on behalf of retired and active members, the Medical Research Council (MRCPS), the Lothian Pension Fund (LPF), the Strathclyde Pension

Fund (SPF) and the Scottish Teacher Superannuation Scheme (STSS).

USS, STSS, MRCPS and NEST are multi-employer schemes and, given the mutual nature of the schemes, it is not possible to identify the University’s shares of the assets and liabilities for these schemes. Consequently, the University cannot apply defined benefit accounting and, according to Section 28 FRS 102, the schemes are accounted as defined contribution schemes. The EUSBS, SPF and LPF schemes are defined benefit schemes. Each fund is valued every three years by professionally qualified independent actuaries.

USS is a multi-employer scheme. Because of the mutual nature of the scheme, the assets are not attributed to individual institutions and a schemewide contribution rate is set. The institution is therefore 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. As required by Section 28 of FRS 102, ‘Employee benefits’, the University therefore accounts for the scheme as if it were a wholly defined contribution scheme. As a result, the amount charged to the consolidated statement of comprehensive income and expenditure represents the contributions payable to the scheme.

The institution entered into an agreement (the Recovery Plan) which required payments until 31 December 2023. However, the deficit recovery plan was no longer required under the 2023 valuation as the scheme was in surplus on a technical provision basis. The University has been no longer required to make deficit recovery payments from 1 January 2024 and accordingly released the outstanding provision held on the balance sheet.

A small number of subsidiary company employees are members of other defined contribution schemes. Contributions are charged in the consolidated statement of comprehensive income and expenditure in the year in which they become payable.

Defined contribution plan

A defined contribution plan is a postemployment benefit plan under which the organisation 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 consolidated statement of comprehensive income and expenditure in the periods during which services are rendered by employees and as they become payable in accordance with the rules of the scheme.

Defined benefit plan

A defined benefit plan is a postemployment benefit plan other than a defined contribution plan. The Group’s net obligation in respect of defined benefit pension plans and other postemployment benefits are calculated separately for each plan by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value, and the fair value of any plan assets (at bid price) and any unrecognised past service costs are deducted. The liability discount rate is the yield at the balance sheet date on AA credit rated bonds denominated in the currency of, and having maturity dates approximating to the terms of the Group’s obligations. The calculation is performed by a qualified actuary using the projected unit credit method. When the calculation results in a benefit to the Group, the recognised asset is limited to the total of any unrecognised past service costs and the present value of benefits available in the form of any future refunds from the plan, reductions in future contributions to the plan or on settlement of the plan and takes into account the adverse effect of any minimum funding requirements. The net pension deficit is recognised as a liability in the statement of financial position. A net pension surplus is only recognised in the statement of financial position to the extent that the University is able to recover it either through reduced contributions in the future or through refunds from the scheme actuarial gains and losses (remeasurements) are recognised in other comprehensive income.

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Notes to the financial statements (continued)

1. Statement of Principal Accounting Policies (continued)

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, such as holiday entitlements earned but not taken at the balance sheet date, are accrued and measured as the additional amount the University expects to pay as a result of the unused entitlements.

Finance leases

Leases in which the University assumes substantially all the risks and rewards of ownership of the leased asset are classified as finance leases.

Leased assets acquired by way of finance lease are stated at an amount equal to the lower of their fair value and the present value of the minimum lease payments at inception of the lease, less accumulated depreciation and less accumulated impairment losses.

Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding liability. The finance charge is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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 lease term.

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 balance sheet 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 the consolidated statement of comprehensive income and expenditure. 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. Non-monetary 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.

Intangible assets

Intangible assets represent the costs of significant software acquisitions and their development for use in the long-term. Only costs relating to the development and implementation phases are capitalised. Research phases and training costs involved are written off as incurred. All other intangible assets are capitalised.

Costs are amortised over their useful economic life, being between 4 and 10 years.

Land and buildings

Land and buildings are stated at deemed cost less accumulated depreciation and accumulated impairment losses. Land and buildings owned by the University were independently valued by Gerald Eve LLP, an independent firm of chartered surveyors on 1 August 2014. The land and building assets that had been revalued to fair value prior to the date of transition to the current SORP, are measured on the basis of deemed cost, being the revalued amount at the date of that revaluation.

Property additions since 1 August 2014 including extensions to buildings and building under construction are shown at cost less any accumulated depreciation.

The cost of renovating, upgrading or converting buildings is capitalised where the subsequent expenditure prolongs the useful life or enhances the economic benefits of the building and is also shown at cost less accumulated depreciation.

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 as follows:

Major plant and infrastructure 10 to 15 years System built properties 15 to 25 years General buildings 50 to 80 years Historic and legacy properties 100 years

Leasehold land and buildings are depreciated over the life of the lease up to a maximum of 50 years.

No depreciation is charged on assets in the course of construction.

Major repairs and refurbishments are capitalised and depreciated over 10 to 20 years where they substantially add to the total area of the building, prolong its useful life or enhance the economic benefits of the building.

All land and buildings, including those constructed or acquired with the aid of specific grants, are included in the balance sheet with the exception of the New College Divinity complex on the Mound, which is regarded as inalienable, as it is owned by the Church of Scotland but can be used by the University so long as it is occupied by the School of Divinity; and two farms which form part of agricultural tenancies are operating leases.

Equipment

Capitalised equipment is stated at cost and depreciated on a straight line basis over a four year period from the year in which the equipment is operational, or the building is commissioned.

Donated equipment is capitalised at depreciated replacement cost at the date of receipt and is depreciated over a four year period.

Heritage assets

The University holds, preserves and makes available a number of collections, exhibits, artefacts and other assets of historical, artistic or scientific importance.

Heritage assets acquired before 1 August 1999 without reliable estimates of cost or value on a cost-benefit basis have not been capitalised. Acquisitions since 1 August 1999 have been capitalised at cost. Heritage assets are not depreciated since their long economic life and high residual value mean that any depreciation would not be material.

The University receives a large number of donated assets in addition to heritage assets bought by the University’s Centre

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Governance

Notes to the financial statements (continued)

1. Statement of Principal Accounting Policies (continued)

Heritage assets (continued)

for Research Collections. Donated assets are not assessed for fair value unless they are of special interest or expected to be of a material value. The cost of valuing items received in such high volumes would exceed the relative benefit to readers of the Annual Report and Accounts. Where it’s determined to be of benefit, donated assets are recorded at fair value through the consolidated statement of comprehensive income and expenditure.

Impairments

At each reporting date a review of fixed assets is carried out if events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Impairment losses are recognised immediately in the consolidated statement of comprehensive income and expenditure.

Investments

Assets held in the University of Edinburgh Investment and Endowment Fund continue to be administered by external fund managers.

Non-current investments are held on the balance sheet at cost and then subsequently at fair value. Investments in subsidiary companies are shown at cost less any impairment.

Investment in associates, if material, is shown in the consolidated balance sheet at the share of net assets.

Current asset investments include temporary and money market deposits and are included at cost and subsequently at fair value.

Stock

Stocks for resale and other stocks are included at the lower of cost and net realisable value. Where necessary, provision is made for obsolete, slowmoving and defective stocks.

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, highly liquid investments that are readily convertible to known amounts of cash with insignificant risk of change in value.

Creditor payment policy

The University makes its payments to creditors, provided they are not in dispute, in accordance with terms of the contract.

Information for suppliers: ed.ac.uk/ procurement/informationforsuppliers.

Trade and other receivables

Trade and other receivables are measured at amortised cost, using the effective interest method, less any bad or doubtful debt impairment. An allowance for impairment of trade and other receivables is established if the collection of a receivable becomes doubtful.

Such receivables become doubtful when there is objective evidence that the University will not be able to collect all amounts due according to the original terms of the receivables. Significant financial difficulties of the debtor and delinquency in payments are considered indicators that the receivable is impaired. An impairment loss is recognised in the consolidated statement of comprehensive income and expenditure, as are subsequent recoveries of previous impairments.

Investment properties

Investment properties are initially included in the balance sheet at the balance sheet date at their fair value on the basis of an annual independent valuation. Mixed-use investment properties are separated between investment properties and property, plant and equipment. Changes in the fair value of investment properties are recognised immediately within the consolidated statement of comprehensive income and expenditure.

Borrowing costs

Borrowing costs are recognised as expenditure in the period in which they are incurred.

Financial instruments

Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the instrument. Financial liabilities are

classified according to the substance of the contractual arrangements entered into. The University’s financial assets and liabilities all meet the criteria for basic financial instruments prescribed within FRS 102 Section 11.8. FRS 102 paragraph 11.13 requires financial instruments, i.e. the unsecured bank loans, to be recognised at the present value of the future payments discounted at a market rate of interest.

Public benefit concessionary loans

Where loans are received at below the prevailing market rate of interest, not repayable on demand and made for the purpose of furthering the objectives of the University, they are classified as concessionary loans.

Concessionary loans are initially measured at the amount received and recognised in the consolidated statement of financial position and adjusted at the period end to reflect any accrued interest payable. Where a loan is interest free, no interest is charged in subsequent years.

Taxation status

The University is an exempt charity within the meaning of the Trustee Investment and Charities (Scotland) Act 2005 and, as such, is a charity within the meaning of Section 506 (1) of the Income and Corporation Taxes Act 1988.

The University is recognised as a charity by HM Revenue & Customs and is recorded on the index of charities maintained by the Office of Scottish Charity Regulator.

It is therefore a charity within the meaning of paragraph 1 of schedule 6 to the Finance Act 2010 and accordingly, the University is potentially exempt from UK Corporation Tax 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 (VAT).

The University’s subsidiary companies, except those with charitable status, are

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Notes to the financial statements (continued)

1. Statement of Principal Accounting Policies (continued)

Taxation status (continued)

not exempt from taxation. The charge for taxation is based on the profit or loss for the year after charging the cost of any Gift Aid payment payable to the University. The charge for taxation also takes into account taxation deferred because of timing differences between the treatment of certain items for taxation and accounting purposes. Charitable subsidiaries are exempt from taxation under the same legislation as the University.

Provisions, contingent liabilities and contingent assets

Provisions are recognised in the financial statements when:

  1. The University has a present obligation (legal or constructive) as a result of a past event;

  2. It is probable that an outflow of economic benefits will be required to settle the obligation; and

  3. A reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is determined by discounting the expected future cash flows at a discount 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 balance sheet

but are disclosed in the notes.

Exceptional items

Material items derive from events or transactions that fall within the ordinary activities of the University and which individually or, if of a similar type, in aggregate, need to be disclosed by virtue of their size or incidence.

2. Estimates and Judgements

The University prepares its consolidated financial statements in accordance with FRS 102 and the application of which often requires certain estimates and judgements to be made by management when formulating the financial position, financial performance and cash flows.

In determining and applying accounting policies, judgement is often required where the choice of specific policy, accounting estimates or assumptions could materially affect the reported results or net asset position.

Management considers that certain accounting estimates and assumptions relating to revenue, debtors, fixed assets and provisions are its critical accounting estimates.

(i) Critical accounting judgements

FRS 102 requires that accounting judgements that are considered to be critical by those charged with governance are explained in more detail as to why the judgement has been applied.

Revenue recognition

Certain grants, donations and research revenue are recognised in the consolidated statement of income and expenditure as performance conditions are satisfied.

Research revenue grants are based on budgeted awards which specify performance levels. These grants therefore have performance-related conditions attached. Revenue is recognised when the performancerelated condition has been met.

Capital grants are funds used for acquisition or building of items that are capital in nature. Restrictions on the grants have been identified as funds are allocated for specific capital items. Income is recognised

on entitlement upon award of the grant. Management apply judgement in deferring income received for conditions not yet satisfied and accruing for income not yet received.

Impairment

Judgement is applied when assessing the potential impairment of University assets. For Property, Plant and Equipment the University considers the potential for demolition or disposal, the impact major refurbishments would have on the overall carrying value of existing assets and the likelihood of capital projects proceeding beyond feasibility stage. For Software the University considers the potential for obsolescence, disposal or changes in operations that would impact on the overall carrying value of assets.

Classification of financial liabilities

All of the University’s financial liabilities have been classified as basic financial instruments. In respect of the private placement debt, judgement has been applied in determining the classification. As part of the agreement, the holders of the debt, who are based in the US, have entered into cross currency swaps to ensure that they are not adversely impacted by foreign exchange rate movements between USD and GBP, should the University repay the debt early. We consider any resultant financial impact for the University to represent reasonable compensation for early repayment and as such have classified the debt as basic. As a result, the financial liability is reflected in the financial statements at amortised cost.

Multi-employer pension schemes

FRS 102 makes the distinction between a group plan and a multi-employer scheme. A group plan consists of a collection of entities under common control typically with a sponsoring employer. A multi-employer scheme is a scheme for entities not under common control and represents (typically) an industry-wide scheme such as USS. The accounting for a multi-employer scheme where the employer has entered into an agreement with the scheme that determines how the employer will fund a deficit results in the recognition of a liability for the contributions

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Notes to the financial statements (continued)

2. Estimates and Judgements (continued)

Multi-employer pension schemes (continued)

payable that arise from the agreement (to the extent that they relate to the deficit) and the resulting expense in the consolidated statement of comprehensive income and expenditure in accordance with FRS 102 Section 28.

The University has judged that the schemes provided by Universities Superannuation Scheme (USS), Medical Research Council (MRCPS) and the Scottish Teacher Superannuation Scheme (STSS) meet the definition of a multi-employer scheme. The University has recognised the discounted fair value of the contractual contributions under the funding plan in existence at the date of approving the financial statements.

(ii) Key account estimates and assumptions

The University makes estimates and assumptions concerning its assets and liabilities. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and

liabilities within the next financial year are addressed below.

Pension provisions – key actuarial assumptions

The key actuarial assumptions used in the valuation of the USS, EUSBS, SPF and LPF pension schemes including discount rates, salary and pension increases, and mortality rates are reported in note 33.

