The UK’s leading developer and manager of student accommodation The UK’s leading developer and manager of student accommodation Annual Report & Accounts 2008 The UNITE Group plc Annual Report & Accounts 2008 UNITE Parkway Gate, home to 728 students in Manchester The UNITE Group plc The Core 40 St Thomas Street Bristol BS1 6JX Tel: 0117 302 7000 Fax: 0117 302 7400
[email protected] www.unite-group.co.uk www.unite-students.com www.livocity.co.uk This report is printed on Revive 100 Offset, which is 100% recycled paper. Designed and produced by Proteus www.proteus-uk.com We’re number The UK’s leading developer and manager of student accommodation 1 Contents Section 1: Introduction 2008 Highlights 03 Overview of UNITE 05 Chairman’s statement 07 Section 2: Business review Executing our strategy 11 The student accommodation market 12 Financial results 13 Investment portfolio valuations 15 Co-investing asset management 19 Development activity 20 Livocity 22 Financing 22 Looking ahead 28 Section 3: Business review: Risks and uncertainties 29 Measures and growth Key performance indicators 30 New properties for 2009 31 A sustainable business 33 Livocity 36 Section 4: Reports The Board of Directors 37 Directors’ report 39 Corporate governance 42 Directors’ remuneration report 45 Independent auditors’ report 52 Section 5: Financial statements Consolidated income statement 53 Consolidated balance sheet 54 Company balance sheet 55 Statement of changes in shareholder equity 56 Statement of cash flows 57 Notes to the financial statements 58 Section 6: Further information 5 year financial record 89 Notice of AGM 90 Appendix: Notes of principal changes 91 Glossary 93 Company information and UNITE management 94 2 Taking stock – financial highlights Against an extremely challenging economic backdrop, UNITE has delivered strong operational performance whilst taking a proactive approach to managing its balance sheet.