Bristol-based Unite, the UK's leading developer and manager of student accommodation, has announced the planned departure of its chief operating officer John Tonkiss as part of what it describes as “operational efficiencies and directorate changes”.
The group says this, together with changes relating “mainly to planned headcount reduction in senior management roles and central support functions . . . are intended to streamline the group’s leadership team to drive greater alignment and accountability across the business”.
The moves are expected to cost an initial £1.5m but will then save the company £2.5m a year from 2012.
Mr Tonkiss will leave on December 31. In addition the group announced two internal promotions to the board. Richard Simpson will become managing director of the property division while Richard Smith will be appointed managing director of the operations division.
Mr Simpson, 35, has been director for the past three years, overseeing the successful introduction of 6,000 new bed spaces and securing “a valuable pipeline of future projects comprising over 3,000 bed spaces”.
Unite added that "Richard is particularly experienced in the London market, which remains a key focus for the group”.
Richard Smith, 37, joined Unite in 2010 as deputy chief financial officer with a broad finance and operations remit, including responsibility for the group’s London operations. He was previously at National Express where he held a range of senior finance, strategy and operations roles both in the UK and overseas.
The group said in a statement: “These changes build on a period of strong performance for the group with 99% of available rooms now reserved for the 2011/12 academic year, rental growth for the year firmly within the group’s 3-4% target range and all other areas of the business performing in line with plan. Based on the high occupancy and rental growth levels achieved for the 2011/12 academic year, the board is confident of delivering strong growth in Net Portfolio Contribution, the group’s key measure of recurring profit, for the full year.”
Chairman Phil White said: “John Tonkiss’ contribution to Unite over the past 10 years has been extremely significant and valuable . . . his commitment, industry and energy have been second to none. We are particularly grateful for his leadership of the group’s operations during a period of change over the past couple of years which has been instrumental in delivering the very strong performance for the current academic year. We wish him every success in all his future endeavours.
“The appointments of Richard Simpson and Richard Smith to the board reflect their clear abilities and commitment to the growth and development of UNITE.
“We congratulate both on their appointments, and look forward to working with them in their new roles, capitalising on the growing momentum within the business.”
