Council 23 rd November 2007 Financial Statements for the year ended 31 st July 2007

Key Features from the Accounts to 31 July 2007 Income growth of 12% Surplus before exceptional items of £3.9m Exceptional restructuring costs of £1.2m Record cash inflow of £13.6m Capital expenditure of £20m Bond issue of £66m on 40 year maturity Academic account moved into overall surplus University of York pension scheme £4.2m surplus Net worth of £142m

Results for the Year 2006/07 £m 2005/06 £m 2004/05 £m Income Expenditure Surplus (1.6) Surplus as % of Income 1.4% 0.2%(1.1%)

Cash Flow 2006/07 £m 2005/06 £m Net cash generated from Operating Activity Returns on investment and servicing of finance(0.8)(1.6) Capital grants and sale of fixed assets Other receipts (Dept of Health)6.7- Loans received Total Inflow Expenditure on fixed assets Loans repaid Total outflow Increase in cash

Balance Sheet July 07 £m July 06 £m Fixed Assets Investments & Endowments Net current assets/(liabilities)18.3(11.9) Total assets less current liabilities Funded by: Loans Deferred grants and provisions Endowments Pension (asset)/liability(4.2)(0.9) Reserves Minority Interest

Key Features from the 5 Year Review 5 Year Growth 2007 £,m 2006 £,m 2005 £,m 2004 £,m 2003 £,m +48%Income %Expenditure Surplus3--(1)11 Cash Inflow Capital Expenditure %Net Worth %Staff (fte)2,8012,7672,6552,4602, %Students (fte)10,60010,3399,7679,3508,841

Summary Good progress towards achieving levels of trading required to support the strategic objectives of the University. We will need to maintain good and consistent surpluses to enable us to raise external finance for our future developments. The academic account moved into surplus last year and this needs to be maintained with the support of the better management project. We will need continued vigilance on improving reliable operating margins and cashflow