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2025-07-31-accounts

Annual Report and Financial Statements

YEAR ENDED 31 JULY 2025

The place of useful learning

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Officers of the University (1 August – 31 July 2025)

Chancellor

The Rt Hon The Lord Smith of Kelvin KT CH

Principal and Vice-Chancellor

Professor Sir Jim McDonald, Rolls-Royce Chair in Electrical Systems GBE, BSc MSc PhD DSc CEng FREng FRSE FIET FInstP FIE

Associate Principals and Executive Deans

Professor David Hillier BSc (Hons) PhD FRSA, Associate Principal and Executive Dean of the Strathclyde Business School

Professor Ian Rivers BA MA PhD CPsychol FRSE FBPsS FAcSS, Associate Principal and Executive Dean of the Faculty of Humanities and Social Sciences

Convener of Court

Dame Susan Bruce DBE DL MPhil LLB DipCE FRSA FRSE D Univ

Vice-Principal

Professor Duncan Graham BSc(Hons) PhD FRSE FRSC CChem FSAS, Associate Principal and Executive Dean of the Faculty of Science

Professor Scott MacGregor BSc PhD SMIEEE CPhys

University Secretary

Dr Stuart Fancey BSc MSc PhD CPhys FInstP FRSA FAcSS

University Compliance Officer

Louise McKean LLM NPP

Chief Financial Officer

Lucy Noble

Chief Commercial Officer Gillian Docherty OBE CBE BSc

Chief Digital & Information Officer

Professor Stephen McArthur BEng(Hons) PhD CEng FIET FIEEE Associate Principal and Executive Dean of the Faculty of Engineering

Professor Tim Bedford BSc MSc PhD FRSE FSaRS FIMA, Associate Principal (Research and Innovation)

Professor Douglas Brodie LLB PhD, Associate Principal, Social Inclusion

Professor Jillian MacBryde, Associate Principal, Entrepreneurship & Enterprise (from 1 January 2024)

Beth Lawton MVO BSc (Hons) MBA PGDip

Chief People Officer

Mr Gordon Scott

Contents
Principal’s Report 2
Strategic Report 4
Statement of Corporate Governance and Internal Control 34
Statement of Primary Responsibilities of the University Court 44
Independent Auditor’s Report to the University Court 46
Statement of Comprehensive Income and Expenditure 50
Statement of Changes in Reserves 51
Balance Sheet 52
Statement of Cash Flows 54
Notes to the Financial Statements 56
Court Membership 2024/25 95

Principal’s Report

I am pleased to share with you our Annual Report and Financial statements and set out our progress in 2025. In a year when we have changed leadership in the University for the first time in more than 16 years, we find ourselves in a strong position, with the reputation of the University of Strathclyde having never been higher.

Among our achievements in the past year, being named Daily Mail’s UK University of the Year and moving up to 6th in their league table marks a new level of recognition for Strathclyde. Added to this was the Times and Sunday Times naming us as runner up in their national University of the Year list, while also winning the Scottish University of the Year title and moving up nine places in their league table to 11th.

Standing out among the substantial recognition was the commendation from the Daily Mail which described Strathclyde as “the embodiment of everything a 21st century university should be”.

These accolades came in the year that the University ran an open and international process to appoint a new Principal, a role I was delighted to have been appointed to.

Our progress and successes – both over recent years and in the past 12 months – are thanks to the vision and leadership of Professor Sir Jim McDonald GBE, now Emeritus Principal and Vice-Chancellor.

I know I speak for the University Court and the wider Strathclyde community in expressing our gratitude to Sir Jim for his outstanding contribution over a 40-year career and for helping to lead the University to the exceptional position it enjoys today.

While the leadership of Strathclyde has been passed on, our focus on the Strathclyde 2030 strategy has not wavered. We have retained a consistency of purpose that runs through everything we do and how we apply our guiding ethos of ‘useful learning’ across teaching, research and innovation.

While our reputation has risen, there are financial pressures coming to bear on all university business models, putting pressure on the entire UK higher education sector. We’re responding to these challenges with resilience, innovation and a clear focus – and are taking decisive action to ensure Strathclyde’s long-term financial sustainability.

The financial challenges facing the UK’s higher education institutions are well understood but let me reiterate them here. A drop in international student fee income due to changes to visa and immigration policy, higher operational and staff costs due to inflation and political decisions, and an increasingly unsustainable research funding model have combined to create a challenging environment .

Additionally, in Scotland, real-terms cuts to university resource funding over many years have widened the gap between the cost of teaching and the investment needed to sustain a high-quality student experience.

We have taken action over the past academic year to bolster our financial position. This included the realisation of a substantial pension asset of £85.5m following the 2023 valuation of the Strathclyde Pension Fund (SPF) Scheme allowing us to protect, and in some cases enhance, staff benefits and provide valuable additional liquidity for delivery of our strategy.

After extensive consultation with the University's recognised Trade Unions – Unite, Unison and UCU – and affected staff, we reached a collective agreement to exit the SPF scheme on 31 May 2025 and transfer the 1,100 members to another outstanding pension scheme, the Universities Superannuation Scheme (USS). This collaborative process ensured that the final proposal reflected the feedback we gathered, resulting in a harmonised pension offering with all staff now able to enjoy the retirement benefits that come from USS membership.

As part of this transition, we were able to harmonise benefits for staff on lower grades with those on higher grades. Additionally, we now have a University-wide life assurance policy, providing extra security for staff who, often for reasons of affordability, choose not to join a pension scheme and would otherwise miss out on this valuable protection that comes through pension membership.

Strathclyde has grown rapidly over the last decade and, as we face these sector headwinds, it is appropriate that we reflect on the structure of our organisation. We need to be the right shape and size to deliver our strategy commitments.

With the support of the University Court, we are reviewing operations to inform a Strategic Transformation process. This will result in a sustainable and substantial improvement to cash from operations, achieved through income growth, and savings in both non-staff and staff costs. Ultimately, we

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will reshape our operations, redesign processes and focus resources on what matters most to delivering our strategy.

In the past year, in the face of these challenges, income received from Scottish domiciled students has increased by £2.2 million, a 7.1% uplift from 2023/24; we’ve grown total research income by 0.8% to £119.5 million; and we’ve seen total capital grant funding increase by 23.7% to £5.3 million.

The bulk of this capital income was as a result of successes via the EPSRC Strategic Equipment Fund, the Innovate UK Driving the Electric Revolution (DER) initiative, as well as funding from the UK Research Partnerships Investment Fund in respect of the Continuous Manufacturing and Advanced Crystallisation Research Hub (CMAC) Data Lab. We also received £30m from the UKRI Local Innovation Partnerships Fund – which will see us work hand in hand with industry to drive regional economic growth and long-term prosperity for our communities.

Overall, our cash inflow from operations is £5.1 million – a £13.7 million year-on-year improvement – which we’ve achieved through driving income growth and commitment to cost management by all budget holders across the institution.

There are many reasons to be positive about our future.

The 2024/25 academic year marked a significant milestone in the University’s international development, with the successful expansion of our long-standing presence in Bahrain. Building on nearly three decades of MBA delivery in the Kingdom, we opened a purpose-built campus in Manama’s Harbour Heights district in partnership with S Eleven Educational. The new campus provides state-of-theart teaching and learning facilities. This major achievement establishes a strong physical and strategic base for Strathclyde in the Gulf region and reinforces our reputation for delivering high-quality, industry-relevant education on a global scale.

Students in Bahrain are now benefitting from a diverse portfolio of programmes, taught to the same academic standards and with the same student experience as their peers in Glasgow.

Our expanded teaching offering, together with our sectorleading approach to partnership working with industry, public sector and academia to advance research and innovation, will bring added value to the Bahraini economy and to the University. With plans to introduce research and innovation activities in future phases, we are well-positioned to replicate our success in Glasgow, where we serve as the anchor university for thriving Innovation Districts, and help develop a similar ecosystem in Bahrain.

This expansion provides Strathclyde with a strategic platform to extend our global reach and impact, nurture a thriving community of learners and innovators, and contribute meaningfully to the sustainable development goals of Bahrain and the broader region.

This year’s achievements in Bahrain demonstrate Strathclyde’s ability to deliver strategic international growth while maintaining our commitment to excellence, innovation and societal impact.

In addition, Strathclyde continues to be recognised as a key player in generating real-world impact through our research. We are closely aligned with Scottish and UK government priorities, such as economic growth, industrial strategy and net zero.

Looking ahead to 2025/26 and beyond, Strathclyde is set to play a leading role in three of six projects shortlisted for up to £160 million of UK Government Investment Zone funding in the Glasgow City Region that will boost advanced manufacturing. We were also selected as one of only 12 universities in the UK to receive £4.35 million from UKRI’s Global Talent Fund. This will see us recruit internationally leading researchers in advanced manufacturing, fintech, life sciences and clean energy industries.

We opened our new Advanced Net Zero Innovation Centre at Inchinnan, within the Advanced Manufacturing Innovation District Scotland. This national facility will support partners from industry, academia and the public sector with the UK’s transition to a net zero economy, offering, openaccess, industrial-scale research, testing and development capabilities. It is also home to the National Advanced Semiconductor Packaging and Integration Centre which will support the UK’s ambitions to develop and scale nextgeneration semiconductor technologies.

We’re doing all of this while keeping our students and our high-quality teaching at the heart of our mission.

In the National Student Survey, our overall satisfaction score of 87% among taught students is 3.3% higher than in 2024 and 6.3% above the average for Scotland. This places us 2nd in Scotland for overall satisfaction. This is Strathclyde’s highest satisfaction score in the three years since the NSS was revised – having climbed from fifth place in 2023 and third place in 2024 – and places us above the upper quartile for the seventh consecutive year.

All of this success is down to the talent, commitment and professionalism of our staff. I deeply trust the expertise of my colleagues and I am committed to creating an environment where brilliant people can do their best work.

Our focus on real-world impact, adaptability and our way of doing things differently all capture the spirit of Strathclyde.

We can go into the future with confidence, resilience and a strong sense of purpose.

Professor Stephen McArthur Principal and Vice-Chancellor 27 November 2025

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Strategic Report

VISION AND MISSION

The year 2024/25 was the final year of our five-year Strategic Plan, Vision 2025 and we are now focussed on delivery of our new five-year strategy, Strathclyde 2030. The ambitious trajectory set out in Vision 2025 continues in the Strathclyde 2030 strategy. Many of the KPIs from Vision 2025 remain in Strathclyde 2030 with renewed targets that reflect our commitment to progress and the clarity of our strategic priorities. 2024/25 was also the year of the University’s Diamond Jubilee, during which we celebrated 60 years since the granting of our Royal Charter in 1964.

Both strategies have built on the University's collective achievements over recent years in realising our vision of being a leading international technological university that is socially progressive. We have continued to use our distinctive position to be innovative in delivering our ambitions - questioning, challenging and developing both the boundaries of knowledge and, internally, our approaches, operations and processes to ensure that we are effective in all that we do. This reinforces our authentic passion for making definite, high value, contributions to 'useful learning' in the 21st century.

----- Start of picture text -----
GOAL 1:
PEOPLE- ORIENTED OUTSTANDING
EDUCATION AND
STUDENT
GOAL 2: EXPERIENCE
WORLD-LEADING
A leading international
BOLD RESEARCH
technological university, inspired by its
founding mission, that is socially progressive
and makes a positive difference to the lives of its
students, to society and to the world
OUR VISION
GOAL 3:
INNOVATIVE TRANSFORMATIVE OUR STRATEGY 2020-2025
INNOVATION
AND IMPACT
OUR MISSION
From our foundation as the place of useful learning,
we take it as our responsibility to research, teach
and be of benefit to society – to reach outside
COLLABORATIVE the University to make the world better-
educated, sustainable, prosperous,
GOAL 4: healthy, fair and secure.
GLOBAL
ENGAGEMENT GOAL 5:
AMBITIOUS
OPERATIONAL
EXCELLENCE
----- End of picture text -----

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Annual Report and Financial Statements Strategic Report

NAVIGATING SOCIETAL CHALLENGES

Our values underpin our distinctive approach, actively shaping the delivery of our strategy. We are people oriented, innovative, collaborative, ambitious and bold. Together these shape our distinctive impact on Scotland, the UK and the wider world.

The focus of this report remains on Vision 2025 performance. We will begin reporting on Strathclyde 2030 in 2025/26.

In pursuit of our vision, the three key Strategic Goals through which our ambitions are being delivered are: i) Outstanding education and student experience ii) World-leading research and iii) Transformative innovation and impact. Our Crosscutting Goals provide critical context: iv) Global engagement and v) Operational excellence.

Our KPIs continue to provide a robust and focused framework to measure and demonstrate our overall success, underpinned by delivery against a wide range of supporting strategies and across the University, and informed by data and additional metrics. The information on performance measures provided below should be considered in the context of Vision 2025.

Strathclyde has responded pro-actively to the evolving challenges in the external environment, including cost of living challenges, geopolitical instability, the pandemic, and changes to the UK's immigration rules. These challenges affect the organisation as a whole, as well as having impacts on our staff and students. Our values-led response, with people at the heart of that response, is outlined below.

The University’s Values provide a clear framework for decision-making which has, and continues to have, students and staff at its core.

At a time when higher education finances are under increasing pressure, and the sector responds to many challenges, the quality of our provision, the student learner journey and student experience remain at the forefront of our planning, decision making and commitment. Our Strategic Alliance Framework with the University of Strathclyde Students’ Association (Strath Union) provides a framework for the strategic elements that are common to the objectives of Strath Union and the University and recognises the changing needs, desires and expectations of our dynamic and diverse student body. In the past few years, we have worked to support our student population through a range of financial difficulties that have included challenges relating to currency fluctuations, natural disasters impacting the finances of student sponsors, and geopolitical unrest.

Our approach to providing a safe place for flourishing in work and study is set out in Strathclyde Safe 360°. This includes our Departmental Wellbeing Review Programme, piloted in 2024/25, an industry leading workplace wellbeing initiative, to support and to ensure all members of staff are safe (physically and otherwise), fairly treated and able to flourish.

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Annual Report and Financial Statements Strategic Report

NAVIGATING SOCIETAL CHALLENGES CONTINUED

The reviews identify and promote best practice, and, where appropriate, make recommendations about any concerns that emerge during the review. We also have a range of support for staff offered through our Wellbeing Hub, from financial support to physical and mental wellbeing support.

Our ability to remain flexible and agile is as important as ever in both how we enable learning and work, provide wider support to our people, we continue to put people first. Careful consideration of the external context will continue to be critical in exploring the optimal outcomes for the University in an uncertain world. We will continue proactive and collaborative engagement with industry partners, funding bodies and the UK and Scottish Governments to support delivery of positive responses to local, national and international challenges affecting our students and staff.

Vision 2025 has provided a robust and clear framework to support our response to these challenges, and we look ahead with confidence that our Strathclyde 2030 strategy shall do the same at a time when the world is increasingly complex geopolitically and financially.

OUTSTANDING EDUCATION AND STUDENT EXPERIENCE

Strategic context

The environment for student recruitment is highly competitive, due to a combination of divergence in UK higher education policy and funding, geopolitical and economic uncertainty, the UK government’s approach to student visas, and perceptions of quality created by national and international rankings. Strathclyde has a distinctive offering, and we ensure a positive learner journey for all by focusing on successful transitions across all levels of education. As a socially progressive university we are committed to providing access to the outstanding student experience at Strathclyde to people from the widest possible range of backgrounds, to improving student retention and supporting onward achievement. We have achieved a diverse student population by creating flexible pathways, including workbased learning, meaning that learning is accessible at any lifestage. Of course, as a research intensive university we are also committed to growing our postgraduate cohorts, and developing academic talent.

The delivery of an outstanding student experience, good retention rates and positive graduate outcomes are essential characteristics for a successful and attractive university, and this is reflected in our KPIs. The quality of our learning provision continues to be shown in our assurance review exercises.

External assurance of the quality of our provision is rigorously tested. We are looking ahead to our first Tertiary Quality Enhancement Review (TQER) in 2025/26, which is the new Quality Assurance Agency Scotland (QAAS) review method being introduced to replace the Enhanced-Led institutional Review (ELIR) and interim Quality Enhancement & Standards Review (QESR). The TQER process is now underway following our written submission and initial meetings have been completed.

Our most recent quality review, the Quality Enhancement & Standards Review (QESR), was undertaken by the Quality Assurance Agency Scotland (QAAS) in May 2023. The QAAS confirmed that it is confident that the University is making effective progress in continuing to monitor, review and enhance its higher education provision to enable effective arrangements to be in place for managing academic standards and the quality of the student learning experience. This is the highest possible outcome for QESR and we received three commendations and two formal recommendations. The QESR was an interim review arrangement that the Scottish Funding Council (SFC) and QAAS put in place to cover a two-year period, whilst the new quality framework for both Higher Education and Further Education, TQER, was developed. The new framework was published in July 2024, and the University submitted its first Self Evaluation & Action Plan (SEAP) to the SFC in December 2024.

