The University of Aberdeen’s future was recently in “significant doubt” due to financial pressures, according to its annual report.
Uncertainties such as rising costs and falling numbers of international students were highlighted in the 2023 annual report and accounts.
It described a “material uncertainty that may cast significant doubt over the ability to continue as a going concern”.
However, the university said the report had set out the potential risk if action was not taken, and that it was now on a firm financial footing.
The annual report stated: “The financial scenario planning and stress testing undertaken by the university indicates that there are external uncertainties which may need to be addressed in the near future.
“Other factors including political, economic, and social developments beyond our control will also need to be taken in account.”
It said while recognising these uncertainties, the financial statements had been prepared on a “going concern basis”.
The University of Aberdeen told BBC Scotland News it had begun drafting the annual report some time ago.
In a statement, the university said it set out the “potential risk” if it had not taken “swift highly-effective action” to address financial challenges.
“The university has now reduced costs by a substantial £18.5m and is consequently on a firm financial footing for the future,” the statement said.
“Our financial situation has radically changed because of early retirement, voluntary severance, and operational efficiencies, as well as a major drive to grow and diversify our income.”
‘Survive and thrive’
The statement added: “The University of Aberdeen has been around for over 500 years. We are very confident that with continued agile, effective action we will survive and thrive, whatever the challenges facing the higher education sector.”
In December, the university scrapped its single honours programme in modern languages although it still offers joint honour degrees.
The university had blamed a steep fall in the number of students studying modern languages when it initially announced proposals.
The University of Aberdeen was founded in 1495.
It is Scotland’s third oldest – and UK’s fifth oldest – university.
