ABERYSTWYTH University lost over £5m in the last financial year, but chiefs insist that the institution is “performing better than budget”.

The university’s accounts for 2015/16 show it posted a deficit of £5.1m, despite wholesale restructuring of staff and some departments leading to staff costs falling by £0.6m over the same period.

Struggling student numbers saw income at the university fall by £7.2m compared to 2014/15 - with £6.3m directly attributable to a drop in student numbers through tuition and accommodation fees.

The financial report said: “As noted in the 2014/15 Financial Statements, deficits were projected for 2015/16 and 2016/17 as forecast student numbers reach their low point before a planned recovery. Having recognised this issue, the university has established a recovery plan to reduce the university’s cost infrastructure and to promote future income generation.

“Under the recovery plan, the university has a planned budget deficit before gains and losses of £7.9m for 2015/16 and the actual financial performance is better than budget.”

The accounts reveal that the university now employs 1,600 staff, 43 fewer than in 2014/15.

An Aberystwyth University spokesperson said the institution is “managing its financial position effectively and efficiently” despite “challenging academic and economic environments for the higher education sector in general”.

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