LIVE THE WHOLE
STUDENT
EXPERIENCE
The UNITE Group plc Annual Report & Accounts 2002
The UNITE Group plc
The T ower Building
T welfth Floor
11 Y ork Road
London SE1 7NX
T 020 7902 5050
F 020 7902 5051
info@unite-group.co.uk
www.unite-group.co.uk
Bristol  London  Stroud  Edinburgh  Manchester
LIVE THE WHOLE STUDENT EXPERIENCE The UNITE Group plc Annual Report & Accounts 2002 1 Londonderry House, Birmingham 
2T rinity Student Village, Preston
3 Central Point, Plymouth
4 Farndale Court, London
5 Sherbourne House, Coventry
6 College Court, Stoke-on-T rent
7 The Fire Station, Aberdeen
8Downsview House, Swindon
9 Park View , Manchester
10 Magnet Court, Newcastle
11 Harry French Halls, Loughborough
12 Firth Point, Huddersfield
13 St Peters Court, Nottingham
14 Camden Court, Newcastle
15 Exchange Works, Sheffield
16 Ewen Henderson Court, London
17 Spring Gardens, Aberdeen
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Designed by navyblue. Photography by Lee Mawdsley 
(except page 03, 04, 06,1 2,14,1 8 and inside back cover).
Printed by Fulmar Print.
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AS THE UK’S LEADING SPECIALIST PROVIDER OF
AFFORDABLE, HIGH QUALITY ACCOMMODA TION
SERVICES FOR STUDENTS AND NHS KEY
WORKERS, UNITE IS MEETING A NEED THA T IS
GREA TER THAN EVER. WE OFFER AN UNRIVALLED
RANGE OF ACCOMMODA TION AND CUSTOMER
SUPPORT SERVICES, TOGETHER WITH PROJECT
MANAGEMENT FOR FAST -TRACK MODULAR
MANUFACTURING TECHNIQUES AND DESIGN 
& BUILD. WORKING IN PARTNERSHIP WITH 
OUR PUBLIC SECTOR CLIENTS, WE DELIVER
INTEGRA TED SOLUTIONS TO THEIR INDIVIDUAL
REQUIREMENTS.
“UNITE IS TRANSFORMING THE MARKET FOR
AFFORDABLE, HIGH QUALITY ACCOMMODA TION
FOR STUDENTS AND NHS KEY WORKERS
ACROSS THE UK.”
SECURED BED SP ACES 
26,346
+51% increase
NET ASSETS 
£308.1m
+52% increase
RENT AL INCOME*
*including Peabody UNITE as if it had
been consolidated for the full year 
£32.4m
+72% increase
CONTENTS
01 Overview and highlights
02 Group at a glance
04 Chairman’s statement
06 Chief Executive Officer’s review
10 Love living UNITE style
12 Our community
14 Chief Financial Officer’s report
16 Market update
18 Board of directors
20 Directors’ report
23 Corporate governance
25 Directors’ remuneration report
28 Independent auditors’ report
29 Consolidated balance sheet
30 Consolidated profit and loss account
30 Consolidated statement of total 
recognised gains and losses
31 Company balance sheet
32 Consolidated cash flow statement
32 Reconciliation of net cash flow to 
movement in net debt
33 Note of consolidated historical cost 
profits and losses
33 Reconciliations of movements in 
shareholders’ funds
34 Notes to the financial statements
53 Notice of the Annual General Meeting
55 Company information
56 New UNITE accommodation OVERVIEW AND
HIGHLIGHTS 2002 
SECURED BED SP ACES
02
01
00
99
26,346
17,460
10,450
4,000
NET ASSETS
£m
02
01
00
99
£308.1m
£202.1m
£85.0m
£25.0m
NET ASSET VALUE PER SHARE
pence per share
02
01
00
99
286p
297p
192p
99p
RENTAL INCOME
£m
02
01
00
99
£32.4m
£18.8m
£6.6m
£2.8m
2002 2001 2000 1999
£m £m £m £m
Net assets 308.1 202.1 85.0 25.0
The investment property portfolio 709.6 373.5 148.7 72.3
Net debt 410.0 188.3 79.7 48.9
Turnover 32.9 24.5 30.0 11.1
Loss before tax, exceptionals 9.1 2.8 2.3 0.9
& goodwill amortisation
Loss before tax 25.6 2.9 2.3 0.9
Key ratios
Net asset value per share 286p 297p 192p 99p
Net asset value added per share 40.1p 63.7p 62.5p 48.9p
Loss per share before exceptionals, goodwill 10.7p 5.0p 5.8p 4.4p
amortisation and deferred tax 
Loss per share 30.0p 3.6p 6.4p 4.5p
Net debt as a percentage of shareholders’ funds 133% 93% 94% 196%
Note: The financial information set out above has been restated to account for the changes arising from the applications of UITF 34 and FRS 19.
Page 01 Overview & highlights
The UNITE Group plc 
www.unite-group.co.uk Page 02 Group at a glance
The UNITE Group plc 
www.unite-group.co.uk
GROUP A T 
A GLANCE
RESEARCH
ongoing
DESIGN AND
DEVELOPMENT
6 months
PROJECT 
DELIVERY
12 months
OCCUPATION
2 weeks
PORTFOLIO
MANAGEMENT
ongoing
1. RESEARCH AND CUSTOMER FEEDBACK
Long range market analysis is undertaken in-house, 
with review of regular customer feedback and external
market research. This enhances UNITE’ s reputation 
for expert market knowledge and commentary and
provides us with the information to shape our products
and services.
2. NEW DEVELOPMENT OPPORTUNITIES
Our development department locates and acquires 
sites and properties in key target towns across the UK,
working closely with concept teams to create innovative,
functional designs to UNITE’ s brand specifications. At 
an early stage our alliance contracting partners are
brought into the process.
3. PROJECT MANAGEMENT TEAMS
Integrated project management teams work to deliver
refurbishments, new builds or conversions on time 
and to budget. According to the nature of the project,
modular bedroom and bathroom units are manufactured
by UNITE under factory conditions and incorporated into
the build schedule.
4. ACCOMMODATION SERVICES
Sales, marketing, reservations and tenancy processing 
is undertaken by UNITE’ s Accommodation Services
department to ensure that rooms are occupied
immediately the new accommodation is available and 
that customers receive a high quality living experience.
5. ESTATE SERVICES
UNITE’ s Estates Services team undertakes on-going
supervision of the accommodation, including securing
commercial tenants as well as the management of
regular maintenance cycles and emergency repairs, 
as required.
ACTIVITY PIPELINE
UNITE’ s secured bed spaces
NO OF BEDS 2001 2002
Income generating 1 0,337 14,778
In development 2,726 6,834
Secured for development 4,397 4,734
TOTAL 17,460 26,346
1
2
3
1
1. 91% Students
2. 9% Key Workers
UNITE RESIDENTS *
1. 51% Direct Let
2. 30% Lease
3.  19% Nominations
COMPLETED PORTFOLIO
SPLIT BY AGREEMENT TYPE *
PROPERTY PORTFOLIO BY SIZE
Completed Secured
less than 200 beds 3,653 4,538
201–400 beds 7,045 8,946
401–600 beds 2,617 7,679
601–800 beds 1,463 2,848
more than 800 beds – 2,335
TOTAL 14,778 26,346
2
* By bed numbers Page 03 Group at a glance
The UNITE Group plc 
www.unite-group.co.uk
THE UNITE APPROACH
UNITE has moved rapidly to lead an exciting and
dynamic new market sector in quality , affordable 
student and key worker accommodation. We take an
integrated approach to the delivery of each scheme,
using a solid research foundation to ascertain market
– fit for our accommodation and services. Once a
development opportunity has been identified, project
management teams are responsible for delivering the
new accommodation to turnkey stage. In delivering 
the project, modular bedroom and bathroom units 
may be required within the build process. 
UNITE is the only UK company to use modular
manufacturing techniques to improve the build 
speed, quality and affordability of student and key
worker accommodation. Each unit is manufactured
under factory conditions and incorporated within the
construction programme. In tandem with activities 
to deliver the new student or key worker residence,
Accommodation Services teams drive sales, marketing,
reservations and room allocations. As a long term
operator of accommodation, UNITE continues to
provide added value to its customers through functions
such as 24-hour security monitoring, call-centre and a
range of customer services. UNITE has a dedicated and
focused team of 400 people across 5 regional offices.
BOTH REGIONAL OFFICES AND
INCOME GENERA TING LOCA TIONS
• 5 REGIONAL OFFICES
Bristol
Edinburgh
Manchester
London
Stroud (manufacturing facility)
• 26 INCOME GENERA TING 
LOCATIONS
Aberdeen
Aberystwyth
Bath
Birmingham
Bristol
Coventry
Dundee
Exeter
Gateshead
Glasgow
Huddersfield
Liverpool
London
10 CITIES WHERE UNITE HAS 
SECURED MORE THAN 1,000 BEDS
ACCOMODATION 
SERVICES
Bike storage
Broadband
Car parking
CCTV
Choice of room sizes
Contents insurance
Customer call centre
E-mail
Emergency call points
En-suite rooms
Fully furnished 
Games room with satellite TV
Laundry room
Microwaves
On-site cleaning and maintenance
Private telephones
Rooms for the disabled
Vending
Welfare support
24-hour emergency helpline
1 Liverpool City Centre.
Development for UNITE
Student Village 2003
PROPERTY PORTFOLIO 
BY LOCATION
Loughborough
Luton
Manchester
Newcastle
Nottingham
Plymouth
Portsmouth
Preston
Salford
Sheffield
Southampton
Stoke-on-Trent
Swindon CHAIRMAN’S
STATEMENT
management’ s attention during the year has been on
putting in place the operational systems necessary 
for consistent growth. These included setting up fully
accountable operating divisions for the development,
accommodation services and manufacturing activities;
creating an effective management board responsible for
developing and implementing detailed plans; installing 
a package of Oracle e-business systems required for 
our integrated business; and initiating cost control
programmes.
FINANCIAL RESUL TS
In line with a further step change in the size of the business,
the net asset value of the Group increased from £202m 
to £308m. Of this increase of £1 06m, £60m related to the
portfolio itself and £74m to equity raised in the year , offset 
by £9.1m of pre-exceptional losses and £1 9.2m of goodwill
amortisation, other exceptional items and dividends. With
the larger number of shares now in issue, net asset value 
per share fell marginally from 297p in 2001 to 286p. At the
end of 2002, the value of our completed portfolio stood at
£542m, and the total value of our properties including those
in development stood at £71 0m.
Our portfolio of completed properties increased during
the year from 10,337 beds at the end of 2001 to 14,778
beds. Rental income on these properties, including
Peabody UNITE (as if it had been consolidated for both
years in full), once again increased significantly from
£18.8m in 2001 to £32.4m. The annualised gross rent 
roll at the end of 2002 stood at £43.4m. Operating profits
from the completed properties rose by 65% from £11 .6m
in 2001 to £19.1m in 2002. The portfolio made a small
profit after absorbing all attributable overheads and the
interest costs associated with the properties.
As the business is still strongly in a development phase,
the Group recorded a loss before exceptional items and
goodwill of £9.1m. This resulted from the write-off of
£6.2m of pre-contract development costs, in line with the
requirements of the new accounting guidance UITFAbstract
34 adopted by the Group in the year , and from absorbing
central overheads, much of which is associated with the
growth of the business. This accounting standard has 
the result that costs associated with development incurred
prior to the point of virtual certainty on a contract are
accounted for through the profit and loss account, whilst
the associated NAV uplift is taken to the balance sheet. 
At the exceptional level two significant costs were incurred,
namely £1.3m in relation to the University of Sheffield PPP
contract negotiations, from which we withdrew, and £9.7m
of break costs in relation to historic debt following the
restructuring of debt funding. After these exceptional items
and goodwill amortisation, the Group recorded a loss 
after tax of £25.6m (2001: loss of £2.0m) and a loss per
share (excluding goodwill amortisation, exceptional items
and deferred tax) of 10.67p (2001: loss of 5.01p). 
Gearing as at 31 December 2002 increased to 1 33% partly
as a result of the securitisation, representing a loan to value
ratio of 58% (December 2001: 93% and 50% respectively).
We would expect this trend to continue as the ratio of
completed assets relative to developments increases.
DIVIDEND
In line with our stated policy , the Board is pleased to
recommend a final dividend of 1.67p per share, making 
INTRODUCTION
UNITE is a highly focused business which has over the 
past few years secured the leading position in the student
and key worker accommodation market, principally by
offering a complete service from development through 
to servicing of accommodation. 
During the year I am pleased to report the achievement of a
number of key objectives, notably a strong performance from
our portfolio of completed properties and the delivery of a
planned development pipeline, which increased from 1 7 ,460
beds at the end of 2001 to 26,346 beds at the end of 2002.
2002 has been a year in which we built the firm financial 
and structural foundations on which to deliver our true
potential. Importantly , the Group established a brand 
new asset class in the bond markets when it completed a
securitisation of substantially all of its mature portfolio in April
2002. In the process £275m was raised from the issue of
bonds, £39m of which was released for reinvestment.
In August, in very difficult markets and against a background
of clarity of concept and strategic focus, we were able to
raise £55m (net of expenses). This was a lower level of equity
raised than previously planned, leading to a reduction in
our targeted growth in secured bed numbers to 8,500 per
annum, which still remains a very healthy rate of growth. 
We very much appreciate the confidence shown by our
shareholders in supporting the new equity issue. 
In addition to the delivery of performance against agreed
plans and securing finance to support long term growth,
Page 04 Chairman’ s statement
The UNITE Group plc 
www.unite-group.co.uk
Geoffrey Maddrell
Chairman, UNITE a total dividend of 2.5p per share for the year (2001: 2.5p).
The dividend will be paid on 14 May 2003 to shareholders
on the register on 11 April 2003.
BUSINESS PERFORMANCE
DEVELOPMENT
Our acquisitions teams have continued to provide a strong
pipeline of well located schemes for future development in
our target towns and cities across the UK. UNITE’ s growth
strategy is to target prime cities and regional markets,
thereby gaining operating cost efficiencies and synergies.
The Group has secured over 1,000 beds in each of ten
target cities (Aberdeen, Bristol, Glasgow, Leeds, Liverpool,
London, Manchester , Newcastle, Portsmouth and
Sheffield), four of which were added in 2002. 
MANUFACTURING
Off-site manufacturing is another important element in 
our strategy for addressing cost and quality on a lifetime
basis. We have the advantage of reasonably standard
products, to which we are able to apply modern
manufacturing processes. During the year we closed 
the less automated manufacturing facility in Bristol and
commissioned a new modular manufacturing facility in
Gloucestershire, capable of producing high volumes of 
fully finished bedroom modules. As the facility ramps up
production in 2003, the Group anticipates producing some
1,500 equivalent modules and, depending on the exact
volume and mix, expects to incur a loss of £1 .5m in this start
up year , the majority of which will be incurred in the first
half of the year . The facility is expected to breakeven by
the end of 2004.
ACCOMMODATION SERVICES
The key for longer-term success in accommodation
services lies in effective marketing and the careful
management of the properties themselves. We have
extended our marketing activities with promotions,
marketing materials, show-flats and our student web site,
all with a view to maximising occupancy , particularly in
newly opened accommodation. It is a credit to our regional
accommodation teams that we maintained an average of
95% occupancy on all available rooms throughout the year .  
THE BOARD AND STAFF
We were delighted to announce recently the appointment
of Nigel Hall as a Non-Executive Director . Nigel was Group
Finance Director of Arcadia Group plc (formerly The Burton
Group plc) until February 2003 and joined us on 6 March
“IN A DEFINING YEAR AND AMIDST
CHALLENGING ECONOMIC 
CONDITIONS, UNITE HAS PROVED 
ITS RESILIENCE AND BUSINESS
PROPOSITION.”