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Annual Report and Financial Statements Strategic Report

OUTSTANDING EDUCATION AND STUDENT EXPERIENCE CONTINUED

Vision 2025 KPIs

Progress/activity

KPI 1: Achieve an annual intake of 1,300 Scottish domiciled undergraduates from SIMD 0-40 entrants by 2025

Status: Delivered, target met

Strathclyde has a long-standing commitment to widening access to people from the widest possible range of backgrounds. In 2024/25, Strathclyde admitted 1,315 SIMD 0-40 entrants, which is ahead of the 2024/25 target of 1,300. A subset of this population – SIMD 0-20, is subject to Scottish Government targets, and at Strathclyde, 17.5% of Scottish domiciled entrants in 2024/25 were from SIMD 0-20 postcodes, compared to 20.7% in 2023/24. This is due to an overall planned increase in the Home Undergraduate intake in 2024/25.

KPI 2: Maintain

undergraduate retention rates from year 1 to year 2 of over 93% in each year

Status: Target not achieved but upward trend post pandemic

For 2024/25, the undergraduate retention rate from year 1 to year 2 was 91.5%, which is lower than our milestone of 93.0%. Our 2024/25 result is higher than the baseline year of 2018/19, when retention was 91.0%. We exceeded target in 2020/21 and 2021/22 during the pandemic. Our most recent result is also a marked improvement on recent post pandemic years, (2023/24 was 88.4%), when, like many in the sector, we saw a sharp reduction in retention rates. Analysis suggests that external factors that affected students across the sector are drivers of the retention reduction, such as the financial crisis, and the ongoing long-term impacts of the pandemic.

KPI 3: Achieve National Student Survey satisfaction scores in the upper quartile for Overall Satisfaction and the upper or second quartile for at least five out of seven question sections in each year: this KPI will evolve over the period of the Strategy

Strathclyde’s National Student Survey 2024 Overall Satisfaction score for all students is 87.0%, which is the second highest score amongst Scottish universities in this metric. This score also places us in the upper quartile for Overall Satisfaction for the seventh consecutive year. The University is in the upper or second quartile in 6 out of 7 question categories.

Status: Delivered, on target

KPI 4: Achieve Graduate Outcome figures for the percentage of UK full-time, first-degree leavers in highly skilled employment or further study in the upper quartile of UK HE institutions in each year Status: Delivered, on target

In 2025, based on the latest available data from graduates in 2022/23, 75.5% of Strathclyde’s UK full-time, first-degree leavers were in highly skilled employment/further study with Strathclyde in the upper quartile, and meeting our milestone, for the fifth consecutive year.

KPI 5: Increase our The postgraduate taught population was 4,190 FTE in 2024/25, below the final target postgraduate taught (PGT) of 5,000. Due to geopolitical uncertainty, global economic turbulence, changes to UK population to 5,000 FTE by Government immigration policy, and currency fluctuations affecting the UK Higher Education 2025 sector as a whole, international PGT numbers have fallen across the sector. Status: Target not achieved in difficult market conditions.

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Annual Report and Financial Statements Strategic Report

WORLD-LEADING RESEARCH

Strategic context

The University’s ambition to further grow and sustain its research quality and intensity is integral to its mission as a leading international technological university that is socially progressive. With ambitious targets in this area, we have made significant progress over recent years in what is an increasingly competitive and challenging funding environment.

Our distinctive mission and our focus on collaboration with industry and international partners continues to play a significant part in our success. Our drive to achieve research excellence and impact has been critical, and this was recognised in the results of the Research Excellence Framework 2021 - almost 90% of research produced by the University of Strathclyde was rated ‘world-leading’ or ‘internationally excellent’.

Our strong performance in REF 2021 relative to other institutions was reflected in the Times Higher Education’s (THE) REF ranking tables based on Grade Point Average. The University was ranked 4th in Scotland and joint 33rd in the UK, an increase of four places. Reflecting Strathclyde as ‘the place of useful learning’, the University’s impact and research environment profiles were recognised as particularly high-quality, evidenced by both subprofiles being above average for the sector.

Although REF cycles are typically six to seven years, we are already well underway with preparations for REF 2029, which has an increased focus on research environment and culture. As a socially progressive and values-led institution, our worldleading research is underpinned by a positive research culture that recognises and rewards quality in all its forms, promotes research integrity and supports the career development of all

staff involved in research. The University has held the EU HR Excellence in Research Award since 2011, in recognition of its support for the personal, professional and career development of its researchers, and this was awarded in 2024 for a further three years.

Strathclyde has been a member of the Coalition for Advancing Research Assessment (CoARA) since 2022. In our 2025-2028 CoARA action plan, the University commits to review our research assessment practices and ensure that we recognise and reward diverse research outputs, practices, and activities that maximise the quality and impact of research. The University’s commitment to the Researcher Development Concordat and other concordats and agreements further supports our research culture to develop in a collaborative and connected manner, ensuring that staff are enabled to deliver high-quality research in line with best practice. This includes actions under our 2024-2027 Technician Commitment, through which we are committed to enhancing the visibility, sustainability and recognition of research technician roles.

In response to our Accountability and Assurance submission to the SFC, we received positive feedback on our research assurance framework and the case studies outlining our use of public funding to support our successful research environment. This includes the Strathclyde Doctoral School’s work to develop and support Strathclyde’s - and the world’s - researchers of the future, though the recruitment, support and success of research postgraduate students

This demonstrates Strathclyde’s dedication to making tangible improvements to research assessment, and research culture more broadly, in line with our shared University values to be people oriented, innovative, collaborative, ambitious and bold.

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Annual Report and Financial Statements Strategic Report

Vision 2025 KPIs

KPI 6: Increase our total competitively won research income to £125 million by 2025

Status: Target not achieved, though significant progress made since baseline year

KPI 7: Close the gap on the Russell Group average of published research outputs in the top 10% of their field worldwide for citations

Progress/activity

Our Vision 2025 strategy set very ambitious growth targets, from a 2018/19 baseline of £74 million to a 2025 target of £125 million with the measure including funding of capital expenditure (capital grants). Each year, we have exceeded our milestone targets, reflecting huge success in the growth of research income. In 2024/25, our research income totals £119.5 million, up 61% from the baseline year, though £5.5 million short of the 2025 target. The shortfall on target. This is mainly driven by the timing of capital grant income recognition which can create volatility in reported numbers. We shall explore options to report on this KPI with reference to underlying research income and capital grants, separately, going forward.

The University KPI was updated as a result of a mid-strategy review. It moved from a defined target of 20% to a relative target, and instead of focusing on a single year, takes into account the period leading up to and including the most recent full calendar year. Strathclyde produces around 2,000 outputs per annum so each output contributes around 0.05% to the University's proportion of publications in the top 10% in the world. In 2024/25, 14.8% of our published research outputs were in the top 10% of their field for worldwide citations. The Russell Group average in the same period was 17.4%. This 3.1% gap is a marginal increase on the previous year’s gap of 2.9%.

Status: Target not achieved, though good progress made over the period

KPI 8: Increase our postgraduate research (PGR) population to 1,300-1,500 FTE by 2025

Status: Delivered, in target range

Through significant focus and activity our overall population in 2024/25 is 1,348 FTE, and within the target range. Our ambitions for PGR population growth continue to be aligned to our growth in research income and industry-sponsored activity. We have experienced significant growth in our postgraduate research student population over the past decade, contributing to our research intensification agenda. At the mid-strategy review, due to sector-wide recruitment challenges and the buoyant job market in the UK, with Court agreement, we chose to update the 2025 target from 2,000 FTE to a range between 1,300-1,500 FTE per annum until 2025. We are pursuing a wide range of opportunities for further growth, including PhD at Work and other industry partnerships.

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Annual Report and Financial Statements Strategic Report

TRANSFORMATIVE INNOVATION AND IMPACT

Strategic context

The growth of our distinctive Strathclyde innovation ecosystem, built around entrepreneurship, partnership and collaboration, is key to our overall strategy. Knowledge exchange and innovation are central to the University’s mission to create useful learning that benefits society and which can contribute to health, economic, social and cultural wellbeing. In a competitive global environment, our distinctive collaborative approach brings together diverse companies and supply chain partners to address industry challenges and contribute to the wider economy. Our work with the public and third sectors has a transformative impact on people’s lives through, for example, health and educational gains.

In January 2025, we prepared and submitted a 5-year strategy for the Knowledge Exchange and Information Fund (KEIF), as part of the SFC’s new Accountability and Assurance framework. This incorporates Strathclyde Inspire , our innovative entrepreneurship programme that helps our students and staff realise their creativity and ambition, empowering them to make an impact on the world around them.

Vision 2025 KPIs

Progress/activity

KPI 9: Increase our total income from conferences, training, consultancy, Knowledge Exchange Grants and other Knowledge Exchange income to £30 million by 2025

In 2024/25, income from conferences, training, consultancy, Knowledge Exchange Grants and other Knowledge Exchange income totalled £30.5 million. This just exceeded the 2024/25 milestone of £30 million.

Status: Delivered, target exceeded

KPI 10: Increase the breadth and depth of our key strategic relationships Status: Delivered, on target

We have 24 strategic partnerships recognised under this KPI. Strategic relationships form a core part of the University's Vision 2025 with a particular focus on our world leading innovation districts and relationships. Our high-quality strategic partnerships extend across the NHS and private industry.

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Annual Report and Financial Statements Strategic Report

GLOBAL ENGAGEMENT

Strategic context

Being internationally active and recognised is central to our identity as a socially progressive, leading international technological university. We are committed to strengthening our engagement with international perspectives and partners in this regard with a global outlook permeating everything we do.

This is reflected in the increasingly international and collaborative nature of our research, scholarship, knowledge exchange and innovation, but also in our drive to deliver a teaching and learning experience which equips our graduates with the necessary knowledge and skills to flourish in the global workplace. Through our strategic partnerships with selected universities across the world we are delivering an increasing number of activities aligned with international engagement, including joint PhDs, exchange programmes, and staff secondments.

The foundation of the University of Strathclyde Bahrain in 2024/25 also represents a significant milestone in our global engagement, building on decades of strong engagement with partners in the Middle East region.

Vision 2025 KPIs

Progress/activity

KPI 11: Increase our international student population to 4,500 FTE by 2025

In 2024/25 there were 4,145 FTE international students registered at Strathclyde. The challenges in recruiting international students in recent years have been experienced across the sector and are well documented. Although Strathclyde remains in a strong position, our international student numbers have, like many other Universities in the UK, fallen. Until 2023/24, we continued to recruit beyond our annual milestones.

Status: Target not achieved in difficult market conditions

KPI 12: Sustain or exceed the proportion of international staff at or above 36% each year

Our staff body remains internationally diverse with 36.2% being international compared to 31% in 2012, exceeding the annual target. This KPI relates to all academic professional staff with a non-UK nationality.

Status: Delivered, target met

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Annual Report and Financial Statements Strategic Report

OPERATIONAL EXCELLENCE

Ensuring that our operations are of the highest quality, across all activity and in the most effective and efficient way, is vital to maximising the impact of our activity. Excellence, underpinned by efficiency and effectiveness, is a key area of focus for our funders with year-on-year efficiency gains specified in our teaching funding from the SFC and efficiency returns required by the Scottish Government. In this context, maximising the impact and efficiency of our use of estate, the deployment of our people, and our systems implementations is critical in order to create sufficient headroom for continued growth and investment.

Moving into Strathclyde 2030, we remain focused on delivering our People Strategy and the enhanced Strathclyde People Pledge. Alongside this, we will also enhance our operations through delivering our Digital Strategy and Social & Environmental Sustainability Strategy.

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Annual Report and Financial Statements Strategic Report

Vision 2025 KPIs

Progress/activity

KPI 13: Achieve a yearSteady progress is being made, and 2024/25 year-end data shows a gender pay gap of 14.0% on-year reduction in down from 15.4% a year earlier. Our most recent Gender Pay and Equal Pay Gap report provides the gender pay gap an update on progress and an overview of the initiatives that we have implemented in recent years.

Status: Delivered, on target

As a socially progressive institution, we have acted over the years to reduce the gender pay gap target in line with our commitment to pay equality. Alongside this we also monitor and respond to pay equality for other protected characteristic groups, for example race or disability. KPI 14: Meet or The reported net cash inflow from operating activities of £5.1 million exceeds the planned exceed planned annual target of £1.6 million net cash outflow. The University’s Executive Team has annual net cashflow been focused in recent years in its commitment to drive income growth and deliver cost from operating reductions in response to the challenging financial landscape faced by the whole sector. The activities (this figure is improvement compared to 2023/24 is significant at £13.7 million. recalculated annually)

Status: Delivered, target exceeded

KPI 15: Achieve a Emissions for 2024/25 totalled 29,570 tCO2e, with a 1,800 tCO2e improvement against 2023/24
year-on-year reduction levels of 31,570 tCO2e. This is a total reduction of around 21% on the baseline fgure. We are
in greenhouse gas disappointed not to have achieved our targeted reduction of 30%.
emissions leading to
30% reduction by 2025, Following review of emissions data trends, and our ambitious campus plans, during the mid-
80% by 2030 and net strategy review, we rephased our planned progress towards net zero. Due to factors beyond our
zero by 2040 at the control, including but not limited to the pandemic, the invasion of Ukraine, and substantially
latest increased costs of both borrowing and materials arising from the cost of living crisis, we recognised
that substantial infrastructural projects that are key to reducing our carbon emissions will not be
Status: Target not
achieved		 delivered until afer 2025. Our 2025 target for this KPI was adjusted to achieve a 30% reduction in
emissions from our 2018 baseline by 2025. Prior to the March 2023 KPI revision the 2025 target was
70%.
We remain committed to achieving net zero by 2040 although we recognise that this target is
challenging given reliance on external infrastructure improvements and availability of funding.
Nevertheless, the University will need to change its approach in order to deliver improved outcomes
which are extremely challenging given sector fnances.
The launch of the Social and Environmental Sustainability Strategy in November 2025 will help to
ensure focus on these outcomes across campus and as we explore options to introduce carbon
budgeting in 2026/27 we shall achieve greater insights into progress at department level and
collectively. Further detail on the University’s plan to deliver this important KPI is set out in the
Sustainability section of this Strategic Report.

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VISION 2025 KEY PERFORMANCE INDICATORS

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RISK MANAGEMENT

The University of Strathclyde views risk management as integral to the successful execution of its strategy. A Risk Management Framework is in place to support the University to meet and adapt to risks in a structured way, so that it can align its priorities and objectives against a background of uncertainty.

The University recognises that in order to deliver its ambitious 2030 Strategy a degree of risk will need to be taken. As such, the University has Risk Appetite Statements in place to inform decision making and the prioritisation of actions to mitigate risks.

In accordance with the framework, the University has a strategic Corporate Risk Register, aligned to the University’s strategic goals, which is regularly reviewed by the Executive Team, Audit & Risk Committee and Court. This has been linked to the Risk Appetite Statements to ensure the University fully understands its risk profile and which risks should be prioritised for additional mitigation.

Faculties, departments and directorates have their own risk registers in place to ensure that key risks are identified, managed and escalated as required. The Corporate Risk Group, chaired by the University Compliance Officer with representatives from directorates and faculties, implements the framework and reports to the Executive Team on risk, including escalating matters from local risk registers as required.

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RISK MANAGEMENT - SUMMARY OF KEY RISKS

Strategic Area
Risk Description
Progress/activity
Financial sustainability: external chal-
lenges
Inability to maintain fnancial
sustainability due to a challenging
external operating environment
Regular review of cash and liquidity
position with modelling of future
cash balances central to strategic
planning and decision making
Close monitoring of applicant data
to inform recruitment strategy and
inform budget decisions
Tracking of conversion levels
Financial sustainability: Strategic trans-
formation
Failure to meet the budgetary
commitments made in 2025/26 and
2026/27 could result in the erosion of
cash balances
Regular monitoring of progress
through the new Strategic
Transformation Ofce
Review of progress to deliver plans
at every Executive Team meeting
Operational excellence: cybersecurity
Inability to identify and respond to a
cyberattack
Regular monitoring of the threat
landscape by the Information
Security Strategic Risk Group
Annual training mandatory
for all staf
Incident response plans are tested
Outstanding education and student
experience
A decline in teaching quality would have
a signifcant impact on current students,
reputation and student recruitment
Ongoing partnership with
Strath Union
Continuous review and development
of programme portfolios
People and culture
Unable to recruit, retain, motivate and
develop the calibre of staf needed to
deliver the People Strategy 2030
People Strategy to 2030 to be
launched in 2025
Regular meetings with campus
unions to discuss key issues
Staf Wellbeing Hub in place
World leading research
A decline in research quality could
adversely afect the University’s
reputation and negatively impact staf
retention and recruitment
Alignment of research capabilities
with national priorities to secure
funding, through strategic
networking and through
membership of relevant national
committees
REF2029 University review complete
and action plans in place

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SUSTAINABILITY

The University is committed to embedding sustainability across all its activities, including operations, education, research and knowledge exchange. The progress to deliver on this commitment is measured through strategic KPIs set out in Vision 2025 (2019/20-2024/25) and Strathclyde 2030 (2025/26-2030/31).

