Directorate Change

RNS Number : 1478P

Unite Group PLC

29 September 2011

 



29 September 2011

THE UNITE GROUP PLC

("UNITE" / "Group" / "Company")

Operational Efficiencies and Directorate Changes

The UNITE Group plc, the UK's leading developer and manager of student accommodation, today announces changes to the Board which reflect a wider reorganisation of the Group's management.

One of UNITE's stated strategic priorities is to grow significantly the recurring profits from its investment and management activities. As indicated in our previous announcements one of the ways we plan to deliver this is through operating margin improvements and cost efficiencies.

UNITE is therefore implementing a series of organisational changes which are expected to result in annual overhead savings of approximately £2.5 million with effect from January 2012. The changes relate mainly to planned headcount reduction in Senior Management roles and central support functions and are intended to streamline the Group's leadership team to drive greater alignment and accountability across the business. Exceptional implementation costs are expected to be approximately £1.5 million and will be expensed in 2011.

As part of these changes John Tonkiss, Chief Operating Officer, is to leave the Company on 31 December 2011 following ten years of valuable service in a number of key roles, the past four of which have been as COO on the Group Board. In addition the Group also announces two new internal appointments to the Board, which will take effect from 1 January 2012.  Richard Simpson will join the Board and take on the role of Managing Director of the Property division and Richard Smith will join the Board and become Managing Director of the Operations division. These appointments provide appropriate representation of these activities at Board level.

Having joined UNITE in 2005, Richard Simpson, 35, has held the role of Development Director at the Company for the past threeyears. During this time, he has overseen the successful delivery of 6,000 new bed spaces and secured a valuable pipeline of future projects comprising over 3,000 bed spaces. Richard is particularly experienced in the London market, which remains a key focus for the Group.

Richard Smith, 37, joined UNITE in 2010 as Deputy Chief Financial Officer with a broad Finance and Operations remit, including responsibility for the Group's London operations. He joined UNITE following a successful career at National Express Group, where he held a range of senior finance, strategy and operations roles both in the UK and overseas.  

These changes build on a period of strong performance for the Group, with 99% of available rooms now reserved for the 2011/12 academic year, rental growth for the year firmly within the Group's 3-4% target range and all other areas of the business performing in line with plan. Based on the high occupancy and rental growth levels achieved for the 2011/12 academic year, the Board is confident of delivering strong growth in Net Portfolio Contribution, the Group's key measure of recurring profit, for the full year.

Commenting, Phil White, Chairman of UNITE, said: "John Tonkiss' contribution to UNITE over the past ten years has been extremely significant and valuable. As Chief Operating Officer his commitment, industry and energy have been second to none. We are particularly grateful for his leadership of the Group's operations during a period of change over the past couple of years which has been instrumental in delivering the very strong performance for the current academic year. We wish him every success in all his future endeavours.

"The appointments of Richard Simpson and Richard Smith to the Board reflect their clear abilities and commitment to the growth and development of UNITE. We congratulate both on their appointments, and look forward to working with them in their new roles, capitalising on the growing momentum within the business."

There is no further information required to be disclosed pursuant to Listing Rule 9.6.13R.

For further information, please contact:

The UNITE Group plc Paul Harris Sally Quigg	Tel: [phone]
FTI Consulting Stephanie Highett Dido Laurimore Laurence Jones	Tel: [phone]

About The UNITE Group 

The UNITE Group is the UK's leading developer and manager of student accommodation, with a business model that focuses on two core areas:

1.   Development and Asset Management: UNITE undertakes the acquisition, planning and development of purpose-built student accommodation in the UK. Through the continuous assessment of quality and location of its investment portfolio, UNITE is well positioned to deliver value-adding strategies to those assets where further opportunities are identified. Working on behalf of its partners, UNITE acts as Fund Manager for the UNITE UK Student Accommodation Fund in addition to being 16.3% shareholders. UNITE also manages a number of Joint Venture partnerships.

2.   Professional property management: UNITE is home to some 40,000 students and has consistently proven high occupancy levels across its portfolio.

UNITE works closely with universities and colleges, in order to deliver high quality, well-located student accommodation at affordable prices in strong higher education markets.  

Founded in 1991, UNITE is listed on the London Stock Exchange (UTG).

The UNITE UK Student Accommodation Fund

UNITE established the UNITE UK Student Accommodation Fund at the end of 2006. The Fund helped transform UNITE's business model to that of a developer of new purpose-built student accommodation and manager of funds which own student accommodation properties operated by UNITE and in which the Company has a significant minority stake.

The number of unitholders in the Fund is over 100.

www.unite-group.co.uk

www.unite-students.com

 

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