Page 05 Chairman’ s statement
The UNITE Group plc 
www.unite-group.co.uk
2003. I am certain he will make a significant contribution 
to the Group. David Naish retired from the Board with
effect from 25 March 2003. David’ s involvement with 
the Group dates back to 1996 and includes him having
served for more than four years as a Non-Executive
Director . In particular , David was Chairman of the Group
when it was first admitted to trading on the Alternative
Investment Market in 1999. I would like to thank him for 
all his efforts over the years and send him our warm good
wishes for the future.
We have also announced that David Ransome, Chief
Operating Officer , will be stepping down from the Board
and leaving the Group with effect from June 2003. 
David has overseen the development of the people and
processes required to grow the business. Now that the
senior management team and Operations Board are in
place and working effectively , David’ s role has come to 
a natural end. His duties will be absorbed into the role of
Chief Executive Officer , with Nicholas Porter taking over
full line management responsibilities for the Operations
Board from April 2003. David has made an invaluable
contribution to the growth and development of UNITE 
and will be missed by colleagues across the business. 
Special attention was paid in the year to reshaping and
strengthening our senior management team, which is
performing well. 
There are significant demands on all employees in growing
a business in a new industry sector . We particularly appreciate
the commitment, energy , flexibility and willingness to take 
on the challenges evidenced throughout the business, all of
which have made it possible for us to put in place a dynamic
strategy . We are very excited at the long-term potential which
UNITE can offer to all of its stakeholders.
PROSPECTS
In a defining year and amidst challenging economic
conditions, UNITE has proved its resilience and business
proposition. We have established clear strategic
objectives, consolidated management and started the
process of continuous cost control, thereby establishing
the platform for future growth and attractive financial
returns. Our core divisions – development, manufacturing
and accommodation services – have made significant
progress in line with plan. I firmly believe that UNITE is 
well positioned to capitalise on the excellent potential of 
its chosen market, to continue to deliver on our stated
strategy and to fulfil our shareholders’ expectations. Page 06 Chief Executive Officer’ s review
The UNITE Group plc 
www.unite-group.co.uk
Nicholas Porter
Chief Executive Officer , UNITE
OPTIMISING THE BUSINESS
During the year under review, we have achieved
significant milestones in our stated strategy of leading 
the market for affordable, high quality student and key
worker accommodation. The Group has restructured 
its financing during the year raising £275m through the
issuing of bonds by way of securitisation. In the process
£39m of cash was released for further reinvestment within
the Group. UNITE has also completed a £200m warehouse
facility and increased development facilities to £208m.
In March 2002, UNITE acquired full control of Peabody
UNITE, its London joint venture with Peabody T rust.
Peabody UNITE’ s activities were rapidly integrated into
the Group’ s regional operations and, since then, the
Group has benefited from all of the development and
operating profits on the London portfolio. 
In order to maintain our pace of growth, we achieved our
stated aim of raising further equity of £55m for investment
into the development pipeline, thus freeing us from a
reliance on further equity to fund growth. The fund raising
was undertaken at a time of economic uncertainty and
continuing stock market volatility and we are delighted 
by the ongoing support and loyalty demonstrated by our
shareholders during this process. The proceeds have
enabled the Group to maintain growth momentum 
and secure a total of 8,886 new organic beds for 2002,
increasing the size of the portfolio by 51% to 26,346.
Once these new beds are built-out, the total value of the
portfolio will exceed £1 billion. The value of the portfolio
has increased by 90% during the year . 
OPERATIONAL REVIEW 
Our strategic focus has always been and continues to 
be on delivering maximum value to our shareholders and
customers. Our three decentralised business divisions,
together with Group services, each have clear strategic,
financial and people development targets to drive
performance and accountability throughout the
organisation. The implementation of overhead cost
control programmes has been an essential component 
in maintaining a lean operating platform. In October 
2002, this resulted in the merger of our Leeds and 
Salford offices, an internal restructuring of the combined
businesses and a reduction in staff levels. In addition,
combined efficiency measures have reduced operating
costs (excluding factory) by 10%. Our plans going 
forward particularly focus on improving the net rental
margin within our Accommodation Services division and
further value engineering our products and services. 
DEVELOPMENT DIVISION
During 2002, we were pleased to secure 8,886 new
organic beds for development. UNITE has a visible
development portfolio and this has been increased from
17,460 beds to 26,346 beds. The composition of the
Group’ s secured portfolio is as follows:
Number of income generating beds 14,778
Number secured or in development 11,568 
T otal number of beds 26,346 
UNITE has secured over 1,000 beds in each of 1 0 prime
target cities across the UK. Four of these, Aberdeen,
Glasgow, Leeds and Liverpool, were added in 2002. This
has enabled the Group to realise operating cost efficiencies
and synergies such as maintenance, marketing and
accommodation management. UNITE is operational in a
total of 30 towns and cities across the UK and continues 
to focus on targeted regional markets for its future growth.
We believe our skill in acquiring well-located sites and
properties, all of which must meet our rigorous criteria, 
is at the core of our competitive advantage. Student
accommodation is spearheading urban regeneration in
cities across the UK and we are finding that in the current
climate, a greater number of suitable development
opportunities are coming our way as competition from
commercial developers has weakened. Capitalising on 
this competitive edge, planning strategies have been
implemented to achieve the right consents to ensure that
we maintain our record of faster delivery at the planning
stage than those achieved in average residential schemes.
This has been helped as we set precedents for our brand of
affordable student accommodation in towns across the UK. 
UNITE’ s existing portfolio of 26,346 secured beds
(currently completed or in development) has been
CHIEF EXECUTIVE
OFFICER’S REVIEW Page 07 Chief Executive Officer’ s review
The UNITE Group plc 
www.unite-group.co.uk
independently valued at £710m (31 December 2001:
£374m). Of these, development projects secured in 2002
are expected to generate excellent returns. A total of
4,441 beds, across 17 new properties, were delivered in
the year and a further 6,301 are scheduled for completion
during 2003. Of particular interest is our largest project to
date, the 1, 185 bed Grand Central scheme in Liverpool
city centre, the first phase of which will be completed in
September 2003.  
During 2002, UNITE initiated a partnering programme for
the procurement of all construction services. We believe
the benefits of a non-adversarial approach will promote 
a culture of continuous service improvements, of waste
reduction and of predictable process outcomes in terms
of quality , cost and time. Our selected partner contractors
are Balfour Beatty , Carillion, Kier , Mansell, David McLean,
Warings and Willmott Dixon. 
On 13 September , we announced that we had been
unable to agree final terms with the University of Sheffield
in respect of the proposed 30-year PPP concession to
which we had been appointed preferred bidder in 2001.
We concluded that the level of risk associated with
maintaining and guaranteeing old, less economic bed
stock would prove unacceptable against agreed returns
and risk profiles. Going forward we plan to evaluate
carefully any future PPP schemes to ensure that our
target returns equate with returns achieved on our
organic schemes. Our focus is firmly on schemes where
we can add value through the development process.  
Elsewhere, we have entered into new partnerships with
Higher Education institutions by securing nominations
agreements with Loughborough University , Swindon
NHS T rust, London Institute, Warwick University , The
University of Northumbria and NHS Estates.
MANUFACTURING DIVISION
Prefabricated modular manufacturing techniques
represent an integral element of the overall construction
process for UNITE, enabling the Company to develop 
an affordable product at a high, uniform standard. 
UNITE has built up a unique knowledge of modular
manufacturing for student accommodation and in line
with plan opened its new modular manufacturing facility
with a capital investment of £5m. Before the end of the
year , new machinery was commissioned and tested 
to verify product design and production capability . Our
accommodation product is well suited to modular
methods of fabrication, and we have improved the
1 New Medlock House, our 
largest property in Manchester
comprising 671 beds. This is a 
popular development with a large 
choice of rooms to suit all budgets
2 Students get together after lectures 
3 Line sketch of Concept 2002 kitchen 
1
2
3 1,100,000
1,200,000
1,300,000
1,000,000
900,000
800,000
700,000
600,000
500,000
400,000
80 82 84 86 88 90 92 94 96 98 00 01
Page 08 Chief Executive Officer’ s review
The UNITE Group plc 
www.unite-group.co.uk
450
400
350
300
250
200
150
100
80 82 84 86 88 90 92 94 96 98 00 01
RETAIL PRICE INDEX, INVESTMENT PROPERTY
DATABANK AND STUDENT RENTS
Student accommodation annual rental growth 
has outstripped commercial property rental 
growth by approximately 60% over 21 years. 
FULL TIME STUDENT NUMBERS
Student rent index
%pa RPI Index
IPD All rent Index
effectiveness of our  procurement supply chain to cope
with increased production requirements. In the year we
completed a significant standardisation task for components
and parts to create our ‘Concept 2002’ modular
bedroom unit, the fully standardised bedroom product 
for UNITE’ s schemes. The new module has been value
engineered to increase functionality and reduce costs. A
multi-disciplined team from UNITE, our partner contractors
and students have made improvements to layout, furniture,
fixtures and fittings within the Concept 2002 bedroom
module. At every step, progress on the development of 
the modular product has been shared with our partner
contractors, who are confident of their ability to integrate
the new skill set into their existing services.
UNITE’ s first scheme to use bedroom and bathroom
modules, kitchen shells and corridor elements prefabricated
at the new plant is a 148-bed scheme in Leicester .
Scheduled for completion in September 2003, early
indications already show significantly reduced waste 
and resources on site. The target for manufacturing is 
to produce 1,500 equivalent modules in 2003.
ACCOMMODATION SERVICES DIVISION
In September 2002, UNITE’ s Accommodation Services
division more than doubled the number of tenants and
currently c. 1 5,000 customers live in UNITE accommodation.
Throughout the year , an average of 95% of all available
rooms were occupied. Customer satisfaction is at the heart
of our organisation and during the year a programme of
customer research was implemented. The first quarterly
results demonstrated that over 80% of our customers
would recommend UNITE to their friends. New marketing
campaigns aimed at raising recruitment and retention
levels were implemented during the year . Excellent results
have been achieved with reservations for the 2003/2004
academic year at 54% as at March 2003 (March 2002: Page 09 Chief Executive Officer’ s review
The UNITE Group plc 
www.unite-group.co.uk
telephone and e-mail
connection points in 
every room
all our safety windows open
from the top
new wider corner desk for
computer work
4  New bedroom concept
providing more storage,
individuality and comfort 
5  Personalising your own space
6  New ensuite bathroom modules
have a more spacious feel 
35%). The division has also rolled out a number of 
new services to add value and enhance the customer
experience: 
• Students at our direct let properties have benefited 
from a new package of insurance cover from market
leader Endsleigh Insurance; 
• A selection of amusement equipment has been installed
in all suitable student common rooms, on a fully
managed basis in partnership with Gamestec. Our on-
site vending stations have been expanded on a fully-
managed basis in partnership with Cadbury’ s and Evian;
• A pilot communications service has been tested at 
New Medlock House in Manchester . Pre-pay telephone
services help students manage their budget, whilst a
voice-over internet protocol service will give customers
an ‘always-open’ high speed, internet connection to 
their study bedrooms.
GROUP SERVICES 
Last year , I announced the commencement of a
considerable infrastructure improvement programme 
to support our expansion. I can report that we have now
successfully completed implementation of the majority 
of our Oracle E-Business suite including finance, sub-
contractor management, procurement, projects, customer
relationship management, human resources, payroll and
manufacturing. UNITE now has a substantial foundation
on which to build and improve communication and services
across the business and we are continuously evaluating
where technology and systems can be applied to deliver
real business benefits. 
UNITE TEAM
2002 saw the completion of the first stage of our Human
Resource strategy . We now have in place effective
selection, appraisal, communication and training and
development programmes to support our commercial
objectives. In addition to developing skills to manage 
core processes, we have also developed our approach 
to leadership in a diverse and integrated organisation. 
Our First Level Leadership programme has developed 
key skills for new managers to allow them to succeed 
in their roles, whilst also adding significant value to the
communities in which we operate.
A group of senior managers has participated in a
programme to develop clarity in their roles as leaders
within UNITE. This team has developed a new in-house
leadership development programme. Our significant
commitment to developing our people has allowed us to
commit to achieving ‘Investors in People’ accreditation.
SUMMARY
Against a backdrop of economic uncertainty our market
continues to grow strongly and consumer demand for 
our product is delivering high occupancy and robust 
rental growth. General awareness of the exciting sector
that we have made our own is improving and our 
regional development teams report a strong pipeline 
of opportunities for 2003 and beyond. Our mission at
UNITE is to destroy the perception that affordable
accommodation has to be poor quality . We have set 
out very clear targets and I believe we have the product,
people, partners and prospects to deliver on our plans.
5
6
4 A NEW STUDENT PROPOSITION
The UNITE / MORI Student Living Report this year has
informed us that over 60% of students found the idea 
of living in a student village appealing and marketing is
already well underway on UNITE’ s latest scheme. Grand
Central, a 1 ,185 bed student village is, to date, the largest
new accommodation development dedicated to students
in the UK and the first phase opens for business in
September 2003.
Customer feedback also shows us that location is a key
priority for 87% of students and Grand Central is located
next to Lime Street Station, within easy walking distance
of both John Moores University and Liverpool University . 
The ultra modern accommodation will be arranged into
two main blocks, providing 968 en-suite bedrooms
arranged into flats for 4, 5 or 6 people. Rooms will feature
options for TV , telephone and internet and each flat will
have its own fully fitted kitchen and lounge area. There will
also be 217 new-style studio flats available. Rents include
a personal belongings insurance incentive from Endsleigh
Insurance and range from £65 per week up to £95 per
week for a large studio.
Other associated facilities include a laundry , social centre,
gym and media centre with a central plaza on the ground
floor , comprising a convenience store as well as space for
bars, restaurants or shops.
As our portfolio grows, the UNITE brand receives
increasingly high exposure in the student market. We 
aim to provide a constant and a welcome familiarity .
BRAND STRENGTHS
• Understanding and insight into target markets
• Geographic reach and targeting of operations 
• Focus on customer services dedicated to students
• T rack record 
MARKET POSITIONING
• Specially designed for students
• A new style of accommodation
• More choice of room, location and style
ROUTES TO MARKET
• Direct marketing through properties and show-flats
• Marketing co-ordinators ensure the word spreads 
on campus
• Recruitment campaigns from January to September
• Retention campaigns from November to April
• Relaunched website: www.unite-students.com
Page 10 Love living UNITE style
The UNITE Group plc 
www.unite-group.co.uk
LOVE LIVING
UNITE STYLE
1
1, 2 & 3  
UNITE provides added value
services tailored to the needs 
of students. These include
cashpoints, bike stores, laundry ,
insurance, storage, telephony 
and vending
2 Page 11 Love living UNITE style
The UNITE Group plc 
www.unite-group.co.uk
RESIDENT PROFILE
52% MALE 
48% FEMALE 
AVERAGE AGE
22 years
NATIONALITY
83% GB
17% OVERSEAS 
CURRENT RESIDENTS
RECOMMENDING UNITE
>80%
MOVING IN
In 2002, our accommodation services team checked in
over 1 0,000 people, excluding our leased properties. The
majority of these eagerly arrive within a two-week period,
just before the start of the new academic year . Prior to 
arrival tenancy documentation and payment terms are sent
electronically to each resident. Returned forms are then
processed and ready for a smooth and speedy customer
check-in. On arrival, every customer receives a welcome
and safety briefing as well as a guide to our services and
amenities in their area. Resident co-ordinators in each
property help first-timers settle in and ensure that students
get together to meet others soon after moving in.
