Cranfield University – a postgraduate institution soon to be merged into King’s College London – had just 20 days of available cash to cover its expenditure in the 2024-25 financial year, reports reveal.
A report into higher education institutions by the University of East London (UEL) revealed that 60 institutions scored “poorly” on financial sustainability, with 39 disclosing less than two months’ net cash to cover expenditure costs.
Cranfield University ranked second worst, alongside Arts University Bournemouth, having only 20 days of cash to cover university costs. The report revealed that Cranfield accumulated -3.7% surplus income 2024-25, one of the lowest year-end money supplies.
In May, King’s College London and Cranfield University signed an agreement to merge the two institutions that would form a “mega-university” connecting London and the Oxford-Cambridge Growth Corridor.
The universities are scheduled complete the merger in August 2027, though further details of the plans are yet to be released.
The specialist postgraduate university told the Financial Times that they had “regulatory requirements for university finances, and at no time have we been in breach of these”.
“Cranfield’s financial trajectory is positive, and the proposed merger with King’s College London is a strategic development”, it also stated.
A spokesperson for King’s College London said:
“The proposed merger with Cranfield University is driven by academic opportunity. The full financial picture at Cranfield is net positive and bringing our institutions together would generate unique opportunities for the sustainable future of both organisations. We are following established processes and carrying out robust due diligence to ensure the proposal is financially, legally, academically and reputationally sound, and aligned with the strategic objectives of both universities.”
The merger is expected to bring some 5,000 students and 1,500 staff under King’s College London’s structure whilst maintaining the “distinct culture” of both universities.
Whilst the government has praised the merger for delivering a “an extraordinarily powerful university”, some King’s staff have spoken against it, warning of a “militarised” combined instititution.
The King’s branch of the University and College London has said the merger “raises serious questions about changing departments and faculties’ research agendas to align with the military”.