The cost of the USS deficit recovery plan has been estimated based on a model devised by USS and the British Universities Finance Directors Group (BUFDG), however based on the USS 2023 valuation, the scheme is in surplus and therefore no deficit recovery payment is required. The 2023 valuation was the seventh valuation for USS under the schemespecific 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.

Heritage assets

Where it’s determined to be of benefit to users of the financial statements, donated heritage assets are capitalised

at fair value based on assumptions made by independent external valuers, or the University’s Centre for Research Collections. Asset valuations are determined by the valuer’s opinion on the physical condition of items and their assessment of market conditions.

The revaluation reserve relates to the historic revaluations of the Fine Art Collection and Special Collections that occurred prior to the adoption of historic cost accounting.

Heritage assets are accounted for on a deemed cost basis and are not subject to revaluation.

Depreciation and amortisation

Group depreciation and amortisation charges are calculated on a straight line basis over the estimated useful economic lives of the related assets. The remaining useful economic lives of assets are periodically reviewed based on actual experience and expected future utilisation. Where management identifies a change in the life of an asset, it is treated as a change in accounting estimate and the accelerated depreciation is accounted for in the period of change and future periods.

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Notes to the financial statements (continued)

3. Tuition fees and education contracts
3. Tuition fees and education contracts Consolidated and
Institution
2025
£m
2024
£m
Home domicile fees
Rest of UK domicile fees
EU domicile fees
Non-EU fees
Research training support grants
Short course and other fees and support grants
(non-credit bearing)		 26.3
27.0
83.9
81.9
25.7
25.4
388.5
363.3
25.1
23.3
7.0
6.3
556.5
527.2

4. Funding body grants

4. Funding body grants Consolidated and
Institution
2025
£m
2024
£m
Recurrent grants
Teaching
Research and knowledge exchange
Specific grants
Strategic funding: including UK Research Partnership
Investment Fund (UKRPIF)
Capital grants received in the year
Capital maintenancegrants		 72.7
76.2
105.4
102.4
11.3
12.6
16.9
17.2
0.5
0.3
206.8
208.7

5. Research income

5. Research income
Consolidated and Institution
2025
2024
Total
£m
Capital
£m
Revenue
£m
Total
£m
Research grants and contracts
Research councils
UK based charities
UK central government bodies, local and
health authorities
UK industry, commerce and public
corporations
EU government bodies
EU other
Other overseas
Other sources		 7.4
172.5
179.9
153.0
3.9
80.6
84.5
70.2
10.1
34.2
44.3
50.7
0.1
15.6
15.7
10.1
0.2
6.9
7.1
20.6
0.1
9.5
9.6
9.8
0.7
35.3
36.0
46.1
1.0
(2.7)
(1.7)
4.7
23.5
351.9
375.4
365.2

Tuition fees and education contracts

Student numbers increased by 0.2 per cent in the year to 49,640, but fee income growth was greater at 5.6 per cent due to an increase in the number of non-EU students. The most significant income growth was observed in short courses (11.1 per cent), research training support grants (7.8 per cent) and non-EU fees (6.9 per cent). The only decrease in tuition fee revenue was noted in home domicile fees which fell by 2.6 per cent.

Funding body grants

Overall, funding from both, recurrent and specific grants, were broadly similar to last year.

Teaching grants decreased by £3.5 million, which was partially offset by a £3.0 million increase in research funding. Funding on specific grants also decreased, primarily driven by a Strategic funding drop of £1.3 million.

Research income

Included within our research income is £224.2 million (2024: £203.7 million) of income from UK Government sources. Within the income from UK Government sources is £10.1 million of research capital funding relating to the City Region Deal (2024: £14.5 million).

The figures for research income include the University’s share of the research activity of the Scottish Universities Environmental Research Centre (SUERC) of £2.6 million. SUERC is administered by the University Court of the University of Glasgow and trades as SUERC which is an independent research organisation. SUERC is jointly owned by the Universities of Glasgow and Edinburgh, under a Memorandum of Understanding.

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Notes to the financial statements (continued)

6. Other income

6 Other income
. 2025 2024
Consolidated
£m
Institution
£m		 Consolidated
£m
Institution
£m
Residences and catering
Other revenue grants
Other services
Health authorities
Other income		 98.3
79.3
12.7
14.0
66.0
42.5
12.8
12.8
48.4
48.4
114.8
94.0
11.1
6.5
59.3
44.0
16.8
16.8
59.3
59.3
261.3
220.6		 238.2
197.0

Other income

Residences and catering income is mainly from student accommodation rentals. The increase from the previous year is largely due to higher student accommodation revenue driven by an 8 per cent inflationary price adjustment, along with growth in food sales and hotel and summer accommodation operations.

Other income includes trading, gas and electricity recharges, conferences and rental income from the Edinburgh Festival. The increase in other income for 2024/25 from previous year was driven by increases in externally funded salaries (excl. health authority contributions), tuition fee deposit income, Gift Aid receipts and utility recharges.

7. Investment income

7. Investment income

Note		 2025 2024
Consolidated
£m
Institution
£m		 Consolidated
£m
Institution
£m
Investment income on
endowments
22
Investment income on
restricted reserves
Other interest receivable		 20.5
20.5
1.3
1.3
42.6
40.9
13.8
13.8
2.4
2.4
38.1
38.3
54.3
54.5		 64.4
62.7

8. Donations and endowments

8 Donations and endowments
.
Note		 2025 2024
Consolidated
£m
Institution
£m		 Consolidated
£m
Institution
£m
New endowments
22
Donations with
restrictions
Unrestricted donations		 5.8
5.8
17.5
17.5
6.8
1.7
8.3
8.3
13.0
13.0
1.0
1.9
22.3
23.2		 30.1
25.0

Investment income

Income from the Endowment and Investment Fund (EIF) was £13.8 million. Note 16 provides further comment on EIF performance in the year.

Other interest received decreased to £38.1 million, driven by lower interest rates and a smaller portfolio of treasury investments.

Donations and endowments

Most donations are restricted and are mainly for philanthropic funded research, other projects and scholarships.

The reduction in income in the current year is due to fewer external donations of both a restricted and unrestricted nature.

66 Annual Report and Accounts 2024/25

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Governance Financial statements

Notes to the financial statements (continued)

9. Staff costs

9 Staf costs
. 2025 2024
Consolidated
£m
Institution
£m		 Consolidated
£m
Institution
£m
Salaries
Social security costs
Pension costs (note 33)
Other unfunded pension costs
Severance costs		 561.1
536.4
61.3
59.8
133.3
130.9
(0.2)
(0.2)
0.4
0.4
615.3
590.1
73.4
71.6
128.4
125.7
0.3
0.3
12.0
12.0
Staff costs excl. movement
on USS pension provision
Exceptional item: movement on
USSpensionprovision		 829.4
799.7		 755.9
727.3
(352.4)
(352.4)

-
-
829.4
799.7		 403.5
374.9
Analysis of the above costs
by activity:
Academic / teaching departments
467.0
467.0
Research grants and contracts
145.3
145.3
Library, computer and other
academic support services
44.5
44.5
Administration and central
services
88.4
88.4
Premises
33.5
33.5
Other including income-
generating operations
17.6
-
Residences and catering
operations
24.3
12.2
Unfunded pensions
0.3
0.3
Severance costs
12.0
12.0
Pension service costs in excess
of scheme contributions
payable and USS provision
movement (note 33)
(3.5)
(3.5)		 434.6
434.6
137.3
137.3
42.2
42.2
77.9
77.9
30.5
30.5
17.6
-
22.2
11.2
(0.2)
(0.2)
0.4
0.4
(359.0)
(359.0)
829.4
799.7		 403.5
374.9

Staff costs

Salary costs, excluding pension and National Insurance (NI) oncosts, grew by 9.7 per cent mainly made up of a volume increase of 1.5 per cent during the year, and an average price and mix of staff increase of 8.2 per cent.

Pension costs fell by 3.7 per cent. Normally pension costs increase in line with salary costs, however this year, as with the previous year, pension costs fell due to the 1 January 2024 USS pension employers rate change (from 21.6 to 14.5 per cent). 2024/25 was the first full year with the lower rate.

Social security costs increased by 19.7 per cent. Normally social security costs increase in line with salary costs. The increase in salary costs was caused by the nationwide employer NI rate increase from 13.8 per cent to 15 per cent, and the lowering of the NI threshold from £9,100 to £5,000, both in place from April 2025.

Severance costs increased this year by £11.6 million, mainly due to the voluntary severance package offered to staff in 2024/25.

Staff numbers (expressed as average full-time equivalents during the year) were as follows:

2025 2024
Consolidated
Number
Institution
Number		 Consolidated
Number
Institution
Number
Academic / teaching departments
6,803
6,803
Research grants and contracts
2,368
2,368
Library, computer and other
academic support services
689
689
Administration and central
services
1,670
1,670
Premises
804
804
Other including income-
generating operations
325
-
Residences and catering
operations
644
644		 6,726
6,726
2,242
2,242
685
685
1,673
1,673
809
809
343
-
624
624
13,303
12,978		 13,102
12,759
Staff on open-ended contracts
10,049
9,741
Staff on fixed-term contracts
2,839
2,823
Staff on guaranteed hours
contracts
415
414		 9,803
9,490
2,880
2,850
419
419
13,303
12,978		 13,102
12,759

Staff numbers

Average staff numbers increased by 201 full-time equivalents (FTE) in 2024/25. This has contributed to the increase in our staff costs.

Increased staff numbers were mainly seen in research with an increase of 126 FTE, and in academic/ teaching departments with an increase of 77 FTE to support our core teaching and research mission.

Staff numbers (FTE) were calculated using annual averages. If staff numbers (FTE) were instead expressed as snapshot at the yearend (31 July 2025) they would have shown 12,753 (2024: 13,041).

67 Annual Report and Accounts 2024/25

Overview Strategy & value model Operational review

Financial review

Financial statements

Governance

Notes to the financial statements (continued)

9. Staff costs (continued)

Staff numbers (expressed as an average employee count) were as follows:

2025 2024
Consolidated
Number
Institution
Number		 Consolidated
Number
Institution
Number
Staff on open-ended contracts
Staff on fixed-term contracts
Staff on guaranteed hours
contracts		 11,495
11,162
3,386
3,351
4,043
4,042
11,735
11,405
3,313
3,292
4,090
4,089
19,138
18,786		 18,924
18,555
Percentage of staff on fixed-term
contracts		 17.9%
18.1%
17.3%
17.5%

Emoluments of the Principal - Professor Mathieson

Emoluments of the Principal - Professor Mathieson
2025 2024
£’000 £’000
Remuneration 375 362
Payment in lieu of employer'spension contribution 43 40
Sub-total excluding life cover and benefits in kind 418 402
Employer's life cover - 10
Benefits in kind 8 10
426 422

Median pay

Median pay
2025 2024
£ £
Principal's remuneration 425,894 421,667
Median total remuneration 42,882 41,732
Ratio 9.93 10.10

Emoluments of the Principal

The Principal occupies a house that is provided to him by the University on a representative basis, that is, as part of his role as University Principal and is reported as a benefit in kind. As well as being used as a family home, a number of rooms within the Principal’s residence are regularly used to host University events involving staff, students, alumni, and supporters.

Professor Mathieson opted out of the Pension scheme in March 2018. Additional payments equivalent to the pension contributions foregone are included within emoluments.

The Principal’s taxable benefits in kind consisted of provision of living accommodation and personal costs connected with the provision of living accommodation.

Median pay

The median remuneration of the University’s staff against the full remuneration of the Principal.

68 Annual Report and Accounts 2024/25

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Governance Financial statements

Notes to the financial statements (continued)

9. Staff costs (continued)

9. Staf costs(continued)
Key management personnel 2025 2024 Key management personnel
Keymanagementpersonnel compensation £m
2.5		 £m
2.4		 Key management personnel are
those persons having authority
and responsibility for planning,
directing and controlling the
activities of the Institution.
2025
Number		 2024
Number		 Key management personnel
compensation includes
Number of posts (expressed as full-time equivalents during the year)
included in keymanagementpersonnel
11.0		 11.0 remuneration and all employee
benefits including employer
pension contributions.
Positions held by members of the
Senior post holders 2025
Clinical
Non-clinical
Total		 2024
Total		 key management personnel:
•
Vice-Principal and Chief
Information Oficer and
Librarian
number
number
number		 number •
Vice-Principal of Corporate
£100,000–£109,999 21
74
95		 85 Services
£110,000–£119,999
£120,000–£129,999		 11
58
69
9
35
44		 50
45		 •
Director of Finance
(to 3 November 2024)
•
Interim Director of Finance
£130,000–£139,999 10
20
30		 26 (from 4 November 2024)
£140,000–£149,999 11
16
27		 42 •
Principal and Vice-Chancellor
£150,000–£159,999 14
14
28		 21 •
Vice-Principal Students
£160,000–£169,999 12 8
20		 19 •
Vice-Principal and University
£170,000–£179,999 11 6
17		 20 Secretary
£180,000–£189,999
£190,000–£199,999		 10
10
20
16
7
23		 22
20		 •
Vice-Principal and Head of
College of Arts, Humanities
and Social Sciences
£200,000–£209,999 8 5
13		 12 •
Vice-Principal and Head of
£210,000–£219,999 14 -
14		 5 College of Medicine and
£220,000–£229,999 5 -
5		 6 Veterinary Medicine
£230,000–£239,999
£240,000–£249,999		 3
6		 1
4
-
6		 1
2		 •
Vice-Principal and Head
of College of Science and
Engineering
£250,000–£259,999 3 -
3		 2 •
Vice-Principal Research
£260,000–£269,999 3 -
3		 3 & Enterprise
£270,000–£279,999 - -
-		 1 •
Provost
£280,000–£289,999 3 -
3		 - The key management personnel
£290,000–£299,999
£300,000–£309,999		 1
-		 -
1
-
-		 -
-		 comprise the members of the
Senior Leadership Team; details
of which are available at: Senior
£310,000–£319,999 - -
-		 - Leadership Team
£320,000–£329,999 - -
-		 1
£330,000–£339,999
£340,000–£349,999
£350,000–£359,999		 1
-
-		 -
1
-
-
-
-		 1
-
-		 Senior post holders
Remuneration of higher paid
staf includes NHS merit awards,
but excludes employer pension
£360,000–£369,999 - -
-		 - contributions and termination
£370,000–£379,999 - -
-		 - payments.
£380,000–£389,999
£390,000–£399,999		 -
-		 -
-
-
-		 -
-		 Staf are included in the range that
reflects their actual remuneration
for that year.
£400,000–£409,999 - -
-		 1 40 per cent (2024: 41 per cent) of
£410,000–£419,999 - 1
1		 - senior post holders are clinical
172
255
427		 385 academics.