UNITE’ s new student village in
Liverpool will be home to over
1,000 students
3 Page 12 Our community
The UNITE Group plc 
www.unite-group.co.uk
SOCIAL, ENVIRONMENTAL AND ETHICAL
RESPONSIBILITY
UNITE has a clear set of guiding principles and an
understanding of its interdependent role in the community .
In developing Social, Environmental and Ethical policies
and embedding them within our own organisational
culture, we have evaluated a matrix of non-traditional
business risks and opportunities, which are specific to
UNITE. See T able 1.
DEVELOPING THE UNITE COMMUNITY
FIRST LEVEL LEADERSHIP
First Level Leadership is a unique opportunity for UNITE 
to draw on the resources of its people and develop 
them for future leadership, in turn giving back value to 
the community and esteem to participants. T wo
leadership programmes have so far been undertaken.
Lesley Ansell, P A
First Level Leadership Programme II
“The First Level Leadership programme has been
designed in response to UNITE’ s ongoing commitment
to the personal development of its employees. Its
primary aim is to identify and develop its ‘future leaders’
as a key strategy to the organisation’ s success.” 
“The T eam Challenge calls for the First Level Leaders 
to work together to identify and design a project which
puts something back for the benefit of others in the
community.”
Victoria Binns, Operations Project Manager 
First Level Leadership Programme I
“One of the main reasons for applying for the course 
was to gain confidence and skills that would enable 
me to move forward in my career . Since completion 
of the course I have been promoted to Operations
Project Manager .”
“We organised a Charity Ball to raise money to take two
coaches full of under-privileged children on a day trip to
TABLE 1: SOCIAL, ENVIRONMENTAL AND ETHICAL RISKS AND OPPORTUNITIES
STAKEHOLDER RISK OPPORTUNITY
SHAREHOLDERS Poor alignment of shareholder perception with UNITE Engagement of shareholders through improved 
strategy and operations communications
EMPLOYEES Lack of adherence to guiding principles, core values Meeting employee retention; training and 
and behaviours satisfaction targets plus health and safety 
PARTNERS Failure to meet objectives set out in partnering contracts Encouragement to adopt appropriate best practice for
AND SUPPLIERS environmental policies, health and safety and ethical strategies 
CLIENTS Rising cost of Higher Education, forcing students Maximising opportunities from the increased differentiation
to choose alternative choices such as e-university, of universities and their marketing activities
living at home or part time courses
CUSTOMERS Security and welfare of customers living at UNITE Undertaking regular customer dialogue to promote
accommodation personal safety and accident prevention. Monitoring 
satisfaction rates 
COMPETITORS Performance by competitors against industry norms, Support for licensing of Houses in Multiple Occupation
standards and benchmarks to maintain and  improve standards
COMMUNITY Stereotypical perceptions of students by communities Government requirement for greater community 
leading to concerned reactions by local residents  consultation creating an opportunity for more open dialogue
OUR
COMMUNITY
1  UNITE T rinity Student Village,
Preston. 424 bedrooms opened
in 2002. Located 1 50 metres
from the main university
campus and within a stone’ s
throw from the city centre
2  First level leadership team 
from UNITE gets together to
renovate a community hall in
Bristol. (Photograph courtesy
of Bristol United Press)
12 Page 13 Our community
The UNITE Group plc 
www.unite-group.co.uk
London Zoo. As well as an amazing day out, it created 
a platform for the families of the Rainbow Club Childrens
Charity to meet each other and share their experiences
with others.”
Janice James, Customer Accounts T eam Leader 
First Level Leadership Programme II 
“Our team is re-decorating a community hall in Bristol 
over two weekends. This will enable people of all 
ages, but particularly the youth club, to enjoy a more
welcoming, bright and stimulating environment.”
Andy Petrie, Buying Manager
First Level Leadership Programme I
“I am immensely proud of what we as a team achieved 
as part of the First Level Leadership programme, in
particular the impact it had on the young lives at the
Rainbow Centre. It enabled us to really live our corporate
values of Responsibility and Inclusiveness.”
HEAL TH AND SAFETY 
In its Health and Safety policy , Nicholas Porter , Group
Chief Executive Officer states that ‘The safety of people 
is the most important aspect of our business’ . T o that end
UNITE has established a sophisticated Heath and Safety
Management System, designed to meet the generic and
specific requirements of our business, whist ensuring
compliance with all statutory requirements. 
The CEO has overall responsibility for health and safety
matters, although operational responsibility is devolved to
the head of each operating division. Support is provided
by our central health, safety and risk department, which
gives direction and focus for health and safety issues 
and ensures that the Group adheres to its stated policy . 
Forums have been created for each of UNITE’ s four 
main operating divisions. These are the vehicles through
which health, safety and risk matters are discussed and
resolutions to particular issues sought. Examples of some
of the initiatives implemented through these forums are
outlined below:
DEVELOPMENT
• Design risk assessments undertaken for new buildings
prior to construction
• Health and safety performance of partnering 
contractors critically scrutinised before final selection
ACCOMMODATION SERVICES
• On-line UNITE property management system 
developed – health and safety is a strong component
• Database developed allowing trend analysis to be carried out
• UNITE specific health, safety and fire risk management
course developed, which has been externally accredited
MANUFACTURING
• Modular design elements of structure fire tested for
integrity , stability and insulation
• Robust health and safety training regime developed 
and introduced for all manufacturing employees
OFFICE SERVICES
• On-line DSE assessment programme introduced,
allowing assessors to identify problem areas and
address them in a systematic way
• One-day health and safety course developed and
externally accredited
PERFORMANCE
Due to the infrequency with which reportable accidents
have occurred, the normal protocol of transposing the
number of such accidents or incidents into frequency
rates has not been followed. However , the table below
indicates the number of accidents that have occurred
including the number of accidents which have involved
residents living within the UNITE portfolio. Additionally , 
a column has been included detailing the number of
accidents reported to the Health and Safety Executive
under the Reporting of Injuries Diseases and Dangerous
Occurrence Regulations (RIDDOR).
Operating Numbers T otal no. of Employees Members RIDDOR
Division exposed accidents of the public
Development 82320 1
Accommodation 176330 1
Services
Manufacturing 47440 0
Group Services 74110 1
Residents 11,624707 3
UNITE has not been subject to any action by any of the
enforcing agencies. However , one of its sub-contractors
had a deferred improvement notice served upon it for an
inadequate risk assessment relating to noise. 
TARGETS
Despite progress that has been made over the last 
twelve months, UNITE is not complacent and strives for
continual improvement. An external audit, undertaken in
the latter part of 2002, has helped focus health and safety
targets for 2003. These include:
• The introduction of pre-employment medical screening
for potential employees
• The integration of health and safety considerations into
“due diligence” enquiries
• UNITE to sign up to the Construction Industry T raining
Boards Scheme (Construction Skills Certification
Scheme) CSCS passport
• Continuation of the policy of identifying materials
containing asbestos within existing UNITE properties.
Reviews of progress will be reported bi-annually .
UNIAID FOUNDATION
We are constantly in touch with our customers, through
research, the resident co-ordinators based at our
properties, our help-desk operators and our partners at
universities across the UK. We have become increasingly
aware of the financial pressures faced by many students
struggling to manage their money . 
That is why UNITE has chosen to support an exciting 
new charity . The UNIAID Foundation has been set up in
response to escalating levels of student debt and its mission
is to address the problems of student hardship by providing
financial information, advice and targeted support. Page 14 Chief Financial Officer’ s report
The UNITE Group plc 
www.unite-group.co.uk
CHIEF FINANCIAL
OFFICER’S REPORT
Simon Bernstein
Chief Financial Officer , UNITE
OVERVIEW
During 2002, UNITE restructured its debt funding,
secured the equity required to grow the business at 8,500
beds per annum and continued to deliver satisfactory
performance from the completed portfolio and through
our development programme. Net Asset Value increased
by 52.5% to £308.1m (2001: £202.1m). Rental income
across the whole portfolio (including Peabody UNITE)
grew to £32.4m (an increase of 72% compared to
£18.8m in 2001), and the Group achieved profit before
interest, tax and exceptional items resulting from the
portfolio of £19.1m (2001: £11.6m).
In March 2002, the Group acquired the 50% share of the
equity in its London joint venture (Peabody UNITE plc)
which it did not already own. The results of the London
joint venture have therefore been fully consolidated for
three quarters of the year .
ACCOUNTING POLICIES
As foreshadowed in last year’ s Report and Accounts, 
the Urgent Issues T askforce issued Abstract 34 on pre-
contract costs and on 1 7June 2002, the Group announced
that it would adopt this new accounting policy . Following
this, costs relating to development which are incurred prior
to the point of virtual certainty on a contract are now charged
to the profit and loss account and permanently written-off. In
consequence, some £6.2m of development costs have
been booked to the profit and loss account this financial
year (2001: £6.6m). Development uplifts on the associated
projects will increase by a corresponding amount as
those development uplifts are accounted for in the future.
As a result of this new policy and the required treatment of
goodwill relating to the acquisitions of the UniLodge and
Peabody UNITE development pipelines, substantial costs
totalling £11.5m (2001: £5.6m) have been charged to the
profit and loss account. These costs relate to development
activities, the uplifts from which are accounted for through
the revaluation reserve. It is worth noting that this mismatch,
resulting from the strict interpretation of the accounting
rules, does not properly align the company’ s costs with
profits and revaluation uplift in the statutory financial
statements.
BALANCE SHEET
The gross value of assets, both completed and in
development, grew from £373.5m to £709.6m, primarily
as a result of development completions and capital
expenditure on sites and build of £173.4m in the year .
The consolidation of Peabody UNITE also added some
£104.2m of completed assets to the portfolio.
Net Asset V alue uplift for the year was £59.9m (2001: £37.9m)
the majority of which arose through development uplifts.
These are recognised in two stages: firstly when we achieve
planning permission on new sites, and secondly when the
construction of our developments is completed. During the
year , we secured some 8,886 beds for completion in 2003
and beyond. These projects are expected to deliver average
development uplifts on costs of some 34% compared to
our internal target of 25%. This strong performance reflects
our belief in the continued demand for our accommodation
and our focus on maximising development margins
through tight control of build costs.
At the year-end, our secured portfolio had a built-out
value of £1,004m (based on an estimated total rent-roll of
FIGURE 1: RECOGNISING THE VALUE OF THE
DEVELOPMENT PROGRAMME
Built-out NAV 2005
£m PPS
(2)
Net asset value@31/12/02 308.1 286
Future NAV 
(1)
84.3 78
Remaining goodwill (7.9) (7) 
Built-out NAV 384.5 357
Assumes no additional secured beds, based on current
expectations (eg: planning, valuations, build costs)
Notes
(1) Completed value (£1,004.2m) less costs to complete (£210.3m) less 
existing value (£709.6m)
(2) No. of shares: 107,604,772 Page 15 Chief Financial Officer’ s report
The UNITE Group plc 
www.unite-group.co.uk
THREE PHASE FINANCING
STRATEGY
1
2
3
1.CONSTRUCTION
• £300 million development facilities, 
fund circa 85% of development cost
• UNITE’ s equity of approximately
15% is injected up front
2.COMPLETION
•£200 million dedicated 3 year 
warehouse facility
• Increases gearing to 74% of value 
on completion
• Releases 65% of initial equity
3. LONG TERM 
REFINANCING
• First securitisation achieved 78% 
loan-to-value
• Long term funding at low interest rate
• Releases final 35% of UNITE’ s equity
Objective: full equity release within 
24 months of committment.
£81.1m for the completed portfolio). The costs to complete
the development programme of the secured pipeline as of
31 December 2002 was £21 0.3m. We estimate that if the
Company were to stop developing and simply build out
those schemes secured as at the end of the 2002 financial
year , the Company would have a Net Asset V alue of 357
pence per share (after adjusting for the write-off of all
goodwill). The table in figure 1 sets out this calculation. 
During the year , we completed the restructuring of the
Group’ s debt facilities and undertook our first £275m
securitisation – the first such financing in our asset class.
We have increased development facilities from £1 02m to
£208m and since the year-end have signed a new 3 year
£75m revolving development facility with Bradford &
Bingley . We also completed a new £200m warehouse
facility which we intend to increase to around £300m in the
coming year . As a result, the Group currently has total debt
facilities available of £809m. The continued development
programme and expansion of the Group, as well as our
ability to recycle capital, is clearly dependent on the
continued availability of existing and new debt facilities 
on appropriate terms.  
The Group also commenced a programme of pre-
hedging its future debt refinancing obligations, securing
£88m of forward interest rate contracts at an average rate
of 5.4% by the year end (£127m at 5.3% as at 25 March
2003). The outcome of this and other fixed rate facilities
has lead to a total liability as calculated under FRS 13 of
£20m. UNITE’ s financing approach should benefit from
the current low interest rate environment.
PROFIT AND LOSS ACCOUNT
The Group operated 10,337 bed spaces for the whole of
2002 and added 4,441 new incoming generating beds,
mostly in the last quarter of the year in time for the start 
of the new academic year . These operations achieved 
a gross rental margin of 78% (2001: 79%) and a net rental
margin after taking into account overheads in relation to the
accommodation services division of 58.8% (2001: 61.5%).
After taking account of corporate costs and the impact 
of UITF 34, the Group incurred a pre-exceptional, tax and
goodwill amortisation loss of £9.1m, compared to £2.8m
for 2001. The increased loss reflects increased interest
costs, the considerable increase in activity in all areas of the
Group and also the scale of central functions, which until
September had been sized to achieve 20,000 beds per
annum. During the year , and as previously reported, the
Group incurred costs in relation to two exceptional items:
£1 .3m of costs in relation to the University of Sheffield PPP
contract (which as previously announced was not taken
forward) and £9.7m in relation to break costs of historic debt
and swaps as a result of our securitisation. Redundancy and
other one-off costs associated with the overhead reduction
programme have not been treated as exceptional.
The Group continues to pay no corporation tax as a 
result of its capital allowances and capitalised interest
position. The majority of goodwill in relation to the
acquisitions of UniLodge and Peabody UNITE is amortised
as development uplift on relevant development schemes
arises. During the 2002 reporting period, £5.3m of
goodwill was amortised in respect of NAV uplift. This 
is charged to the profit and loss account, although the
associated development uplift is shown as increases 
in the revaluation reserve. The loss after tax therefore
totalled £25.6m (2001: £2.0m) resulting in a basic loss 
per share of 30.0 pence (2001: loss of 3.6 pence).
CASH FLOW
Operating cash flow from the income generating 
portfolio net of associated debt service was small as 
our operating assets were geared up during the year .
Increased debt of £168m and new equity of £55m 
helped fund an investment programme of some £193m 
in our development properties and the business itself. 
The Group monitors its cash flow exposure on a forward 
basis ensuring that it has sufficient equity available to 
fund new development schemes before it commits to
those projects and ensuring that debt facilities are also
available before build programmes are committed to.
OUTLOOK
After a year of very significant growth in every aspect of 
its business, the Group continues its expansion strategy ,
particularly expecting growth in rental income in 2003.
With the major planks of our financing strategy in place,
we expect to achieve significantly improved operating
margins in 2003 and beyond.  Page 16 Market update
The UNITE Group plc 
www.unite-group.co.uk
“UNITE’S WORK IS HELPING TO
INFORM THE GOVERNMENT , THE
SECTOR AND THE PUBLIC ABOUT 
THE REAL STATE OF UNIVERSITY 
AND STUDENT LIFE”
Margaret Hodge, 
Minister of Lifelong Learning and Higher Education
MARKET
UPDATE
1
74%
OF FULL TIME STUDENTS 
ARE NOT PROVIDED WITH 
A ROOM IN HALLS OF
RESIDENCE
IN 2002, UNIVERSITY ROOM
RENTS GREW BY
5.1%
INCREASE IN ACCEPTED
FULL TIME UNDERGRADUA TE
PLACES 
2.8% UNITE STUDENT LIVING REPORT 
Gaining a real insight into our market shapes our 
strategy , enables UNITE to offer real advantages over 
our competitors and ensures that we are fully prepared to
meet the future needs of our customers. Each year UNITE
undertakes an in-depth survey designed to explore how
students are meeting the challenges and opportunities 
of university life. This year UNITE has, in conjunction with
MORI, developed a new Student Debt Index which reveals
what students themselves admit to owing.
