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Unite Group’s Latest Trading Update

Posted by Richard Ward in

Image courtesy of Flickr, Creative Commons

The latest trading statement from Unite Group says the student intake for 2019-20 is expected to be in line with the record levels seen over the past years with growth in University cities where Unite operators.

The strongest growth has been witnessed in higher tariff Universities, which have risen by 1.8% year-on-year.

The company has reported a lettings performance of 98% for 2019-20 with revenue around 40% higher than last year. Unite Group is therefore confidence it will deliver rental growth of 3.0-3.5% for 2019-20 and 2020-21.

In relation to the company's planned acquisition of Liberty Living, the group confirmed the Competition and Markets Authority (CMA) has started its Phase 1 merger inquiry. Completion of the acquisition is conditional upon CMA clearance, which is expected in Q4-2019.

Richard Smith, Chief Executive of Unite Students, added: "Demand for UK Higher Education remains robust, as reflected in the record share of 18-year olds choosing to attend University. Student demand also supports our strategic alignment to mid and higher tariff Universities. Despite increased political and economic uncertainty, we maintain our positive outlook for the business, reflecting the strength of our operational and letting performance and opportunities to drive further improvements in utilisation and efficiency while investing in further value-added services for our students."