Unite Group returns to FY profit in 2021

Student accommodation provider Unite Group said on Wednesday that it had swung to a full-year profit in 2021 and issued some positive guidance for the 2022-23 academic year.

Unite posted a pre-tax profit of £343.1m for 2021, a marked improvement when compared to 2020's pre-tax loss of £120.1m, principally driven by a £182.2m valuation gain and a 20% uptick in adjusted earnings to £110.1m. Adjusted earnings per share improved 15% to 27.6p.

The FTSE 250-listed company, which declared a 73% higher final dividend of 22.1p a share, also highlighted that reservations for the 2022-2023 academic year were encouraging and above prior-year levels.

Chief executive Richard Smith said: "The business has seen a strong recovery in performance in 2021 and is well-positioned for further growth due to our alignment to the strongest universities, an enhanced reputation thanks to our supportive actions during the pandemic and our best-in-class operating platform.

"The outlook for the business and the UK higher education sector is strong, driven by rising participation rates, increased demand for our product from returning students, significant and sustained demographic growth and government support for growth in international student numbers."

As of 0940 GMT, Unite shares were up 5.32% at 1,043.50p.