KEY FINDINGS:
• Students continue to find their time at university
worthwhile, despite being in debt and having little money .
• Despite a Government policy of widening participation,
UNITE’ s research does not suggest that there has been
an increase in the proportion of students from working
class backgrounds.
• It has become the norm for students to make some 
form of financial provision before going to university .
• Levels of student expenditure on food and alcohol
remain consistent with the last wave of the study .
• The average amount that students say they currently
owe continues to rise and is now £4,602, while the
average amount students anticipate owing once they
have completed university also continues to rise and
now stands at £8,816.
• Despite growing concerns about the amount of debt
that students are facing, eight in ten students feel they
are financially competent.
• The need to work and earn money is having the greatest
impact on students from a working class background,
with over two-fifths saying it has a negative impact on
their university studies.
• Contrary to stereotypes, if students had the time, 
many say they would become involved in charity work.
• Students do not think the Government is listening to
their opinions when making policy decisions about
future funding – this appears to be impacting on their
voting intentions.
• Blanket top-up fees are unpopular among students.
• Eight in ten students are optimistic about getting a job
when they finish their course.
T echnical note: MORI conducted 1,086 face-to-face
interviews with full-time undergraduate and post graduate
students between 22 October and 1 5 November 2002. 
THE FUTURE OF HIGHER EDUCATION
The Government’ s long-awaited Higher Education
strategic review was published in January 2003. This
White Paper , entitled ‘The Future of Higher Education, ’
spelt out the Government’ s plans for a radical reform 
and investment into Universities and HE colleges. The
paper includes proposals to change the student funding
system by abolishing up-front tuition fees, a limited
reintroduction of grants and the introduction of fees of 
up to £3,000 to be levied independently by universities.
Plans were also announced to make HE more accessible,
particularly featuring the appointment of an access
regulator. Universities will be rewarded with an annual 6%
rise in funding, amounting to a total of some £1 0 billion in
2005/2006, but government research grants will be
awarded on more stringent criteria.
The latest figures published in February 2003 by the
Universities and Colleges Admissions Service (UCAS) 
show that new applications have increased by 1.8% 
on last year . Concerns have been expressed that these
reforms, leading to higher university fees, may still pose a
significant barrier to entry for poorer students. Nevertheless,
the Government’ s commitment to widening access was 
a central part of the White Paper and its target of achieving
50% participation in higher education was reaffirmed.
Prospects for continuing demand for UNITE’ s product 
and services remain excellent. Furthermore, increasing 
differentiation of universities and the expansion of further
education to meet evolving demand, may also present
promising new markets for the future.
ACCOMMODATION SHORTFALL
Universities currently accommodate an average of 25% 
of their students, but continue to face a significant shortfall
in bed numbers (UNITE estimates that approximately
1 50,000 first year students were not provided with
university accommodation in 2002/2003). Whilst a recent
study reported by HEFCE highlighted that the condition 
of residential buildings was a significant factor in recruiting
students to higher education, HEFCE also estimated 
that around £700 million is required to upgrade poor
accommodation. Given the financial constraints faced 
by many institutions and the uncertain viability of PPP
deals to undertake cost effective refurbishments, the
requirements for the provision of new accommodation
stock from private sector partners such as UNITE 
remains important.
ROOM RENTS
The most recent NUS Accommodation Costs Survey ,
published in August 2002, states that average rents for
student accommodation rose by 5.1% in 2001 and as
much as 10.7% for private halls. UNITE has developed 
a long term rent series utilising NUS data which reveals
that since 1980 rents for single self catered rooms have 
on average outstripped the Retail Prices Index by 2.8% 
per annum. 
GOVERNMENT REFORMS FOR PLANNING 
AND HOUSING
During the latter part of 2003, the Planning and
Compulsory Purchase Bill is set to become law. The 
Bill aims to simplify and speed up decision-making 
on planning applications and increase community
involvement. UNITE is closely monitoring progress on 
the Bill and its potential impact for planning applications.
We see positive prospects within its outline for
demonstrating our expertise in developing brownfield
urban sites into affordable accommodation. UNITE’ s
developments have been 100% on brown-field sites,
against the Governments target of 60%.
Following the collapse of a Bill last year to introduce
licensing on Houses in Multiple Occupation it is likely 
that the draft Housing Bill will introduce controls for
HMOs. In principle, UNITE supports these measures 
to raise standards in the sector . 
Page 17 Market update
The UNITE Group plc 
www.unite-group.co.uk
1  Students who walk to their
lectures prefer a journey of 
< 20 minutes.
(UNITE Student Living 
Survey 2003) Page 18 Board of directors
The UNITE Group plc 
www.unite-group.co.uk
1. GEOFFREY MADDRELL
CHAIRMAN
Aged 66. He has a long standing strategic interest 
in building-related activities, initially on the Board of
Bowater where he was responsible for developing 
their building product activities. He is also Chairman 
of Westbury plc and Buildstore Limited, which serves 
the self-build market. Another major area of interest is in
private investor and employee participation in company
equity , as Chairman of ProShare (UK) Limited, which 
he set up in 1991.
He is also a Civil Service Commissioner , Chairman of LDV
Limited, the van specialist, and Ivory and Sime ISIS T rust
plc. He was formerly Chief Executive of T ootal Group plc
during a period of major international development and
Chairman of Glenmorangie plc.
2. NICHOLAS PORTER
CHIEF EXECUTIVE OFFICER
Aged 33. Nicholas is founder of UNITE and has had
overall responsibility for the development of group
strategy for the last 10 years. With in-depth knowledge 
of the higher education sector , he is also reponsible for
steering business development, communications and
spearheading key issues at Government level.
3. SIMON BERNSTEIN
CHIEF FINANCIAL OFFICER
Aged 39. Simon is a Chartered Accountant who has
primary responsibility for the Group’ s financial reporting,
financial control and financing strategy . He also has
management responsibility for the Group’ s E-Business,
and legal services functions. Simon previously worked 
in corporate finance at UBS Warburg. He trained as an
accountant at PricewaterhouseCoopers.
4. DAVID RANSOME
CHIEF OPERATING OFFICER
Aged 35. David is a Chartered Accountant and has 
been with UNITE since 1995. His primary reponsibility 
is integrating Group-wide operations including
Accommodation Services, Development and Human
Resources ensuring the delivery of Group strategy
through developing infrastructure and business systems.
5. DAVID NAISH
NON-EXECUTIVE DIRECTOR
Aged 56. He was formerly senior partner of the tax
consultancy and accountancy practice, The David 
Naish Partnership (now T arget Consulting Ltd). He is also
Chairman of the Bath Investment and Building Society .
He retired from the Board on 25 March 2003 after 4 years
of service, including acting as Non-Executive Chairman
when the Company was first admitted to trading on the
Alternative Investment Market in 1999.
6. BARONESS PRASHAR OF RUNNYMEDE CBE
NON-EXECUTIVE DIRECTOR
Aged 54. Baroness Usha Prashar was Executive
Chairman of the Parole Board for England and Wales 
from October 1997 to 2000. In August 2000 she became
the First Civil Service Commisioner . In 1995, she was
awarded the CBE for public service and community
relations and, in June 1999, she was created a life peer
and sits in the House of Lords as a cross bencher .
NIGEL HALL, 
NON-EXECUTIVE DIRECTOR
Aged 47. Nigel Hall was Group Finance Director of
Arcadia Group plc (formerly The Burton Group plc) until
February 2003. He joined The Burton Group in 1984 and
was appointed to the Board in 1997, becoming Group
Finance Director in November of that year . Mr . Hall is also
chairman of BRC T rading Limited, the trading arm of the
British Retail Consortium, and is a T rustee of the T extile
Industry Children’ s T rust. A graduate of Cambridge
University , he trained with PricewaterhouseCoopers in
London, qualified as a Chartered Accountant in 1980 and
is now a Fellow of the Institute of Chartered Accountants
in England and Wales. Mr Hall replaces David Naish.
BOARD OF
DIRECTORS
1  Geoffrey Maddrell
2  Nicholas Porter
3  Simon Bernstein
4  David Ransome
5  David Naish 
6  Baroness Prashar of Runnymede CBE
7 Nigel Hall 
123
4 567 Page 19 Operations board
The UNITE Group plc 
www.unite-group.co.uk
clockwise:
Andy Doyle
Simon Bernstein
John T onkiss
Andrew Lee
Mark Allan
Nick Porter
David Livingstone
David Ransome
NICHOLAS PORTER, 
CHIEF EXECUTIVE OFFICER
SIMON BERNSTEIN, 
CHIEF FINANCIAL OFFICER
DAVID RANSOME, 
CHIEF OPERATING OFFICER
JOHN TONKISS, 
MANUFACTURING DIRECTOR
Joined UNITE in September 2001 to deliver our new
Manufacturing facility . Current responsibilities also
include Product Development and Group Procurement.
Historically worked as a software/electronics engineer 
on car fuelling systems prior to taking up Operational and
Plant management roles with the American automotive
group TRW . He has an MSc in Manufacturing Systems 
and Logistics.
DAVID LIVINGSTONE,
DEVELOPMENT DIRECTOR
Joined in September 2001. David is responsible for 
site acquisition, design, development and construction,
together with the integration of all development activities
with Manufacturing and Accommodation Services. He 
is also responsible for development and implementation
of contemporary partnering arrangements with selected
partner contractors. Previously David undertook a variety 
of senior roles at Whitbread PLC, laterly Business
Development Director .
MARK ALLAN, 
COMMERCIAL DIRECTOR
A Chartered Accountant, Mark joined UNITE in 1999 
as Corporate Finance Director and has played a key 
role in the development and execution of the Group’ s
financing strategy . He joined the Operations Board in
October 2002 as Commercial Director , broadening his 
role to encompass responsibility for the Group’ s portfolio
strategy and valuations, together with the management 
of large scale, bespoke development projects. Working
within the Development function, he retains close links
with the Group's finance team.
ANDY DOYLE, 
ACCOMMODATION SERVICES DIRECTOR
Andy has worked within the technology , branded
restaurants and leisure business sectors, working in 
a number of senior positions both in the UK and USA. 
He holds a degree from Loughborough University 
and joined the Company in 2001 as Accommodation 
Services Director .
ANDREW LEE,
HR DIRECTOR
Joined UNITE in January 2001. He has previously held
senior Human Resource and Management Development
positions in retailing, hospitality and consulting. Prior 
to joining UNITE, he was a Senior Change Consultant 
with the Alexander Corporation, with clients including
McKinsey , BAA, British Midland, Whitbread and PWC. 
He has a business degree, an MA in Human Resource
Management, an MSc in Organisational Behaviour and 
a Doctorate in Organisational Change.
OPERATIONS
BOARD Page 20 Directors’ report
The UNITE Group plc 
www.unite-group.co.uk
DIRECTORS
Each of Messrs G K Maddrell, D F Naish, N A Porter , 
D P Ransome and S L Bernstein, together with Baroness
Prashar , served as Directors throughout the year . Mr
Maddrell acted as Chairman of the Board throughout 
the period. Subsequent to the year-end, Mr N P Hall 
was appointed as an additional Non-Executive Director
on 6 March 2003 and Mr D F Naish resigned as a Non-
Executive Director of the Company on 25 March 2003.
Mr Hall offers himself for re-election at the Annual General
Meeting, as do Messrs Maddrell and Ransome, both of
whom retire by rotation.
DIRECTORS’ INTERESTS
The interests of the Directors and their families in the
ordinary shares of the Company are set out below.
Details of Directors’ share options are set out in the
Directors’ Remuneration Report.
Ordinary Shares Ordinary Shares 
of 25p each of 25p each
Directors 31 Dec 2002 31 Dec 2001
1. N A Porter 14,674,367 14,152,690
2. D P Ransome 442,852 442,852
3. S L Bernstein 14,443 4,000
4. D F Naish 454,758 446,926
5. G K Maddrell 278,487 221,409    
6. Baroness Prashar 
of Runnymede – –
1. Mr Porter’ s interests includes his interest in (a)
1,146,000 ordinary shares held by the trustees of The
Porter Family Discretionary T rust, the beneficiaries of
which are his two children; (b) 253,140 ordinary shares
held by the trustees of the Jane Louise Discretionary
Settlement T rust, the beneficiaries of which are his 
two children; and (c) 125,000 Ordinary shares by the
trustees of The Redshoes Charitable T rust, one of
whom is Mr Porter .
2. Mr Ransome’ s interests include his interest in 1,000
ordinary shares held by his wife, Angela Jane Ransome.
Mrs Ransome is also a trustee of the Jane Louise
Discretionary Settlement T rust and The Redshoes
Charitable T rust and, accordingly , Mr Ransome is
additionally interested in the 253,140 ordinary shares
referred to in note 1(b) above and the 1 25,000 ordinary
shares referred to in note 1 (c) above.
3.  Mr Naish is a trustee of (i) The Porter Family
Discretionary T rust;  (ii)  the Jane Louise Discretionary
Settlement T rust; (iii) The Redshoes Charitable T rust;
and (iv) The Griffin Children’ s T rust; and, accordingly , 
is additionally interested as trustee in the 1,146,000
ordinary shares referred to in note 1 (a) above, the
253,140 ordinary shares referred to in note 1(b) above,
the 125,000 ordinary shares referred to in note 1 (c)
above and the 205,440 ordinary shares held by the
trustees of The Griffin Children’ s T rust.
4. Mr Maddrell’ s interests includes his interest in 12,250
ordinary shares held by his wife, Winifred Maddrell, 
and 191,237 ordinary shares held by the trustees of 
the Geoffrey Maddrell Jersey T rust, the beneficiaries of
which include himself, his wife and his three children.
DIRECTORS’ REPORT
for the year ended 31 December 2002
The Directors present their annual report and audited
financial statements for the year ended 31 December
2002.
PRINCIP AL ACTIVITIES
The principal activities of the Group during the year were
the development, holding and management of student
and NHS key worker residential accommodation in the
United Kingdom. Details of the Company’ s subsidiaries
are set out on page 40.
OPERATING AND FINANCIAL REVIEWS
Reviews of the Group’ s operations and financial affairs
are set out on pages 6 to 15 of this report.
PROFIT AND DIVIDENDS
The Group loss for the year attributable to shareholders
amounted to £25.6m (2001: loss of £2.0m). The
Directors recommend the payment of a final dividend 
of 1 .67p per ordinary share (2001: 1 .67p per ordinary
share), making a total dividend for the year of 2.5p per
share (2001: 2.5p per share), leaving a retained loss 
of £28.3m to be transferred to reserves (2001: retained
loss of £3.9m). Subject to approval at the annual general
meeting of the Company which has been convened 
for 9 May 2003 (the “Annual General Meeting”), the
recommended final dividend will be payable on 14 May
2003 to shareholders on the register at close of
business on 11 April 2003. Page 21 Directors’ report
The UNITE Group plc 
www.unite-group.co.uk
None of the Directors has a beneficial interest in the shares
of any other Group company . Since 2 March 2003, there
have been no changes in the Directors’ interests in shares,
save that Mr N P Hall, who was appointed subsequent to
the year end, acquired 5,128 shares in the Company on 
26 March 2003.
CHANGES IN SHARE CAPITAL
On 13 March 2002, the Company allotted and issued
6,783,945 ordinary shares of 25p each in part consideration
for the acquisition of that part of the issued share capital of
UNITE London Limited (formerly Peabody UNITE plc) not
already held by the Group.