The current strategy period ended on 31 July 2025, and we are disappointed not to have achieved our Vision 2025 milestone target of a 30% reduction in emissions. Though solid progress has been made, with a reduction against the emissions baseline of 24%, the next steps will be crucial to ensure we meet the next milestone of a 80% reduction against the baseline by 2030, and ultimately, our Net Zero target by 2040. The University’s commitment is clearly reflected in the inclusion of Sustainability as one of three central themes in the new Strategy, Strathclyde 2030.

The roadmap to delivery of Strathclyde 2030 and our 2040 Net Zero commitment will see progression through the following key steps :

Embed sustainability
through strategy
The University’s Social and Environmental Sustainability Strategy (SESS)
sets out how we will do this by placing sustainability at the heart of all the
University’s actions. The delivery of the Strategy is set against four inter-
connected themes:
• Active Citizenship for All
• Education for Sustainability
• Research and Innovation for a Better World
• Operational Sustainability
and is aligned to Strathclyde 2030 and our values
Delivered:
November 2025
Cut critical Scope 1
emissions
Publish and begin delivery of our Net Zero Pathway and associated
Heat Decarbonisation Strategy
Campus consolidation
Target: 2025/26
and ongoing
Defne Scope 3
boundary
Set clearer, disaggregated targets for each scope, in line with
statutory guidance and recognised climate science
Reset the University Sustainable Travel policy and underlying
business processes
Target: 2025/26
Ensure measurability
and accountability
Explore opportunities to set carbon budgets at department level
Develop and deliver training and behaviour change initiatives
Target: 2025/26 and
ongoing
Exploring ofsetting
options
Identify ways to collaborate for greater impact
Support socio-economic benefts like job creation and
community development
Target: 2025/26 and
ongoing

Though we have not achieved the outcome we set out to deliver in Vision 2025, 2024/25 has been a year with significant progress made across all areas of work, and a particular focus on staff and student engagement, and development of our updated Social and Environmental Sustainability Strategy.

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SUSTAINABILITY HIGHLIGHTS 2024/25

Global Rankings

The University continued to excel in global sustainability rankings. In the THE Impact Rankings, Strathclyde placed =77th out of 2,318 universities globally, including top 50 globally in two categories: 31st for SDG 12: Responsible Consumption and Production and =39th for SDG 16 Peace, Justice and Strong Institutions.

John Anderson Building Improvement

This £7M investment has contributed significantly to reducing current carbon emissions in alignment with our Net Zero strategy. The John Anderson Building previously suffered from poor thermal efficiency and leakages, resulting in high emissions and utility costs. This project completed in October 2025 and has delivered significant internal and external fabric upgrades, including a complete external façade renewal and improvements to the roof.

CHATIC

Our construction and building refurbishment activity has high potential to reduce embodied carbon. As part of the main architecture contract for the CHATIC project - a £30M refurbishment of the original Strathclyde Students’ Union building – sustainability was embedded early in the procurement process. Suppliers were asked to provide extensive information about their sustainability and social impact policies as part of selection, and the project is working towards achieving enhanced building standards through employing the Scottish Net Zero Public Sector Building Standard . Work is also underway to ensure that reuse and circular economy are embedded through the fit out of the building.

Sustainability Week

Hosted in March 2025, our annual Sustainability Week activities have gone from strength to strength. This week-long festival aimed to celebrate and educate on sustainability, bringing together staff, students and stakeholders from different backgrounds to share their experiences. Events included:

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CASE STUDY: CIRCULAR ECONOMY IN ACTION

The materials we use can have significant social and environmental impacts. In order to realise cost & carbon savings, and wider social benefits over the course of 2024/25, we have been working with a variety of suppliers to reuse and upcycle existing furniture resources across campus. Beginning with a series of small pilots in October 2024, our circular furniture initiative has so far saved the University over £32,000 and 33,000kgCO2e, with huge opportunities to continue scaling up.

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Progress to embed sustainability in teaching, research and innovation

In 2023, Strathclyde committed to formally placing sustainability at the heart of our curricula and research activities. To help deliver our Education for Sustainable Development (ESD) ambitions, the University’s Education Strategic Committee approved a University-wide action plan in December 2023. Over 2024/25, work has been taking place to baseline our current activities and ensure this plan is delivered over the coming years. Progress to date includes:

PEOPLE STRATEGY

As a socially progressive, values-based organisation, the University is committed to fair working practices and this is demonstrated through our core values, our People Strategy and our policies and procedures. The University is a member of the Scottish Business Pledge, a values-led partnership between Government and business with members making a commitment to fairness, equality, opportunity and innovation. The University has been an accredited Living Wage Employer since 2015. We also took the decision in 2015 to cease the use of zero hours contracts.

The University’s People Strategy places staff at the heart of our plans, recognising that their collective talents, efforts and commitment will deliver our vision for the future.

Strathclyde People 2025 provides a baseline commitment to our staff – ‘The Strathclyde Pledge’, which confirms what every staff member can expect to receive in the workplace. Our new People Strategy 2030 is currently being finalised and is planned to launch in 2025. The commitments within the Strathclyde Pledge and measures of progress are:

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PEOPLE STRATEGY CONTINUED

Pledge commitment

Measure of progress

A stable contract

In some cases, this will necessarily be a fixed-term or flexible contract, but we are committed to ensuring as much certainty as possible and early confirmation of what will happen at the end of each contract.

Reducing the percentage of fixed-term contract staff with over 3 years’ service is a Key Success Indicator within our People Strategy. As part of the Pledge, we committed to reviewing the use of fixed term contract. An initial review of all contracts was carried out in 2022 and contracts continue to be reviewed on an ongoing basis to ensure that our staff are treated fairly.

Fair & equal pay

We commit to continuing to pay the Voluntary Living Wage, to helping staff understand the rationale for their salary level and to ensuring that, within each grade, we continue to pay colleagues appropriately regardless of their gender or other protected characteristics.

As a socially progressive institution, we have acted over the years to reduce the gender pay gap in line with our commitment to pay equality. Alongside this we also monitor and respond to pay equality for other protected characteristic groups, for example race or disability.

Our most recent Gender Pay and Equal Pay Gap report provides an update on progress and an overview of the initiatives that we have implemented since 2023. We are pleased that the gender pay gap continues to reduce. We reported a further reduction in our 2025 Report.

We have set out the University’s future commitments for the period April 2025-2027 and remain committed to working to close the gender pay gap. The Report also includes the University’s Equal Pay Statement.

An opinion that matters

We commit to listening to, and responding to, the views of our staff, both through our collective bargaining framework and from those who choose not to be Trade Union members.

A key element of listening to, and responding to, the views of our staff are the Principal’s engagement sessions, with dedicated sessions for each Faculty and Professional Services staff. Principal Engagement sessions took place in October 2024 and most recently in May 2025. There are further sessions with our new Principal planned for October 2025.

In November 2024, the University conducted a Values survey to assess alignment with its core values. The results were positive with 86% of respondents agreeing that the University reflects its stated values. This strong result demonstrates a positive employee experience and an above benchmark net promoter score. In addition, there are many other ways in which staff can express their views to have their voices heard, such as:

More information on how the University will achieve the Pledge and measure progress is available on The Strathclyde Pledge webpage.

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PEOPLE STRATEGY CONTINUED

Fair Work First

The University’s Fair Work First statement has been jointly developed and agreed by the University of Strathclyde and the Combined Joint Negotiation and Consultation Committee with representation from University and College Union, Unison and Unite. It highlights the actions being taken at Strathclyde and how these are aligned with the Fair Work Principles.

The University is committed to working in partnership with the Trade Unions to deliver these actions for the benefit of staff at Strathclyde. Where possible, we will seek to go beyond the minimum requirements of the Fair Work First criteria.

Disability policy

The University of Strathclyde is committed to fostering a supportive, inclusive environment that enables disabled students and staff to participate fully in all university activities. This covers recruitment, appraisal and training opportunities, support, awareness training for staff, implementation, monitoring and a complaints procedure.

The University’s Disability & Wellbeing Service has a team of advisers who work to improve access and inclusion of disabled students, and the Workplace Wellbeing Team in Safety, Wellbeing and Resilience provide advice and support for disabled staff.

The University’s current statement is available here: Fair Work First (strath.ac.uk) . This sets out in detail how the University is implementing FWF practices. It was most recently reviewed in September 2025.

The University has a suite of staff policies which include flexible working and family friendly policies which apply to all employees. These can be found at: Family-friendly policies & procedures | University of Strathclyde .

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Equality and diversity and inclusion policy

The University of Strathclyde is committed to achieving and promoting equality of opportunity in its learning, teaching, research and working environments, and to ensuring these environments support positive relations between people, and a culture of respect. As a provider of employment and education, we value the diversity of our staff and students and are committed to encouraging everyone to realise their full potential.

The University has an ongoing programme of expenditure, activity and policy to further these aims and to ensure it meets the requirements of the Public Sector Equality Duty and the Equality Act 2010. The Access, Equality and Inclusion Service at the University leads on activities to promote equality of opportunities. The Equality, Diversity and Inclusion Committee (EDIC) is a University Committee overseeing the University’s compliance with its equality and diversity obligations and advancing equality, diversity and inclusion across Strathclyde. The Committee meets formally three times a year, with oversight of work undertaken by the Disability Inclusion, Gender Equality, Race Equality and Refugee and Asylum Seeker Steering Groups. The role of each SG is to advocate for and work to ensure an inclusive, welcoming and equitable working and learning environment for all students and staff and the Committee is chaired by Professor Douglas Brodie, Associate Principal for Social Inclusion. EDIC membership is drawn from across University Faculties and Directorates as well as Strath Union.

Highlights of EDI activity in 2024/25 include:

The Equality, Diversity and Inclusion Policy outlines the University’s commitment and approach towards promoting equal opportunities for staff and students with protected characteristics, including disabled people and those with care experience, and we regularly publish reports on progress. The University’s approach is also summarised in an accessible format within our Strathclyde Community Commitment and Dignity and Respect Policy .

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FINANCIAL REVIEW

2025
2025
2025
2024
2024
2024
Operating
activities
£M
Other
signifcant
items
£M
Total
£M
Operating
activities
£M
Other
signifcant
items
£M
Total
£M
Summary Income and Expenditure
Income (excluding capital grants)
402.9
-
402.9
410.1
-
410.1
Capital grant income
27.7
-
27.7
22.4
-
22.4
Total Income
430.6
-
430.6
432.5
-
432.5
Expenditure (including depreciation)
(437.9)
(2.2)
(440.1)
(430.1)
152.0
(278.1)
Surplus before other gains and losses
(7.3)
(2.2)
(9.5)
2.4
152.0
154.4
Gain on on disposal of tangible asset
-
0.8
0.8
Gain on investments
-
2.5
2.5
-
7.4
7.4
Unrealised defcit on
revaluation of investment properties
-
(0.6)
(0.6)
-
(1.0)
(1.0)
(Defcit)Surplus for the year
(7.3)
0.5
(6.8 )
2.4
158.4
160.8
Cash (absorbed by)/generated from
operations
5.1
(8.6)
Cash and borrowings
Cash and cash equivalents
207.5
140.0
Loans
(59.7)
(65.1)
147.8
74.9
Total assets less current liabilities
587.5
630.8
Total reserves
528.3
565.9

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Overview

Since 2022 the UK Higher Education sector has experienced financial challenges through the combined impacts of stagnant or reducing income and record levels of inflation driving up staff and non-staff costs.

The University has responded to these challenges with a focus on driving growth in income wherever possible, ensuring careful management of costs, and the exploration of options to improve efficiency. Though inflation is now lower than the high of 11.1% reached in October 2022, the University’s cost base has been inflated in the short to medium term, and this combined with reduced levels of tuition fee income and teaching grants which have declined in real terms, means that the University faces a structural deficit.

In 2024/25, we again experienced shortfalls in tuition fee income, and though we benefited from modest increases in research income and teaching grants, total income excluding capital grants was lower by £7.2 million. Wage inflation and the full year impact of the Employers’ National Insurance Contribution changes resulted in growth in staff costs. Total expenditure grew by £7.8 million compared to the prior year.

As a result, 2024/25 was a challenging year with a deficit of £6.8 million, despite the delivery of in year allocated savings. However, the University delivered £5.1 million in cash from operations, a significant improvement of £13.7 million compared to 2023/24.

The University closed the year with a strong cash balance as a result of the realisation of the pension asset which had previously been presented on its balance sheet. After a year of extensive consultation with recognised trade unions and staff concluding with collective agreement, the University exited the Strathclyde Pension Fund (SPF) on 31 May 2025 with affected staff transferring to the Universities Superannuation Scheme (USS) on 1 June 2025. As a result of this transaction, on 31 July 2025 the University received £85.5 million in cash, providing welcome additional liquidity at no detriment to staff as well as allowing enhancement of the benefits of some of our lowest paid staff.

In addition to showing the overall financial performance for the University, the above table highlights the impact of several significant items included in the surplus for the year that are not influenced by day-to-day operations and the impact of capital grant income on the surplus for the year. The University shows a deficit, before significant items not influenced by day-to-day operations, of £7.3 million (2024: surplus of £2.4 million).

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FINANCIAL REVIEW CONTINUED

Capital grant income

Capital grant income has increased from £22.4 million to £27.7 million this year. Capital grants are recognised in full once performance conditions are met, resulting in variability in capital grant income year-on-year, as major projects are completed.

Increases in SFC capital grants (£4.3 million) and research capital grants (£2.3 million) were offset by decreases in other capital grants (£1.3 million) with further explanation provided below.

Other significant items

Significant items included in the surplus for the year that are not influenced by day-to-day operations include:

Restructuring costs During the year, the University incurred £2.2 million (2024: £0.2 million) of one-of costs on
restructuring which are reflected within staf costs.
Gains on disposal of
fxed asset		 Gains on disposal of fxed assets in 2024/25 totalled £0.8 million (2024: NIL) which relates to
the disposal of residential properties.
Gains and losses on Net gains on investments in 2025 totalled £2.5 million (2024: £7.4million). Gains in 2025
investments included £3.8 million of unrealised gains in the value of the University’s endowment and fxed
asset investments (2024: £5.1 million) reflecting the volatility in markets notably for equities
during the year. Losses on write-downs on the University’s portfolio of investments in spin out
and spin in companies totalled £1.3 million (2024: gains £2.3 million).
Unrealised defcit A defcit of £0.6 million arose on the revaluation of investment property (2024: £1.0 million).
on revaluation of
investment property
Other factors impacting Total Comprehensive Income
Actuarial gain The Total Comprehensive Income and Expenditure for the year includes an actuarial
in respect of the loss of £30.8 million (2024: gain of £2.2 million) in respect of the Strathclyde Pension
pension scheme Fund. Further details are provided in Note 22 to the accounts.
Balance Sheet overview
Investment Investment in the University estate in 2025 totalled £21.4 million plus a £22.2 million
in estate investment in equipment. Further details are provided in ‘Investments in Infrastructure’
below.
Total assets Cash balances at 31 July 2025 were £207.5 million (2024: £140.0 million). Total assets less
current liabilities decreased from £630.8 million to £587.5 million.
Total reserves decreased from £565.9 million to £528.3 million.

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FINANCIAL REVIEW CONTINUED

INCOME

Chart showing composition of total income excluing capital grants of £402.9 million

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FINANCIAL REVIEW CONTINUED

Income continued

Income, excluding one-off items and capital grants, has decreased by £7.2 million to £402.9 million. Capital grant income increased from £22.4 million to £27.7 million this year. Total income decreased by £1.9 million from £432.5 million to £430.6 million.