69 Annual Report and Accounts 2024/25

Overview Strategy & value model Operational review

Financial review

Financial statements

Governance

Notes to the financial statements (continued)

9. Staff costs (continued)

Compensation for loss of office


9. Staf costs(continued)
Compensation for loss of ofice 2025 2024
£’000 £’000
Compensation payable to senior post holders 568 -
Other compensationpaid in excess of £100,000 110 128
678 128
10. Other operating expenses 2025 2024
Consolidated
£m
Institution
£m		 Consolidated
£m
Institution
£m
Academic and related
expenditure
Scholarships and stipends
Research grants and contracts
Library, computer and other
academic support services
Administration and central
services
Refurbishment and
maintenance
Utilities costs
Other premises costs
Other including income
generating operations
Residences and catering
operations		 102.9
102.9
50.2
50.2
120.3
120.3
22.3
22.3
27.2
35.1
33.4
33.4
42.5
48.3
17.6
17.6
58.9
50.4
64.9
47.9
91.3
91.3
51.1
51.1
131.9
131.9
22.0
22.0
8.3
18.2
35.1
35.1
55.4
62.5
17.6
17.6
30.5
31.3
62.4
44.7
505.6
505.7		 540.2
528.4
Other operating expenses
include:
Agency staff costs
Operating lease rentals:
Land and buildings
Fees charged by external
auditors:
In respect of audit services *		 20.7
20.0
30.4
32.4
0.4
0.3
21.8
21.3
31.4
33.4
0.5
0.4

Compensation for loss of office

Compensation includes the cost of enhancing pension benefits on early retirement.

There was £568,000 compensation paid to 8 senior post holders during the year (2024: £nil). Other compensation paid in excess of £100,000 related to payment to one individual.

Severance arrangements for senior post holders are overseen by the University’s Remuneration Committee and all compensation is paid in line with the severance guidance approved by the University Court.

There was no compensation paid to key management personnel for the year (2024: £nil).

Other operating expenses

Cost reductions were made in 2024/25 compared to the previous year, across different areas and activities within the University.

Despite being affected by several macroeconomic factors, such as rising utility prices and inflation, cost reductions have been achieved across many expense categories.

** The consolidated expenses are stated net of intercompany charges, such as management fees or utilities cost paid to the subsidiaries.

70 Annual Report and Accounts 2024/25

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Governance Financial statements

Notes to the financial statements (continued)

11. Interest and other finance costs

Note 2025 2024
Consolidated
£m
Institution
£m		 Consolidated
£m
Institution
£m
Loan interest
Net charge on pension
scheme
33		 14.3
14.3
7.3
7.3
13.8
13.8
0.2
0.2
14.0
14.0		 21.6
21.6

12. Taxation

12 Taxation
. 2025 2024
Consolidated
£m
Institution
£m		 Consolidated
£m
Institution
£m
Recognised in the
consolidated statement of
comprehensive income and
expenditure
Current tax:
UK Corporation tax charge on
subsidiaries'profits		 (0.8)
-
(0.7)
-
(0.7)
-		 (0.8)
-

Interest and other finance costs

Interest costs have decreased due to capital repayments of existing loans. Capital repayments reduced the outstanding loan balances, leading to lower interest cost. Net charge on pension scheme has decreased from £7.3 million in 2023/24 to £0.2 million in 2024/25 as there was no obligation in the current year to fund a past deficit on the Universities Superannuation Scheme (USS) as the scheme is now in a surplus position based on the 2023 valuation

Taxation

Current tax, including UK corporation tax and foreign tax, is provided at amounts expected to be paid (or recovered) using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

UK Corporation tax is 19 per cent for profits under £50,000 and 25 per cent for profits over £250,000, with marginal relief between those sums.

13. Intangible assets

13. Intangible assets
Software Consolidated Institution
£m £m
Cost or valuation
As at 1 August 2024 37.0 37.0
Additions in the year 0.9 0.9
Disposals inyear (0.5) (0.5)
As at 31 July2025 37.4 37.4
Accumulated amortisation
As at 1 August 2024
Charge for the year
Disposals inyear		 10.6
3.4
(0.5)		 10.6
3.4
(0.5)
As at 31 July2025 13.5 13.5
Net book value
As at 31 July2025 23.9 23.9
As at 31 July2024 26.4 26.4

Intangible assets Consolidated

At 31 July 2025, there were no intangible assets under construction (2024: £1.6 million).

71 Annual Report and Accounts 2024/25

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Governance Financial statements

Notes to the financial statements (continued)

14. Fixed assets

14. Fixed assets
Consolidated Total
Land Fixtures, including
and fittings and Heritage heritage
buildings equipment Total assets assets
£m £m £m £m £m
Cost or valuation
As at 1 August 2024 2,397.8 389.1 2,786.9 217.5 3,004.4
Additions 148.6 57.2 205.8 0.6 206.4
Impairment (4.1) - (4.1) - (4.1)
Disposals (3.1) (66.3) (69.4) - (69.4)
As at 31 July2025 2,539.2 380.0 2,919.2 218.1 3,137.3
Accumulated
depreciation
As at 1 August 2024
Charge for the year
Disposals		 350.0
49.3
(1.4)		 285.6
50.7
(64.9)		 635.6
100.0
(66.3)		 -
-
-		 635.6
100.0
(66.3)
As at 31 July2025 397.9 271.4 669.3 - 669.3
Net book value
As at 31 July2025 2,141.3 108.6 2,249.9 218.1 2,468.0
As at 31 July2024 2,047.8 103.5 2,151.3 217.5 2,368.8

Institution

Institution Total
Land Fixtures, including
and fittings and Heritage heritage
buildings equipment Total assets assets
£m £m £m £m £m
Cost or valuation
As at 1 August 2024 2,389.0 363.7 2,752.7 217.5 2,970.2
Additions 148.6 56.8 205.4 0.6 206.0
Impairment (4.1) - (4.1) - (4.1)
Disposals (3.1) (55.1) (58.2) - (58.2)
As at 31 July2025 2,530.4 365.4 2,895.8 218.1 3,113.9
Accumulated
depreciation
As at 1 August 2024
Charge for the year
Disposals		 344.2
48.2
(1.4)		 270.0
50.1
(53.7)		 614.2
98.3
(55.1)		 -
-
-		 614.2
98.3
(55.1)
As at 31 July2025 391.0 266.4 657.4 - 657.4
Net book value
As at 31 July2025 2,139.4 99.0 2,238.4 218.1 2,456.5
As at 31 July2024 2,044.8 93.7 2,138.5 217.5 2,356.0

Tangible assets Consolidated

At 31 July 2025, freehold land and buildings included £111.6 million (2024: £111.9 million) in respect of freehold land and is not depreciated.

All land and buildings are held on a freehold basis with the exception of the New Medical School at the Royal Infirmary of Edinburgh. This is constructed on land held under a long leasehold of 130 years.

Loss on disposal of fixed assets totalled £2.7 million (2024: £26,000 loss). This represents a loss of £1.5 million on the disposal of property (2024: £89,000 gain) and a loss of £1.2 million on the disposal of equipment (2024: £115,000 loss).

Certain land and buildings have been partly financed from Exchequer funds. Funding body grants of £17.4 million (2024: £17.5 million) recognised as income in the year relate to additional exchequer funding of land and buildings. Should any of these assets be sold the University may be liable, under the terms of the Financial Memorandum with the Scottish Funding Council, to surrender part of the proceeds.

Tangible assets Institution

At 31 July 2025, freehold land and buildings included £111.4 million (2024: £111.7 million) in respect of freehold land and is not depreciated.

At 31 July 2025, land and buildings included £220.9 million (2024: £280.8 million) in respect of buildings under construction. Assets under construction are not being depreciated.

The net book value of tangible fixed assets includes an amount of £2.2 million (2024: £2.4 million) of buildings, fixtures and equipment held under finance leases. The depreciation charge on these assets for the year was £162,000 (2024: £176,000).

72 Annual Report and Accounts 2024/25

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Financial review

Governance Financial statements

Overview

Notes to the financial statements (continued)

15. Heritage assets

Additions and disposals

Acquisitions for the current and previous four years were as follows:

2025 2024 2023 2022 2021
£m £m £m £m £m
Acquisitions purchased with specific donations - - - 0.5 0.4
Acquisitions purchased with University funds 0.6 0.7 1.0 - -
Total acquisitions capitalised 0.6 0.7 1.0 0.5 0.4

Main collections

The University holds and conserves collections of heritage assets which are capitalised. Heritage assets are individual objects, collections, exhibits or artefacts with historic, artistic or scientific qualities that are held and maintained principally for their contribution to knowledge and culture. Details of the collections held can be found at: Heritage Collections

University policy on acquisitions, preservation, management and disposal

The University of Edinburgh Collections Management Policy is available at: Collection Policies

Heritage assets capitalised

Heritage assets acquired before 1 August 1999 without reliable estimates of cost or value on a cost-benefit basis have not been capitalised. Acquisitions since 1 August 1999 have been capitalised at cost, or, in the case of capitalised donated assets, at fair value on receipt.

Additions and disposals

The University receives a number of donated assets in addition to heritage assets bought by the University’s Centre for Research Collections. Donated assets are not valued unless they are of special interest as the cost of doing so is not commensurate with the benefits to readers of the Annual Report and Accounts. Donated assets that are capitalised are reported in the consolidated statement of comprehensive income and expenditure at valuation.

No heritage assets were disposed or impaired in year (2024:nil).

73 Annual Report and Accounts 2024/25

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Financial review

Financial statements

Governance

Notes to the financial statements (continued)

16. Non-current investments Consolidated

16. Non-current investments
Clidtd
onsoae University of
Edinburgh
Endowment Other
and Investment non-current
Fund investments Total
£m £m £m
As at 1 August 2024 519.4 450.1 969.5
Additions 62.8 1,031.0* 1,093.8
Disposals (34.7) (1,104.9)* (1,139.6)
Fair valuegain/(loss) 30.1 (2.1) 28.0
As at 31 July 2025 577.6 374.1 951.7
Non-current investments consist of:
The University of Edinburgh Endowment and
Investment Fund
Other
Unlisted investments		 577.6
-
-		 -
360.6
13.5		 577.6
360.6
13.5
577.6 374.1 951.7

Institution

Ititti
nsuon University of
Edinburgh
Endowment Other
Subsidiary and Investment non-current
companies Fund investments Total
£m £m £m £m
As at 1 August 2024 14.1 519.4 436.8 970.3
Additions* 0.6 62.8 1,030.1 1,093.5
Disposals* - (34.7) (1,104.9) (1,139.6)
Fair valuegain/(loss) - 30.1 (1.4) 28.7
As at 31 July 2025 14.7 577.6 360.6 952.9

Non-current investments

Consolidated and Institution

Funds are invested in the University of Edinburgh Endowment and Investment Fund.

The Investment Committee is responsible for the oversight and strategic direction of investments. Its members are appointed by the University of Edinburgh Court, and are drawn from both Court members and external investment professionals.

Each year an Endowment Fund Report is published. This gives, amongst other matters, details of the Investment Committee and its remit, the fund managers and statistics relating to the investments and endowment funds.

The Endowment and Investment Fund investment is 100 per cent endowment funds.

As well as diversifying risk by investing in different types of assets, there are ten fund managers.

The unit price has increased by 11 per cent from £49.33 to £54.94 giving a fair value gain of £30.1 million.

The loans to subsidiary companies, treated as investments due to their long-term nature, are interest bearing with the exception of the loans to provide venture capital funding to Old College Capital LLP and Old College Capital Strategic Investments.

Interest is charged at 4.82 per cent on the Loan to UoE Estates Services Company Ltd.

Unlisted investments are initially recorded at cost and, where the University believes that an independent fair value can be determined by reviewing the price of a recent transaction for an identical asset, then such investments are recorded in the balance sheet at fair value. Otherwise, such investments are held in the balance sheet at cost less any impairment.