On 14 May 2002, the Company allotted and issued a 
total of 4,843 ordinary shares of 25p each at an issue 
price of 317.7p per share pursuant to a scrip dividend
alternative in relation to the dividend for the year ended 
31 December 2001.
On 20 May 2002, the Company allotted and issued 946
ordinary shares of 25p each at an issue price of 155.5p 
per share pursuant to an option granted under The UNITE
Group plc Savings-Related Share Option Scheme.
On 16 August 2002, the Company increased its authorised
share capital by £8,750,000 to £38,750,000 divided into
155,000,000 ordinary shares of 25p each by the creation 
of an additional 35,000,000 ordinary shares of 25p each.
On 21 August 2002, the Company allotted and issued
32,857,143 ordinary shares of 25p each by way of a
placing and open offer at 175p per share.
SUBSTANTIAL INTERESTS IN THE SHARE CAPITAL 
OF THE COMP ANY
As at 2 March 2003, those shareholders, other than
Directors, who had notified the Company of a disclosable
interest amounting to 3% or more of the ordinary share
capital of the Company were as follows:
Shareholder Percentage of Share Capital
Fidelity International Limited 8.60%
Morley Fund Management Limited 4.98%
Legal & General Investment Management Limited 3.02%
DONATIONS
The Company made no political donations during 
the course of the year but made charitable donations
amounting to £50,000 to Uniaid Foundation (2001: nil).
POLICY AND PRACTICE ON P A YMENT OF CREDITORS
During the year the Company maintained its policy of
agreeing and abiding by supplier payment terms. The
Group has not followed any recognised code for payment
practice. As at 31 December 2002 the Group’ s trade
creditors were equivalent to 30 days’ purchases (2001: 
30 days). 
HEAL TH & SAFETY
The Group’ s policy is to provide and maintain safe and
healthy working conditions, equipment and systems of
work for all its employees and to provide such information,
training and supervision as they need for this purpose.
Further details of the Group’ s Health & Safety Management
System are set out on page 1 3.
EMPLOYMENT POLICIES
The Company encourages employee involvement 
and consultation and places emphasis on keeping its
employees informed of the Group’ s activities and financial
performance. `The UNITE Group plc Approved Company
Share Option Scheme, The UNITE Group plc Unapproved
Share Option Scheme and The UNITE Group plc Savings-
Related Share Option Scheme are intended to help
develop employees’ interest in the Company’ s performance.
The Company operates a non-discriminatory employment
policy .  Full and fair consideration is given to applicants 
for employment from the disabled where they have the
appropriate skills and abilities and to the continued
employment of staff who become disabled. The Company
encourages the continuous development and training of
its employees and the provision of equal opportunities for
the training and career development of disabled employees.
ENVIRONMENTAL AND ETHICAL POLICIES
The Group has always recognised the importance of
protecting and enhancing the environment in which it
operates and is fully committed to implementing and
monitoring policies reflecting the statement set out below .
In all aspects of its business, the Group considers the
impact of its activities on the environment. It is concerned for
the environmental well being of the communities in which 
it invests and complies with all relevant environmental
legislation and regulations. It strives to protect the health
and safety of its employees and promotes environmental
awareness amongst them, its customers, contractors,
tenants and suppliers.
The above statement forms the framework of the Group’ s
environmental policy . The policy is implemented through:-
• Observing all local environmental control policies 
and relevant environmental regulations
• Reviewing all proposed developments to assess 
the presence of any contamination and the means 
of remediation, if required
• Inspecting all land and buildings owned by the Group to
ascertain whether environmental damage has occurred
or is at risk of occurring
• Informing tenants of good energy management
practices Page 22 Directors’ report
The UNITE Group plc 
www.unite-group.co.uk
Audit Plc as auditors of the Company is to be proposed 
at the forthcoming Annual General Meeting.
ANNUAL GENERAL MEETING
The Annual General Meeting of the Company will be held
at The Herbert Morrison Room, London Marriott Hotel,
County Hall, Westminster Bridge Road, London SE1 7PB
on 9 May 2003. Formal notice of the meeting is given on
pages 53 to 54. In addition to the ordinary business of the
meeting, resolutions will be proposed to (i) amend the
articles of association of the Company so as to increase
the aggregate amount of fees that may be paid to Non-
Executive Directors and (ii) authorise the Company to
purchase its own shares in certain circumstances. Further
details of those proposals are set out below.
AMENDMENT TO ARTICLES OF ASSOCIATION
It is proposed that Article 1 04 (A) of the Company’ s Articles
of Association be replaced by a new Article as set out in
Resolution No.8 of the notice of Annual General Meeting.
The change is proposed in order to increase the limit on
the aggregate remuneration payable to Non-Executive
Directors from the current level of £1 00,000 per annum
(which was set in 1 999) to £200,000 per annum. The
Directors consider this fee level to be appropriate in the
current circumstances. Resolution No.8 will be proposed
as a special resolution of the Company .
AUTHORITY TO PURCHASE OWN SHARES
A resolution is proposed to authorise the Directors to
purchase the Company’ s shares in the market. The
power given by the resolution will only exercised if the
Directors are satisfied that any purchase will increase the
earnings per share of the ordinary share capital in issue
after the purchase and, accordingly , that the purchase 
is in the interests of shareholders. The Directors will also
give careful consideration to gearing levels of the Company
and its general financial position. The purchase price
would be paid out of distributable profits.
In February 2003, the Department of T rade and Industry
published its final draft of The Companies (Acquisition 
of Own Shares) (T reasury Shares) Regulations 2003 
(the “draft Regulations”). The draft Regulations enable
certain listed companies to hold shares in treasury as 
an alternative to cancelling them following a purchase of
own shares by the company in accordance with Chapter
VII of the Companies Act 1985. It is intended that the
power given by this resolution will also enable the
Company to purchase shares and hold them in treasury 
in accordance with the draft Regulations, when they
come into force, which is anticipated to be later this year .
The UK Listing Authority will shortly be consulting on 
the changes required to the Listing Rules to reflect the
amendments to the Companies Act 1985 to be effected
by the draft Regulations, which will apply to the Company .
The maximum number of shares which may be
purchased under the proposed authority will be
10,760,477 shares representing approximately 10 per
cent of the issued ordinary share capital of the Company
at 31 December 2002. The price paid for shares will be
not less than the nominal value of 25 pence per share nor
more than 5 per cent above the average of the middle-
In building, design and construction the following
measures are applied:
• Re-developing brown-field sites where practicable
• Striving to eliminate the use of materials containing
CFC and HCFC as alternatives become available
• Conserving energy through improved insulation and
the use of energy efficient heating and lighting systems
• Specifying, where practicable, that building materials
and furnishings come from sustainable sources
• Applying effective waste management procedures to
ensure that developments do not cause an increase 
in air , water or ground pollution
• Enhancing landscaping and external aspects in
harmony with existing surroundings
• Adopting best health and safety at work practices
• Limiting nuisance from noise, dust and hazards
• Endeavouring to limit waste generation, discharges
and emissions and handling wastes in a responsible
manner
• Adopting measures to protect workers, visitors and
the public from exposure to unacceptable risks and
hazards
In its internal operations, the Company will:
• Be responsive to public attitudes and concerns
• Ensure all building, maintenance and service operations
are optimised to save energy , water and waste
• Return used materials for recycling
• Ensure that company vehicles are maintained
regularly to reduce exhaust emissions and economise
on fuel usage
• Maintain a safe and healthy working environment 
for the well being of employees
During the year , Mr D P Ransome, Chief Operating
Officer of the Group, had responsibility for ensuring that
the policy described above was observed. The Board,
as a whole, regularly reviews implementation of such
policy and considers any amendments thought
necessary or desirable. Initiatives implemented include
the introduction of waste re-cycling schemes at the
Group’ s office locations and at its accommodation
blocks and the adoption of a UNITE Code of Ethics. 
The basic tenet of the Code (the full text of which can 
be found on the Company’ s web-site), is that the Group
seeks at all times to conduct its business in accordance
with, and to ensure that each of its employees and
directors adheres to, the highest standards of business
and personal ethics.
AUDITORS
In accordance with Section 384 of the Companies Act
1985, a resolution for the re-appointment of KPMG Page 23 Corporate governance
The UNITE Group plc 
www.unite-group.co.uk
market quotation of the Company’ s ordinary shares as
derived from the London Stock Exchange Daily Official List
for the five business days preceding the day on which the
shares are purchased.
The total number of options to subscribe for ordinary
shares that were outstanding at 25 March 2003 (being the
latest practicable date prior to publication of this notice)
was 4,559,531. The proportion of issued share capital that
they represented at that time was 4.23 per cent and the
proportion of issued share capital that they will represent 
if the full authority to purchase shares (existing and being
sought) is used is 4.70 per cent.
Resolution No.9 will be proposed as a special resolution 
to provide the Company with the necessary authority . The
authority will expire on 9 November 2004 or , if earlier , at the
conclusion of the 2004 annual general meeting, although 
it is the present intention of the Directors to seek a similar
authority annually . The Directors have no current intention
to exercise the authority which would be conferred upon
them if Resolution No.9 is passed.
By order of the Board
A D Reid
Secretary
2 April 2003
The Company has, during the course of the year complied
with the principles of best practice set out in the Combined
Code prepared by the Committee on Corporate
Governance (the “Combined Code”), except as specifically
set out below. Summarised below are the corporate
governance procedures established within the Group.
BOARD OF DIRECTORS
The full Board of Directors meets at least eight times a year
and retains full and effective control of the Group’ s activities.
A schedule of matters is reserved for decision by the full
Board, whilst terms of reference have been set for the
various committees of the Board, the Chairman and the
Chief Executive Officer . All Directors have access to the
advice and services of the Company Secretary . In addition,
procedures are in place allowing for individual Directors 
to take independent legal advice. A programme for the
training of Directors has been put in place.
The current Board complement consists of three
Executive Directors, namely a Chief Executive, a Chief
Operating Officer and a Chief Financial Officer , as well as
three Non-Executive Directors. Mr G K Maddrell, Mr D F
Naish and Baroness Prashar of Runnymede served as
Non-Executive Directors throughout the year . Subsequent
to the year-end, Mr N P Hall was appointed as Non-
Executive Director on 6 March 2003 and Mr D F Naish
resigned as a Non-Executive Director on 25 March 2003.
More than one third of the Board is, therefore, comprised
of Non-Executive Directors.
Except as noted below, each of the existing Non-
Executive Directors is independent of management and
free from any personal, business or other relationships
with the Group save for the receipt of Directors’ fees and
interests in shares of the Company . However , it should be
noted that Mr D F Naish (who until 25 March 2003 was a
Non-Executive Director of the Company) was, until 31
October 2002, a partner in The David Naish Partnership
(now T arget Consulting Limited), to which the Company
paid fees of £50,890 in the year to 31 December 2002 in
relation to tax advisory services. In view of the size of the
Board, no Director has been designated as senior
independent Non-Executive director and, in that respect,
the Company does not comply with the Combined Code.
Each of the executive Directors has a written service
contract whilst each of the Non-Executive Directors has
a formal letter of engagement. Executive Directors have
rolling contracts of employment with twelve months’
notice periods, whilst Non-Executive Directors are
appointed by the full Board for a term not exceeding
three years.
The Board has appointed an Audit Committee, a
Remuneration Committee and a Nominations Committee.
The Audit Committee, which during the year comprised
Mr G K Maddrell (who acted as Chairman), Mr D F Naish
and Baroness Prashar , meets with the Chief Financial
Officer and with the external auditors and reviews the
annual accounts and the preliminary and interim financial
results announcements prior to submission to the 
Board. The Audit Committee also reviews compliance
with accounting standards, the scope and extent of 
the external audit programme and the appointment,
independence and remuneration of the auditors. The
chairman of the Audit Committee reports to the Board on
matters discussed at meetings of the Audit Committee. 
Mr N P Hall was  appointed as a member of the Audit
Committee on 6 March 2003 and Mr D F Naish resigned
from the Committee on 25 March 2003. It is anticipated
that Mr Hall will take over the chairmanship of the Audit
Committee during the course of the current year .
The Remuneration Committee which, during the 
year , comprised Mr G K Maddrell (who again acted 
as Chairman), Mr D F Naish and Baroness Prashar ,
determines remuneration policy and advises the Board
accordingly . In particular , the Committee makes
recommendations regarding the terms of employment of
executive directors and senior managers, including terms
of remuneration, the award of share options and other
incentives. Mr N A Porter is invited to attend meetings of 
the Remuneration Committee but takes no part in the
discussions concerning his own remuneration and does
not attend those parts of the meetings of the Committee
which consider that issue. Mr N P Hall was also appointed 
CORPORATE
GOVERNANCE
for the year ended 31 December 2002 Page 24 Corporate governance
The UNITE Group plc 
www.unite-group.co.uk
a member of the Remuneration Committee following the
resignation of Mr D F Naish referred to above.
The Nominations Committee is comprised of Mr G K
Maddrell (who again acts as Chairman), Mr N A Porter and
any one other Non-Executive Director . The Committee is
responsible for making recommendations to the Board on
any appointment or re-appointment to the Board and at
senior executive level.
INTERNAL CONTROL
The provisions of the Combined Code in respect of internal
controls require that directors review all controls including
operational, compliance and risk management, as well as
financial control. Through the Group’ s Operations Board,
the Board has reviewed the effectiveness of the Group’ s
system of internal controls for the period covered by the
annual report and accounts. Such a system can provide
only reasonable and not absolute assurance against
material mis-statement or loss.
The Company has an established framework of internal
controls which, amongst other things, includes the following:
FINANCIAL REPORTING
The Group has a comprehensive budgeting system 
with an annual business plan approved by the Board.
Operating results and cash flows are reported on monthly
and compared against budget. Forecasts are reviewed
throughout the year and revised as necessary . The
Company reports to shareholders on a half-yearly basis.
INVESTMENT APPRAISAL
The Company has clearly defined guidelines for capital
expenditure. These include annual budgets, detailed
appraisal and review procedures, levels of authority 
and due diligence requirements where investment 
or development properties are being acquired. Post-
investment appraisals are performed for major
investments.
BUSINESS RISK ASSESSMENT
Following the production in 2001 of a risk management
system for the Group by Willis Limited, a comprehensive
risk profile benchmarking review system has been
developed, whereby strategic threats to the business are
identified and the management and control of such risk
prioritised. As a result of this system, the Board is satisfied
with the high level controls in place, although all areas of
the business are kept under review and new controls
introduced as appropriate.
SOCIAL RESPONSIBILITY
Following the issue by the Association of British Insurers 
in October 2001 of its guidelines in relation to socially
responsible investment, the Company has reviewed 
its policies in relation to that issue and has formalised 
its procedures for considering the significance to the
business of the Company of social, environmental and
ethical (SEE) matters. As a result, SEE matters are now
considered as part of the Group’ s existing risk profile
benchmarking system (referred to above in relation 
to Business Risk Assessment). The results of such
benchmarking reviews (which are carried out by the
Group’ s Operations Board), are reported to and
considered by the full Board on a six monthly basis.
Details of the SEE risks and opportunities which are
considered most significant to the Group are set out 
on page 12.
In light of the above, the Board believes that it has in place
appropriate procedures to identify and assess the significant
risks to the Company’ s short and long-term value arising
from SEE matters, as well as opportunities to enhance
value that may arise from an appropriate response. In that
respect, the Board considers that it receives adequate
information to make those assessments and that the
Company has in place effective measures for managing
significant risks.  Going forward, account will be taken of
SEE matters in the training of Directors.
