College group NCG reports sound finances despite funding clawback

Major college group NCG says its finances are in good shape having boosted turnover and returned a surplus, despite having to pay back millions in Government funding.

The Newcastle-based group, which includes seven colleges catering for more than 35,000 learners, has reported a £9.57m surplus in the year to the end of July 2024, having turned around a loss of £3.69m in the year before. But the improvement was thanks to the £12.58m sale of a "surplus asset" during the year. Meanwhile Ebitda was £5.5m, down from £6.2m.

Growth in the group's 16-19 contract, driven by a significant rise in learner numbers, meant turnover increased to £172.28m during the year - of which £131m came from funding body grants - up from £146.81m. Having exceeded its budget, NCG also gave its staff a pay rise and all of its non-management staff a £500 bonus.

The documents show provision of £9.2m for a funding clawback agreement with the Educations Skills Funding Agency - the Government body from which the group gets most of its funding. During the year, £3m of the agr