Key movements in income include:

SFC Grants ex capital Grants for teaching, research and innovation increased by £1.4 million (1.4%). The modest
grants up £1.7 million decrease of £0.4 million for the teaching grant has been ofset by an increase of £1.8 million
(1.6%) to £108.5 million for the research and innovation grant.
Grants for strategic purposes have increased by £0.3 million across several individual grants.
Ring-fenced grant income remains stable at £3.2 million.
Tuition fee income Income from credit bearing courses fell by £3.2 million (2.8%) mainly caused by decreases in
down £3.1 million income from international students of £6.1 million (8.9%) and ofset by an increase of £2.9
(2.5%) to £121.3 million million (6.6%) across all other domiciles.
The largest variances in credit bearing fee income relate to international postgraduate taught
students (£9.6 million) ofset by an increase in international undergraduate students (£2.9
million) and an increase in international postgraduate research fee income (£0.6 million).
All other non-credit bearing fee income has seen a modest increase of £0.1 million.
Research income ex Underlying research income decreased from £105.0 million to £103.6 million (1.3%). Research
capital grants down income has grown from some sources in 2025, most notably UK Research and Innovation and
£1.4 million (1.3%) to UK Based Charities. This was partially ofset by a decline in research income from the European
£103.6 million Commission due to the delay in the UK’s accession to the Horizon Europe programme and a
decrease in UK and EU Industry grants due to several large grants coming to an end.
Other income ex capital Underlying other income fell by £2.6 million (4.7%) to £52.8 million, largely due to decreases
grants down £2.6 in income from residences and catering, knowledge transfer specifc grant income,
million (4.7%) to £52.8 consultancy income and other revenue grant income ofset by an increase in other income
million mainly due to higher than expected VAT recoveries.
Investment income The decrease in investment income of £2.0 million reflects lower interest rates. The Sterling
down £2.0 million Overnight Index Average (SONIA) averaged 4.37% in 2025 (2024: 5.7%) and lower average
(14.4%) to £11.9 million balances held in investment during the year. In addition, the expected return on the Strathclyde
Pension Fund assets less interest costs on liabilities have decreased by £0.7 million.
Donations and Restricted donations have grown by £0.9 million which is ofset by a decrease in unrestricted
endowment income up donations of £0.7 million.
£0.2 million (4.3%) to
£4.8 million

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FINANCIAL REVIEW CONTINUED

Income continued

Capital Grants up £5.3 SFC capital grants have increased by £4.3 million due to an increase of £3.9 million of UK RPIF million (23.7%) to £27.7 funding and an increase of £0.4 million of capital block grants. million Research capital grant income has increased by £2.3 million to £15.9 million primarily relating to grants received from the EPSRC Strategic Equipment Fund and Innovate UK Driving the Electric Revolution (DER). The recognition of other capital grant income decreased by £1.3 million to £1.3 million, in accordance with the completion of grant funded projects.

EXPENDITURE

Expenditure before one-of items has risen by £7.8 million to £437.9 million, an increase of 1.8%.
Key movements include:
Staf costs before one-of
items up £4.5 million (1.9%)
to £246.1 million
Underlying staf costs have increased by £4.5 million (1.8%) from £245.8 million to
£246.1 million, representing 56.2% (2024: 55.9%) of total underlying expenditure.
The increase of £4.5 million comprises £0.3 million of salary inflation with a further
movement of £4.2 million being due to the release in 2023/24 of USS defcit
recovery payments. The University carefully managed staf numbers throughout the
year.
Other operating expenses up
£2.8 million (1.9%) to £147.4
million
Other operating expenses before one-of items have increased by £2.8 million
from £144.6 million to £147.4 million (1.9%). This included higher expenditure on
facilities management services (£1.5 million), student recruitment services (£1.0
million), scholarships (£0.9 million), research (£0.3 million), commercial activities
(£0.5 million), ofset by lower spending in knowledge exchange activities (£1.4
million).
Depreciation and
amortisation up £0.5 million
(0.9%) to £44.1 million
Depreciation and amortisation have risen £0.5 million. Whilst buildings
depreciation has decreased by £2.2 million, equipment depreciation and
amortisation has increased by £1.7 million. This was ofset by an increase
of £0.5 million in amortisation. Additions during the year including the John
Anderson fabric and infrastructure works £8.4 million and the Advanced Net
Zero Innovation Centre (ANZIC) £5.6 million were ofset by several projects now
fully written down. Intangible asset additions were £3.7 million.
Interest and other fnance
costs up £0.1 million (50%)
Following the addition of two new SFC Financial Transaction loans during
2023/24 at a value of £14.7 million interest payable has slightly increased by
£0.1 million.

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FINANCIAL REVIEW CONTINUED

Investments in infrastructure

The University’s substantial investment in its campus over the last decade continued in 2024/25 and several projects of significant strategic importance were completed such as the Advanced Net Zero Innovation Centre (ANZIC) and the extension of the District Energy Network (DEN) to student residences. Overall, capital investment of £26.5 million was made in maintenance or improvement of buildings and infrastructure, with a particular focus on reducing carbon impact of operations or delivery of research and collaboration potential in net zero technology.

With the conclusion of our Estates Strategy period in 2026 our focus is now on developing a new strategy fit for the post-pandemic era, delivering optimal utilisation of our world-class city centre campus to best meet current and emerging strategic needs. This strategy, to be launched in 2026, will inform the University’s Capital Investment Plan (CIP) going forward ensuring our estate continues to provide the best quality of modern fit-for-purpose teaching and research accommodation for an outstanding student experience and to draw international talent to join our exemplary staff in Glasgow.

The major projects completed and ongoing during the year are detailed below. Other projects under development during 2024/25 include:

Progress has also been made in developing a programme of projects for the University’s journey to Net Zero and the Climate Neutral Campus.

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FINANCIAL REVIEW CONTINUED

Investments in infrastructure continued

Capital and revenue investment in investment properties, land and buildings in 2024/25 totalled £21.4 million – major projects included:

Advanced Net Zero The ANZIC project is of enormous strategic importance to the University since it will deliver Innovation Centre capacity for decarbonisation activity for the Power Networks Distribution Centre (PNDC) and the (ANZIC) Driving the Electric Revolution (DER) Manufacturing. The project completed in 2024/25 with the official opening of the facility on 26 August 2025. Total project spend The National Manufacturing Institute Scotland (NMIS) has also benefited from DER funding with £11.5 million semiconductor fabrication for decarbonised transport applications due to commence at the ANZIC facility early in 2026.

John Anderson A substantial investment has been made in the Department of Physics building named afer
Building Net Zero our founder, John Anderson, funded through SFC Financial Transactions. The project comprised
Improvements two elements. Firstly, installation of a new rainscreen overcladding solution including the
replacement of existing single glazed metal framed windows with high performance composite
Total project spend triple glazed units. Secondly, building services infrastructure improvements were made
£12.5 million including new ventilation, heating, fre alarm system, power, lighting, emergency lighting,
installation of roof mounted solar photovoltaic, frestopping and automatic fre dampeners. The
majority of works were carried out in 2024/25 with practical completion on 20 October 2025. As
well as delivering CO2 savings of 60 tonnes per annum the project has transformed the teaching
and research space.
District Energy This project, which was funded through SFC Financial Transactions, connected three student
Network Connection accommodation blocks, Birbeck Court, Murray Hall and the Lord Todd building, onto the
to Student University’s live District Heating Network. It was completed in Q1 2024/25 and covered three
Residences District Heating Zones totalling 220 meters of both buried and above ground pipework. The
project will deliver an estimated saving of 76 tonnes of CO2 per annum. The District Energy
Total project spend Network connection to Student Residences is another excellent example of the steps we are
£1.8 million taking to deliver the University's Net Zero pathway commitment.
Robertson Wing This investment includes the replacement of the main Heating Ventilation and Air Conditioning
Ventilation and Roof (HVAC) infrastructure to ensure that key research activity is not compromised and that the
Improvements University continues to operate the space compliantly in alignment with the Standard Conditions
related to the Establishment Licence that it holds. The project completed in October 2025 and
Total project spend capital additions during 2024/25 totaled £0.4 million.
£3.5 million

31

Annual Report and Financial Statements Strategic Report

FINANCIAL REVIEW CONTINUED

Net funds and cash flow

At 31 July 2025 net funds totalled £147.8 million (2024: £74.9 million). During the year the University had a cash inflow from operations of £5.1 million (2024: cash outflow £8.6 million). Expenditure in the year on tangible and intangible assets exceeded capital grants and disposal proceeds by £19.6 million (2024: £14.1 million).

Further details on cash flow movements are given in the Statement of Cash Flows.

Treasury Management

In the last five financial years, the University has made several successful applications to the Scottish Funding Council’s University Financial Transactions Programme and has been awarded a total of £74.7 million of unsecured loan funding fixed at a low interest rate for strategic estates developments which have been key to enhancing the student experience and the sustainability of the campus. The balance of SFC loans outstanding at 31 July 2025 was £59.7 million (2024: £65.1 million), repayable over the period to 2044.

The University actively manages its cash balances in accordance with the Treasury Management Code of Practice approved by Court. Credit ratings of approved counterparties and deposit limits are reviewed regularly. Funds are deposited in a variety of Treasury accounts, ranging from overnight to six-month deposits.

Payment of Creditors

The University aims to pay all its suppliers promptly and its financial systems and processes are configured to facilitate this. The University’s current terms of payment are 30 days from the date of the invoice providing that all trading terms and conditions have been fulfilled. Specific terms and conditions can be agreed for certain suppliers if required.

At the year end, the University had trade creditors outstanding of £17.5 million. Given that the University paid a total of £174.0 million to trade creditors during the year, the amount outstanding at the year-end represents 21 days (2024: 16 days). During the year, the University paid £NIL (2024: £162) in relation to the Late Payment of Commercial Debts (Interest) Act, 1998.

32

Annual Report and Financial Statements Strategic Report

FINANCIAL REVIEW CONTINUED

Looking to the Future

In recent years, to address financial shocks which have been felt sector wide the University has required to make in-year budgetary adjustments, delivered through allocated savings targets and the establishment of central controls. These challenges have included shortfalls in international students and the need to support students through the student accommodation crisis and the cost-of-living crisis. High inflation has also impacted our staff and non-staff cost bases and made essential capital investment significantly more expensive. With the historic backdrop of inadequate funding for the teaching of home students and the recovery of only 80% Full Economic Cost (FEC) for funded research, the whole sector has struggled with financial resilience.

As a result, for our University, a structural deficit has emerged which must be addressed. In response, the University has begun a two-year strategic transformation which will drive a rebalancing of income and expenditure levels to enable a return to sustainable surplus and positive net operating cashflows by the end of 2026/27. With the commencement of Strathclyde 2030, the launch of our Social and Environmental Sustainability Strategy in November 2025, and the launch of our Estates Strategy 2026-2040 later in 2025/26, this is the right moment to reflect on a decade of significant growth but also changes to the external environment which require a new approach operationally to ensure delivery of our committed strategic objectives.

Oversight of transformation activity, which focuses on strategic growth of income and management of expenditure, is provided by the new Strategic Transformation Office and the University’s Executive Team, led by our Principal. All budget holders own and are driving this activity, which is essential to delivery of Strathclyde 2030, achievement of financial resilience to changes in the external environment, and the maintenance of our position as a Leading International Technological University that is Socially Progressive.

In 2025/26 we will expand work on space utilisation begun in 2024/25, across our campus, to ensure the best possible return on the substantial investments made over the last decade. This is central to an evolving Estates Strategy that has sustainability at its core. Investing to achieve sustainability and climate resilience remains financially challenging and the University seeks operational collaboration opportunities across Glasgow and Scotland to deliver benefits to all. The embedding of sustainability in our curricula and research ensures ongoing returns far into the future.

Research growth is anticipated over the coming years as a result of Investment Zone opportunities and exciting new research opportunities are arising from key investments, such as the Advanced Net Zero Innovation Centre (ANZIC) in Inchinnan.

Though there is much work to be done across a number of workstreams, including our strategic transformation, we look to the future with optimism, thanks to the clarity of our strategic vision, underpinned by our unwavering Strathclyde values.

Ms F Salzen Treasurer On behalf of Court 27 November 2025

Ms L Noble Chief Financial Officer 27 November 2025

33

Statement of Corporate Governance and Internal Control

INTRODUCTION

The University’s corporate governance arrangements are informed by best practice and by the Scottish Code of Good Higher Education Governance. In 2024/25, the University complied with all provisions of the Scottish Code of Good Higher Education Governance 2023 (henceforth ‘the Code’).

University Governance and Court

The University of Strathclyde was established by Royal Charter in 1964. The Royal Charter sets out the powers and functions of the University and makes specific provision for two major bodies within the University’s governance structure: Court and Senate.

Under the terms of the University Charter and Statutes, Court is the Supreme Governing Body of the University and is responsible for overseeing the management and administration of the whole of the revenue and property of the University as well as academic-related matters, which are primarily devolved to Senate and its attendant committees and structures. Court exercises general control over the University and all its affairs, purposes and functions, taking all final decisions on matters of fundamental concern to the University.

During the majority of 2024/25, Court was composed of twenty-four members[1] drawn from the University’s external and internal communities, the majority of whom were coopted lay members (i.e. members appointed by the Court itself who are neither staff nor students of the University). Overall, the membership of Court includes both academic and professional services staff (including directly elected members, Senate members and members appointed by recognised trade unions), two members appointed by the Students’ Association, a member of Glasgow City Council, the Principal and the Vice-Principal, in addition to co-opted

lay members and the Convener of Court (who constitutes the Senior Lay Member, in terms of the Higher Education Governance (Scotland) Act 2016).

In addition to the members of Court and the University Secretary, members of the University Executive Team were invited to attend meetings during 2024/25, to facilitate accurate and efficient communication. At least one of the two Joint Heads of Governance, who act as Clerk to Court, were also in attendance at all meetings.

An induction session for new members of Court was held in September 2024, and other training and development opportunities were made available to all Court members as appropriate, including a Health and Safety training session and a Leading the Change for an anti-racist society workshop.

Court and its members are committed to upholding the Nine Principles of Public Life in Scotland. Court has adopted a Code of Conduct for its members which is set out in the Handbook for Members of Court. The University maintains a Register of Interests of Court members and relevant senior officers, which is publicly available for inspection on the University’s website.

Court met on seven occasions during 2024/25[2] . A stakeholder meeting, of the kind set out in paragraph 58 of the 2023 Scottish Code of Good Higher Education Governance, was held in May 2025.

  1. There were 25 Court members on 1 August 2024. One lay member of Court resigned on 28 August 2024, and a further lay member resigned on 30 June 2025. There were 24 members of Court for all Court meetings during 2024/25.

  2. Two of these meetings fell outside of the regular cycle of meetings – one meeting, in April 2025 was convened to appoint the new Principal and Vice-Chancellor of the University, and an additional meeting was held in late June 2025 to approve the 25/26 budget and confirm the exit receipt from the Strathclyde Pension Fund.

34

The regular Court meetings were held in person, with remote access made available to any members unable to attend in person, to help maximise attendance. One of the two additional meetings was held online. Between meetings, the Convener and Vice-Convener received regular briefings from the University’s senior management, and all Court members were kept informed by electronic means of any significant issues affecting the University. Court members also receive the University’s weekly staff bulletin and the Principal’s regular messages to staff.

Court has overall responsibility for approving the University’s Strategic Plan and monitoring its delivery. Court was actively engaged in the development of the University’s new Strategic Plan, Strathclyde 2030, which was launched in January 2024, and covers the period 2025-2030. Our current Strategic Plan, Vision 2025, which was in its final year in 2024-25, covers 2020-2025 and was also developed with Court's involvement and approval. The University has a range of financial and nonfinancial Key Performance Indicators related to its strategic objectives. Performance information is provided regularly to Court. A detailed schedule is in place to ensure that the main strands of University strategy are reviewed annually and in a consistent manner. In particular, there is at least one annual strategic meeting which is used, among other purposes, to assess organisational performance against the strategy: in 2024/25, Court held such strategy meetings in November and April.

Statement of compliance with the Scottish Code of Good Higher Education Governance

In keeping with the good practice set out in the Code, Court annually reviews its own performance. This annual review of performance is supported by a survey of Court members, the findings of which are considered and discussed by Court in order to facilitate continuous improvement. Every five years, this is supplemented by an externally led review of Court’s effectiveness. This was last done in the summer of 2022 and the final report from this review was received by Court in October 2022. The report is available on the University’s website. Planning for the next externally led review of Court’s effectiveness will begin in 2026 for delivery in 2027.

In the autumn of 2024, staff and students at the University elected a new Convener of Court. In line with the Code, the Convener was appointed by an open, transparent recruitment process, managed by a Court established Appointment Committee. This involved staff and students and was followed by an election with an electorate of all staff, students and Court members. The new Convener David Clark took up office on 1 August 2025

Delegation of authority

It is not practical for Court to make every decision that is required within the University and it has therefore agreed to delegate authority for certain decisions and certain areas of responsibility to appropriate individuals and committees, which are accountable to the University Court for exercising this authority. Court retains ultimate accountability and corporate responsibility for any decisions made on its behalf.

With certain exceptions defined under the Charter, Court may delegate any of its functions. The range of authority delegated by Court to its committees, the University Senate, and the University’s management, is detailed within the Court’s Schedule of Delegated Authority, which is published on the University's website.

Academic matters are fully delegated to the Senate, with Court receiving reports from the Senate following its meetings. The responsibility for oversight and regulation of the University’s academic provision is therefore vested in the Senate, subject to Court’s overall authority, and the Principal, as Chair of Senate, has responsibility for the delivery of education and the student experience across the University. Outside of Senate’s responsibilities, much of Court’s detailed work is initially handled by standing committees of Court. Senate, likewise, has a number of standing committees that carry out detailed work in relevant areas and report to Senate. In addition, the University has a range of Strategic and Compliance Committees, which oversee strategic delivery in key areas of activity and report to Court, Senate and/or the Executive Team, as required. These include an Estates Committee and a Staff Committee, both of which include Court members within their membership. See below for more details on both Court Committees and Strategic and Compliance Committees.