INVESTOR RELATIONS
The Executive Directors have a programme of meetings
with institutional shareholders and analysts. The Company’ s
Annual General Meeting provides an opportunity , which the
Board encourages, for private investors to communicate
with the Company .
GOING CONCERN
After making enquiries, the Directors have a reasonable
expectation that the Group and the Company have
adequate resources to continue in operational existence
for the foreseeable future. For this reason, they continue to
adopt the going concern basis in preparing the accounts.
STATEMENT OF DIRECTORS’ RESPONSIBILITIES
Company law requires the Directors to prepare financial
statements for each year which give a true and fair view of
the state of affairs of the Company and the Group and of
the profit or loss for that period. In preparing those financial
statements the Directors are required to:
• select suitable accounting polices and then apply them
consistently;
• make judgements and estimates that are reasonable
and prudent;
• state whether applicable accounting standards have
been followed, subject to any material departures
disclosed and explained in the financial statements; and
• prepare the financial statements on the going concern
basis unless it is inappropriate to presume that the
Group will continue in business.
The Directors are responsible for keeping proper
accounting records which disclose with reasonable
accuracy at any time the financial position of the Company
and which enable them to ensure that the financial
statements comply with the Companies Act 1985. They
have general responsibility for taking such steps as are
reasonably open to them to safeguard the assets of the
Group and to prevent and detect fraud and other irregularities. Page 25 Directors’ remuneration report
The UNITE Group plc 
www.unite-group.co.uk
INTRODUCTION
The Board reports to shareholders on Directors’
remuneration as set out below. In preparing this report the
Remuneration Committee of the Board (the “Committee”)
has complied with the Directors’ Remuneration Report
Regulations 2002 (the “Regulations”), which introduced
new statutory requirements for the disclosure of directors’
remuneration in respect of periods ending on or after 
31 December 2002. The Report also meets the relevant
requirements of the Listing Rules of the Financial Services
Authority and describes how the Board has applied the
Principles of Good Governance in relation to directors’
remuneration. A resolution to approve the Report will be
proposed at the forthcoming Annual General Meeting.
The Regulations require the auditors to report to the
Company’ s members on the “auditable part” of the
Remuneration Report and to state whether , in their opinion,
that part of the Report has been properly prepared in
accordance with the Companies Act 1 985 (as amended 
by the Regulations). The Report has therefore been divided
into separate sections for the unaudited and audited
information. Within the unaudited section, the report deals
with the remuneration policy that is to be followed in 2003,
summarises the results of a remuneration survey which was
undertaken during the year and describes arrangements
which applied during 2002.
REMUNERATION COMMITTEE
In accordance with the recommendations of the Combined
Code, the Company has established the Committee 
which, during the year consisted of the three Non-Executive
Directors of the Company , namely Mr G K Maddrell, Mr D F
Naish and Baroness Prashar . Subsequent to the resignation
from the Board of Mr D F Naish on 25 March 2003, Mr N P
Hall, who was appointed an additional Non-Executive
Director of the Company on 6 March 2003, was also
appointed as a member of the Remuneration Committee 
in place of Mr Naish. Mr N A Porter is invited to attend
meetings of the Committee, which is chaired by Mr
Maddrell. The Committee is required annually to consider
and review all aspects of the executive Directors’
employment, performance and remuneration and the
Group’ s policies on those matters. Mr Porter takes no 
part in the discussions concerning his own remuneration,
nor does he attend those parts of the meetings of the
Committee which discuss that issue.  
The Committee is able to obtain independent 
professional advice from remuneration and other
consultants in order to carry out its duties. During the year ,
such advice was received from Monks Partnership, part of
PricewaterhouseCoopers LLP . PricewaterhouseCoopers
provided no other services to the Company during the
course of the year . The members of the Committee attend
the Company’ s Annual General Meeting and are available 
to answer shareholders’ questions about the Directors’
remuneration.
POLICY ON REMUNERATION OF EXECUTIVE
DIRECTORS AND SENIOR EXECUTIVES
The policy in respect of Directors’ remuneration for 
the following and subsequent years is to ensure that 
the remuneration packages it offers are competitive 
and designed to attract, retain and motivate executive
Directors and senior executives of an appropriate calibre.
Performance-related reward policies are operated which
are designed to provide a significant element of “at risk” 
pay , which is only available when good results are achieved.
During the year , a review of executive remuneration 
was undertaken on behalf of the Committee by Monks
Partnership. The review compared all elements of
remuneration against a group of 20 comparator
companies, having regard, amongst other things, to the
size of the business and the sectors within which the
Company operates. The results of that review indicated
that, in 2001 (being the period under review), the base
salaries of the executive Directors were lower than the
market median, whilst total remunerations were above 
the median but below the upper quartile. In the light of
these findings, the Committee has agreed the principle,
effective from July 2002, that base salaries for executives
should be set broadly in line with the median, but that
directors should have the opportunity of achieving total
remuneration at the upper quartile level when justified 
by strong performance.
The main components of the Directors’ remuneration
packages are:
BASIC SALARY
The basic salary of each Director has been fixed taking 
into account advice from independent sources on the
rates of salary for similar jobs in a selected group of
comparable companies and the performance of the
relevant individual. As stated above, the Company has
agreed the principle that base salaries should be set
broadly in line with the market median.
PERFORMANCE RELATED BONUS
The Group operates an annual performance related 
bonus scheme which is designed to reward contributions
and encourage the achievement of targeted levels of
performance over the short term. The maximum potential
bonus payment is, in the case of each of the executive
Directors, equivalent to 100 per cent of his base salary .
However achievement of any bonus payment is subject 
to stretching performance criteria. 
For the year ended 31 December 2002, those criteria
related to the achievement of net asset value growth, profit
and loss deliveries and the completion of key strategic
projects.T o the extent a Director was awarded a bonus in
respect of that year equivalent to more than fifty per cent 
of his current base salary , that amount of the bonus which
was more than the equivalent of 50 per cent of his base
salary took the form of a deferred bonus, which was
satisfied by an allocation of the shares in the Company 
via an employee share ownership trust. However , where 
a Director already holds shares in the Company equal or
greater in value at the time of a bonus payment to three
times his basic salary , the Director may take the bonus
entirely in cash. Shares allocated by way of deferred bonus
DIRECTORS’
REMUNERATION REPORT
for the year ended 31 December 2002 Page 26 Directors’ remuneration report
The UNITE Group plc 
www.unite-group.co.uk
do not vest in the allottee, either legally or beneficially , 
until a period of three years has expired from the date of
original allocation, subject to the allottee still remaining 
in the employment of the Group.
In respect of the year ended 31 December 2002, each 
of the Executive Directors was awarded a performance
related bonus equivalent to between 45 per cent and 55
per cent of his current base salary . As a result, the total
remuneration of each of the executive Directors for the
year , based on the results of the survey carried out by
Monks Partnership, is likely to be above the median but
below the upper quartile of the comparator group of
companies.
For the current year , bonus entitlements will be linked 
to both the performance of the individual Director and to
that of the Group. Individual performance targets (which
will account for 60 per cent of a Director’ s maximum
potential bonus entitlement), have been set following 
the “performance development programme” reviews,
which are carried out for all employees (including the
executive Directors), at the beginning of each year . The
remaining 40 per cent of the maximum potential bonus
payment, which is referable to the performance of the
Group, involves the Group achieving targets in relation 
to profitability , increases in net asset growth, customer
satisfaction and employee satisfaction (the latter two
components both being monitored by independent
organisations). Bonus entitlements will continue to 
be satisfied by a combination of cash payments and
allocations of shares on the basis set out above, save
that 50 per cent of the total bonus entitlement (and not
merely that amount of the bonus which is more than the
equivalent of 50 per cent of the Director’ s base salary),
will, unless the Director already holds shares equal or
greater in value to three times his base salary , be satisfied
by an allocation of shares.
The performance related bonus is not pensionable 
and the Non-Executive Directors do not participate in 
the scheme.
LONG-TERM INCENTIVES
In addition to the annual bonus referred to above, 
the Group seeks to encourage and reward good long-
term performance by providing incentives linked to the
performance of the Company’ s shares. These incentives
are provided in the form of ordinary share options and
details of all options awarded to the Directors are set 
out in the “auditable part” of this Report. In August 1999,
the Company adopted The UNITE Group plc Approved
Company Share Option Scheme (the “Approved
Scheme”), being a scheme approved by the Inland
Revenue. In April 2000, the Company also adopted The
UNITE Group plc Unapproved Share Option Scheme (the
“Unapproved Scheme”). Under the Approved Scheme,
the total market value of shares, at the date of grant, over
which any participant may be awarded options is £30,000,
whilst under the Unapproved Scheme, the total market
value, at the date of grant, of all shares over which any
participant may be awarded options (including options
granted under other schemes), must not exceed four
times his total remuneration.
In March 2002, options were awarded to Mr D P Ransome
and Mr S L Bernstein over shares having a market value, as
at the date of grant, equivalent to 50 per cent of the annual
performance related bonus paid to them in respect of the
previous year .  In addition, in October 2002, options were
awarded to each of Mr N A Porter , Mr D P Ransome and 
Mr S L Bernstein equivalent to twice their respective basic
salaries. Such options were granted at a time when the
Committee believed it was particularly important to
motivate the Group’ s senior management. Going forward,
the award of options is likely to be aligned with annual
performance related bonuses. The Non-Executive
Directors do not participate in either the Approved
Scheme or the Unapproved Scheme. 
Options granted under the Unapproved Scheme are
exercisable as to 50 per cent provided the total shareholder
return for the Company is such that it is equal to or exceeds
the median total shareholder return of companies included
in the FTSE Small Companies Index (excluding investment
trusts) over the three year period from the date of grant.
The remaining 50 per cent is exercisable provided the
Company’ s net asset growth exceeds the average net
asset growth of companies included in the FTSE Small
Companies Index (excluding investment trusts) over the
three-year period from the date of grant. Such performance
criteria were agreed with institutional shareholders at the
time the Unapproved Scheme was adopted. Options
granted under the Approved Scheme have not been made 
subject to performance conditions, which is considered
appropriate in view of the relatively small number of options
that may be granted to individuals under such schemes.
SERVICE CONTRACTS AND NOTICE PERIODS
In accordance with general market practice, each of the
executive Directors has a rolling service contract requiring
twelve months’ notice of termination on either side. Such
contracts contain no specific provision for compensation
for loss of office, other than an obligation to pay for any
notice period waived by the Company .
The dates of the executive Directors’ service contracts are
as follows:
N A Porter 14 January 1999
D P Ransome 14 January 1999
S L Bernstein 23 March 2001
Each of the Non-Executive Directors has a specific letter 
of engagement, the dates of which are set out below:
G K Maddrell 13 August 1999
Baroness Prashar       10 January 2001
N P Hall 6 March 2003
Mr D F Naish, who resigned as a Director of the Company
on 25 March 2003. was appointed pursuant to a letter of
engagement dated 26 November 1998. 
Non-Executive Directors are appointed for an initial term of
three years, subject to normal provisions as to retirement
by rotation. Subsequent terms of three years may be
awarded. Current appointments will expire at the annual
general meeting in 2005 in the case of Mr G K Maddrell,   Page 27 Directors’ remuneration report
The UNITE Group plc 
www.unite-group.co.uk
at the annual general meeting in 2004 in the case of
Baroness Prashar and at the annual general meeting 
in 2006 in the case of Mr N P Hall. The appointment and 
re-appointment and the remuneration of Non-Executive
Directors are matters reserved for the full Board.
TOTAL SHAREHOLDER RETURN
The following graph charts the total cumulative
shareholder return of the Company since 31 May 1999
(being the date upon which the Company was admitted 
to trading on the Alternative Investment Market) to 31
December 2002.
Whilst there is no comparator index or group of companies
which truly reflects the activities of the Group, the FTSE 
Real Estate Index (the constituent members of which are all
property holding and/or development companies within the
UK), was chosen as it reflects trends within the UK property
market generally and tends to be the index against which
analysts judge the performance of the Company .
AUDITED INFORMATION
REMUNERATION SUMMARY
* Payable in cash
** Satisfied by an allocation of shares in the Company held in an employee
share ownership trust.
*** Benefits receivable consist primarily of car allowance and private health 
care insurance
Both Mr D P Ransome and M S L Bernstein participate 
in The UNITE Group Personal Pension Scheme, which 
is a money purchase scheme and in respect of whom 
the Company contributed £13,763 and £14,438 
Basic Performance Deferred Other Total Total
Fees Salaries Bonus
*
Bonus
**
Benefits
***
Remuneration Remuneration
Director £’s £’s £’s £’s £’s 2002 2001
N A Porter – 259,125 120,600 – 17,058 396,783 433,181
D P Ransome – 183,500 103,500 – 11,276 298,276 331,245
S L Bernstein – 192,500 104,750 5,250 11,595 314,095 260,330
Non Executive 
Directors 
G K Maddrell 85,000 – – – – 85,000 60,000
D F Naish 25,000 – – – – 25,000 25,000
Baroness
Prashar 25,000 – – – – 25,000 25,000
SHARE OPTIONS
Granted Exercised Normal
As at during during As at Exercise Excerise
Director 31/12/01 the year the year 31/12/02 Price Dates
N A Porter – 393,706 – 393,706 146.5p 22/10/05
-21/10/12
D P Ransome 2,741* – 2,741* 155.5p 01/06/03
-30/11/03
50,000 50,000 291.0p 19/09/03
-18/09/10
21,947 21,947 323.5p 21/03/05
-20/03/12
279,720 279,720 146.5p 22/10/05
-21/10/12
S L Bernstein 150,000 – 150,000 344.0p 12/09/04
-11/09/11
19,319 19,319 323.5p 21/03/05
-20/03/12
308,392 308,392 146.5p 22/10/05
-21/10/12
G K Maddrell – – – – – –
D F Naish – –––––
U Prashar ––––––
*Granted pursuant to The UNITE Group plc Savings-Related Share Option
Scheme (the “SA YE Scheme”).
Messrs N A Porter , D P Ransome and S L Bernstein have
been awarded options respectively over 20,477, 10,250
and 8,720 ordinary shares pursuant to the Approved
Scheme. All other options (other than those granted
under the SA YE Scheme) have been granted pursuant 
to Unapproved Scheme. All options (other than those
granted under the SA YE Scheme) have been granted for
no consideration. Details of the performance criteria, by
reference to which options are exercisable, are set out
under the heading “Long-term incentives” above. Those
details should also be taken as forming part of the
“auditable part” of this Report. 
As at 31 December 2002, the middle market price for
ordinary shares in the Company was 157.5p per share.
During the course of the year , the market price of the
Company’ s shares ranged from 129p to 344p per
ordinary share.
By order of the Board
G K Maddrell
Chairman of the Remuneration Committee
2 April 2003
600
500
400
300
100
200
May 99
Jul 99
Sept 99
Nov 99
Jan 00
Mar 00
May 00
Jul 00
Sept 00
Nov 00
Jan 01
Mar 01
May 01
Jul 01
Sept 01
Nov 01
Jan 02
Mar 02
May 02
Jul 02
Sept 02
Nov 02
TOTAL SHAREHOLDER RETURN – SINCE FLOTATION
Rebased to 100
UNITE Group
FTSE Real Estate Page 28 Auditors’ report
The UNITE Group plc 
www.unite-group.co.uk
INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF
THE UNITE GROUP PLC
We have audited the financial statements on pages 29 to 52. We have also audited the information in the directors’ remuneration
report that is described as having been audited.
This report is made solely to the company’ s members, as a body , in accordance with section 235 of the Companies Act 1985. 
Our audit work has been undertaken so that we might state to the company’ s members those matters we are required to state 
to them in an auditor’ s report and for no other purpose. T o the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Company and the company’ s members as a body , for our audit work, for this report, 
or for the opinions we have formed.
