14th Jul 2005 07:00
Unite Group PLC14 July 2005 Date: 14 July 2005On behalf of: The UNITE Group plc ("UNITE")Embargoed until: 0700hrs The UNITE Group plc - Trading Update • Business performance in line with expectations• Group will operate 30,996 bedrooms in 2005/06 academic year• Reservation levels for 2005/06 healthy at 78%• UCAS figures show graduate applications up 8% year on year The UNITE Group plc, the UK's largest provider of student accommodation, todayprovides a trading update prior to entering its close period. The updatereports solid performance in the year to date, in line with the Board'sexpectations. Reservations performance The Group will be operating 30,996 bedrooms in the forthcoming academic year andmarketing of the portfolio is continuing to attract customers at a healthy rate.As at 30 June, approximately 78% of available rooms in the Group's portfolio hadalready been reserved for 2005/06 compared to 80% at the same time last year. Sales mix continues to be an important driver of revenue growth. The Group hasagain been successful in letting a proportion of its portfolio on tenancies ofbetween 50 and 52 weeks in duration, rather than the shorter academic year lets,with 4,095 rooms having been let on this basis for the forthcoming academic year(2004: 3,468). Development activity Construction in respect of the Group's 2005 deliveries remains on track and intotal the Group will deliver 4,677 new bed spaces into its portfolio for the2005/06 academic year. Acquisition and development activity is also continuingin respect of the Group's 2006 and 2007 pipeline and the Group has beensuccessful in securing several new projects in this regard in recent months. As part of this on-going activity, a 750-bed project in Birmingham, previouslyscheduled for delivery in 2006 as part of a larger urban regeneration project,will now be the subject of a wider planning judicial review. Consequentlyconstruction work will be delayed and the project will not now be completedbefore summer 2007. As a result of this, the Group now expects to deliverapproximately 4,250 new bed spaces for 2006 occupation. Student numbers outlook The Group continues to benefit from positive market conditions. The UK highereducation sector is performing strongly with figures released by UCAS in Aprilshowing that applications for full-time undergraduate courses have increased by8% compared with the same time last year. In addition, External Researchforecasts a 6% - 9% year-on-year growth in overseas students studying at UKuniversities which is also reflected in the UCAS figures with applications frominternational students up by 7.5% on the same point last year. Commenting on the Trading Update, Nicholas Porter, Chief Executive Officer ofThe UNITE Group plc, said: "The update illustrates continued solid performance in all areas of UNITE'sbusiness activities. Reservations are again strong, development activity is ontrack and our pipeline sees the Group well-placed to take advantage of thecontinued demand for quality, affordable accommodation." - ends - Enquiries: The UNITE Group plcNicholas Porter, Chief Executive Officer Tel: 020 7902 5055Mark Allan, Group Finance Director Redleaf Communications Ltd Tel: 020 7955 1410Emma Kane, Wendy Timmons Mob: 07876 338339 Further information on UNITE is available at www.unite-group.co.uk This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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