35

Annual Report and Financial Statements Statement of Corporate Governance and Internal Control

36

Annual Report and Financial Statements Statement of Corporate Governance and Internal Control

Committee Structure

The University’s high-level committee structure provides clarity around the decision-making process and ensures the appropriate flow of information to Court. All of these committees are formally constituted, with terms of reference approved by Court, and report formally to Senate and/or Court. The Committees of Court and those strategic committees that report to Court include members of Court in their membership.

Standing Committees of Court

Court Business The Court Business Group’s role is to review the substantive business coming forward to Court
Group in order to ensure that Court receives the information it needs to take clear, efective decisions.
It also considers strategic and fnancial matters on behalf of Court and can approve certain
decisions within specifed fnancial thresholds.
Court Membership The Court Membership Group’s primary role is to consider and make recommendations to Court on
Group the appointment of co-opted members of Court, as vacancies arise. It performs the role of a nomina-
tions committee, in terms of the Scottish Code of Good Higher Education Governance.
Remuneration The Remuneration Committee advises Court and oversees the preparation of policies in
Committee respect of remuneration and conditions of service (including severance arrangements) for the
University’s senior management, including the Principal, and keeps these under review. It meets
at least once annually.
Appointments to the Remuneration Committee are made on the basis of particular skills and
experience. The terms of reference do not preclude the appointment of non-lay members of
Court. The Principal is not a member of the Remuneration Committee but attends meetings at
the invitation of the Chair in order to inform discussions on the remuneration and conditions of
service of other senior ofcers. The Principal does not attend when his or her own remuneration
and/or conditions of service are considered or determined.
The University Secretary is kept updated of planned discussions at Remuneration Committee
and determines whether his attendance at each meeting is necessary.
Audit and Risk The Audit and Risk Committee’s role is to review the efectiveness of the University’s corporate
Committee governance arrangements, fnancial systems, internal control environment and risk management
arrangements and provide appropriate assurance to Court on these areas.
Enterprise The Enterprise and Investment Committee’s role is to review commercial investment proposals
and Investment and make recommendations on investments in companies with appropriate connections to the
Committee University (for example, created by the University’s staf and students), as well as license deals
and other commercial joint ventures.
Statutory Advisory The Statutory Advisory Committee on Safety and Occupational Health’s role is to monitor
Committee on Safety and report to Court on the delivery of the University’s Safety, Health and Wellbeing Strategy.
and Occupational
Health

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Annual Report and Financial Statements Statement of Corporate Governance and Internal Control

Committee Structure continued

Strategic and Compliance Committees
Estates Committee
The Estates Committee is responsible for strategic oversight of the University Estates Strategy and
ensuring that it is consistent with the overall University strategy. It provides appropriate assurance
to Court and the Executive Team on these matters. Its membership includes members of Court.
Staf Committee
The Staf Committee is responsible for the strategic oversight of strategy and policy in relation
to stafng matters and for monitoring compliance with all relevant legislation. It provides
appropriate assurance to Court and the Executive Team on these matters. Its membership
includes members of Court.
Information Strategy
Committee
The Information Strategy Committee is responsible for all matters of corporate information
strategy and for the strategic deployment of all information resources. It provides appropriate
assurance to the Executive Team on these matters.
Research and
Knowledge
Exchange Committee
The Research and Knowledge Exchange Committee is responsible for oversight of strategy and
policy in the area of research, knowledge exchange, and innovation. It provides appropriate
assurance to Senate and the Executive Team on these matters.
Education Strategy
Committee
The Education Strategy Committee is responsible for developing and monitoring the
University’s strategy for learning, teaching and assessment and the enhancement of the
Student Experience. It provides appropriate assurance to Senate and the Executive Team on
these matters.
Quality Assurance
Committee
The Quality Assurance Committee is responsible for the quality assurance of the University’s
academic provision and of the academic standards of its awards. It provides appropriate
assurance to Senate, through the Education Strategy Committee.

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Annual Report and Financial Statements Statement of Corporate Governance and Internal Control

Executive Team

The Executive Team is chaired by the Principal and acts as a forum for discussion and decision-making on major initiatives and issues for the University. Where appropriate, it makes recommendations to Senate and Court for approval. Membership includes the major budget holders within the University and key senior staff who advise the Principal on senior management decisions, particularly on the allocation of resource to Faculties and Professional Services. Its members are responsible and accountable for all components of the University’s budget, both income and expenditure. As such, it plays an important part in the internal governance and academic operations of the University, and brings together the academic, financial, and human resource aspects of planning. It is responsible for managing the University’s performance and for assisting the Principal in the delivery of the University’s Strategy.

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Annual Report and Financial Statements Statement of Corporate Governance and Internal Control

Statement of internal control

As part of its primary responsibilities, 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 provides reasonable and not absolute assurance against material misstatement or loss.

Court keeps issues of control and risk under review and receives relevant reports from both the Executive Team and the Audit and Risk Committee. This includes reviewing quarterly business reports, which provide information on financial performance, receiving mid-year and annual progress reports on performance against the University’s Key Performance Indicators, and reviewing mitigating actions and the selection of top risks within the Corporate Risk Register.

The University also issues a Key Controls Checklist to all departments on an annual basis, on the basis of which Statements of Assurance are provided, via Senior Officers, to the Principal and University Treasurer to confirm compliance with key University policies and procedures.

The 2024/25 Internal Audit Plan has been delivered according to schedule, and a report was presented to the Audit and Risk Committee in November 2024. The Annual Internal Audit Opinion was unqualified.

Key compliance requirements continued to be addressed, through robust processes and oversight including:

The Audit and Risk Committee, on behalf of Court, has reviewed the adequacy and effectiveness of the University’s system of internal control and risk management and is satisfied with the University’s arrangements in that regard.

40

Annual Report and Financial Statements Statement of Corporate Governance and Internal Control

Going concern

The University’s financial statements are prepared on a going concern basis for the period up until 31 July 2027. The University’s activities, financial performance and financial position, together with factors likely to affect its future development and performance, are described in the Strategic Report as are the University’s Treasury Management policies. Emerging and principal risks and uncertainties facing the University are described on pages 15 to 16 and have been considered in the University’s going concern assessment outlined here.

At 31 July 2025, the University held gross cash of £207.5 million (gross cash of £140.0 million at 31 July 2024). The reported deficit for the year to 31 July 2025 is £37.6 million (2024: surplus of £163.0 million).

The only external borrowings of the University at 31 July 2025 were low cost fixed rate debt with a balance of £59.7 million. These borrowings, not subject to covenant terms, comprised £58.7 million of loans from SFC through their Financial Transactions and Carbon Reduction programmes and £1.0 million funding for various energy efficiency and renewable energy projects funded by Salix Finance Ltd. Between 1 August and 30 November 2025, £1.3 million has been repaid to SFC in accordance with loan agreements. A further £9.3 million of borrowings will be repayable during the going concern period, which runs from the date of approval of these financial statements to 31 July 2027.

The University’s going concern assessment included consideration of:

The University’s latest financial forecasts for 2025/26 and 2026/27, (‘the Base Case Forecast’) formed the basis of the going concern assessment and were subject to the scrutiny of the University Audit and Risk Committee and Court. For 2025/26 a deficit of £22.6 million and for 2026/27 a surplus of £10.5 million is forecasted.

The Base Case Forecast shows that the University will maintain sufficient cash reserves for the period from approval of these financial statements to 31 July 2027 with minimum liquidity of £152.4 million. The University’s cash cycle completes in July and so cash levels will be at their lowest level in this month.

41

Annual Report and Financial Statements Statement of Corporate Governance and Internal Control

Going concern continued

In addition, the University has also modelled a severe but plausible downside scenario based on further increases in salary and other operating costs and the possibility of the worsening of the economic downturn with related impacts on tuition fees, SFC grant funding and recovery of debts, the sale of investments before the application of mitigating factors. A further downside risk would be challenges in delivering the intended outcome of the University’s strategic transformation programme.

In this plausible worst case scenario, with a range of mitigating actions still available, the University forecasts sufficient liquidity to settle all contractual liabilities, while maintaining liquidity throughout the going concern assessment period to 31 July 2027. Minimum cash reserves before the application of mitigating factors are forecast as being £73.7 million at 31 July 2027.

Whilst these downside scenarios could bring cash levels lower than the University would wish, the University would remain a going concern.

If required, the University would have additional mitigations available to support its liquidity and ability to continue normal operations including the suspension of new capital expenditure not yet committed, moving to a reactive maintenance regime only, the acceleration and expansion of strategic transformation activities and realisation of surplus assets. These have also not been reflected in the above scenarios.

The University is confident that through its routine and regular financial reporting to Executive Team, Audit and Risk Committee, Court Business Group and Court, any deterioration from planned financial performance in the going concern period will be identified, considered, and the mitigating actions taken in a sufficiently timely manner to reduce the impact on the University.

Having taken these factors into account, Court considers that the University has adequate resources to continue in operation from the approval of these financial statements until 31 July 2027 and for this reason the going concern basis continues to be adopted when preparing the financial statements.

Conclusion

Based on the above noted process, Court is of the view that there were adequate and effective internal controls in place and that there was an adequate and effective process for identifying, evaluating and managing the University's significant risks during the year ended 31 July 2025 and up to the date of signing the Annual Report and Financial Statements.

David Clark

Convener of Court

27 November 2025

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Annual Report and Financial Statements Statement of Corporate Governance and Internal Control

43

Statement of Primary Responsibilities of the University Court

General

Under the terms of the University Charter, Court is the Governing Body of the University and is responsible for overseeing the management and administration of the whole of the revenue and property of the University. Court exercises general control over the University and all its affairs, purposes and functions, taking all final decisions on matters of fundamental concern to the University. Court is responsible for safeguarding the University’s good name and values.

Court’s Primary Responsibilities are detailed as follows:

Staff and students

Financial responsibilities

44

Annual Report and Financial Statements Statement of Primary Responsibilities of the University Court

Strategic responsibilities

Controls

Monitoring performance and effectiveness

45

Independent Auditor’s Report to the Court of the University of Strathclyde

Opinion

We have audited the financial statements of the University of Strathclyde (“‘the University’”) for the year ended 31 July 2025 which comprise the Statement of Comprehensive Income and Expenditure, Statement of Changes in Reserves, Balance Sheet and Statement of Cash Flows and the related notes 1 to 27, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 “The Financial Reporting standard applicable in the UK and Republic of Ireland”.

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report below.

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

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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 University’s ability to continue as a going concern for the period to 31 July 2027.

Our responsibilities and the responsibilities of the University Court with respect to going concern are described in the relevant sections of this report. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the University"/"institution ability to continue as a going concern.

46

Annual Report and Financial Statements Independent Auditor’s Report to the University Court of the University of Strathclyde

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. The University Court is responsible for the other information contained in the annual report.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

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 such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of the other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Scottish Funding Council's Financial Memorandum

In accordance with the SFC’s Financial Memorandum (effective 1 December 2014), we will also report to the University Court whether, in all material respects:

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities Accounts (Scotland) regulations 2006 requires us to report to you if, in our opinion:

47

Annual Report and Financial Statements Independent Auditor’s Report to the University Court of the University of Strathclyde

Responsibilities of the University Court

As explained more fully in the Statement of Primary Responsibilities of the University Court set out on pages 44 to 45, the University Court is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the University Court determines 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 University Court is responsible for assessing the University’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the University or to cease operations, or has no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 44(1) (c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s 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.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of noncompliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud. 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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.

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Annual Report and Financial Statements Independent Auditor’s Report to the University Court of the University of Strathclyde

procedures to address the risk of fraud and management override. These procedures included testing manual journals and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

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

Use of our report

This report is made solely to the University Court, as a body, in accordance with Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the University Court those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the University and the University Court as a body, for our audit work, for this report, or for the opinions we have formed.

Ernst & Young LLP, Statutory Auditor Glasgow 28 November 2025

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Annual Report and Financial Statements Statement of Comprehensive Income and Expenditure

Statement of Comprehensive Income and Expenditure

for the year ended 31 July 2025

2025
2024
Note £M £M
Income
Funding Council grants 2 119.0
113.0
Tuition fees and education contracts 3 121.3
124.4
Research grants and contracts 4 119.5
118.6
Other income 5 54.1
58.0
Investment income 6 11.9
13.9
Donations and endowments 7 4.8
4.6
Total income
Expenditure
Staf costs
Staf costs: restructuring costs
Staf costs: movement on pension provision
Other operating expenses
Depreciation and amortisation
Interest and other fnance costs
Total expenditure
(Defcit)/Surplus before other gains and losses
Gain on disposal of tangible assets
Gain on investments
Unrealised defcit on revaluation of investment
properties
(Defcit)/Surplus for the year
Other comprehensive income
Acturial (loss)/gain in respect of pension scheme
Total comprehensive income and expenditure
for the year
Represented by:
Endowment comprehensive income for the year
Unrestricted comprehensive income and expenditure
for the year		 8
8
8
10
10
9
10
22		 430.6
432.5
246.1
245.8
2.2
-
-
(160.7)
147.4
144.6
44.1
44.6
0.3
3.8
440.1
278.1
(9.5)
154.4
0.8
-
2.5
7.4
(0.6)
(1.0)
(6.8)
160.8
(30.8)
2.2
(37.6)
163.0
3.3
4.4
(40.9)
158.6
(37.6)
163

All income and expenditure of the University relates to continuing operations. The accompanying notes and policies on pages 56 to 94 form part of these financial statements.

50

Annual Report and Financial Statements Statement of Changes in Reserves

Statement of Changes in Reserves

for the year ended 31 July 2025

Income and Expenditure Reserve
Endowment
£M
Unrestricted
£M
Total
£M
Balance at 1 August 2023
42.2
360.7
402.9
Surplus from the income and expenditure statement
4.4
156.4
160.8
Other comprehensive income
-
2.2
2.2
Total comprehensive income for the year
4.4
158.6
163.0
Balance at 31 July 2024
46.6
519.3
565.9
Surplus/(defcit) from the income and
expenditure statement
3.3
(10.1)
(6.8)
Other comprehensive income
-
(30.8)
(30.8)
Total comprehensive income/expenditure for the year
3.3
(40.9)
(37.6)
Balance at 31 July 2025
49.9
478.4
528.3

51

Annual Report and Financial Statements Balance Sheet

Balance Sheet

as at 31 July 2025

Note
2025
£M
2024
£M
Non-current assets
Intangible assets
11
12.0
11.3
Tangible assets
12
450.5
449.5
Investments
13
66.8
63.5
Pension asset
22
-
106.5
529.3
630.8
Current assets
Surplus assets for disposal
-
0.4
Stock
0.5
0.4
Debtors
14
42.6
41.1
Cash and cash equivalents
21
207.5
140.0
250.6
181.9
Creditors: amounts falling due within one year
15
(192.4)
(181.9)
Net current assets/(liabilities)
58.2
-
Total assets less current liabilities
587.5
630.8
Creditors: amounts falling due afer more than one year
16
(54.4)
(59.7)
Pension provisions
17
(4.4)
(4.8)
Other provisions
17
(0.4)
(0.4)
Total net assets
528.3
565.9

52

Annual Report and Financial Statements Balance Sheet

Balance Sheet

as at 31 July 2025 continued

Note
2025
£M		 2024
£M
46.6
519.3
565.9
Represented by:
Restricted reserves
Income and Expenditure reserve – endowments
18
49.9
Unrestricted reserves
Income and Expenditure reserve – unrestricted
478.4
Total reserves
528.3

The accompanying notes and policies on pages 56 to 94 form part of these financial statements. The financial statements were approved by the University Court on 27 November 2025, and signed on its behalf by:

Professor S McArthur Ms F Salzen Principal and Vice-Chancellor Treasurer

Ms L Noble Chief Financial Officer

53

Annual Report and Financial Statements Statement of Cash Flows

Statement of Cash Flows

for the year ended 31 July 2025

Note
2025
£M
2024
£M
Net cash (outflow)/inflow from operating activities
(Defcit)/Surplus for the year
(6.8)
160.8
Adjustment for non-cash items
Depreciation and impairment
41.0
42.0
Amortisation
3.0
2.6
Gain on investments
(2.5)
(7.4)
Unrealised defcit on revaluation of investment properties
0.6
1.0
Increase in debtors
(1.9)
(0.6)
Increase/(Decrease) in creditors
12.2
(13.6)
Decrease in pension provision
(0.4)
(160.9)
Adjustment for investing or fnancing activities
Investment income
(11.9)
(13.9)
Interest payable
0.3
3.8
Gain on the sale of tangible assets
(0.8)
-
Capital grant income
(27.7)
(22.4)
Net cash inflow from operating activities
5.1
(8.6)
Cash flows from investing activities
Proceeds from sale of tangible assets
2.2
3.9
Proceeds from sale of non-current asset investments
14.6
13.4
Proceeds from from SPF pension plan exit
22
80.1
-
Capital grant receipts
25.9
15.8
Investment income
7.6
8.9
Payments to acquire tangible assets
(43.9)
(30.0)
Payments to acquire intangible assets
(3.8)
(3.8)
New non-current investments
(15.4)
(11.9)
67.3
(3.7)

54

Annual Report and Financial Statements Statement of Cash Flows

Statement of Cash Flows

for the year ended 31 July 2025 continued

Note
2025
£M
2024
£M
Cash flows from fnancing activities
Interest paid
(0.3)
(0.4)
New unsecured loans
-
14.7
Repayments of amounts borrowed
(4.6)
(4.7)
(4.9 )
9.6
Increase/(Decrease) in cash and cash equivalents
21
67.5
(2.7)
Cash and cash equivalents at 1 August
21
140.0
142.7
Cash and cash equivalents at 31 July
21
207.5
140.0

55

Annual Report and Financial Statements Notes to the Financial Statements

Notes to the Financial Statements

1. Principal Accounting Policies

Accounting convention

These financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting for Further and Higher Education (2019 SORP), in accordance with applicable Accounting Standards (FRS102) and in accordance with the Accounts Direction issued by the Scottish Funding Council.