RESPECTIVE RESPONSIBILITIES OF DIRECTORS AND AUDITORS
The Directors are responsible for preparing the Annual Report and the directors’ remuneration report. As described on page 24, 
this includes responsibility for preparing the financial statements in accordance with applicable United Kingdom law and accounting
standards. Our responsibilities, as independent auditors, are established in the United Kingdom by statute, the Auditing Practices
Board, the Listing Rules of the Financial Services Authority , and by our profession’ s ethical guidance.
We report to you our opinion as to whether the financial statements give a true and fair view and whether the financial statements
and the part of the directors’ remuneration report to be audited have been properly prepared in accordance with the Companies
Act 1985. We also report to you if, in our opinion, the directors’ report is not consistent with the financial statements, if the company
has not kept proper accounting records, if we have not received all the information and explanations we require for our audit, or if
information specified by law regarding directors’ remuneration and transactions with the group is not disclosed.
We review whether the statement on pages 23 and 24 reflects the Company’ s compliance with the seven provisions of the
Combined Code specified for our review by the Listing Rules, and we report if it does not. We are not required to consider whether
the board’ s statements on internal control cover all risks and controls, or form an opinion on the effectiveness of the Group’ s
corporate governance procedures or its risk and control procedures.
We read the other information contained in the Annual Report, including the corporate governance statement and the 
unaudited part of the directors’ remuneration report, and consider whether it is consistent with the audited financial statements. 
We consider the implications for our report if we become aware of any apparent misstatements or material inconsistencies with 
the financial statements.
BASIS OF AUDIT OPINION
We conducted our audit in accordance with Auditing Standards issued by the Auditing Practices Board. An audit includes
examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements and the part of the
directors’ remuneration report to be audited. It also includes an assessment of the significant estimates and judgements made by
the Directors in the preparation of the financial statements, and of whether the accounting policies are appropriate to the Group’s
circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in 
order to provide us with sufficient evidence to give reasonable assurance that the financial statements and the part of the directors’
remuneration report to be audited are free from material misstatement, whether caused by fraud or other irregularity or error . In
forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements and the
part of the directors’ remuneration report to be audited.
OPINION
In our opinion:
– the financial statements give a true and fair view of the state of affairs of the Company and the Group as at 31 December 2002 
and of the loss of the Group for the year then ended; and
– the financial statements and the part of the directors’ remuneration report to be audited have been properly prepared in
accordance with the Companies Act 1985.
KPMG Audit Plc
Chartered Accountants
Registered Auditor
London
2 April 2003 Page 29 Accounts
The UNITE Group plc 
www.unite-group.co.uk
CONSOLIDA TED BALANCE SHEET
at 31 December 2002
2002 Restated 2001
Note £’000 £’000 £’000 £’000
Fixed assets
Intangible assets 3 10,710 12,886
T angible assets
Investment and development properties 4 709,595 373,532
Other tangible fixed assets 5 21,713 7,921
731,308 381,453
Joint venture undertakings 7
Share of gross assets – 51,159
Share of gross liabilities – (37,950)
– 13,209
742,018 407,548
Current assets
Stocks 8 1,551 2,464
Debtors 9 18,509 33,371
Cash at bank and in hand 10,258 5,984
30,318 41,819
Creditors: amounts falling due within one year
Short term build facilities and other borrowings
(including convertible debt) 10 (74,359) (42,354)
Other creditors 10 (41,426) (50,399)
Net current liabilities (85,467) (50,934)
T otal assets less current liabilities 656,551 356,614
Creditors: amounts falling due after more than one year
Long term borrowings 11 (345,886) (151,931)
Other creditors 11 (2,547) (2,625)
Net assets 308,118 202,058
Capital and reserves
Called up share capital 14 26,901 16,989
Share premium account 15 136,233 71,685
Merger reserve 15 40,177 40,177
Revaluation reserve 15 135,654 81,516
Profit and loss account 15 (30,847) (8,309)
Equity shareholders’ funds 308,118 202,058
Net asset value per share 286p 297p Page 30 Accounts
The UNITE Group plc 
www.unite-group.co.uk
CONSOLIDA TED PROFIT AND LOSS ACCOUNT
for the year ended 31 December 2002
Restated
2002 2001
Note £’000 £’000
Group turnover and share of joint venture 33,872 26,312
Less: share of turnover of joint venture (999) (1,813)
Group turnover – existing operations 29,103 24,499
– acquired operations 3,770 –
2 32,873 24,499
Cost of sales (8,388) (8,545)
Gross profit – existing operations 21,604 15,954
– acquired operations 2,881 –
24,485 15,954
Administrative expenses – ordinary (16,583) (12,471)
– exceptional 19 (1,303) –
– goodwill amortisation 3 (5,472) (75)
Group operating profit 1,127 3,408
Share of results of joint venture 7 299 1,245
Profit on disposal of investment properties 461 262
Profit on ordinary activities before interest and taxation 1,887 4,915
Interest receivable 22 581 560
Interest payable and similar charges – group – ordinary 23 (18,148) (7,201)
– exceptional 19 (9,744) –
– joint venture 23 (211) (1,167)
Loss on ordinary activities before taxation, 
exceptional items and goodwill amortisation 26 (9,116) (2,818)
Loss on ordinary activities before taxation (25,635) (2,893)
Taxation 24 – 853
Loss on ordinary activities after taxation (25,635) (2,040)
Dividends paid and proposed 25 (2,685) (1,825)
Retained loss for the financial period (28,320) (3,865)
Loss per share
Basic 26 30.02p 3.63p
Excluding goodwill amortisation, exceptional items and deferred tax 26 10.67p 5.01p
Diluted 26 30.02p 3.63p
CONSOLIDA TED ST A TEMENT OF TOT AL RECOGNISED GAINS 
AND LOSSES
for the year ended 31 December 2002 Restated
2002 2001
Note £’000 £’000
(Loss)/profit for the financial year
Group (25,723) (2,118)
Share of joint venture 7 88 78
(25,635) (2,040)
Unrealised surplus on revaluation of properties 15 59,732 34,360
Unrealised surplus on revaluation of joint venture 15 221 249
Unrealised (loss)/profit on trading with joint venture 15 (33) 3,261
T otal recognised gains and losses for the financial year 34,285 35,830
Prior year adjustment (as explained in note 1) (5,812)
T otal gains and losses since the last annual report 28,473
Net asset value added per share 27 40.1p 63.7p Page 31 Accounts
The UNITE Group plc 
www.unite-group.co.uk
COMP ANY BALANCE SHEET
at 31 December 2002
2002 Restated 2001
Note £’000 £’000 £’000 £’000
Fixed assets
Investments 6 166,919 135,388
Current assets
Debtors 9 297,714 122,868
Cash at bank and in hand 8,183 5,064
305,897 127,932
Creditors: amounts falling due within one year
Short term borrowings (including convertible debt) 10 (10,639) (15,075)
Other creditors 10 (149,613) (16,160)
Net current assets 145,645 96,697
T otal assets less current liabilities 312,564 232,085
Creditors: amounts falling due after more than 
one year 11 (4,446) (30,027)
Net assets 308,118 202,058
Capital and reserves
Called up share capital 14 26,901 16,989
Share premium account 15 136,233 71,685
Merger reserve 15 40,177 40,177
Revaluation reserve 15 101,284 69,753
Profit and loss account 15 3,523 3,454
Equity shareholders’ funds 308,118 202,058
These financial statements were approved by the Board of Directors on 2 April 2003 and were signed on its behalf by:
NA Porter
Director
SL Bernstein
Director Page 32 Accounts
The UNITE Group plc 
www.unite-group.co.uk
CONSOLIDA TED CASH FLOW ST A TEMENT
for the year ended 31 December 2002
Restated
2002 2001
Note £’000 £’000
Cash flow from operating activities 28 5,987 (8,781)
Returns on investments and servicing of finance 29 (28,323) (8,325)
Acquisitions and disposals 29 (1,210) (3,620)
Capital expenditure and financial investment 29 (193,187) (83,075)
Equity dividends paid (2,131) (1,190)
Cash outflow before financing (218,864) (104,991)
Financing 29 223,138 106,699
Increase in cash in the year 4,274 1,708
RECONCILIA TION OF NET CASH FLOW TO MOVEMENT 
IN NET DEBT 
for the year ended 31 December 2002
Restated
2002 2001
Note £’000 £’000
Increase in cash in the year 4,274 1,708
Cash flow from increase in debt and lease financing (168,114) (68,511)
Change in net debt resulting from cash flows (163,840) (66,803)
Debt acquired in subsidiary undertaking (54,807) (31,864)
Loan notes issued as consideration for subsidiary undertaking – (9,300)
New finance lease and hire purchase contracts – (528)
Amortisation of debt issue costs (3,039) (143)
Movement in net debt in the year (221,686) (108,638)
Net debt at beginning of year 30 (188,301) (79,663)
Net debt at end of year 30 (409,987) (188,301) Page 33 Accounts
The UNITE Group plc 
www.unite-group.co.uk
NOTE OF CONSOLIDA TED HISTORICAL 
COST PROFITS AND LOSSES
for the year ended 31 December 2002
Restated
2002 2001
£’000 £’000
Reported loss on ordinary activities before taxation (25,635) (2,893)
Realisation of property revaluation gains of previous years 514 256
Historical cost loss on ordinary activities before taxation (25,121) (2,637)
Historical cost loss for the year retained after taxation and dividends (27,806) (3,609)
RECONCILIA TIONS OF MOVEMENTS IN 
SHAREHOLDERS’ FUNDS
for the year ended 31 December 2002
Group Group Company Company
Restated Restated
2002 2001 2002 2001
£000 £000 £000 £000
(Loss)/profit attributable to ordinary shareholders (25,635) (2,040) 2,754 5,277
Dividends paid and proposed (2,685) (1,825) (2,685) (1,825)
(28,320) (3,865) 69 3,452
Net surplus on revaluations 59,920 37,870 31,531 30,553
Net proceeds of new share capital subscribed 74,460 83,024 74,460 83,024
Net addition to shareholders’ funds 106,060 117,029 106,060 117,029
Opening equity shareholders’ funds (originally £207,105,000 
before deducting the prior year adjustment of £5,047,000) 202,058 85,029 202,058 85,029
Closing equity shareholders’ funds 308,118 202,058 308,118 202,058 Page 34 Accounts
The UNITE Group plc 
www.unite-group.co.uk
NOTES
(forming part of the financial statements)
1. ACCOUNTING POLICIES
The following accounting policies have been applied consistently in dealing with items which are considered material in relation 
to the Group’ s financial statements.
BASIS OF PREP ARATION
The financial statements have been prepared in accordance with applicable accounting standards and under the historical cost
accounting rules, modified to include the revaluation of investment and development properties.
In the Company’ s financial statements, investments in subsidiary undertakings and joint ventures are revalued annually to the
underlying net asset value of these undertakings. This is considered an appropriate treatment by the Directors, since the activity 
of the subsidiaries, namely property investment, is such that net assets are an appropriate valuation method.
PRIOR YEAR ADJUSTMENT
During the year the Group has adopted UITF Abstract 34: Pre-contract costs. As a result, in respect of development activity , costs
incurred prior to contracts being exchanged are expensed through the profit and loss account as incurred. Costs incurred following
exchange of contracts will continue to be attributed directly to the cost of the asset. Bidding costs relating to PPP-type contracts
which are incurred prior to Preferred Bidder status being achieved are expensed through the profit and loss account as incurred.
The results of the prior periods have been restated on the basis of this new accounting policy , which causes more costs to be
expensed in the profit and loss account but greater revaluation gains to occur , as the cost of assets is reduced.
There is a timing difference between the expensing of costs and recognition of revaluation gains which amounts to £5.0m at 31
December 2001 and has been treated as a prior year adjustment.
The Group has also adopted the requirements of Financial Reporting Standard (FRS) 19: Deferred T ax, which requires provision 
for deferred tax on all timing differences. Timing differences existed at 31 December 2000 giving rise to a deferred tax liability at this
date of £853,000. These timing differences had reversed by 31 December 2001 such that no provision for deferred tax is required
at that date or at 31 December 2002. The comparative figures have been restated accordingly giving rise to both the appropriate
balance sheet adjustments and a tax credit in the profit and loss account in 2001.
BASIS OF CONSOLIDATION
The consolidated financial statements include the financial statements of the Company and its subsidiary undertakings. The
acquisition method of accounting has been adopted. Under the acquisition method, the results of subsidiary undertakings
acquired or disposed of in the year are included in the consolidated profit and loss account from the date of acquisition or up 
to the date of disposal.
A joint venture is an undertaking in which the Group has a long-term interest and over which it exercises joint control. The Group’s
share of the profits of its joint venture, Peabody UNITE plc, is included in the consolidated profit and loss account for the period up 
to 13 March 2002, at which time the Group took full control of the joint venture by the purchase of the 50% interest held by its joint
venture partner .
Under section 230(4) of the Companies Act 1985 the Company is exempt from the requirement to present its own profit and 
loss account.
INTANGIBLE FIXED ASSETS
Purchased goodwill (representing the excess of the fair value of the consideration given over the fair value of the separable 
net assets required) arising on consolidation is capitalised. Goodwill comprises two elements. Firstly , an element relating to synergy
benefits arising from the increased scale of the portfolio which is being amortised on a straight-line basis over 20 years. The second
element represents the anticipated benefits, in the form of future development gains, arising from access to the acquired group’s
portfolio of potential projects. This further element is being written off to match the recognition of gains on these pipeline projects.  Page 35 Accounts
The UNITE Group plc 
www.unite-group.co.uk
1. ACCOUNTING POLICIES (continued)
INVESTMENT AND DEVELOPMENT PROPERTIES
Investment properties are revalued annually in accordance with Statement of Standard Accounting Practice 19 and the aggregate
surplus or deficit is transferred to a revaluation reserve. No depreciation is provided in respect of freehold investment properties 
or leasehold investment properties with over 20 years to expiry . This treatment may be a departure from the requirements of 
the Companies Act concerning the depreciation of fixed assets. However , these properties are not held for consumption but for
investment and the Directors consider that systematic annual depreciation would be inappropriate. The accounting policy adopted 
is therefore necessary for the accounts to give a true and fair view. Depreciation is only one of many factors reflected in the annual
valuation and the amount which might otherwise have been shown cannot be separately identified or quantified.
Properties held for future development and developments in progress are revalued annually based on open market value. They 
are not subject to depreciation, since the Directors consider that the useful economic life of the assets does not begin until the
properties are completed.
Net gains or losses on disposal of investment and development properties are calculated by reference to book value at the date of disposal.
The cost of investment and development properties includes amounts relating to interest and attributable overheads, in addition to
direct costs. For this purpose, the interest rate applied to funds provided for property development is arrived at by reference, where
appropriate, to the actual rate payable on borrowings for development purposes and, in regard to that part of the development cost
financed out of general funds, to the average rate paid on funding the assets employed by the Group. 
Interest transferred to the cost of properties is applied gross of associated tax relief.
TANGIBLE FIXED ASSETS
For assets other than investment and development properties, depreciation is provided to write off the cost or valuation less the
estimated residual value of tangible fixed assets by equal instalments over their estimated useful economic lives as follows:
Freehold buildings 50 years
Leasehold improvements Life of lease
Fixtures and fittings 4 years
Motor vehicles 4 years
Plant and machinery 4 – 20 years
No depreciation is provided on freehold land.
INTEREST RATE TRANSACTIONS
Interest rate swap and option agreements are used to manage the interest basis of borrowings. Interest receipts and payments
under these agreements are accrued so as to match the net income or cost with the related finance expense. No amounts are
recognised in respect of future periods.
BORROWINGS
Borrowings are carried at their nominal value and net of any issue costs. Issue costs are written off to the profit and loss account
over the life of the borrowing.
