Unite, the Bristol-based student accommodation group, doubled half-year pre-tax profits to £33.5m as it shrugged off a decline in young people heading to university.
The group, the UK’s leading developer of its kind, described reservations for 2012/13 as ‘robust’ at 87%, compared to 89% last year when, it said, there was a surge of applications ahead of increased tuition fees and 87% in 2010.
Rental growth for the full year is expected to come in at 3-4%, Unite said. The group’s preferred measure of Net Portfolio Contribution – which measure recurring profits from operations – also doubled in the six months to June 30 to £14.4m.
Chief Executive Mark Allan said: “During the first half of 2012, the business has built on the strong operational momentum created in 2011. High occupancy, solid rental growth and cost efficiencies have underpinned a further significant improvement in the group’s profitability. The healthy level of forward reservations and the successful completion of our 2012 development pipeline suggests this will be maintained for the full year.
“Meanwhile, significant achievements in asset sales and the arrangement or extension of important debt facilities mean that the Group's financial position continues to strengthen.”
Unite said its 2012 development programme had completed on time and to budget, providing 1,825 additional beds.
