AB

72 Public | Interview
choice of university. It owns 1,922 bed
spaces for students and manages another
1,984 through leases.
‘Good-quality housing helps
with student success and retention,’
Cunningham says. ‘A lot of students are
looking to make friends in a safe, social
environment. They are looking, if possible,
to be within close walking distance of
campus. We can offer much more than
private sector accommodation providers
can. We may not match the private sector
at the premium end of the market, but we
can beat them on the student living and
learning environment.’
A 10-year estates rationalisation
programme has seen Manchester
Metropolitan consolidate its presence
to Manchester and Crewe, reducing
seven campuses to two to make it easier
and more pleasant to move around
the university. The initial phase of the
consolidation cost £350m, funded mostly
through internal cash balances, with some
capital grant from the Higher Education
Funding Council for England (HEFCE).
About 10% of the capital cost was raised
from bank lending.
Some 80% of the university’s funding
comes from tuition fees and education
contracts, but Manchester Metropolitan
is keen to diversify its income base. It
wants to increase international student
numbers: 5% of its students come from
overseas, compared with a sector average
of 13%. It is developing relationships with
international partner institutions carefully
to ensure they meet its quality threshold.
Well connected
Manchester Metropolitan has built up
several commercial relationships in recent
years. ‘We need to attract other funders,’
explains Cunningham. ‘We have quite
a healthy CPD and bespoke education
programme, working with Goldman
Sachs, Tesco, HMRC, the Law Society and
a number of other global commercial
bodies such as HSBC and GSK.’
The university is also developing
research and teaching opportunities with
Manchester City FC.
Manchester has great strengths as
a location. Its two Premiership football
clubs and its music scene have made it a
globally famous city. It has more students
than any other city in Europe, with the
University of Manchester literally next
door to Manchester Metropolitan.
But even though the latter is a
‘new university’ – before 1992 it was
Manchester Polytechnic – and the
University of Manchester is a member
of the prestigious Russell Group,
there is no inferiority complex at
Manchester Metropolitan.
‘We have a rich history and can trace
our roots back to 1824,’ says Cunningham.
‘In some areas they’re our competitors;
in others they’re not; and in some areas
we work in partnership. The nature of the
universities is different. The demographics
of many of our students is different, but
there is an element of differentiation both
between us and within the market.
37,000+
Students across
two campuses
£270.6m
Revenue for
year ending
July 2015
£23.4m
Surplus for year ending July 2015
£58.6m
Net funds as at July 2015
£350m
Capital investment programme
completed
£200m+
New capital investment programme
planned
Basics
‘We are a large full-service modern
university offering a breadth of courses
that can only be matched by a small
number of UK universities.
‘Our business school is very important
to us. It is rightly recognised as part of an
elite global group of business schools with
the prestigious AACSB [Association to
Advance Collegiate Schools of Business]
accreditation. It is an institution in itself
– virtually the size of a small university.
And for international students, it offers
business and management programmes
that are particularly attractive.’
Private outlook
Manchester Metropolitan is not worried
by private sector competition eating
into its business. ‘It is making us more
business-like and commercially minded,
but we must remember we are not a
private business,’ Cunningham argues.
‘We are a university business. We are
not here to generate a profit to go to
shareholders. Any surplus we create is
reinvested on our intellectual capabilities
and in our mission – in our staff and
our students.’
Yet Cunningham recognises the
need to adapt and innovate. ‘We are
sector-leading within the new area of
degree apprenticeships,’ he says. ‘We
also have an opportunity to do more with
online learning and with our external
engagement with businesses and SMEs.’
Manchester Metropolitan is particularly
keen to develop its education offering.
‘It is a marketplace that can be better
developed in terms of what the university
can offer.’
The postgraduate market generally
is an exciting one. Cunningham
explains: ‘We are on the cusp of change
there, with the introduction of loans
for postgraduates. Student loans are
embedded now for undergraduates
and demand hasn’t slackened; in fact,
it is buoyant. Part-time postgraduate is
another market opportunity.’
Cunningham describes his career
development as being enabled by ‘an
in-depth understanding of the business,
strong people skills and being forwardlooking,
challenging but supportive
and solutions-driven’. It is an approach
that has served him well and would, he
suggests, be equally useful to others who
want to reach the top of the university
finance profession. ■
Paul Gosling, journalist
Accounting and Business 07/2016