Hartpury Annual Report July 2025

Strategic Priority - Maximising capital grants and other capital funding Hartpury has recently been successful in attracting both grant and other funding to support capital developments. However, with continued pressure on government grants for development projects, there is a need to be increasingly responsive and focused when pursuing government-backed funding opportunities. Alongside this, the ability to attract donations and funding from individuals and charitable trusts will help meet the prerequisite match funding required by most grants. Focused efforts to identify and engage potential charitable donors are beginning to have a positive impact. At this stage, overall funding from charitable sources and alumni should not be regarded as a primary source of income, but rather as a means of potentially accelerating priority projects. On the 29 November 2022, the Office for National Statistics (ONS) announced that further education colleges, sixth-form colleges and designated institutions in England (‘colleges’) were reclassified to the central government sector. This means that colleges and their subsidiary companies must now meet the overall requirements in HM Treasury’s document, ‘Managing Public Money’ (MPM), and other related obligations. The Corporation of Hartpury University, as the group company, has received an assessment undertaken by the Board of Hartpury College on the impact of these changes on the College. Given Hartpury’s corporate structure, the impact is less significant than for many colleges. Where necessary, the Hartpury College Board has ensured that appropriate measures are in place so that any limited impact is understood, effectively managed and reported in accordance with the requirements of the Department for Education and HM Treasury. The risk to cash reserves is closely linked to our first strategic priority. Through prudent cash management, Hartpury aims to maintain a positive cash position. Over the longer term, strong cash generation, combined with careful debt management, will support the sustainability of our operations. Our portfolio of debt has been reviewed, and we are currently in the process of refinancing existing facilities. This will reduce debt servicing costs and provide the flexibility to access additional funding if required, supporting our ambitious plans for site development. ONS Reclassification of Further Education Colleges The principal financial risks facing Hartpury are the variability of monthly cash flows throughout the year and ensuring that sufficient funds are available to support ongoing investment in our facilities, maintaining our industry-leading provision. Continuing to recruit and grow student numbers, while carefully managing our operating cost base, is also key. Strategic Priority - Continue to de-risk the financial position of Hartpury

Strategic Priority - Accumulation of cash reserves to enable planned facilities development

Although Hartpury continues to operate in a period of considerable uncertainty surrounding future funding, its diversified income stream reduces financial risk. The 40/60 split between further education (FE) and higher education (HE) income, low reliance on FE 19+ provision, and substantial commercial and other income have, together with a strong financial control environment and the ability to make difficult decisions when necessary, enabled Hartpury to withstand the impact of multiple FE funding cuts since 2008. There have, however, been consequences — notably pressure on salaries and a shortfall in the maintenance of premises and facilities. Despite this, projections for cash generation over the period of the strategy remain positive. To support planned growth in student numbers, a key element of the strategy is the continued development of the site to accommodate more students, refurbish existing facilities, and ensure that the campus continues to provide an outstanding learning experience. As a cash-generative operation, Hartpury can contribute significantly to this strategy. However, to accelerate developments — and to ensure that the student experience is not negatively impacted if infrastructure lags behind growth — external funding will be required. Strategic Priority - To identify new funding to enable planned facilities development

It is proposed that two lines of external support will be pursued to enable delivery of the strategy to 2030:

Grant funding will be sought to support the development of new learning and teaching facilities on site, supplemented by cash generated by Hartpury. Alternative funding models will be pursued for income generating facilities, enabling developments to be funded and operated by external partners while ensuring that Hartpury students benefit from them.

This funding approach could be utilised for both on-campus and off-campus accommodation developments.

Legal Status

Hartpury University was designated as a Higher Education Corporation and was awarded University title by Privy Council on 13th September 2018.

22