74 Annual Report and Accounts 2024/25

Overview Strategy & value model Operational review

Financial review

Financial statements

Governance

Notes to the financial statements (continued)

16. Non-current investments (continued)

Institution

16. Non-current investments(continu ed)
Institution University of
Edinburgh
Endowment
and Other
Subsidiary Investment non-current
companies Fund investments Total
£m £m £m £m
Non-current investments consist of:
The University of Edinburgh
Endowment and Investment Fund
Equities - 259.3 - 259.3
Fixed interest stocks - 16.0 - 16.0
Property - 88.4 - 88.4
Multi asset type - 157.3 - 157.3
Venture capital - 26.7 - 26.7
Bank deposits held at fund managers - 4.6 - 4.6
Bank deposits held by the Institution - 25.3 - 25.3
Other investments
Treasury investments
Aegon Asset Management - - 103.5 103.5
MI TwentyFour Asset Management - - 45.9 45.9
Liability Aware Credit Nominal - - 27.0 27.0
Aberdeen Standard Liquidity Fund - - 1.0 1.0
JP Morgan MMF - - 1.0 1.0
Kingswood Wealth - - 62.3 62.3
HSBC MMF - - 1.0 1.0
Royal London Asset Management
General		 - - 44.7 44.7
Northern Trust LNAV - - 30.0 30.0
JP Morgan ETF - - 20.1 20.1
Royal London LNAV - - 1.0 1.0
Social investments
Big Issue - - 0.7 0.7
Prosper Social Investment - - 0.1 0.1
Social Investment Scotland - - 1.0 1.0
Social and Sustainable Housing LP - - 1.4 1.4
Giant Ventures - - 0.4 0.4
ADA Ventures - - 0.5 0.5
Lloyds Green Deposit Sustainability - - 2.6 2.6
Growth Impact LP - - 0.1 0.1
Fair by Design Ventures LLP - - 0.2 0.2
Mercer LGIM - - 1.9 1.9
Spinout companies
pure LiFi - - 0.9 0.9
Sofant Technologies - - 0.8 0.8
Biocaptiva Ltd - - 1.2 1.2
Resolution Therapeutics Ltd - - 0.6 0.6
Wobble Company Ltd - - 1.4 1.4
Rhizocore - - 0.6 0.6
Roslin Technologies Ltd - - 3.1 3.1
Trogenix - - 1.0 1.0
Concinnity Genetics - - 0.8 0.8
Exergy3 - - 0.6 0.6
Other investments - - 3.2 3.2
Investment in subsidiary
companies
Edinburgh University Press Ltd 0.3 - - 0.3
Loans to subsidiary companies
UoE Estates Services Company Limited 10.4 - - 10.4
Old College Capital LLP 4.0 - - 4.0
14.7 577.6 360.6 952.9

75 Annual Report and Accounts 2024/25

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Governance Financial statements

Notes to the financial statements (continued)

17. Trade and other receivables

17 Trade and other receivables
. 2025
Consolidated
£m
Institution
£m		 2024 restated
Consolidated
£m
Institution
£m
Amounts falling due within
one year:
Research grants receivables
Other trade receivables
Prepayments and accrued
income
Estates capital grant debtor
Amounts due from subsidiary
companies		 136.3
136.3
101.4
65.3
77.7
73.3
3.7
3.7
-
32.9		 175.2
175.2
76.4
32.2
77.3
72.5
-
-
-
29.1
319.1
311.5		 328.9
309.0
Amounts falling due after
one year:
Other trade receivables
Endowments receivable		 2.0
2.0
-
18.7		 2.0
2.0
-
28.4
2.0
20.7		 2.0
30.4
321.1
332.2		 330.9
339.4

Trade and other receivables

Research grants receivables are shown net of allowance for doubtful debts of £16.4 million (2024: £15.6 million).

Other trade receivables are shown net of allowance for doubtful debts of £4.2 million (2024: £4.6 million).

The prior year comparatives for prepayments and accrued income have been restated, from the previously reported amount of £49.3 million to £77..3 million and £44.5 million to £72.5 million respectively. This was as a result of an error in the prior year where debit and credit balances were incorrectly off-set against one another and presented on a net basis within prepayments and accrued income.

Majority of the amounts due from subsidiary companies balance as at 31 July 2025 relates to Development Trust (£29.7 million).

18. Current investments

18 Current investments
. 2025 2024
Consolidated
£m
Institution
£m		 Consolidated
£m
Institution
£m
Short-term deposits 139.0
139.0
139.0
139.0

Current investments

The University’s Treasury Management policy grants the Chief Financial Officer and the designated staff delegated authority to deposit or invest funds with approved organisations to approved limits. As at 31 July 2025 the short-term deposits had interest rates ranging from 4.25 per cent to 4.92 per cent and are fixed for between 1 and 12 months. All short-term deposits have a maturity date less than 12 months from 31 July 2025.

76 Annual Report and Accounts 2024/25

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Notes to the financial statements (continued)

19. Creditors: amounts falling due within one year

2025 2024 restated
Consolidated
£m
Institution
£m		 Consolidated
£m
Institution
£m
Unsecured loans
Obligations under finance
leases
Trade payables
Social security and other
taxation payable
Other creditors
Concessionary loans
Accruals and deferred
income (see below)
Amounts due to subsidiary
companies		 8.8
8.8
0.1
0.1
42.8
33.0
17.1
15.9
9.0
9.0
2.2
2.2
396.8
383.9
-
46.1
7.9
7.9
0.1
0.1
50.3
41.9
22.6
21.7
7.5
8.5
2.2
2.2
393.7
381.0
-
50.7
484.3
514.0		 476.8
499.0

Accruals and deferred income

Accruals and deferred income
2025 2024 restated
Consolidated
£m
Institution
£m		 Consolidated
£m
Institution
£m
Accruals
Donations and other
restricted income deferred
Research grants received on
account
Estates capital grants
deferred
Other income deferred		 85.2
85.2
75.6
75.6
207.4
207.4
1.5
1.5
27.1
14.2
89.0
89.0
86.2
86.2
192.2
192.2
-
-
26.3
13.6
393.7
381.0		 396.8
383.9

Trade payables

The ratio of trade payables to operational expenses is 9.9 per cent (2024: 8.1 per cent)

Accruals and deferred income

In addition to accruals of expenditure, research and other restricted income has been deferred until specific performance-related conditions have been met.

The prior year comparatives for donations and other restricted income deferred have been restated, from the previously reported amount of £47.6 million to £75.6. This was as a result of an error in the prior year where debit and credit balances were incorrectly off-set against one another and presented on a net basis within prepayments and accrued income.

20. Creditors: amounts falling due after more than one year

2025 2024
Consolidated
£m
Institution
£m		 Consolidated
£m
Institution
£m
Obligations under finance
leases
Unsecured loans
Concessionaryloans		 0.2
0.2
521.2
521.2
16.8
16.8
0.1
0.1
513.1
513.1
14.5
14.5
527.7
527.7		 538.2
538.2

Unsecured loans

Outstanding unsecured loans have decreased to £521.0 million as at 31 July 2025. The decrease can be attributed to the ongoing capital repayment of loans held with the European Investment Bank. The Royal Bank of Scotland loan was paid off in 2024/25 as per the loan repayment schedule.

No new unsecured loans have been agreed during the financial year.

77 Annual Report and Accounts 2024/25

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Notes to the financial statements (continued)

20. Creditors: amounts falling due after more than one year (continued)

Note
Borrowings		 2025 2024
Consolidated
£m
Institution
£m		 Consolidated
£m
Institution
£m
Obligations under
finance leases are due
as follows:
Due within one year
19
Due between two and
fiveyears		 0.1
0.1
0.2
0.2
0.1
0.1
0.1
0.1
0.2
0.2		 0.3
0.3
2024
2025
Consolidated
£m
Institution
£m		 Consolidated
£m
Institution
£m
Unsecured bank
loans are repayable
as follows:
Due within one year
19
Due between two and
five years
Due in fiveyears or more		 8.8
8.8
32.6
32.6
488.6
488.6
7.9
7.9
32.6
32.6
480.5
480.5
521.0
521.0		 530.0
530.0

Public benefit concessionary loans

The University holds six concessionary loans from the Scottish Funding Council (SFC).

Four of the loans were received as part of the University Financial Transactions Programme (UFTP) in the financial year 2023/24. The UFTP aims to advance the sustainability of university estates and net zero plans. The loans were received for the following projects and amounts: Easter Bush Campus – District Heat, Power & Cooling Network Expansion (£8.2 million), Accelerated Lighting Efficiency Improvement Programme (£3.4 million), Energy Efficiency Improvement Works – Teviot Row (£1.0 million) and Solar PV Programme (£0.7 million). All the loans are payable at the rate of 1 per cent per annum with a repayment period of 25 years, except for the Solar PV Programme loan which has a repayment period of 12 years.

Unsecured bank loans outstanding as at 31 July 2025 were as follows:

Interest Amount
rate % Repayable Borrower £m
C.M. Life Insurance Company 3.38 2041 University 2.0
C.M. Life Insurance Company 3.46 2046 University 0.2
European Investment Bank 2.11 2021-2046 University 55.0
European Investment Bank 2.19 2022-2047 University 57.7
European Investment Bank 2.27 2023-2048 University 59.5
Great-West Life & Annuity Insurance Company 3.38 2041 University 1.0
Great-West Life & Annuity Insurance Company 3.46 2046 University 0.1
Massachusetts Mutual Life Insurance Company 3.38 2041 University 22.0
Massachusetts Mutual Life Insurance Company 3.46 2046 University 9.7
The Northwestern Mutual Life Insurance Company 3.20 2036 University 40.0
The Northwestern Mutual Life Insurance Company 3.38 2041 University 15.0
The Northwestern Mutual Life Insurance Company 3.46 2046 University 10.0
The Northwestern Mutual Life Insurance Company 2.62 2038 University 110.0
The Northwestern Mutual Life Insurance Company 2.68 2043 University 75.0
The Northwestern Mutual Life Insurance Company
FRS 102 amortisation adjustment		 2.69 2048 University 65.0
(1.2)
521.0

Loans outstanding

The University has £521.0 million of unsecured loans as at 31 July 2025. As per the unsecured bank loans outstanding table, these loans have been provided by a variety of financial institutions, with repayment terms of between 20 and 30 years and interest rates between 2.11 per cent and 3.46 per cent.

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Notes to the financial statements (continued)

21. Provisions for liabilities

21. Provisions for liabilities
Consolidated and Institution Funded
Pension Unfunded pension
enhancement pension scheme
on termination provision provision Total
£m £m £m £m
As at 1 August 2024 3.2 0.6 8.3 12.1
Utilised in year (0.5) (0.1) 1.4 0.8
Releases in year (5.0) (5.0)
Interest in year 0.1 - 0.1 0.2
Actuarial gain in respect - - (29.6) (29.6)
ofpension schemes
As at 31 July 2025 2.8 0.5 (24.8) (21.5)
Other provisions Heat and power Decommissioning
provision provision Total
£m £m £m
As at 1 August 2024 - 0.6 0.6
Additions in year 8.0 - 8.0
As at 31 July 2025 8.0 0.6 8.6
Totalprovisions (12.9)

Decommissioning provision

The provision is held under the Radioactive Substances Act 1993 and the HASS (Scotland) Directions 2005 to provide for the safe management of hazardous material when they become disused.

Heat and Power provision

Pension and other provisions

In compliance with FRS 102, Section 21: Provisions and contingencies, the provisions relate only to contractual and legal obligations of the University. Provisions relating to retirement benefits and details including assumptions used are included in note 33.

Pension enhancement and

unfunded pensions

The University has a liability for the enhancement of pensions payable to some former members of staff who have taken early retirement and for the supplementation of Federated Superannuation Scheme for Universities (FSSU) and state pensions granted to certain former members of the University staff. These liabilities are unfunded but are assessed on the same basis as the liabilities within each defined benefit pension scheme.

Funded pension schemes

The provision represents the net asset/(liability) in respect of the surplus/deficit on the Staff Benefit Scheme, Strathclyde Pension Fund and Lothian Pension fund assessed under FRS 102. Note 33 provides further details.

During the year, an £8 million Heat and Power provision was recognised in relation to additional VAT due on fuel and power supplied to the University of Edinburgh from one of its subsidiaries.

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22. Endowment reserves Consolidated and Institution

Permanent Permanent Expendable
unrestricted restricted restricted 2025 2024
endowments endowments endowments Total Total
£m £m £m £m £m
Capital 7.4 141.6 359.6 508.6 490.1
Accumulated income 0.5 19.3 52.0 71.8 69.7
As at 1 August 7.9 160.9 411.6 580.4 559.8
New endowments - 0.1 8.2 8.3 5.8
Investment income 0.2 3.8 9.8 13.8 20.5
Expenditure - (3.9) (23.9) (27.8) (20.2)
Increase in market value
0.4		 8.2 21.5 30.1 14.5
of investments
0.6 8.2 15.6 24.4 20.6
Transfers - 0.7 (0.7) - -
As at 31 July 8.5 169.8 426.5 604.8 580.4
Represented by:
Capital 7.8 149.5 384.9 542.2 508.6
Accumulated income 0.7 20.3 41.6 62.6 71.8
8.5 169.8 426.5 604.8 580.4
Analysis by type of
purpose:
Chairs and lectureships - 8.3 26.2 34.5 56.4
Prizes and scholarships - 61.9 97.0 158.8 136.8
Other 8.5 99.6 303.3 411.4 387.2
8.5 169.8 426.5 604.8 580.4
Non-current asset
investments:
Equities 3.5 76.7 179.1 259.3 232.5
Fixed interest stocks 0.2 4.7 11.1 16.0 20.4
Property 1.2 26.1 61.1 88.4 85.6
Multi asset 2.1 46.5 108.7 157.3 150.9
Venture capital 0.4 7.9 18.4 26.7 26.9
Bank deposits held at 0.1 1.4 3.1 4.6 1.6
fund managers
Bank deposits held by 0.3 7.5 17.5 25.3 1.5
the Institution
Non-current asset 7.8 170.8 399.0 577.6 519.4
investments
Fixed-term deposit - - 25.8 25.8 30.8
Capital debtor - - 18.7 18.7 28.4
Revenue cash 0.7 (0.4) (37.1) (36.8) 5.4
Current asset - working - (0.6) 20.1 19.5 (3.6)
capital
Total endowment 8.5 169.8 426.5 604.8 580.4
assets

Endowment reserves

Consolidated and Institution.

The University’s Endowment Fund is invested in the University of Edinburgh Endowment and Investment Fund (see note 16) which is invested with a number of fund managers and in different asset types to diversify risk.

Current endowment assets

Current endowment assets include fixed-term cash deposits, capital debtors, revenue cash and working capital held by the University's endowments.