Basis of preparation

These financial statements are prepared under the historical cost convention modified by the revaluation of land, investment properties and certain fixed asset investments.

Going concern

The University’s financial statements are prepared on a going concern basis for the period up until 31 July 2027. The University’s activities, financial performance and financial position, together with factors likely to affect its future development and performance, are described in the Strategic Report as are the University’s Treasury Management policies. Emerging and principal risks and uncertainties facing the University are described on pages 15 to 16 and have been considered in the University’s going concern assessment set out below.

At 31 July 2025, the University held gross cash of £207.5 million (gross cash of £140.0 million at 31 July 2024). The reported deficit for the year to 31 July 2025 is £37.6 million (2024: surplus of £163.0 million).

At 31 July 2025 the University had debt of £59.7 million. These borrowings, not subject to covenant terms, comprised £58.7 million of loans from SFC through their Financial Transactions and Carbon Reduction programmes and £1.0 million funding for various energy efficiency and renewable energy projects funded by Salix Finance Ltd. Subsequent to the year end, £1.3 million has been repaid to SFC in accordance with the loan agreements. A further £9.3 million of borrowings will be repayable during the going concern period, which runs from the date of approval of these financial statements to 31 July 2027.

The University’s going concern assessment included consideration of:

The University’s latest financial forecasts for 2025/26 and 2026/27, (‘the Base Case Forecast’) formed the basis of the going concern assessment and was subject to the scrutiny of the University Audit and Risk Committee and Court. For 2025/26 a deficit of £22.6 million and for 2026/27 a surplus of £10.5 million is forecasted.

56

Annual Report and Financial Statements Notes to the Financial Statements

1. Principal Accounting Policies continued

The Base Case Forecast shows that the University will maintain sufficient cash reserves for the period from approval of these financial statements to 31 July 2027 with minimum liquidity of £152.4 million. The University’s cash cycle completes in July and so cash levels will be at their lowest level in this month.

In addition, the University has also modelled a severe but plausible downside scenario based on further increases in salary and other operating costs and the possibility of the worsening of the economic downturn with related impacts on tuition fees, SFC grant funding and recovery of debts, and the sale of investments before the application of mitigating factors. A further downside risk would be challenges in delivering the intended outcome of the University’s strategic transformation programme.

In this plausible worst case scenario, with a range of mitigating actions still available, the University forecasts sufficient liquidity to settle all contractual liabilities, while maintaining liquidity throughout the going concern assessment period to 31 July 2027. Minimum cash reserves before application of mitigation factors are forecast as being £73.7 million at 31 July 2027.

Whilst these downside scenarios could bring cash levels lower than the University would wish, the University would remain a going concern.

If required, the University would have additional mitigations available to support its liquidity and ability to continue normal operations including the suspension of new capital expenditure not yet committed, moving to a reactive maintenance regime only, the acceleration and expansion of strategic transformation activities and realisation of surplus assets. These have also not been reflected in the above scenarios. The University is confident that through its routine and regular financial reporting to Executive Team, Audit and Risk Committee, Court Business Group and Court, any deterioration from planned financial performance in the going concern period will be identified, considered, and the mitigating actions taken in a sufficiently timely manner to reduce the impact on the University.

Having taken these factors into account, Court considers that the University has adequate resources to continue in operation from the approval of theses financial statements until 31 July 2027 and for this reason the going concern basis continues to be adopted when preparing the financial statements.

The University is a public benefit entity and has applied the relevant public benefit requirement of FRS102.

Consolidation

The financial statements do not include those of the University’s subsidiaries in Bahrain, University of Strathclyde Innovation Research and Education W.L.L, or in Singapore, University of Strathclyde Singapore Hub Pte Ltd, because the results of these entities are immaterial to the University’s financial results and position.

The financial statements do not include those of the Students' Association because the University does not control its activities or hold dominant influence over policy decisions.

Income recognition

Income from the sale of goods or services is credited to the Statement of Comprehensive Income and Expenditure when the goods or services are supplied to the external customer.

57

Annual Report and Financial Statements Notes to the Financial Statements

1. Principal Accounting Policies continued

Tuition fees and education contracts

Fee income is stated gross of any expenditure and credited to the Statement of Comprehensive Income and Expenditure over the period in which students study. Where the amount of the tuition fee is reduced by a discount, income receivable is shown net of the discount. 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 income and expenditure of the University where the University is exposed to minimal risk or enjoys minimal economic benefit related to the transaction.

Grant funding

Grant funding including the Scottish Funding Council block grant, research grants from government sources and grants (including research grants) from non-government sources are recognised as income when the University is entitled to the income and performance-related conditions have been met. Income received in advance of performance-related conditions being met is recognised as deferred income on the Balance Sheet and released to income when the conditions are met.

Donations and endowments

Non-exchange transactions without performance-related conditions are donations and endowments. Donations and endowments with donor imposed restrictions are recognised in income when the University is entitled to the funds. Income is retained within the restricted reserve until such time that it is utilised in line with such restrictions at which point the income is released to general reserves through a reserve transfer.

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

Investment income and appreciation of endowments is recorded in income in the year in which it arises and as either restricted or unrestricted income according to the terms applied to the individual endowment fund. There are four main types of donations and endowments identified within reserves:

Capital grants

Capital grants are recognised in income when the University is entitled to the funds and all performance-related conditions have been met.

Accounting for retirement benefits

The University participates in the Universities Superannuation Scheme (USS), the Strathclyde Pension Fund (SPF until 31 May 2025) and the Scottish Teachers’ Superannuation Scheme (STSS). USS is a hybrid pension scheme, providing defined benefits (for all members), as well as defined contribution benefits. The SPF and STSS are defined benefit schemes.

The assets of USS and STSS are held in separate trustee administered funds. Because of the mutual nature of the schemes, the

58

Annual Report and Financial Statements Notes to the Financial Statements

1. Principal Accounting Policies continued

schemes’ assets are not attributed to individual institutions and scheme-wide contribution rates are set. The University 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 schemes on a consistent and reasonable basis. As required by Section 28 of FRS 102 ‘Employee benefits’, the University therefore accounts for these schemes as if they were wholly defined contribution schemes. As a result, the amount charged to the Statement of Comprehensive Income and Expenditure represents the contributions payable to the scheme.

Where a scheme valuation determines that the scheme is in deficit (as was the case following the USS 2020 valuation), scheme employers, including the University, enter into an agreement (the Recovery Plan) that determines how each employer within the scheme will fund an overall deficit. The University recognises a liability for the contributions payable that arise from such an agreement (to the extent that they relate to a deficit) with related expenses being recognised through the Statement of Comprehensive Income and Expenditure.

During the year ended 31 July 2025 all staff who were active members of SPF transferred to USS and the University’s participation in SPF ceased on 31 May 2025. The exit from the scheme was accounted for as a settlement in the year ended 31 July 2025.

Section 28 of FRS 102 requires that where a plan settlement has taken place in the current period, the defined benefit obligations net of scheme assets that previously resulted in a net asset being recognised shall be eliminated and any resulting gain or loss shall be recognised in the Statement of Comprehensive Income and Expenditure.

Scheme liabilities which are considered ‘unfunded’, in that future benefits to members do not have matching assets to fund payments in the future, are accounted as separate liabilities irrespective of the overall net position of the scheme.

Employment benefits

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

Operating leases

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

Foreign currencies

Transactions denominated in foreign currencies are translated to sterling at the rate of exchange ruling at the date of the transactions. Assets and liabilities denominated in foreign currencies are translated at the rates of exchange ruling at the end of the financial year, with all the resulting exchange differences being taken to the Statement of Comprehensive Income and Expenditure in the year in which they arise.

Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated to sterling 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 sterling at foreign exchange rates ruling at the dates the fair value was determined.

59

Annual Report and Financial Statements Notes to the Financial Statements

1. Principal Accounting Policies continued

Intangible assets

Software which is not integral to the operation of any hardware with which it has been purchased is recorded as an intangible asset and is amortised over five to ten years representing the remaining economic useful life of the assets.

Research and development costs are written off to the Statement of Comprehensive Income and Expenditure as incurred.

Tangible fixed assets

Tangible fixed assets, excluding investment properties, are stated at cost less accumulated depreciation and accumulated impairment losses. A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying amount may not be recoverable. Certain items of tangible fixed assets that had been revalued to fair value on or prior to the date of transition to the previous SORP in 2015 are measured on the basis of deemed cost, being the revalued amount at the date of that revaluation.

Where parts of a tangible fixed asset have different useful lives, they are accounted for as separate components of tangible fixed assets.

Investment properties

Investment properties are land and buildings held for rental income or capital appreciation rather than for use in delivering services. Investment properties are measured initially at cost and subsequently at fair value with movements recognised in the Statement of Comprehensive Income and Expenditure. Investment properties are not depreciated but are revalued or reviewed annually according to market conditions at 31 July each year.

Land and buildings

Land which is held freehold is not depreciated as it is considered to have an indefinite useful life. Freehold buildings are depreciated over their expected useful lives of up to 50 years. Leasehold land and buildings are depreciated over the life of the lease up to a maximum of 50 years. Alterations and additions to buildings are depreciated over the expected useful life of the work carried out.

Buildings under construction are accounted for at cost, based on the value of architects’ certificates and other direct costs incurred to 31 July. The buildings are not depreciated until they are brought into use.

Costs incurred in relation to a tangible fixed asset, after its initial purchase or production, are capitalised to the extent that they increase the expected future benefits to the University.

Where equipment is part of a capital project, it may be depreciated over periods of between five and ten years.

Equipment

Equipment, including personal computers and software, costing less than £10,000 per individual item or group of related items, is recognised as expenditure in the year of acquisition. All other equipment is capitalised. Capitalised equipment is stated at cost and depreciated over its expected useful economic life, as follows:

General equipment - 5 years Equipment acquired for specific research projects - 2 years

Where equipment is part of a capital project, it may be depreciated over periods of between five and ten years.

Borrowing costs

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

60

Annual Report and Financial Statements Notes to the Financial Statements

1. Principal Accounting Policies continued

Heritage assets

Works of art and items of historical interest are not recognised, since reliable cost information is not available for items acquired many years ago and significant costs are involved in arriving at valuations.

Surplus assets for disposal

Surplus assets for disposal are land and buildings which are no longer in use by the University and which the University is committed to sell and not replace. These assets are valued at the lower of carrying amount and net realisable value.

Repairs and maintenance

Expenditure to ensure that a tangible fixed asset maintains its previously assessed standard of performance is recognised in the Statement of Comprehensive Income and Expenditure in the period it is incurred. The University has a planned maintenance programme, which is reviewed on an annual basis.

Investments

All investments are initially recognised at cost and subsequently measured at fair value at each Balance Sheet date. Where fair value cannot be reliably measured or investments are not publicly traded (spin out and spin in companies), they are measured at cost less impairment.

All gains and losses on investment assets, both realised and unrealised, are recognised in the Statement of Comprehensive Income and Expenditure as they arise.

Stock

Stocks for maintenance, catering and central stationery are valued at the lower of cost and selling price less costs to sell. Departmental stocks are charged to the Statement of Comprehensive Income and Expenditure in the year of purchase.

Provisions, contingent liabilities and contingent assets

Provisions are recognised when the University has a present, legal, or constructive obligation as a result of a past event, it is probable that a transfer of economic benefit will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is discounted to present value where the time value of money is material. The discount rate used reflects current market assessments of the time value of money and reflects any 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 to the Financial Statements.

Cash and cash equivalents

Cash includes cash in hand, cash at bank, deposits repayable on demand and overdrafts. Deposits are repayable on demand if they are 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.

61

Annual Report and Financial Statements Notes to the Financial Statements

1. Principal Accounting Policies continued

Taxation status

The University has charitable status and is recorded on the index of charities maintained by the Office of the Scottish Charity Regulator (Charity No. SC015263). The University is an exempt charity within the meaning of Part 1, Chapter 2, Section 7 of the Charities and Trustee Investment (Scotland) Act 2005, and is considered to pass the tests set out in Paragraph 1 of Schedule 6 to the Finance Act 2010 and therefore it meets the definition of a charitable company for UK Corporation tax purposes.

Accordingly, the University is exempt from taxation in respect of income or capital gains received within categories covered by Section 287 of the Corporation Tax Act 2009 and Sections 471 and 478 – 488 of the Corporation Tax Act 2010 (formerly enacted in Section 505 of the Taxes Act 1988) 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.

Reserves

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

Accounting estimates and judgements

In the application of accounting policies, management are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant and are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

The following are the key assumptions and estimates that management have made in the process of applying the University’s accounting policies and that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year:

Critical accounting estimates

Significant judgements

Legal form

The University is a body corporate established in Scotland by Royal Charter in 1962.

62

Annual Report and Financial Statements Notes to the Financial Statements

2. Funding Council grants

2025 2024
£M £M
Recurrent grants
General Fund – Teaching 72.3 72.7
General Fund – Research and Innovation 29.5 27.7
Total recurrent grants
Other specifc grants
Capital grants
Strategic funding
Ring-fenced grants funded by Scottish Government
Total specifc grants		 101.8
10.5
3.5
3.2
17.2
119.0		 100.4
6.2
3.2
3.2
12.6
113.0

Income from capital grants includes £Nil in respect of capital grants released from deferred income in 2025 (2024: £Nil) following the completion of the relevant performance conditions in the year.

Included within deferred income are the following grants that have been received but which had not been recognised in income at 31 July as performance conditions had not yet been met:

2025 2024
£M £M
Capital Grants 1.1 -
Strategic funding 4.3 2.8

63

Annual Report and Financial Statements Notes to the Financial Statements

3. Tuition fees and education contracts

2025
£M
2024
£M
Scotland home domicile fees
33.2
31.0
EU domicile fees
4.1
3.6
RUK domicile fees
9.3
9.1
Non-EU domicile fees
62.6
68.7
Non-credit bearing course fees
4.5
5.2
Education contracts
0.5
0.5
Other contracts
7.1
6.3
121.3
124.4

4. Research grants and contracts

2025 2024
£M £M
UK Research and Innovation 31.4 30.9
UK based charities 5.9 5.8
European Commission 1.7 3.0
Other grants and contracts 64.6 65.3
Capital grants 15.9 13.6
119.5 118.6

Income from capital grants includes £8.5 million in respect of capital grants released from deferred income in 2025 (2024: £8.3 million) following the completion of the relevant performance conditions in the year.

Included within deferred income are the following grants that have been received but which had not been recognised in income at 31 July as performance conditions had not yet been met:

income at 31 July as performance conditions had not yet been met:
2025 2024
£M £M
Capital grants - government 2.9 3.9
Revenue grants - government 24.2 19.8
Other revenue grants and non-exchange transactions 11.1 10.6

64

Annual Report and Financial Statements Notes to the Financial Statements

5. Other income

2025 2024
£M £M
Residences and catering 10.7 11.5
Other services rendered 26.1 28.7
Capital grants 1.3 2.6
Other revenue grants 1.3 2.4
Accommodation charges and rental income 3.3 3.2
Other income 11.4 9.6
54.1 58.0

Income from capital grants includes £1.1 million in respect of capital grants released from deferred income in 2025 (2024: £1.9 million) following the completion of the relevant performance conditions in the year.

