Unite puts gloss on soaring loss

STUDENT accommodation developer Unite played down the collapse of a ground-breaking partnership with Sheffield University as it unveiled its half-year results.

The group said it had secured another 7,613 beds for development during the first half, bringing the total number under construction to 25,073.

Chief executive Nick Porter estimates these will be worth £954m once built, but losses for the six months to 30 June soared to £18.75m from £2.29m last time.

Although gross profits of £11.5m were up 70%, costs and exceptional charges clouded the results. These include £7.5m of development costs, which were previously not charged to the profit and loss account; £1.3m relating to the aborted Sheffield PPP project; £9.7m of charges occurring from the early redemption of bonds; £8.1m of interest charges; and £2.7m of goodwill.

Porter acknowledged the losses were unusually large, but claimed the group was in great shape. 'What we've done in the first six months of the year is fundamentally underpin the business,' he said.

Porter said a £275m securitisation on existing accommodation meant the group was self-financing.