Total endowment assets have increased from £580.4 million to £604.8 million in 2024/25. A presentational change in the accounting process between revenue cash and working capital during the year has resulted in siginificant balance variances within the endowment assets.

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Notes to the financial statements (continued)

23. Restricted reserves Consolidated

23. Restricted reserves
Consolidated Donations
and
Capital revenue 2025 2024
grants grants Total Total
£m £m £m £m
Balance as at 1 August - 98.9 98.9 63.1
New donations and grants receivable 18.2 87.3 105.5 145.4
Capital grants utilised (18.2) - (18.2) (28.6)
Expenditure - (90.6) (90.6) (81.0)
Total restricted comprehensive - (3.3) (3.3) 35.8
(expenditure)/income for theyear
Transfers - (7.5) (7.5) -
Balance as at 31 July - 88.1 88.1 98.9
Closing reserves comprise the following
funds:
Donations 52.6 49.5
Capital grants - -
Other grants 9.8 25.8
Funds held at Institution of Edinburgh 25.7 23.6
Development Trust
88.1 98.9
Institution Donations
and
Capital revenue 2025 2024
grants grants Total Total
£m £m £m £m
Balance as at 1 August - 75.3 75.3 40.7
New donations and grants receivable 18.2 63.3 81.5 99.5
Capital grants utilised (18.2) - (18.2) (20.7)
Expenditure - (68.7) (68.7) (44.2)
Total restricted comprehensive - (5.4) (5.4) 34.6
(expenditure)/income for theyear
Transfers - (7.5) (7.5) -
Balance as at 31 July - 62.4 62.4 75.3

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Notes to the financial statements (continued)

24. Revaluation reserve

24. Revaluation reserve
Consolidated and Institution Heritage 2025 2024
assets Total Total
£m £m £m
Balance as at 1 August and 31 July 208.4 208.4 208.4

25. Cash and cash equivalents

25. Cash and cash equivalents
Consolidated 2025 2024
£m £m
Balance as at 1 August 240.1 455.7
Net change in cash and cash equivalent balances (23.1) (215.6)
Balance as at 31 July 217.0 240.1
Institution 2025 2024
£m £m
Balance as at 1 August 217.7 434.9
Net change in cash and cash equivalent balances (26.7) (217.2)
Balance as at 31 July 191.0 217.7

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Notes to the financial statements (continued)

26. Consolidated reconciliation of net debt

26. Consolidated reconciliation of net debt 26. Consolidated reconciliation of net debt
Net debt
1 August
2024
£m
Cash flows
£m
Repayment
of loans
£m
Other
non-cash
changes
£m
Net debt
31 July
2025
£m
Cash and cash equivalents
240.1
(23.1)
-
-
217.0
Unsecured loans falling due
within one year
(6.4)
-
8.8
(10.3)
(7.9)
Unsecured loans falling due
after more than one year
(521.2)
-
-
8.1
(513.1)
Concessionary loans falling
due within one year
(2.2)
-
2.2
(2.2)
(2.2)
Concessionary loans falling
due after more than one year
(16.8)
-
-
2.3
(14.5)
Finance lease obligations
due within one year
(0.1)
-
0.1
(0.1)
(0.1)
Finance lease obligations
due after more than
oneyear
(0.2)
-
-
0.1
(0.1)
(546.9)
-
11.1
(2.1)
(537.9)
Total net debt (306.8)
(23.1)
11.1
(2.1)
(320.9)

Consolidated reconciliation of net debt

No new loans were taken out during the financial year 2024/25 (2024: £13.3 million).

27. Capital and other commitments

2025 2024
Consolidated
£m
Institution
£m		 Consolidated
£m
Institution
£m
Commitments contracted for as
at 31 July		 133.5
133.5
60.1
60.1

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Notes to the financial statements (continued)

28. Contingent liabilities

Pension schemes

In June 2023, the UK High Court judged that amendments made to the Virgin Media pension scheme were invalid because the scheme’s actuary did not provide the associated Section 37 certificate. The High Court’s decision has wide ranging implications, affecting other schemes that were contracted-out on a salary-related basis and made amendments between April 1997 and April 2016. The University of Edinburgh Staff Benefits Scheme, Lothian Pension Fund scheme and Strathclyde Pension Fund schemes were contracted out during this period and amendments were made during the relevant period. As such the ruling could have implications for the University. The Department for Work and Pensions’ (DWP) statement, published on 5 June 2025, indicates that legislation will allow affected schemes the ability to retrospectively obtain written actuarial confirmation that historic benefit changes met the standards required.

EUSBS Trustees carried out an initial scoping review to confirm what historical documentation is immediately available. They remain comfortable that they can take a ‘wait and see’ approach, and will advise further on whether they may wish to obtain retrospective actuarial confirmations to cover any document gaps.

The University confirms that the amount of any potential impact on the defined benefit obligations for these schemes cannot be confirmed and/or measured with sufficient reliability. We are therefore disclosing this issue as a contingent liability as at 31 July 2025 and will review again in 2026.

Subsidiary companies

The University has given written undertakings to support its subsidiary companies for at least twelve months from the date of approval of their financial statements.

29. Lease obligations

Total rentals payable under operating leases:

2025
2024
Land and
buildings
£m
Other
leases
£m
Total
£m
Total
£m
Payable during the year 33.4
0.1
33.5
32.4
Future minimum lease payments due:
Due within one year
Due between two and five years
Due in fiveyears or more		 17.1
-
17.1
21.7
65.2
-
65.2
64.1
97.2
-
97.2
113.7
Total leasepayments due 179.5
-
179.5
199.5

30. Events after the reporting period

In the interval between the end of the financial year and the date of this report, there were no items, transactions or events of a material and unusual nature likely, in the opinion of University Court, to affect significantly the operations of the Group, the results of those operations, or the state of affairs of the Group in subsequent financial years.

84 Annual Report and Accounts 2024/25

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Financial statements

Governance

Notes to the financial statements (continued)

31. Subsidiary undertakings

Subsidiary undertakings comprise companies, charities and partnerships registered in Scotland as follows:

==> picture [512 x 689] intentionally omitted <==

----- Start of picture text -----
%
Subsidiary holding Principal activities and other organisational information
Edinburgh 100% Commercialisation of the world-class research and academic expertise at the University of
Innovations Limited Edinburgh to potential funders, collaborators, licensees or investors.
Old College Capital
Holdings Limited Management of investment funds providing seed corn venture capital for early-stage high
(previously known as: 100% technology developments and the management of its portfolio of investments made using
Edinburgh Technology its funds.
Fund Limited)
UoE Accommodation 100% Non-student lettings and the provision of nursery childcare services for the University of
Limited Edinburgh.
UoE HPCX Limited 100% Provision of high-performance computing services.
UoE Estates Services
Company Limited 100% Provision of utility services to the University.
Old College Capital GP Limited acts as a general partner in two Scottish Limited Partnerships.
The first is Old College Capital LP which makes early and mid-stage investments into selected
Old College Capital 100% companies that emerge from the University and the second is Old College Capital SI LP, which
LP, SI and GP
invests in Epidarex, a venture capital fund. In addition, for both these Limited Partnerships, the
University is the limited partner.
Research into 100% The company is currently dormant. Some of the company’s cash reserves are being used to fund
Results Limited research projects within the University.
Edinburgh A charity registered in Scotland, registered charity number SC035813, incorporated as a limited
University Press 100% company. The principal activity of Edinburgh University Press Limited is the publication of
Limited educational books and journals.
EUSBS Trustees EUSBS Trustees Limited was incorporated to act as a single corporate trustee for the University of
Limited 100% Edinburgh Staff Benefits Scheme and replace the individual trustee structure in place at the time.
The entity is dormant.
Fintech Scotland A company limited by guarantee, currently dormant. As a strategic enabler, the company
Limited 100% establishes collaboration within the Fintech ecosystem. The company has been dormant since
incorporation.
A charity registered in Scotland, registered charity number SC004307. The trust is classed as a
The University
of Edinburgh 100% “quasi-subsidiary” of the University under the guidelines of FRS 102: Section 2 Concepts and
Pervasive Principles. The primary purpose of the Trust is to act as a fund raiser of funds for the
Development Trust benefit of the University.
A charity registered in Scotland, Registered Charity No SC001097. The trust is classed as a “quasi-
The Andrew Grant subsidiary” of the University under the guidelines of FRS 102: Section 2 Concepts and Pervasive
n/a
Bequest Principles. The primary purpose of the charity is to manage the monies in The Andrew Grant
Bequest in accordance with the terms of the original benefaction from Andrew Grant.
Smart Data 100% Provision of data-driven insights for the research purposes, data-driven solutions for the public
Foundry sector and supply of synthetic data
Other subsidiary undertakings are as follows:
%
Subsidiary holding Principal activities and other organisational information
University of
Edinburgh 100% A company registered in England. The main activities are that of investing in and operating
Deaconess Limited student accommodation property, and in particular, Deaconess House.
Hong Kong A company registered in Hong Kong. The company was set up to establish itself as a hub for
Centre for Carbon 100% education, research and development, and application of world-class low carbon solutions
Innovation with strong partnerships among the UK, Hong Kong and China. The company was dissolved in
Limited January 2024.
The Hong Kong
Foundation for 100% The Hong Kong Charitable Foundation was established to facilitate donations being made to
The University of the University from Hong Kong residents.
Edinburgh Limited
----- End of picture text -----

85 Annual Report and Accounts 2024/25

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Financial statements

Governance

Notes to the financial statements (continued)

31. Subsidiary undertakings (continued)

Overseas offices

The University operates overseas offices of which several are incorporated including the North American Office - University of Edinburgh incorporated, registered in the United States which supports the University’s activity in North America.

Associated undertakings include the following:

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----- Start of picture text -----
Associated
undertaking Principal activities and other organisational information
Research Data Scotland is a joint venture between the Scottish Government, Public Health
Scotland and the University of Edinburgh and is a registered Scottish charity. The charity is a
Research Data
company limited by guarantee. The company’s mission is to improve the economic, social and
Scotland
environmental wellbeing in Scotland by enabling access to and linkage of data about people,
places and businesses for research in the public good.
Edinburgh
The Shenzhen initiative is a partnership between the University and the China-based Good
International
Fellow Healthcare Holdings Limited. The collaboration will develop medical and scientific
Investments
knowledge over the next three years.
Limited
The Alan Turing Institute was created as the national institute for data science in 2015. In 2017,
The Alan Turing as a result of a government recommendation, artificial intelligence was added to the remit. The
Institute University was one of the five founding universities in 2015. An additional eight new universities
joined the Institute in 2018.
The University is a member of the Rosalind Franklin Institute along with nine other UK
universities, Diamond Light Source and the research council UKRI-STFC. The national institute,
Rosalind Franklin
funded by the UK government through UK Research and Innovation, is dedicated to bringing
Institute
about transformative changes in life science through interdisciplinary research and
technology development.
Roslin Technologies Limited is a joint venture between the University of Edinburgh and
Roslin
two investment and business development partners. The Company’s principal activity is to
Technologies
commercialise the intellectual property, capabilities and knowhow of The Roslin Institute and
Limited
The Royal (Dick) School of Veterinary Studies.
Scottish SUERC is an independent research organisation jointly owned by the Universities of Glasgow
Universities and Edinburgh. SUERC is administered by the University Court of the University of Glasgow and
Environmental was established to provide the Universities of the Scottish Consortium collaborative access to
Research Centre expensive equipment and specialist expertise. The main areas of strength are in geochemistry,
(SUERC) radiochemistry and isotope bio geosciences.
EBQ3 Limited is a dormant company, jointly controlled with The City of Edinburgh Council
and NHS Lothian. EBQ3 Limited was established to translate ground breaking research and
EBQ3 Limited discoveries into new treatment and cures, as well as delivering significant social, cultural and
economic benefits to Edinburgh, Scotland and the UK, and life-enhancing health advances to
the world. The company was dissolved in August 2025.
The University of Edinburgh is an active member of Universitas 21. All U21 member institutions
work together to foster global citizenship and innovation through research-inspired teaching,
Universitas student mobility, networking and advocacy for internationalisation. The network’s purpose
21 Limited is to facilitate collaboration and cooperation between the member universities and to create
opportunities for them on a scale that none of them would be able to achieve operating
independently or through traditional bilateral alliances.
----- End of picture text -----

In addition to the above associated undertakings, the Group and University nominate members of other companies limited by guarantee. The University has also acquired equity positions in the issued capital of several start-up / spinout companies limited by shares, largely acquired as part of intellectual property licence agreements. These shareholdings have been valued in accordance with FRS 102 and the International Private Equity and Venture Capital Valuation Guidelines using the last round price where possible as a starting point for estimating fair value. The value of the University investment in these companies can be found in note 16. Any investment with a value greater than £500,000 is listed separately.

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Notes to the financial statements (continued)

32. Connected charitable institutions

Consolidated Total net Total net
assets Change assets
opening in market closing
balance Income Expenditure value balance
£m £m £m £m £m
University of Edinburgh 24.5 24.7 (23.7) - 25.5
Development Trust (Scottish
Charity No. SC004307)
Edinburgh University Press 2.6 2.0 (2.0) - 2.6
Limited (Scottish Charity No.
SC035813)
The Andrew Grant Bequest 6.2 0.2 (0.2) 0.3 6.5
(Scottish CharityNo. SC001097)
33.3 26.9 (25.9) 0.3 34.6
Not consolidated Total net Total net
assets Change assets
opening in market closing
balance Income Expenditure value balance
£m £m £m £m £m
Edinburgh University Students’ (0.6) 10.9 (10.7) - (0.4)
Association* (Scottish Charity No.
SC015800)
Edinburgh University Sports 0.2 1.2 (1.1) - 0.3
Union (Scottish Charity No.
SC009248)
(0.4) 12.1 (11.8) - (0.1)

Connected charitable institutions

A number of charitable institutions are administered by or on behalf of the University and have been established for its general or special purposes. Three of the connected institutions are included as a subsidiary undertaking in these consolidated financial statements; the others are not included in the consolidation since the University does not have control over their activities.