Included within deferred income are the following grants that have not been recognised in income at 31 July as performance conditions had not yet been met:

performance conditions had not yet been met:
2025 2024
£M £M
Capital grants - government 1.4 2.4
Capital grants - other 28.0 28.0

65

Annual Report and Financial Statements Notes to the Financial Statements

6. Investment income

Note
2025
£M
2024
£M
Investment income on endowments
0.9
0.9
Net return on pension scheme
22
4.4
5.1
Other investment income
5.8
7.0
Interest receivable
0.8
0.9
11.9
13.9

7. Donations and endowments

2025
£M
2024
£M
Donations with restrictions
2.6
1.7
Unrestricted donations
2.2
2.9
4.8
4.6

66

Annual Report and Financial Statements Notes to the Financial Statements

8. Staff costs

Note
2025
£M
2024
£M
Wages and salaries
202.8
194.0
Social security costs
21.4
20.2
Other pension costs
22
21.9
31.6
Underlying staf costs
246.1
245.8
Movement on pension provision
17
-
(160.7)
Restructuring Costs
2.2
-
Total staf costs
248.3
85.1
Average staf numbers by major category
Academic
Professional Services
Research
Operational

2025
Number
1,436
1,792
564
735
2024
Number
1,443
1,819
565
739
4,527
4,566
2025
£000
2024
£000
Total remuneration of the Principal and Vice-Chancellor
including pension contributions during the year:
Remuneration
357
350
Other payments in lieu of employer’s pension contribution
71
67
428
417

67

Annual Report and Financial Statements Notes to the Financial Statements

8. Staff costs continued

The Principal had ceased membership of the Universities Superannuation Scheme and received a salary payment in lieu of employer pension contributions (£71k). Following consideration by the Remuneration Committee, the Principal’s basic salary increased in line with the nationally negotiated pay award, (2.5% from April 2024 and 1.4% from April 2025).

The Principal’s remuneration (excluding other payments in lieu of employer’s pension contributions) was 8.17 times the median pay of University employees (2024: 8.31), where the median pay is based on the annualised full-time equivalent remuneration of all staff at the reporting date. In accordance with the CUC Remuneration Code, this pay ratio calculation follows the UCEA methodology, with total pay including the remuneration of the Principal, as noted above, but excludes payments in lieu of employer’s pension contributions and other benefits.

The median pay does not include agency and temporary staff employed by the University in the period, based on management’s assessment that the adjustment to the disclosure would be immaterial to the overall calculation and is too onerous to create.

The number of staff, including senior post holders other than the Principal, who received emoluments in excess of £100,000, excluding employer’s pension contributions, are set out in the following table. The figures shown in the ranges below include payments in lieu of pension contributions for individuals who have opted out of the Universities Superannuation Scheme.

68

Annual Report and Financial Statements Notes to the Financial Statements

8. Staff costs continued

2025 2024
Senior Other Total Senior Other Total
£100,001 - £110,000 - 33 33 - 43 43
£110,001 - £120,000 1 24 25 2 17 19
£120,001 - £130,000 2 18 20 1 17 18
£130,001 - £140,000 3 8 11 3 10 13
£140,001 - £150,000 1 2 3 1 5 6
£150,001 - £160,000 3 5 8 4 3 7
£160,001 - £170,000 2 1 3 1 2 3
£180,001 - £190,000 - 1 1 - 1 1
£190,001 - £200,000 1 1 2 1 1 2
£200,001 - £210,000 1 - 1 1 - 1
£290,001 - £300,000 - - - - - -
£320,001 - £330,000 1 - 1
£330,001 - £340,000 - - - 1 - 1
15 93 108 15 99 114

Key management personnel

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the University. Staff costs include compensation paid to key management personnel.

2025 2024
£M £M
Key management personnel compensation
3.6
2025
Number		 3.6
2024
Number
Number of posts included in key management personnel
16.3		 16.3

Key management personnel compensation includes remuneration and all employee benefits including employer pension contributions.

Key management personnel are defined as members of the Executive Team. Membership of the Executive Team comprises: the Principal and Vice-Chancellor, the Vice-Principal, the Executive Deans, the Associate Principals, the Chief Financial Officer, the Chief Commercial Officer, the University Secretary, the University Compliance Officer, the Chief People Officer, the Chief Digital and Information Officer (up to 31 August 2025), the Director of Strategic Planning and the Director of Marketing and Development Services (from 30 October 2023).

69

Annual Report and Financial Statements Notes to the Financial Statements

8. Staff costs continued

Payments in respect of compensation for loss of office are provided in the financial statements in the year of termination of office. The aggregate compensation for loss of office of staff whose earnings are more than £100,000 per annum or where the costs of all elements of a proposed arrangement amount to more than £100,000 was:

2025 2024
£000 £000
Compensation paid
216.0		 -
2024 2023
Number Number
Number of payments
2		 -

9. Interest and other finance costs

2025
£M
2024
£M
Loan interest
0.3
0.2
Finance charge of USS pension defcit
-
3.6
0.3
3.8

70

Annual Report and Financial Statements Notes to the Financial Statements

10. Analysis of expenditure by activity

----- Start of picture text -----
Other Interest
Staf operating and other Total Total
costs expenses finance costs 2025 2024
£M £M £M £M £M
Academic departments 128.8 17.6 - 146.4 147.7
Academic support services 16.5 10.5 - 27.0 26.8
Research grants and contracts 39.9 31.7 - 71.6 69.9
Administration and central services 29.9 11.8 - 41.7 39.6
General educational expenditure 0.8 24.7 - 25.5 23.7
Residences and catering 4.7 3.8 - 8.5 8.0
Premises 13.1 33.1 - 46.2 45.4
Other income generating activities 11.4 8.9 - 20.3 22.3
Movement on pension provision - - - - (160.7)
Other expenses 1.0 5.3 0.3 6.6 10.8
246.1 147.4 0.3 393.8 233.5
Restructuring costs 2.2 -
Depreciation 41.0 41.1
Impairment - 0.9
Amortisation 3.1 2.6
Total per income and expenditure account 440.1 278.1
----- End of picture text -----

Other operating expenses include the following external auditor’s remuneration:

----- Start of picture text -----
|||| |---|---|---| |2025|2024| |£000|£000| |Audit services|161.4|168.6| |Non-audit services:| |Audit related assurance services|16.2|14.3| |Other non-audit services|-|-| |Total non-audit services|16.2|14.3|

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71

Annual Report and Financial Statements Notes to the Financial Statements

11. Intangible assets

£M
Cost
At 1 August 2024
19.2
Additions
3.7
Disposals
(0.1)
At 31 July 2025
22.8
Amortisation
At 1 August 2024
7.9
Amortisation charge
3.0
Disposals
(0.1)
At 31 July 2025
10.8
Net book value at 31 July 2025
12.0
Net book value at 31 July 2024
11.3

72

Annual Report and Financial Statements Notes to the Financial Statements

12. Tangible assets

Land and Buildings
Investment
properties
£M
Freehold
£M
Long
leasehold
£M
Assets under
construction
£M
Equipment
£M
Total
£M
Cost
At 1 August 2024
6.9
707.7
13.8
7.0
101.4
836.8
Additions
-
4.2
-
17.2
22.2
43.6
Transfers
-
1.9
11.2
(13.1)
-
-
Disposals
-
(1.5)
-
-
(10.5)
(12.0)
Revaluation
(0.6)
-
-
-
-
(0.6)
At 31 July 2025
6.3
712.3
25.0
11.1
113.1
867.8
Depreciation
At 1 August 2024
-
321.2
13.1
-
53.0
387.3
Charge for year
-
22.1
0.9
-
18.1
41.1
Impairment
-
-
-
-
-
-
Disposals
-
(0.6)
-
-
(10.5)
(11.1)
At 31 July 2025
-
342.7
14.0
-
60.6
417.3
Net book value at
31 July 2025
6.3
369.6
11.0
11.1
52.5
450.5
Net book value at
31 July 2024
6.9
386.5
0.7
7.0
48.4
449.5

73

Annual Report and Financial Statements Notes to the Financial Statements

12. Tangible assets continued

At 31 July 2025, freehold land and buildings included £30.4 million (2024: £30.4 million) in respect of freehold land which is not depreciated.

Buildings with a net book value of £348.2 million and cost of £668.4 million have been funded in part or in whole from public funds. Should these particular buildings be sold, the University would have to surrender the relevant proceeds or use them in accordance with the Financial Memorandum with the Scottish Funding Council.

The investment properties were revalued on the basis of market value at 31 July 2025 by an external valuer, Savills (UK) Limited, in accordance with Royal Institution of Chartered Surveyors’ (RICS) professional standards. The valuer has estimated the fair value of the property on the basis of a number of assumptions regarding the condition of the property and an equivalent yield of 10.8% (2024: 9.96%).

The historic cost of investment properties held at fair value is as follows:

2025 2024
£M £M
At 1 August
9.6
At 31 July
9.6		 9.6
9.6

Heritage assets are not recognised in the financial statements. The University’s heritage assets comprise over 1,000 works of art, around 400 historical scientific instruments, some 35 special collections of rare printed and manuscript materials, historical archives (including the University’s own archives and some 30 other archive collections), and silverware and other ceremonial items. The ages of the items range from the 15th century to the present day.

The artwork collection is mainly displayed in University buildings across the campus, while the historical scientific instrument collection is available for viewing by appointment. The book/manuscript collections and archives are used for consultation purposes. The ceremonial assets are used for occasions such as graduations. No material acquisitions occurred in the period, and there were no disposals.

74

Annual Report and Financial Statements Notes to the Financial Statements

13. Fixed asset investments

2025 2024
£M £M
At 1 August 63.5 57.6
Additions 15.0 12.5
Disposals (11.6) (12.1)
(Decrease)/increase in market value of investments (0.5) 6.1
Increase/(decrease) in cash balances
At 31 July
Represented by:
Fixed interest investments (listed)
Equities (listed)
Cash at bank
Spin out and spin in company investments		 0.4
66.8
9.7
46.3
2.7
8.1
66.8		 (0.6)
63.5
10.0
42.6
2.3
8.6
63.5

Investments are stated at market value apart from investments in projects emanating from the University’s research activities which are considered to merit commercial development (spin out company investments) and spin in company investments whose growth depends on knowledge-based collaboration with the University. Such investments are stated at the lower of cost and net realisable value.

The University's subsidiary undertakings are:

The University's subsidiary undertakings are:
% Holding Main Activity
Strathclyde University Incubator Limited 100 incubator for
technology-based business
University of Strathclyde Singapore Hub PTE Limited 100 Administration and
support services
University of Strathclyde Innovation Research and 100 Innovation, Research
Education W.L.L. and Education
SGBS Limited 100 Dormant

The financial statements of these subsidiary undertakings have not been consolidated with those of the University on the basis that the amounts involved are not material.

75

Annual Report and Financial Statements Notes to the Financial Statements

14. Debtors

2025 2024
£M £M
Amounts falling due within one year:
Research grants receivable 11.6 16.1
Knowledge Exchange income receivable 6.4 -
Other receivables 15.8 17.1
Prepayments and accrued income 8.6 7.7
Amounts falling due afer more than one year:
Prepayments and accrued income		 42.4
0.2
42.6		 40.9
0.2
41.1

Knowledge Exchange income receivable of £6.4 million have been disclosed in 2025. In 2024, the prior year equivalent receivables of £7.5 million was disclosed on a net basis with other deferred income in note 15. The year-onyear movements in the balance is therefore £1.1 million.

76

Annual Report and Financial Statements Notes to the Financial Statements

15. Creditors: amounts falling due within one year

----- Start of picture text -----
2025 2024
£M £M
Unsecured loans 5.3 5.4
Creditors 26.4 30.2
Social security and other taxation payable 5.6 5.2
Accruals 17.5 15.9
Deferred income 137.6 125.2
192.4 181.9
----- End of picture text -----

Deferred income Included within deferred income are the following items of income which have been deferred until specific performance conditions have been met:

2025
£M
2024
£M
Donations
22.9
24.3
Research grants received on account
39.1
30.9
Knowledge Exchange received on account
21.0
-
Grant income
34.8
37.1
Other income
19.8
32.9
137.6
125.2

The 2024 other deferred income figure includes £12.8 million of Knowledge Exchange deferred income (£7.5 million were receivables and £20.3 million were received on account). This is now separately shown in this note and note 14. The year-on-year movement of other income on a like for like basis is therefore £6.6 million.

77

Annual Report and Financial Statements Notes to the Financial Statements

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

2025 2024
£M £M
Analysis of unsecured loans
Due within one year or on demand 5.3 5.4
Due between one and two years 5.3 5.3
Due between two and fve years 15.3 15.8
Due in fve years or more 33.8 38.6
Due within one year or on demand
Due afer more than one year		 59.7
(5.3)
54.4		 65.1
(5.4)
59.7

At 31 July 2025, balances outstanding on unsecured loans repayable by instalments were:

Interest details Repayable £M
Scottish Funding Council
Financial Transactions 0.25% fxed 2020-2029 0.4
Financial Transactions 0.25% fxed 2020-2030 1.2
Financial Transactions 0.25% fxed 2024-2033 7.8
Financial Transactions 0.25% fxed 2020-2035 0.5
Financial Transactions 0.25% fxed 2020-2030 4.8
Financial Transactions 0.25% fxed 2022-2042 8.4
Financial Transactions 0.25% fxed 2023-2041 5.3
Financial Transactions 0.25% fxed 2023-2031 2.0
Financial Transactions 0.25% fxed 2023-2031 0.2
Financial Transactions 0.25% fxed 2023-2041 8.8
Financial Transactions 0.25% fxed 2022-2042 5.0
Financial Transactions 1.00% fxed 2023-2043 0.6
Financial Transactions 1.00% fxed 2024-2044 11.7
Financial Transactions 1.00% fxed 2024-2044 2.0
58.7

The University has interest free loans totalling £1.0 million (2024: £1.0 million) from Salix Finance Ltd which are partially repayable in five years or more. The dates and quantum of repayments are wholly dependent upon the timing of expenditure and savings related to various energy efficiency and renewable energy projects funded by these loans, which require matched funding by the University.

78

Annual Report and Financial Statements Notes to the Financial Statements

17. Provisions for liabilities

Pension Other
provisions provisions Total
£M £M £M
At 1 August 2024 4.8 0.4 5.2
Utilised in year (0.6) - (0.6)
Additions in year 0.2 - 0.2
Unused amounts - - -
reversed in year
At 31 July 2025 4.4 0.4 4.8

Pension provisions

Other pension provisions include £1.3 million (2024: £1.5 million) in respect of unfunded pensions in the Strathclyde Pension Fund (further information is provided in Note 22) and £3.1 million (2024: £3.3 million) in respect of an obligation in respect of former employees who have retired and for whom an enhanced pension has been provided.

The pension enhancements liability continues throughout the retirement period and is assessed by independent actuarial valuation. The principal assumptions are a discount rate of 5.5% (2024: 4.8%) and pension increases of 2.75% (2024: 2.9%).

79

Annual Report and Financial Statements Notes to the Financial Statements

18. Endowments

Unrestricted
permanent
£M
Restricted
permanent
£M
Total
permanent
£M
Restricted
expendable
£M
2025
total
£M
2024
total
£M
At 1 August
Capital
8.4
32.5
40.9
-
40.9
37.0
Accumulated income
-
4.4
4.4
1.3
5.7
5.2
8.4
36.9
45.3
1.3
46.6
42.2
Investment income
0.1
0.7
0.8
-
0.8
0.9
Expenditure
(0.1)
(0.4)
(0.5)
-
(0.5)
(0.5)
-
0.3
0.3
-
0.3
0.4
Increase in market value
of investments
0.8
2.1
2.9
0.1
3.0
4.0
At 31 July
9.2
39.3
48.5
1.4
49.9
46.6
Represented by:
Capital
9.2
34.6
43.8
-
43.8
40.9
Accumulated income
-
4.7
4.7
1.4
6.1
5.7
9.2
39.3
48.5
1.4
49.9
46.6
Unrestricted
permanent
£M
Restricted
permanent
£M
Total
permanent
£M
Restricted
expendable
£M
2025
total
£M
2024
total
£M
Scholarship
3.1
13.2
16.3
0.3
16.6
15.5
Chair
-
2.4
2.4
-
2.4
2.3
Entrepreneurship
-
7.7
7.7
0.4
8.1
7.8
Lectureships
-
1.7
1.7
0.4
2.1
1.9
Prizes
-
2.2
2.2
-
2.2
2.0
Research support
-
9.7
9.7
0.2
9.9
9.2
General
6.1
2.4
8.5
0.1
8.6
7.9
9.2
39.3
48.5
1.4
49.9
46.6
Analysis by type of purpose

80

Annual Report and Financial Statements Notes to the Financial Statements

18. Endowments continued

Major Endowments

Restricted permanent endowments include four major individual funds:

The movements of these funds for the year were as follows:

T B Hunter Sir David S
Charitable Anderson Robertson
Trust Trust Glaxo Trust
£M £M £M £M
At 1 August 2024 7.2 2.4 2.5 2.2
Investment income 0.2 - 0.1 -
Expenditure (0.2) - (0.1) -
Increase in market value of investments 0.3 0.2 0.2 0.2
At 31 July 2025 7.5 2.6 2.7 2.4
2025 2024
£M £M
Analysis by asset:
Current and non-current asset investments 41.4 38.8
Cash and cash equivalents 8.5 7.8
Cash and cash equivalents comprise:
Cash held at Investment Manager
Cash held at University		 49.9
1.9
6.6
8.5		 46.6
1.7
6.1
7.8

81

Annual Report and Financial Statements Notes to the Financial Statements

19. Operating lease arrangements

2025 2024
£M £M
Lease payments under operating leases recognised as an
expense in the year
0.9
Future minimum lease payments due:
Within one year
1.4
Due between one and fve years
2.3
Due in fve years or more
0.5
Total lease payments due
4.2		 0.9
1.2
3.4
0.5
5.1

Operating lease payments represent rentals payable by the University for research facilities and other operational properties.