The University Court is also the sole Corporate Trustee of Andrew Grant Bequest which is included in the Group accounts of the University.

*Note the Edinburgh University Students’ Association figures are at 31 March 2025, which is in line with their reporting year end.

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Notes to the financial statements (continued)

33. Pension schemes

University pension schemes

The University participates in three active pension schemes; the Universities Superannuation Scheme (USS), the University of Edinburgh Staff Benefits Scheme (EUSBS) and the National Employee Savings Trust (NEST), and operates salary sacrifice for active staff members of these schemes. The University also participates in other legacy pension schemes on behalf of both retired and active members. These legacy schemes are closed to new University employees but some former employees of Moray House Institute of Education, Edinburgh College of Art and the Medical Research Council Human Genetics Unit remain members of the Scottish Teachers Superannuation Scheme (STSS), the Strathclyde Pension Fund (SPF), the Lothian Pension Fund (LPF) and the Medical Research Council Pension Scheme (MRCPS). The University also participates in a Scottish Widows Group Personal Pension (GPP) for staff in certain sections of Edinburgh Innovations (EI) that were transferred to the University. The Federated Superannuation Scheme for Universities (FSSU) covers a small number of academic staff that did not transfer to USS when it was introduced in 1975.

USS, STSS, MRCPS and NHSSS are multi-employer schemes and, given the mutual nature of the schemes, it is not possible to identify the University’s share of the assets and liabilities for these schemes. Consequently, the University cannot apply defined benefit accounting and, according to Section 28 FRS 102, the schemes are accounted for as defined contribution schemes. Costs charged to the consolidated statement of comprehensive income and expenditure (the Consolidated Statement) shown below reflect the contributions in year. No share of any deficit or surplus in the STSS, MRCPS and NHSSS schemes are included in these financial statements. A liability for the future contributions payable to USS that relate to a deficit recovery plan agreement is recognised and the resulting expense is included the Consolidated Statement.

The EUSBS, SPF and LPF schemes are accounted for under FRS 102, Section 28 and the funded pension costs charged to the Consolidated Statement shown below reflect the service cost calculated under FRS 102. The FRS 102 disclosures of the University pension assets, liabilities and costs are included at the end of this note.

Overall scheme participation and pension costs

Employer
contribution
rate as at
31 July
2025
Employee
contribution
rate as at
31 July
2025		 Active
members
as at
31 July
2025
Number		 Pension
costs
year to
31 July
2025
£’000		 Active
members
as at
31 July
2024
Number		 Pension
costs
year to
31 July
2024
£’000
Defined contribution plan
USS
14.5%
6%
STSS
26% 7.35% to 12.14%
MRCPS
17%
5.25% to 6.5%
NEST
3%
5%
GPP
14%
5%
Other: NHS and
subsidiaries
23%
5.7% to 13.7%		 10,772
44
25
2,193
3
114		 115,557
515
244
3,426
55
4,015
10,927 108,715
34 619
21 228
2,041 3,627
2 43
368 5,059
Sub-total: members and costs 13,393 118,291 13,151 123,812
Defined benefit plan
EUSBS
15.6%
6.1%
SPF
6.5%
5.5% to 11.2%
LPF
23.4%
5.5% to 11.2%		 1,638
14
12		 9,300
62
126
1,711 9,900
12 117
5 126
Sub-total: members and service cost per
FRS 102 disclosures below		 1,728 10,143 1,664 9,488
Total: members and cost 15,121 128,434 14,815 133,300

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Notes to the financial statements (continued)

33. Pension schemes (continued)

Key actuarial assumptions

Ke actuarial assumtions
33. Pension schemes(continue		 d)
y p Current
pensioners Non-pensioners
mortalityrate1 mortalityrate
Salary Pensions
Discount increase increase
rate rate rate
Males Females		 Males Females
Valuations under FRS 102
as at 31 July 2025
EUSBS
5.75%
LPF
5.75%
SPF
5.75%		 3.55%2
3.50%
3.50%		 2.55%3
20.1
23.7
2.80%
20.7
23.6
2.80%
20.6
23.6		 21.6
25.5
20.8
25.0
21.4
24.8

  1. Mortality rates are based on assumed life expectancy at the retirement age.

  2. Salary increases are assumed to be 3.55 per cent based on CPI plus 1 per cent.

  3. Benefits after 31 December 2016.

The Universities Superannuation Scheme (USS)

The institution participates in the USS. The scheme is a hybrid pension scheme, providing defined benefits (for all members), as well as defined contribution benefits. The assets of the scheme are held in a separate trustee-administered fund. Due to the mutual nature of the scheme, the assets are not attributed to individual institutions and a scheme-wide contribution rate is set. The institution is therefore 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. As required by Section 28 of FRS 102 “Employee benefits”, the institution therefore accounts for the scheme as if it were a wholly defined contribution scheme. As a result, the amount charged to the Consolidated Statement represents the contributions payable to the scheme. Since the institution has entered into an agreement (the Recovery Plan) that determines how each employer within the scheme will fund the overall deficit, the institution recognises a liability for the contributions payable that arise from the agreement (to the extent that they relate to the deficit) and therefore an expense is recognised. Since the scheme is in surplus, the University is no longer required to make deficit recovery contributions from 1 January 2024.

FRS 102 makes the distinction between a group plan and a multi-employer scheme. A group plan consists of a collection of entities under common control, typically with a sponsoring employer. A multi-employer scheme is a scheme for entities not under common control and represents (typically) an industry-wide scheme such as the USS. The accounting for a multi-employer scheme where the employer has entered into an agreement with the scheme that determines how the employer will fund a deficit results in the recognition of a liability for the contributions payable that arise from the agreement (to the extent that they relate to the deficit). The resulting expense is recorded in the Consolidated Statement in accordance with section 28 of FRS 102. Court is satisfied that the scheme provided by the USS meets the definition of a multi-employer scheme and has therefore recognised the discounted fair value of the contractual contributions under the funding plan in existence at the date of approving the financial statements.

The total current service cost charged to the Consolidated Statement is £108.7 million (2024: £115.6 million) as shown in the overall scheme participation and pension costs table.

The latest available completed actuarial valuation of the Retirement Income Builder section of the Scheme 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. The 2023 valuation was the seventh valuation for USS 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.

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 per cent.

The key financial assumptions used in the 2023 valuation are described below. More detail is set out in the Statement of Funding Principles.

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33. Pension schemes (continued)

==> picture [361 x 158] intentionally omitted <==

----- Start of picture text -----
Pension increases Term dependent rates in line with the difference between the
(CPI) Fixed Interest and Index Linked yield curves less: 1.0% per
annum to 2030, reducing linearly by 0.1% per annum from 2030.
Pension increases Benefits with no cap: CPI assumption plus 3bps.
(subject to a floor Benefits subject to a “soft cap” of 5% (providing inflationary
of 0%) increases up to 5%, and half of any excess inflation over 5% up to
a maximum of 10%): CPI assumption minus 3bps.
Discount rate Fixed interest gilt yield curve plus:
(forward rates) Pre-retirement: 2.5 % per annum
Post-retirement: 0.9 % per annum
----- End of picture text -----

The main demographic assumption used relates 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:

2023 valuation

==> picture [361 x 88] intentionally omitted <==

----- Start of picture text -----
Mortality base table 101% of S2PMA “light” for males and 95% of S3PFA for females.
Future CMI 2021 with a smoothing parameter of 7.5, an initial addition
improvements to of 0.4% p.a 10% w2020 and w2021 parameters, and a long-term
mortality improvement rate of 1.8% per annum for males and 1.6% per
annum for females.
----- End of picture text -----

The current life expectancies on retirement at age 65 are:

The current life expectancies on retirement at age 65 are:
2025
2024
Males currently aged 65 (years) 23.8
23.7
Females currently aged 65 (years) 25.5
25.6
Males currently aged 45 (years) 25.7
25.4
Females currently aged 45 (years) 27.2
27.2

Under the 2023 valuation the scheme was in surplus on a technical provisions basis, the University was no longer required to make deficit recovery contributions from 1 January 2024.

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Notes to the financial statements (continued)

33. Pension schemes (continued)

Scottish Teachers Superannuation Scheme (STSS)

The STSS provides final salary benefits to former members of the Moray House School of Education and is a multiemployer defined benefits scheme. The University is unable to identify its share of the underlying assets and liabilities of the scheme. Accordingly, the University has taken advantage of the exemption in FRS 102 and has accounted for a defined contribution scheme. The last fouryearly valuation was carried out as at 31 March 2020 and a shortfall of £2.9 billion was identified in the notional fund.

As the scheme is unfunded, no surplus or shortfall can be identified. The scheme is financed by payments from employers and from those current employees who are members of the scheme and paying contributions at progressively higher marginal rates based on pensionable pay, as specified in the regulations. The rate of employer contribution is set with reference to a funding valuation undertaken by the scheme actuary.

Medical Research Council Pension Scheme (MRCPS)

As a result of the merger with the Human Genetics Unit, the University obtained membership of the MRCPS with effect from 1 October 2011. The MRCPS is a final salary, defined benefit pension scheme. Under the terms of the merger the MRCPS is responsible for past service liabilities prior to the merger and the University is responsible for the future service from the merger date.

The required MRCPS contribution rate is assessed every three years in accordance with advice of the Government Actuary. Triennial valuations are conducted under the Pensions Act 2004 on a scheme specific funding basis using the project unit method. The latest actuarial assessment of the MRCPS was at 31 December 2022. At the valuation date, the value of the assets of the MRCPS was £1.92 billion (2019: £1.76 billion) and the value of the scheme’s technical provisions was £1.31 billion indicating a surplus of £607 million. The assets were therefore sufficient to cover 146 per cent of the benefits that accrued to members after allowing for expected future increases in earnings. As a result of the 2022 valuation, the trustees determined it would be appropriate to continue making employer contributions at a rate of 16.9 per cent of pensionable salary.

National Employee Savings Trust (NEST)

The University joined the NEST scheme in March 2013 to provide a low-cost alternative pension to EUSBS scheme membership. NEST is administered by a Trustee and was established as a result of the 2008 Pensions Act, which introduced the requirement to automatically enrol workers into a workplace pension scheme if they:

Group Personal Pension (GPP)

As a result of the pre-award research project administration and legal teams of Edinburgh Innovations (EI) being transferred to the University, the University gained a number of staff in a Scottish Widows GPP. This is a defined contribution pension scheme.

National Health Service Superannuation Scheme (NHSSS)

As a result of the merger with the Human Genetics Unit, the University gained a number of staff in the NHSSS pension scheme. Under the definitions set out in FRS 102, the NHSSS is a multi-employer scheme. The University is unable to identify its share of the underlying assets and liabilities of the scheme. Accordingly, the University has taken advantage of the exemption in FRS 102 and has accounted as if it were a defined contribution scheme. An actuarial assessment was carried out as at 31 March 2020. At that date the scheme had total liabilities of £43.6 billion and notional assets of £39.7 billion giving a notional past service deficit of £3.9 billion.

The Federated Superannuation Scheme for Universities (FSSU)

FSSU was a defined benefit scheme and covered a very small number of academic staff who did not transfer to USS when it was introduced in 1975. Pension provision was by means of assurance policies, selected by the member from a panel and held in trust by the Trustees. Persons who retired under the scheme are entitled to additional benefits that may arise under the FSSU supplementation scheme. These additional benefits are unfunded and are paid direct to retired members by Court. Full provision has been made in the year for the actuarial valuation of the liabilities of this scheme.

There are no active members but the University has one retired member in receipt of FSSU supplementation retirement benefits.

Unfunded pensions

The University has a number of unfunded pensions which relate to the mergers with the Edinburgh College of Art and the Moray House School of Education and ex-gratia payments from the University. The value of these liabilities is £3.3 million (2024: £3.7 million). This comprises:

NEST is a defined contribution scheme. Pension contribution rates will be set by the scheme’s actuary at a level to meet the cost of pensions as they accrue.

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33. Pension schemes (continued)

Edinburgh University Staff Benefits Scheme (EUSBS)

The assets and liabilities of the EUSBS scheme were:


Edinburgh University Staf Benefits Scheme (EUSBS)
33. Pension schemes(continued)
The assets and liabilities of the EUSBS scheme were: Value at Value at Value at
31 July 31 July 31 July
2025 2024 2023
£m £m £m
Market value of assets:
Equities 88.8 94.6 96.1
Debt securities - corporate 13.0 12.5 -
Property 42.9 38.4 40.2
Liability driven investments 131.3 133.5 136.1
Private equity and diversified growth funds 114.3 122.8 120.9
Cash 5.0 8.5 2.0
Total market value of assets 395.3 410.3 395.3
Present value of scheme liabilities (399.1) (442.4) (415.6)
Deficit in the scheme - netpension liability (3.8) (32.1) (20.3)

Edinburgh University Staff Benefits Scheme (EUSBS)

The EUSBS is an externally-funded defined benefit scheme. The assets of EUSBS are held in a separate trusteeadministered fund. The latest formal triennial actuarial valuation was carried out as at 31 March 2024 and has been rolled forward as the basis for the following valuation under FRS 102. As at 31 July 2025, the value of the assets in the scheme was £395.3 million (2024: £410.3 million) and the present value of the funded and unfunded benefits accrued was £399.1 million (2024: £442.4 million), leaving a shortfall of £3.8 million (2024: £32.1 million) included in the University pension liability. Deficit funding of £1.5 million was paid in April 2024. As the scheme is now in a surplus position based on the latest valuation, deficit funding contributions ceased during the financial year. Further information is available at: Staf Benefits Scheme details

Lothian Pension Fund (LPF)

The University’s share of assets in the LPF scheme were:


Lothian Pension Fund (LPF)
The University’s share of assets in the LPF scheme were: Value at Value at Value at
31 July 31 July 31 July
2025 2024 2023
£m £m £m
Market value of assets:
Equities 7.0 7.7 8.1
Bonds 12.2 12.4 12.1
Property 0.8 0.9 0.9
Cash 0.6 1.1 1.3
Total market value of assets 20.6 22.1 22.4
Present value of scheme liabilities
Funded (16.4) (18.1) (17.6)
Unfunded (0.1) (0.1) (0.1)
Surplus in the scheme - net pension asset 4.1 3.9 4.7
Effect of asset cap on surplus1 - (0.5) (4.7)
Surplus in the scheme - net pension asset 4.1 3.4 -
  1. An asset cap is applied to the scheme surplus to reduce the accounting surplus to the cessation valuation.

Lothian Pension Fund (LPF)

Former members of the Edinburgh College of Art are members of the LPF scheme, which is an externallyfunded, multi-employer, defined benefits scheme from which pensions and other related benefits are paid. LPF is a pool into which employees’ and employers’ contributions and income from investments are paid, and from which previous and other related benefits are paid out, in accordance with the provisions of the Local Government Pension Scheme. The last full valuation was carried out as at 31 March 2023 and the results have been rolled forward as the basis for the following valuation under FRS 102. As at 31 July 2025, the value of the University’s assets in the LPF scheme was £20.6 million (2024: £22.1 million) and the present value of the funded and unfunded benefits accrued was £16.5 million (2024: £18.2 million), leaving a surplus of £4.1 million (2024: £3.9 million). A cessation valuation for the scheme was £4.2 million as at 31 July 2025. As the accounting surplus of £4.1 million was lower than the cessation valuation of £4.2 million, it has been deemed appropriate to recognise the accounting surplus as at 31 July 2025. No asset cap was therefore applied to the scheme surplus as at 31 July 2025. Further information on the scheme is available at: lpf.org.uk

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Notes to the financial statements (continued)

33. Pension schemes (continued)

Strathclyde Pension Fund (SPF)

Strathclyde Pension Fund (SPF)
33. Pension schemes(continued)
The University’s share of assets in the SPF scheme were: Value at Value at Value at
31 July 31 July 31 July
2025 2024 2023
£m £m £m
Market value of assets:
Equities 28.7 27.9 25.7
Bonds 10.4 11.2 11.4
Property 4.2 4.0 4.2
Cash 3.8 1.9 0.8
Total market value of assets 47.1 45.0 42.1
Present value of scheme liabilities:
Funded (20.0) (22) (21.8)
Unfunded (0.2) (0.2) (0.2)
Surplus in the scheme - net pension asset 26.9 22.8 20.1
Effect of asset capon surplus1 (2.5) (2.4) (4.1)
Surplus in the scheme - netpension asset 24.4 20.4 16.0
  1. An asset cap is applied to the scheme surplus to reduce the accounting surplus to the cessation valuation.

Strathclyde Pension Fund (SPF)

Former members of the Moray House School of Education are members of the SPF scheme, which is an externally-funded, multi-employer, defined benefits scheme from which pensions and other related benefits are paid. SPF was, under the State Pension rules up to 5 April 2016, contracted out of the State Second Pension (S2P) scheme. From 6 April 2016, employees are no longer able to contract out of the S2P. SPF is a pool into which employees’ and employers’ contributions and income from investments are paid, and from which previous and other related benefits are paid out, in accordance with the provisions of the Local Government Pension Scheme. The last full valuation was carried out as at 31 March 2023 and the results have been rolled forward as the basis for the following valuation under FRS 102.

As at 31 July 2025, the value of the University’s assets in the SPF scheme was £47.1 million (2024: £45.0 million) and the value of the funded and unfunded benefits accrued was £20.2 million (2024: £22.2 million), leaving a surplus of £26.9 million (2024: £22.8 million surplus). A cessation valuation for the scheme was £24.7 million as at 31 July 2025. Including unfunded obligations, we have determined that an asset cap of £2.5 million is appropriate for SPF and the variance between accounting surplus presented and cessation valuation.

Further information on the scheme is available at: spfo.org.uk

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Notes to the financial statements (continued)

33. Pension schemes (continued)

FRS 102 disclosures

The following amounts were measured in accordance with the requirements of FRS 102 in respect of EUSBS, SPF and LPF and have been recognised in these financial statements.

The unfunded liability associated with ex-gratia pensions is included for clarity.

2025 2024
£m £m
Analysis of the amount shown in the balance sheet for EUSBS,
LPF and SPF pensions:
Scheme assets (gross) 463.0 477.4
Surplus restriction (2.5) (2.9)
Scheme assets 460.5 474.5
Scheme liabilities 435.7 482.8
(Surplus)/deficit in the schemes – net pension liability recorded (24.8) 8.3
within pension provisions (note 21)
Unfunded_exgratia_ pension liability 3.3 3.8
Totalprovision for net(asset)/liability (21.5) 12.1
Current service costs 8.6 8.0
Administration costs 1.4 1.4
Past service cost 0.1 0.0
Total operating charge 10.1 9.4
Analysis of the amount charged to interest payable
Interest costs 23.2 22.7
Expected return on assets (23.3) (23.4)
Net charge to other interest and other finance costs (0.1) (0.7)
Analysis of other comprehensive income:
Loss/(gain) on assets 24.8 (1.7)
Actuarial remeasurement gain due to experience (0.6) (1.8)
Actuarial remeasurement (gain)/loss due to changes in assumptions (53.8) 16.2
Total (gain)/loss to other comprehensive income before (29.6) 12.7
deduction for tax
Analysis of movement in (surplus)/deficit 2025 2024
£m £m
Deficit at the beginning of the year 8.3 4.2
Contributions or benefits paid by the Institution (13.5) (15.8)
Additional contributions paid by the Institution - (1.5)
Current service costs 8.6 8.0
Past service cost 0.1 -
Other finance costs (0.1) (0.7)
Administration costs 1.4 1.4
(Gain)/loss recognised in other comprehensive income (29.4) 12.7
(Surplus)/deficit at the end of theyear (24.8) 8.3

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Notes to the financial statements (continued)

33. Pension schemes (continued)

33. Pension schemes(continued)
Analysis of movement in the present value of liabilities 2025 2024
£m £m
Present value of liabilities at the start of the year 482.8 439.4
SPF surplus recognition transfer to asset - 16.0
Current service costs 8.6 8.0
Administration costs 1.4 1.4
Interest costs 23.2 22.7
Past service cost recorded within other comprehensive income 0.1 -
Actual member contributions 0.2 0.2
Actuarial (gain)/loss on liabilities (54.4) 18.6
Actual benefitpayments (26.2) (23.5)
Present value of liabilities at the end of the year 435.7 482.8
Analysis of movement in the fair value of scheme assets 2025 2024
£m £m
Fair value of assets at the start of the year 474.5 435.2
SPF surplus recognition transfer to asset - 16.0
Expected return on assets 23.3 23.4
Actuarial (loss)/gain on assets (24.8) 5.9
Actual scheme contributions paid by the Institution* 13.5 15.8
Additional contributions paid by the Institution** - 1.5
Actual member contributions 0.2 0.2
Actual benefitpayments (26.2) (23.5)
Fair value of scheme assets at the end of theyear 460.5 474.5
Actual return on scheme assets 2025 2024
£m £m
Expected return on assets 23.3 23.4
Actuarial (loss)/gain on assets (24.8) 5.9
(1.5) 29.3

*Actual contributions in the financial year are £13.5 million (2024: £15.8 million) based on the same member take up in the Salary Sacrifice arrangement.

**A £1.5 million contribution was made to the EUSBS in 2023/24 as part of a deficit recovery plan while the scheme was still in in deficit. As the scheme is now in a surplus position based on the latest valuation, deficit funding contributions ceased during the financial year.

2025 2024 2023 2022 2021
Difference between actual and expected
gain/(loss) on scheme assets:
Amount (£m) 24.8 5.9 (110.5) (86.2) 75.9
% of assets at the end of the year 5.4% 1.2% (25.4%) (16.2%) 12.4%
Experience gains/(loss) on scheme
liabilities:
Amount (£m) 54.4 (18.6) 140.8 222.2 (54.2)
% of liabilities at the end of theyear 12.5% (3.9%) (32.0%) 39.0% (7.0%)

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Notes to the financial statements (continued)

34. Financial instruments

34. Financial instruments
Note(s) 2025 2024
Consolidated
£m
Institution
£m		 Consolidated
£m
Institution
£m
Financial assets
Cash and cash
equivalents
Measured at fair value
through profit and loss
Non-current
investments
16
Measured at amortised
cost
Non-current
investments
16
Trade and other
receivables
17
Investments in short-
term deposits
18
Amounts due from
subsidiarycompanies
17		 240.1
217.7
955.4
956.2
14.1
14.1
312.0
291.4
139.0
139.0
-
29.1
217.0
191.0
951.7
938.2
14.7
14.7
288.1
270.7
139.0
139.0
-
32.9
1,610.5
1,586.5		 1,660.6
1,647.5
Financial liabilities
Measured at amortised
cost
Unsecured and
concessionary loans
19 & 20
Trade payables
19
Accruals
19
Other creditors
19
Finance lease liabilities
19
Amounts due to
subsidiarycompanies
19		 549.0
549.0
42.8
33.0
85.2
85.2
9.0
9.0
0.3
0.3
-
46.1
537.7
537.7
50.3
41.9
89.0
89.0
7.5
8.5
0.2
0.2
-
50.7
684.7
728.0		 686.3
722.6

Financial instruments

The financial statements have been prepared on the historical cost convention (modified by the revaluation of heritage assets and investments), except for certain financial assets and liabilities which are carried at fair value or amortised cost as appropriate. Fair value measurements are, to the extent possible, based on quoted prices in active markets for identical assets or liabilities that the entity can access. Where quoted prices are not available, the University to the extent possible, uses observable market data for the asset or liability, either directly or indirectly. All other fair value measurements are based on unobservable inputs for the asset or liability. Further details are provided in the accounting policies.

35. Student support payments

HE HE HE 2025 2024
childcare discretionary other Total Total
£’000 £’000 £’000 £’000 £’000
Balance as - - - - 7.0
at 1 August
Allocation 173.1 720.0 19.4 912.5 825.0
received in year
Funds returned - (0.6) (18.4) (19.0) (7.0)
Expenditure (186.1) (707.6) (1.0) (894.7) (826.0)
Interest received - 1.2 - 1.2 1.0
Virements 13.0 (13.0) - - -
Balance as - - - - -
at 31 July

Student support payments Funds returned

Unspent funds from prior year returned as per Student Awards Agency Scotland guidance.

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Notes to the financial statements (continued)

36. Related party transactions

36. Related party transactions
Income Expenditure 2025
Total
Balance
due at 31
July 2025
£’000 £’000 £’000
£’000
ABRDN PLC1 856.0 - 856.0
28,000
Advance He - (175.0) (175.0)
(2.0)
AtkinsRéalis UK Ltd 5.0 - 5.0
-
Biocaptiva Limited 63.0 - 63.0
17.0
Eco Animal Health Ltd 3.0 - 3.0
-
Edinburgh International Conference - (410.0) (410.0)
-
Centre Ltd
Edinburgh University Students 723.0 (4,911.0) (4,188.0)
(323.0)
Association
Equity Gap Ltd 6.0 - 6.0
-
EUSACO LTD - (7.0) (7.0)
-
Newbattle Abbey College - (12.0) (12.0)
-
Roslin Cell Therapies Limited 495.0 - 495.0
10.0
Royal College Of Physicians Of 78.0 (408.0) (330.0)
(5.0)
Edinburgh
Scottish Athletics Limited 24.0 - 24.0
3.0
Scottish Financial Enterprise - (2.0) (2.0)
-
Scottish Funding Council 206,795.5 - 206,795.5
-
Scottish Government 6,171.0 (570.0) 5,601.0
(22.0)
Sunamp Limited 47.0 - 47.0
-
The Carnegie Trust for the Universities 340.0 - 340.0
212.0
of Scotland
The Russell Group - (96.0) (96.0)
-
Universitas 21 7.4 (39.0) (32.0)
-
215,63.9 (6,630.0) (208,983.9)
27,890.0
  1. Rushad Abadan serves as a Court member and is Group General Counsel for Aberdeen Group plc. The balance represents non-current investment of £1.0 million (2024: £25.0 million) in an Aberdeen Money Market Fund and £27.0 million (2024: £23.2 million) in an Aberdeen buyout ready portfolio (for further information see note 16 Non-current investments).

Court members

The Court members are the trustees for charitable law purposes. Due to the nature of the University’s operations and the compositions of Court, being drawn from local public and private sector organisations, it is inevitable that transactions will take place with organisations in which a member of Court may have an interest. All transactions involving organisations in which a member of Court may have an interest are conducted at arm’s length and in accordance with the University’s Financial Regulations and usual procurement procedures.

The University has taken advantage of the exemption allowed by FRS 102 not to disclose transactions between wholly owned Group companies. Related party transactions with University spinout companies have not been disclosed as they are not material.

No Court member has received any remuneration for their position from the Group during the year (2024: nil). As per the Higher Education Governance (Scotland) Act 2016, the Senior Lay Member is entitled to request remuneration at a level considered by the Court to be reasonable (agreed as £15,000 per annum). The Senior Lay Member has waived any remuneration and requested that the sum be instead used for in support of the Access Edinburgh Scholarship programme.

The total expenses paid to or on behalf of nine Court members was £7,073 (2024: £24,287), consisting of travel, childcare and accommodation expenses incurred in fulfilling official duties. This has decreased from the previous year as more Court meetings took place as in-person meetings.