82

Annual Report and Financial Statements Notes to the Financial Statements

20. Capital commitments

2025
£M
2024
£M
Commitments contracted at 31 July
4.4
8.9

21. Reconciliation of net funds

£M
Net funds at 1 August 2024
74.9
Movement in cash and cash equivalents
67.5
New unsecured loans
-
Repayments of amounts borrowed
5.4
Net funds at 31 July 2025
147.8
At
1 August
2024
£M
Cash
flow
£M
Non-cash
changes
£M
At
31 July
2025
£M
Cash and cash equivalents
140.0
67.5
-
207.5
Loans due within one year
(5.4)
5.4
(5.3)
(5.3)
Loans due afer more than one year
(59.7)
-
5.3
(54.4)
74.9
72.9
-
147.8

83

Annual Report and Financial Statements Notes to the Financial Statements

22. Pension schemes

The University participates in three defined benefit schemes: the Universities Superannuation Scheme (USS), the Strathclyde Pension Fund (SPF) and the Scottish Teachers’ Superannuation Scheme (STSS).

Pension contributions

Pension contributions
2025 2024
Note £M £M
USS 25.8 26.7
SPF (4.0) 4.8
STSS 0.1 0.1
8 21.9 31.6

With the exception of SPF the University has, as permitted by FRS 102, accounted for these schemes as though they were defined contribution schemes and the costs recognised within the University’s Statement of Comprehensive Income and Expenditure is equal to the contributions payable to the schemes in the year.

2025 2024
£M £M
Outstanding contributions at 31 July were:
USS 2.3 1.9
SPF - 0.1
2.3 2.0

84

Annual Report and Financial Statements Notes to the Financial Statements

22. Pension schemes continued

Universities Superannuation Scheme

The employer contributions charged to the Statement of Comprehensive Income and Expenditure were £25.8 million (2024: £26.7 million).

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

Since the University cannot identify its share of the 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 the scheme under the scheme-specific funding regime introduced by the Pensions Act 2004, which requires schemes to have sufficient and appropriate assets to cover their technical provision (the statutory funding objective). At the valuation date, the value of the assets of the scheme was £73.1 billion and the value of the scheme’s technical provisions was £65.7 billion indicating a surplus of £7.4 billion and a funding ratio of 111%.

The key financial assumptions used in the 2023 valuation are described below. More detail is set out in the Statement of Funding Principles.

Price inflation – Consumer Prices Index (CPI)

Price inflation – Consumer Prices Index (CPI) 3.0% p.a. (based on a long-term average expected level of CPI, broadly consistent with long-term market expectations) RPI/CPI gap 1.0% p.a. to 2030, reducing to 0.1% p.a. from 2030 Pension increases (subject to a floor of 0%) Benefits with no cap: - CPI assumption plus 3bps Benefits subject to a “soft cap” of 5% (providing inflationary increases up to 5%, and half of any excess inflation over 5% up to a maximum increase of 10%): - CPI assumption minus 3bps Discount rate (forward rates) Fixed interest gilt yield curve plus: - Pre-retirement: 2.5% p.a. - Post-retirement: 0.9% p.a.

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

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

85

Annual Report and Financial Statements Notes to the Financial Statements

22. Pension schemes continued

The current life expectancies on retirement at age 65 are:

2025 2024
Males currently aged 65 23.8 years 23.7 years
Females currently aged 65 25.5 years 25.4 years
Males currently aged 45 25.7 years 25.6 years
Females currently aged 45 27.2 years 27.2 years

Strathclyde Pension Fund

During the year ended 31 July 2025, the University completed the final settlement and exit from its defined benefit pension scheme, the Strathclyde Pension Fund. This was an irrevocable action that relieved the university of all future legal and constructive obligations under the scheme.

The settlement was executed on 31 July 2025, at which time a final settlement amount of £85,527,400 (£85.5 million) was received by the entity from the scheme trustees, representing the residual surplus of the scheme assets over the actuarially determined final liabilities. The final exit valuation was less than previously recorded on the balance sheet (2024: £106.5million) because of increases in the final liabilities determined by fund actuaries.

In accordance with FRS 102, Section 28, a gain or a loss on settlement is recognised immediately in the Statement of Comprehensive Income and Expenditure. The gain/loss is calculated as the difference between the net defined benefit asset/liability immediately before the settlement and the fair value of the settlement received.

86

Annual Report and Financial Statements Notes to the Financial Statements

22. Pension schemes continued

The loss on settlement recognised in the Statement of Comprehensive Income and Expenditure is as follows:

2025
£000
Net defned beneft asset recognised in the Balance Sheet immedi- 116,327 **
ately prior to settlement
Less: Settlement fgure received (Fair value of consideration) (85,527)
Loss on SPF Pension Scheme Settlement 30,800

**includes service cost, interest, and contribution to 31 May 2025.

The proceeds from SPF pension plan exit presented in the Statement of Cashflows is as follows:

2025
£M
Settlement fgure received (Fair value of consideration) 85.5
Less: Contribution (1.5)
Less: Service cost (3.9)
Net proceeds from SPF pension fund exit 80.1

Scottish Teachers’ Superannuation Scheme

The University participates in the Scottish Teachers’ Superannuation Scheme (STSS). The scheme is an unfunded statutory public service pensions scheme with benefits underwritten by the UK Government.

The scheme is financed by payments from employers and those current employees who are members of the scheme. The contributions paid into the scheme fall into general government revenues. The rate of employer contributions is set with reference to a funding valuation undertaken by the scheme actuary. The last four-yearly valuation was undertaken as at 31 March 2020. The results of the valuation were used to set employer contribution rates.

The level of contribution paid by employing institutions was 26.0% of members’ salaries (2024: 26.0%). This rate will remain in force until 31 March 2027.

As the scheme is unfunded there can be no deficit or surplus to distribute on the wind-up of the scheme or withdrawal from the scheme.

87

Annual Report and Financial Statements Notes to the Financial Statements

23. Financial instruments

Note
2025
£M
2024
£M
Financial assets
Measured at fair value through income and expenditure:
Investments (fxed investments listed)
13
9.7
10.0
Investments (equities listed)
13
46.3
42.6
Investments (cash)
13
2.7
2.3
Measured at cost less impairment:
Spin out and spin in company investments
13
8.1
8.6
Measured at undiscounted amount receivable:
Trade and other debtors
14
42.6
41.1
Financial liabilities
Measured at undiscounted amount payable:
Loans payable falling due within one year
15
5.3
5.4
Loans payable falling due afer more than one year
16
54.4
59.7
Trade and other creditors
15
187.1
176.5

24. Related party transactions

Due to the nature of the University’s operations and the composition 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.

In line with the Committee of University Chairs’ guidance, all members of Court are required to complete a register of interests to record any areas of potential conflict with the interests of the University. A register of interests is maintained for members of Court and reviewed by management in advance of preparing the financial statements for the year. Management identified no related party transactions that it considered necessary to disclose here through its review.

88

Annual Report and Financial Statements Notes to the Financial Statements

The University makes certain payments on behalf of and is reimbursed for certain costs by the Students’ Association (USSA). The University does not exercise day to day control over the activities of USSA. In 2025, the University:

The balance due from USSA to the University at 31 July was £57,000 (2024: £182,000).

24. Related party transactions continued

Membership of spin out and spin in companies and other associated companies was reviewed and there is no significant University Management or Court representation in these companies. Furthermore, no material payments have been made to these companies.

25. HE student support funds

2025 2025
HE HE 2025 2025 2024
Childcare Discretionary Other Total Total
£M £M £M £M £M
Balance brought forward - - - - 0.4
Allocation received in year 0.2 0.7 - 0.9 0.9
Expenditure (0.3) (0.5) - (0.8) (0.9)
Virements 0.1 (0.1) - - -
Repaid (recovery of funds) - (0.1) - (0.1) (0.4)
Balance carried forward
Repayable (recovery of funds)		 -
-		 -
-		 -
-		 -
-		 -
-

These grants are available solely for students. The University acts only as paying agent. The grants and related disbursements are therefore excluded from the Statement of Comprehensive Income and Expenditure.

89

Annual Report and Financial Statements Notes to the Financial Statements

26. Facility time publication

The Trade Union (Facility Time Publication Requirements) Regulations 2017 came into force on 1 April 2017. The regulations place a legislative requirement on relevant public sector employers, including the University, to collate and publish a range of data on the amount and cost of Trade Union facility time within their organisation on an annual basis.

The University’s return for the period 1 April 2024 - 31 March 2028, which contains details of numbers of employees who were relevant union officials, the percentage of their working hours spent on facility time, percentage of pay bill spent on facility time and paid trade union activities, is available on the facility time publication webpage .

27. US Department of Education Financial Responsibility Supplementary Schedule

In satisfaction of its obligations to facilitate students’ access to US federal financial aid, the University of Strathclyde is required, by the US Department of Education, to present the following Supplemental Schedule in a prescribed format.

The amounts presented within the schedules have been:

The schedules set out how each amount disclosed has been extracted from the financial statements. As set out above, the accounting policies used in determining the amounts disclosed are not intended to and do not comply with the requirements of accounting principles generally accepted in the United States of America.

In the tables below, the primary statements are referenced using the following abbreviations:

The intangible assets entry is considered to be the most appropriate place to include the pension asset.

90

Report and Financial Statements Notes to the Financial Statements

27. US Department of Education Financial Responsibility Supplementary Schedule continued

Primary Reserve Ratio
Page
Note
Financial Statements
Description
Supplementary
Schedule Description
2025
Total
£M
2025
Total
£M
2024
Total
£M
2024
Total
£M
52
BS – Income and
Expenditure reserve -
unrestricted
Net assets without
donor restrictions
478.4
519.3
52
BS – Income and
Expenditure reserve -
endowments
Net assets with donor
restrictions
49.9
46.6
N/a
Secured and Unsecured
related party receivable
-
-
N/a
Unsecured related party
receivable
-
-
52
BS – Intangible assets
and Tangible assets
Property, plant and
equipment, net
(includes Construction
in progress)
462.5
-
460.8
-
52
BS – Intangible assets
and Tangible assets less
Assets under construction
per Note 12
Property, plant and
equipment –
pre-implementation
-
-
-
N/a
Property, plant and
equipment – post
implementation with
outstanding debt for
original purchase
59.7
65.1
N/a
Property, plant and
equipment – post
implementation without
outstanding debt for
original purchase
391.7
388.7
73
12
Assets under construction
Construction in process
11.1
7.0
Lease right-of-use asset,
net
-
-
N/a
Lease right-of-use
pre-implementation
-
-
N/a
Lease right-of-use post
implementation
-
-
52
BS – Pension asset
Intangible assets
-
106.5
52
BS – Pension provisions
and other provisions
Post-employment and
pension liabilities
4.8
5.2

91

Annual Report and Financial Statements Notes to the Financial Statements

27. US Department of Education Financial Responsibility Supplementary Schedule continued

Primary Reserve Ratio continued
Page
Note
Financial Statements
Description
Supplementary
Schedule Description
2025
Total
£M
2025
Total
£M
2024
Total
£M
2024
Total
£M
78
16
Unsecured loans
Long-term debt – for
long term purposes
59.7
65.1
78
16
Unsecured loans
Long-term debt – for
long term purposes
pre-implementation
-
-
N/a
Long-term debt – for
long term purposes
post-implementation
59.7
65.1
N/a
Line of Credit for
Construction in process
-
-
N/a
Lease right-of-use asset
liability
-
-
N/a
Pre-implementation
right-of-use leases
-
-
N/a
Post-implementation
right-of-use leases
-
-
N/a
Annuities with donor
restrictions
-
-
N/a
Term endowments with
donor restrictions
-
-
N/a
Life income funds with
donor restrictions
-
-
80
18
Total permanent
endowments
Net assets with donor
restrictions: restricted in
perpetuity
48.5
45.3
Total Expenses and Losses
50
SOCI – Total expenditure
less expenditure
funded by restricted
donations (Note 7) and
expenditure on permanent
endowments (Note 18)
Total expenses without
donor restrictions –
taken directly from
Statement of Activities
437.0
275.9
N/a
Non-Operating and Net
Investment (loss)
-
-
N/a
Net Investment losses
-
-
N/a
Pension-related changes
other than net periodic
costs
-
-

92

Report and Financial Statements Notes to the Financial Statements

27. US Department of Education Financial Responsibility Supplementary Schedule continued

Equity Ratio
Page
Note
Financial Statements
Description
Supplementary
Schedule Description
2025
Total
£M
2025
Total
£M
2024
Total
£M
2024
Total
£M
Modifed Net Assets
52
BS – Income and
Expenditure reserve -
unrestricted
Net assets without
donor restrictions
478.4
519.3
52
BS – Income and
Expenditure reserve -
endowments
Net assets with donor
restrictions
49.9
46.6
52
BS – Pension asset
Intangible assets
-
106.5
N/a
Secured and Unsecured
related party receivable
-
-
N/a
Unsecured related party
receivable
-
-
Modifed Net Assets
52
BS – Total assets less
current liabilities plus
Creditors: amounts falling
due within one year
Total assets
779.9
812.7
N/a
Lease right-of-use pre-
implementation
-
-
N/a
Pre-implementation
right-of-use leases
-
-
52
BS – Pension asset
Intangible assets
-
106.5
N/a
Secured and Unsecured
related party receivable
-
-
N/a
Unsecured related party
receivable
-
-

93

Annual Report and Financial Statements Notes to the Financial Statements

27. US Department of Education Financial Responsibility Supplementary Schedule continued

Net Income Ratio
Page
Note
Financial Statements
Description
Supplementary
Schedule Description
2025
Total
£M
2025
Total
£M
2024
Total
£M
2024
Total
£M
50
SOCI – Unrestricted
comprehensive income
and expenditure for the
year
Change in net assets
without donor
restrictions
(40.9)
158.6
50
SOCI – Total income plus
gain on investments and
actuarial gain in respect
of pension scheme less
•
Defcit on revaluation
(SOCI)
•
Investment income
on endowments
(Note 6)
•
Donations with
restrictions (Note 7)
•
(Increase)/decrease
in market value of
investments (Note 18)
Total revenues and gains
395.2
434.5

94

Annual Report and Financial Statements Court Membership 2023/24

Court Membership 2024/25

Membership of Principal Committees of Court

Convener of Court Dame S Bruce

Ex Officio Principal and Vice-Chancellor Professor Sir J McDonald

Vice-Principal Professor S MacGregor

Glasgow City Council Councillor Richard Bell

Convener of Court Membership Group and Court Business Group, Member of Remuneration Committee

Member of Estates Committee, Staff Committee, Court Membership Group, Court Business Group, Enterprise and Investment Committee

Convener of Estates Committee, Member of Court Membership Group, Court Business Group and Staff Committee

Senate Prof Yvonne Perrie Dr Zahra Rattray

President of the Students Association plus another Member of the Student Executive Eva Curran

Member of Court Business Group, Estates Committee and Court Membership Group

Charlie Wilson

Co-opted by Court (Lay Members)

Dame S Bruce (Convener of Court)

Dame S Bruce (Convener of Court) Member of Court Business Group, Court Membership Group and Remuneration Committee Mrs P Galloway (Vice Convener of Court) Member of Court Membership Group, Court Business Group and Audit and Risk Committee Ms F Salzen (Treasurer) Member of Court Business Group, Court Membership Group, Enterprise and Investment Committee, Remuneration Committee and Estates Committee Ms N Bakshi (Deputy Convener, Staff) Member of Estates Committee, Staff Committee and Court Membership Group Ms V Beckett (Deputy Convener, Estates) Member of Court Business Group, Court Membership Group and Estates Committee Mr S Ingledew Member of Court Business Group, Court Membership Group, Enterprise (Deputy Convener, Enterprise and Investment) and Investment Committee Mr M Campbell Member of Audit and Risk Committee, Remuneration Committee Mr C Berry (Resigned as of 30 June 2025) Member of Staff Committee and Enterprise and Investment Committee Ms M Jacobi (Resigned as of 28 August 2024) Member of Staff Committee and Remuneration Committee Mr P Young Member of Enterprise and Investment Committee Mr C Marwick Member of Staff Committee and Remuneration Committee Mrs B Oldfield Member of Audit and Risk Committee and SACSOH Mrs C Schmolke Member of SACSOH Mr M Timar Member of Audit and Risk Committee Professional Services Staff Mr C McKenzie Member of Court Membership Group Academic Professional Staff Prof T Morse Member of Court Business Group Appointed by Trade Unions Mr Chris Jones Dr David Pritchard

The following individuals were appointed as members of Court on 1 August 2025. They were not members of Court during the financial year to 31 July 2025 but were members of Court on the day the Financial Statements were approved: David Clark (Convener), David Rockliff, Martin Lofnes, Fraser Brown and Lucia Gil Dorta.

Note: further information on Court members, including attendance rates and a register of interests, is available on the Court webpage .

95

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