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Five-year summary (unaudited)

CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME AND EXPENDITURE 2025
2024		 2023 2022 2021
FOR THE YEAR TO 31 JULY £m
£m		 £m £m £m
Income
Tuition fees and education contracts
Home and EU higher education students 135.8
134.3		 133.0 131.8 135.1
Non-EU fees 388.5
363.3		 353.4 335.5 272.5
Educationgrants 32.1
29.6		 27.3 29.7 27.4
Total tuition fees 556.4
527.2		 513.7 497.0 435.0
Funding body grants
Recurrent teaching grant 72.7
76.2		 74.5 72.2 68.5
Recurrent research grant 105.4
102.4		 104.9 90.9 89.7
Specificgrants 28.7
30.1		 31.5 35.2 78.1
Total funding body grants 206.8
208.7		 210.9 198.3 236.3
Research grants and contracts
Research councils 179.9
153.0		 139.1 132.8 124.4
UK based charities 84.5
70.2		 65.2 74.6 66.1
UK central government bodies, local and health authorities 44.3
50.7		 61.3 46.9 64.4
UK industry, commerce and public corporations 15.7
10.1		 6.0 9.0 7.6
EU government bodies 7.1
20.6		 21.1 28.4 31.3
EU other 9.6
9.8		 6.0 4.5 3.9
Other overseas 36.0
46.1		 25.1 31.9 23.7
Other sources (1.7)
4.7		 15.7 3.5 2.6
Total research grants and contracts 375.4
365.2		 339.5 331.6 324.0
(excluding RDEC)
Other income
Residences, catering and conferences 114.9
98.3		 93.3 73.8 44.7
Specific grants, donations and other designated income 87.2
91.5		 85.8 102.5 86.7
General income 59.3
48.4		 43.1 45.7 31.7
Total other income 261.4
238.2		 222.2 222.0 163.1
Investment income
Endowments and other investment income 16.2
21.8		 16.5 12.2 9.8
Other interest receivable 38.1
42.6		 26.8 7.7 3.4
Total investment income 54.3
64.4		 43.3 19.9 13.2
Total income before endowments and donations 1,454.3
1,403.7		 1,329.6 1,268.8 1,171.6
Donations and endowments
New endowments 8.3
5.8		 45.8 15.3 1.5
Donations with restrictions 13.0
17.5		 8.4 12.3 12.7
Unrestricted donations 1.0
6.8		 0.9 1.1 1.6
Total donations and endowments 22.3
30.1		 55.1 28.7 15.8
Total income 1,476.6
1,433.8		 1,384.7 1,297.5 1,187.4

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(continued) Five-year summary (unaudited)

Five-year summary (unau dited)(continued)
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME AND EXPENDITURE 2025
2024		 2023 2022 2021
FOR THE YEAR TO 31 JULY £m
£m		 £m £m £m
Expenditure
Staff costs
Salaries 615.3
561.1		 498.9 455.4 451.0
Social security costs 73.4
61.3		 53.8 50.3 46.4
Pension costs 128.4
133.3		 144.9 140.2 133.6
Movement on USS provision -
(352.4)		 (52.8) 234.2 (14.5)
Other unfunded pension costs 0.3
(0.2)		 (0.1) (0.1) 0.1
Severance costs 12.0
0.4		 8.3 1.6 0.7
Total staff costs 829.4
403.5		 653.0 881.6 617.3
Other operating expenses
Academic and related expenditure 91.3
102.9		 94.4 79.1 61.0
Scholarships and stipends 51.1
50.2		 48.2 45.4 44.2
Research grants and contracts 131.9
120.3		 102.8 108.1 94.8
Library, computer and other academic support services 22.0
22.3		 22.6 19.4 14.7
Administration and central services 8.3
27.2		 33.4 29.5 20.1
Refurbishment and maintenance 35.1
33.4		 31.2 28.4 21.5
Utilities costs 55.4
42.5		 31.5 22.7 17.2
Other premises costs 17.6
17.6		 20.0 14.2 21.3
Other including income generating operations 30.5
58.9		 23.6 24.3 22.6
Residences and cateringoperations 62.4
64.9		 54.0 45.0 38.7
Total other operating expenses 505.6
540.2		 461.7 416.1 356.1
Depreciation and amortisation 103.4
91.0		 85.4 61.2 63.0
Impairment of fixed assets 4.1
-		 - 8.4 4.2
Interest and other finance costs 14.0
21.6		 27.4 21.7 19.4
Total expenditure 1,456.5
1,056.3		 1,227.5 1,389.0 1,060.0
Surplus/(deficit) before other gains and losses 20.1
377.5		 157.2 (91.5) 127.4
Taxation (0.7)
(0.8)		 - - (0.5)
(Loss)/gain on disposal of fixed assets (2.7)
-		 0.1 - 7.0
Gain/(loss) on investments 28.0
29.0		 (5.8) (8.6) 80.6
Surplus/(deficit) for the year 44.7
405.7		 151.5 (100.1) 214.5
Unrealised surplus on revaluation of heritage assets -
-		 - - 0.2
Actuarialgain/(loss) in respect ofpension schemes 29.6
(12.9)		 30.2 136.6 21.6
Total comprehensive income for theyear 74.3
392.8		 181.7 36.5 236.3

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(continued) Five-year summary (unaudited)

Five-year summary (unau dited)(continued)
CONSOLIDATED STATEMENT OF
FINANCIAL POSITION AS AT 31 JULY		 2025
£m
2024
£m		 2023
£m		 2022
£m		 2021
£m
Fixed assets 2,273.8
2,177.7		 2,083.7 2,005.8 1,920.8
Heritage assets 218.1
217.5		 216.8 215.8 215.3
Investments 951.7
969.5		 676.8 728.5 716.2
Pension asset 21.5
-		 - - -
Total non-current assets 3,465.1
3,364.7		 2,977.3 2,950.1 2,852.3
Current assets 681.4
714.6		 1,001.0 900.3 892.6
Total assets 4,146.5
4,079.3		 3,978.3 3,850.4 3,744.9
Less creditors failingdue within oneyear (484.3)
(476.8)		 (430.1) (398.3) (392.3)
Total assets less current liabilities 3,662.2
3,602.5		 3,548.2 3,452.1 3,352.6
Non-current liabilities (527.7)
(538.2)		 (536.0) (546.9) (589.4)
Pension provisions -
(12.1)		 (352.8) (427.5) (321.8)
Otherprovisions (8.6)
(0.6)		 (0.6) (0.6) (0.8)
Total net assets 3,125.9
3,051.6		 2,658.8 2,477.1 2,440.6
Represented by:
Restricted reserves 692.9
679.3		 622.9 608.5 615.3
Unrestricted reserves 2,433.0
2,372.3		 2,035.9 1,868.6 1,825.3
Total reserves 3,125.9
3,051.6		 2,658.8 2,477.1 2,440.6

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(continued) Five-year summary (unaudited)

2025
2024		 2023 2022 2021
Liquidity measures
Liquidity ratio ([current assets - stock] / current liabilities) x 1.4
1.5		 2.3 2.2 2.3
Extent to which current liabilities can be met from cash and liquid investments
Days ratio of cash to total expenditure (investments + cash at bank - overdraft) Days 96
143		 238 182 269
/ (total expenditure - depreciation)*365
The number of days expenditure that could be sustained from available funds
Solvency measures
Interest cover (earnings before interest and tax / interest payable)1 x 2.4
18.5		 6.7 (3.2) 7.8
Measures the ability to pay interest on outstanding debt
Interest cover (operating cash flow / interest payable) x 3.8
(0.9)		 2.3 6.2 8.2
Measures how easily the University can pay outstanding debt in cash terms
Gearing (creditors>1 year / [endowment + general reserves including % 19%
20%		 22% 25% 27%
pension reserve])
Measures the extent to which the University is funded by long-term debt
Operating performance
Surplus before other gains and losses1 % 1.4%
26.3%		 11.4% (7.1%) 10.7%
Measures the ability to deliver surpluses
ROCE (EBITDA/[total assets - pension provisions]) % 3.1%
2.7%		 4.9% 5.8% 3.7%
Measures the return that is being earned on capital invested
EBITDA for HE (FRS 102 surplus/(deficit) before other gains/losses + interest £m 96
84		 148 168 102
payable + depreciation + change to pension provisions within staff costs -
capital grants received - new permanent endowments)
Measures operating performance before local decisions on accounting and
financepolicies are taken into account
  1. Includes impact of exceptional staff costs (non-cash) relating to movement on USS pension provision in each year.

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(continued) Five-year summary (unaudited)

CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME AND EXPENDITURE 2025
2024		 2023 2022 2021
FOR THE YEAR TO 31 JULY % total
% total		 % total % total % total
Income
Tuition fees and education contracts
Home and EU higher education students 9.2%
9.4%		 9.6% 10.2% 11.4%
Non-EU fees 26.3%
25.3%		 25.5% 25.8% 22.9%
Educationgrants 2.2%
2.1%		 2.0% 2.3% 2.3%
Tuition fees as % of total income 37.6%
36.8%		 37.1% 38.3% 36.6%
Funding body grants
Recurrent teaching grant 4.9%
5.3%		 5.4% 5.6% 5.8%
Recurrent research grant 7.1%
7.1%		 7.5% 7.0% 7.6%
Specificgrants 1.9%
2.1%		 2.3% 2.7% 6.6%
Funding body grants as % of total income 14.0%
14.5%		 15.2% 15.3% 19.9%
Research grants and contracts
Research councils 12.2%
10.7%		 10.1% 10.2% 10.5%
UK based charities 5.7%
4.9%		 4.8% 5.7% 5.6%
UK central government bodies, local and health authorities 3.0%
3.5%		 4.4% 3.6% 5.4%
UK industry, commerce and public corporations 1.1%
0.7%		 0.4% 0.7% 0.6%
EU government bodies 0.5%
1.4%		 1.5% 2.2% 2.6%
EU other 0.7%
0.7%		 0.4% 0.3% 0.3%
Other overseas 2.4%
3.2%		 1.8% 2.4% 2.0%
Other sources (0.1%)
0.3%		 1.1% 0.3% 0.2%
Researchgrants and contracts as % of total income 25.4%
25.4%		 24.5% 25.6% 27.3%
Other income
Residences, catering and conferences 7.8%
6.9%		 6.7% 5.7% 3.8%
Specific grants, donations and other designated income 5.9%
6.4%		 6.2% 7.9% 7.3%
General income 4.0%
3.4%		 3.1% 3.5% 2.7%
Other income as % of total income 17.7%
16.7%		 16.0% 17.1% 13.7%
Investment income
Endowments and other investment income 1.1%
1.5%		 1.2% 0.9% 0.8%
Other interest receivable 2.7%
3.0%		 1.9% 0.6% 0.3%
Total investment income as % of total income 3.8%
4.5%		 3.1% 1.5% 1.1%
Total income before endowments and donations 98.5%
97.9%		 96.0% 97.8% 98.7%
as % of total income
Donations and endowments
New endowments 0.6%
0.4%		 3.3% 1.2% 0.1%
Donations with restrictions 0.9%
1.2%		 0.6% 0.9% 1.1%
Unrestricted donations 0.1%
0.5%		 0.1% 0.1% 0.1%
Total donations and endowments as % of total 1.5%
2.1%		 4.0% 2.2% 1.3%
income
Total income £m 1,476.6
1,433.8		 1,384.7 1,297.5 1,187.4

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(continued) Five-year summary (unaudited)

Five-year summary (unau dited)(continued)
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME AND EXPENDITURE 2025
2024		 2023 2022 2021
FOR THE YEAR TO 31 JULY % total
% total		 % total % total % total
Expenditure1
Staff costs
Salaries 42.2%
53.2%		 40.6% 32.8% 42.6%
Social security costs 5.0%
5.8%		 4.4% 3.6% 4.4%
Pension costs 8.8%
12.6%		 11.8% 10.1% 12.6%
Movement on USS provision -
(33.4%)		 (4.3%) 16.9% (1.4%)
Severance costs 0.8%
-		 0.7% 0.1% 0.1%
Staff costs as % of total expenditure 56.8%
38.2%		 53.2% 63.5% 58.2%
Other operating expenses
Academic and related expenditure 6.3%
9.7%		 7.7% 5.7% 5.7%
Scholarships and stipends 3.5%
4.8%		 3.9% 3.3% 4.2%
Research grants and contracts 9.1%
11.4%		 8.5% 7.8% 8.9%
Library, computer and other academic support services 1.5%
2.1%		 1.8% 1.4% 1.4%
Administration and central services 0.6%
2.6%		 2.7% 2.1% 1.9%
Refurbishment and maintenance 2.4%
3.2%		 2.5% 2.0% 2.0%
Utilities costs 3.8%
4.0%		 2.6% 1.6% 1.6%
Other premises costs 1.2%
1.7%		 1.6% 1.0% 2.0%
Other including income generating operations 2.1%
5.6%		 1.9% 1.8% 2.1%
Residences and cateringoperations 4.3%
6.1%		 4.4% 3.3% 3.7%
Other operating expenses as % of total 34.7%
51.2%		 37.6% 30.0% 33.6%
expenditure
Depreciation as % of total expenditure 7.1%
8.6%		 7.0% 4.4% 6.0%
Impairment of fixed assets as % of total expenditure 0.3%
-		 - 0.6% 0.4%
Interestpayable as % of total expenditure 1.0%
2.0%		 2.2% 1.6% 1.8%
Total expenditure £m 1,456.5
1,056.3		 1,227.5 1,389.0 1,060.0
Expenditure as % of total income 98.6%
73.7%		 88.6% 107.1% 89.3%
  1. Includes impact of exceptional staff costs (non-cash) relating to movement on USS pension provision in each year.

103 Annual Report and Accounts 2024/25

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Financial review

Financial statements

Governance

Notes

104 Annual Report and Accounts 2024/25

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105 Annual Report and Accounts 2024/25