LEASES
Assets acquired under finance leases are capitalised and the outstanding future lease obligations are shown in creditors. Operating
lease rentals are charged to the profit and loss account on a straight line basis over the period of the lease.
STOCKS AND WORK IN PROGRESS
Stocks are stated at the lower of cost and net realisable value. For work in progress and finished goods cost is taken as production
cost, which includes an appropriate proportion of attributable overheads.
TURNOVER
T urnover represents the amounts (excluding value added tax) derived from the Group’ s external activities during the year and
includes 50% of the value of sales made by the Group to its joint venture, Peabody UNITE plc. Page 36 Accounts
The UNITE Group plc 
www.unite-group.co.uk
NOTES CONTINUED
1. ACCOUNTING POLICIES (continued)
TAXATION
The charge for taxation is based on the result for the year , which takes account of taxation deferred because of timing differences
between the treatment of certain items for taxation purposes and the treatment under the Group’ s accounting policies.
Deferred tax assets and liabilities arise from timing differences between the recognition of gains and losses in the financial statements
and their recognition in a tax computation. Previously , the Group’ s accounting policy was to provide for deferred tax only to the extent
that liabilities or assets were expected to be payable or receivable in the foreseeable future. 
In accordance with FRS1 9, deferred tax is now provided in respect of all timing differences that have originated, but not reversed at
the balance sheet date that may give rise to an obligation to pay more or less tax in the future except as otherwise required by FRS1 9.
Deferred tax is not recognised when fixed assets are revalued unless by the balance sheet date there is a binding agreement to sell
the revalued assets and the gain or loss expected to arise on sale has been recognised in the financial statements. Deferred tax is
measured on a non-discounted basis.
POST RETIREMENT BENEFITS
The Group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Group
in an independently administered fund. The amount charged to the profit and loss account represents the contributions payable to
the scheme in respect of the accounting period.
2. SEGMENTAL ANAL YSIS OF OPERATIONS
2002 2001 Restated
Profit/(Loss) Profit/(Loss)
before Interest before Interest
T urnover and T ax Net Assets T urnover and T ax Net Assets
£’000 £’000 £’000 £’000 £’000 £’000
Investment activities
Continuing operations 27,586 18,736 15,219 10,117
Acquired operations 3,770 – ––
31,356 18,736 199,990 15,219 10,117 145,410
Development & corporate activities
Continuing operations 1,517 (16,849) 108,128 9,280 (5,202) 56,648
32,873 1,887 308,118 24,499 4,915 202,058
It is not possible to identify the operating profit attributable to acquired operations as the administration function of the acquired
entity has been merged with those of the Group and cannot be separated. Page 37 Accounts
The UNITE Group plc 
www.unite-group.co.uk
3. INTANGIBLE FIXED ASSETS
Goodwill
£’000
Group
Cost
At beginning of year 12,961
Additions 3,296
At end of year 16,257
Amortisation
At beginning of year 75
Charged in year 5,472
At end of year 5,547
Net book value
At 31 December 2002 10,710
At 31 December 2001 12,886
4. INVESTMENT AND DEVELOPMENT PROPERTIES
Properties held
Investment Developments in for future
properties progress development Total
£’000 £’000 £’000 £’000
Group
Cost or valuation and net book value
At beginning of year 288,620 69,539 18,407 376,566
Prior year adjustment (see note 1) – (1,209) (1,825) (3,034)
At beginning of year – as restated 288,620 68,330 16,582 373,532
Additions 130,187 116,296 31,070 277,553
Disposals (2,220) – – (2,220)
Transfers 118,799 (87,124) (31,675) –
T ransfer from other tangible fixed assets 998 – – 998
Revaluations 5,440 45,813 8,479 59,732
At 31 December 2002 541,824 143,315 24,456 709,595
At 31 December 2001 – as restated 288,620 68,330 16,582 373,532
Included within investment and development properties are the following values in respect of leasehold interests:
Properties held
Completed Developments in for future Total Total
developments progress development 2002 2001
£000 £000 £000 £000 £000
Cost or valuation and net book value
Long leasehold 69,850 19,720 – 89,570 52,478
Short leasehold 11,900 – – 11,900 9,388
81,750 19,720 – 101,470 61,866 Page 38 Accounts
The UNITE Group plc 
www.unite-group.co.uk
NOTES CONTINUED
4. INVESTMENT AND DEVELOPMENT PROPERTIES (continued)
The valuation of investment and development properties comprise:
2002 2001
£’000 £’000
Group
Historical cost 573,941 309,066
Revaluation 135,654 64,466
709,595 373,532
Investment properties were valued on the basis of their “Market Value” as defined in the RICS Appraisal and Valuation Manual
issued by the Royal Institution of Chartered Surveyors, by Messrs King Sturge, Chartered Surveyors as external valuers. 
Where held at valuation, developments in progress and properties held for future development have been incorporated at directors’
valuations at acquisition or when planning permission and appropriate pre-let agreements are in place, plus subsequent expenditure.
These valuations are based on either valuations of properties when complete or on valuations in their existing state by Messrs 
King Sturge.
The total interest included in Group properties at 31 December 2002 was £13,863,000 (2001: £6,664,000). T otal internal costs
relating to manufacturing, construction and development costs of Group properties, which have been deducted in arriving at the
revaluation uplifts recognised on these properties, amount to £17,215,000 at 31 December 2002 (2001: £12,192,000).
5. OTHER TANGIBLE FIXED ASSETS
Freehold Motor vehicles, Fixtures,
land and Leasehold plant and fittings and
buildings improvements machinery equipment Total
£’000 £’000 £’000 £’000 £’000
Group
Cost or valuation
At beginning of year 1,184 1,279 1,043 5,902 9,408
Additions 6,639 71 691 9,083 16,484
Disposals – – (23) – (23)
T ransfer to investment properties (1,010) – – – (1,010)
At end of year 6,813 1,350 1,711 14,985 24,859
Depreciation
At beginning of year 14 133 224 1,116 1,487
Charge for year 46 146 137 1,365 1,694
Disposals – – (23) – (23)
T ransfer to investment properties (12) – – – (12)
At end of year 48 279 338 2,481 3,146
Net book value
At 31 December 2002 6,765 1,071 1,373 12,504 21,713
At 31 December 2001 1,170 1,146 819 4,786 7,921 Page 39 Accounts
The UNITE Group plc 
www.unite-group.co.uk
5. OTHER TANGIBLE FIXED ASSETS (continued)
Particulars relating to revalued assets are as follows:
2002 2001
£’000 £’000
Freehold land and buildings
At open market value – 1,184
Aggregate depreciation thereon – (14)
Net book value – 1,170
Historical cost of revalued assets – 1,086
Aggregate depreciation based on historical cost – (14)
Historical cost net book value – 1,072
Included in the above are the following relating to leased assets which are subject to hire purchase agreements:
Fixtures,
fittings,
tools and
equipment Motor vehicles T otal
£’000 £’000 £’000
Net book value
At 31 December 2002 2,389 153 2,542
At 31 December 2001 782 260 1,042
Depreciation charge in year 202 120 322
6. FIXED ASSET INVESTMENTS
Unlisted subsidiary
undertakings
£’000
Company
Cost or valuation
At beginning of year 140,435
Prior year adjustment (see note 1) (5,047)
At beginning of year – as restated 135,388
Revaluation 31,531
At end of year 166,919
The Company has revalued its investment in its subsidiary undertakings to the underlying net asset values of those undertakings 
at the year end. Page 40 Accounts
The UNITE Group plc 
www.unite-group.co.uk
NOTES CONTINUED
6. FIXED ASSET INVESTMENTS (continued)
At 31 December 2002, the Group owned 100% of the equity share of the following principal subsidiary undertakings:
Subsidiary undertaking Principal activity
LDC (Holdings) plc* Property investment 
UNITE Holdings plc* Property development
LDC (Portfolio One) Ltd Property investment
UNITE Integrated Solutions plc Design and Build Contractor
UNITE Accommodation Management 1 Ltd Property management
UNITE Accommodation Management 2 Ltd Property management
UNITE Finance One plc Property investment
UNITE Finance One (Property) Ltd Property investment
UNITE Finance One (Accommodation Services) Ltd Property management
Except where stated all subsidiaries are registered and operate in England and Wales. All subsidiary undertakings are owned via
intermediate holding companies, except those marked * which are owned by The UNITE Group plc.
7. JOINT VENTURE UNDERTAKING
Interest in
joint venture
£’000
Group
Cost or valuation and net book value
At beginning of year 13,302
Prior year adjustment (see note 1) (93)
At beginning of year – as restated 13,209
Share of operating profit until acquisition 299
Share of interest payable until acquisition (211)
Share of retained profit until acquisition 88
Share of revaluation prior to acquisition 221
Total 13,518
Acquisition during the year (13,518)
At end of year –
On 13 March 2002 the Group took full control of its London joint venture by acquiring Peabody T rust’ s 50% interest in Peabody
UNITE plc (now UNITE London Limited), the details of which are included in note 31.
8. STOCKS
Restated
2002 2001
£’000 £’000
Group
Raw materials and consumables 209 556
Work in progress 1,342 1,908
1,551 2,464 Page 41 Accounts
The UNITE Group plc 
www.unite-group.co.uk
9. DEBTORS
Group Company
2002 2001 2002 2001
£’000 £’000 £’000 £’000
T rade debtors 2,145 3,550 – –
Amounts owed by Group undertakings – – 293,839 120,210
Amounts recoverable on contracts – 18,130 – –
Other debtors 12,588 8,318 1,902 1,860
Prepayments and accrued income 3,776 3,373 1,973 798
18,509 33,371 297,714 122,868
Included within other debtors of the Group is £1,950,000 (2001: £2,091,374) due from The Bristol Hotel Group plc, a company
under common influence (note 33). The loan attracts interest at 3% above LIBOR. £1,750,000 of this loan is repayable after more
than one year . None of the remaining debtors were due after more than one year .
10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Group Company
2002 2001 2002 2001
£’000 £’000 £’000 £’000
Loans and overdrafts 1,068 1,731 – –
Build facilities 61,900 25,103 – –
8% convertible unsecured loan stock 2004 5,835 5,775 5,835 5,775
Unsecured loan notes 4,804 9,300 4,804 9,300
Obligations under finance leases and hire purchase contracts 752 445 – –
74,359 42,354 10,639 15,075
T rade creditors 6,863 12,254 1,862 276
Amounts owed to Group undertakings – – 143,532 14,210
Other taxes and social security 539 415 – –
Other creditors 12,843 32,606 2,116 10
Accruals and deferred income 19,393 3,884 315 424
Dividend proposed 1,788 1,240 1,788 1,240
41,426 50,399 149,613 16,160
115,785 92,753 160,252 31,235
8% CONVERTIBLE UNSECURED LOAN STOCK 2004
The loan stock carries a coupon of 8%, with interest payable half yearly . It is convertible (at the stockholders’ option) in the month of
July in either of the years 2003 or 2004. The conversion price is calculated as the greater of 85 pence and 90% of the mean average
of the closing middle market prices of an ordinary share for the ten business days immediately preceding the commencement of a
conversion period.
The Company has the right to purchase loan stock on any recognised Stock Exchange or by tender available to all stockholders
alike at any price or by private treaty at a price not exceeding 1 0% above the mean average of the closing middle market prices 
of any ordinary share for the ten business days immediately prior to the date of such purchase. Unless previously converted or
purchased by the Company , the loan stock will be repaid at par on 31 August 2004.
UNSECURED LOAN NOTES
The unsecured loan notes were issued on 28 June 2001 and carry a coupon rate calculated at LIBOR minus 0.5%. The 
loan notes are repayable at par on demand and may be redeemed on 30 June or 31 December commencing in 2002 until 
30 June 201 1. Unless previously redeemed, the loan notes will be repaid in full at par on 30 June 201 1. Particulars relating to 
the Group’ s financing arrangements are disclosed in notes 12 and 34 to the financial statements. Page 42 Accounts
The UNITE Group plc 
www.unite-group.co.uk
NOTES CONTINUED
11. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Group Company
2002 2001 2002 2001
£’000 £’000 £’000 £’000
Bank and other loans 344,325 151,585 4,446 30,027
Obligations under finance leases and hire purchase contracts 1,561 346 – –
345,886 151,931 4,446 30,027
Other creditors 2,547 2,625 – –
348,433 154,556 4,446 30,027
12. ANAL YSIS OF DEBT
Group Company
2002 2001 2002 2001
£’000 £’000 £’000 £’000
Bank loans, other loans and overdrafts fall due:
In one year or less, or on demand 73,607 41,909 – –
Between one and two years 18,821 1,212 4,446 –
Between two and five years 65,646 87,158 – 30,027
In five years or more 259,858 63,215 – –
417,932 193,494 4,446 30,027
Debt is disclosed net of issue costs of £11,135,000 (2001: £2,735,000).
The maturity of obligations under finance lease and hire purchase contracts is as follows:
2002 2001
£’000 £’000
Group
Within one year 918 415
In the second to fifth years 1,710 499
Less future finance charges (315) (123)
2,313 791
The Group has various borrowing facilities available to it. The undrawn committed facilities available at 31 December 2002 in
respect of which all security conditions precedent had been met at that date were as follows:
2002 2001
£’000 £’000
Expiring in one year or less
Build facilities 104,373 7,428
Other facilities 5,000 5,300
109,373 12,728
Expiring between two and five years 2,018 –
111,391 12,728
Security for the Group’ s property development and investment financing is by way of first charges, and in some instances second
charges, over the properties to which they relate. In certain instances, cross guarantees are provided within the Group. Page 43 Accounts
The UNITE Group plc 
www.unite-group.co.uk
12. ANAL YSIS OF DEBT (continued)
Fair value of financial liabilities
Set out below is a comparison by category of the book value and fair values of the Group’ s financial liabilities, excluding variable rate
loans, at 31 December 2002:
Book value Fair value
£’000 £’000
Primary financial investments held or issued to the Group’ s operations:
Short term financial liabilities and current position of long term borrowings 638 685
Long term borrowings 272,726 286,884
273,364 287,569
Derivative and other financial instruments held to manage the interest rate profile:
Interest rate swaps – 5,954
At 31 December 2002 273,364 293,523
At 31 December 2001 27,618 32,956
The fair values of the interest rate swaps and long term fixed rate debt have been determined by reference to prices available from
the markets on which the instruments are traded. All the other fair values have been calculated by discounting future cash flows at
prevailing interest rates.
13. PROVISIONS FOR LIABILITIES AND CHARGES 
In preparing the accounts for the year ended 31 December 2002, the Group has adopted FRS19 which came into force for
accounting periods ending on or after 23 January 2002. 
The movement on the deferred tax balances and other provisions during the year ended 31 December 2002 were as follows:
Deferred
taxation Other Total Total
2002 2002 2002 2001
£’000 £’000 £’000 £’000
Group
At 1 January 2002 ––– –
T rading tax losses and accelerated capital allowances (2,720) – (2,720) –
Increase in trading tax losses and accelerated capital 
allowances due to the adoption of FRS19 2,694 – 2,694 –
Unrecognised asset 26 – 26 –
At 31 December 2002 – – – –
The deferred tax balances at 31 December 2002 arose as follows:
Amount Amount not Amount Amount not
provided provided provided provided
2002 2002 2001 2001
£’000 £’000 £’000 £’000
Group
Capitalised interest 3,761 – 2,342 –
Accelerated capital allowances 5,189 – 2,492 –
Intra-group profits taxed (8,434) – (3,069) –
T rading tax losses (516) (7,561) (1,765) (45)
Potential tax on property valuation surplus – 47,481 – 26,100
At 31 December 2002 – 39,920 – 26,055
Company
The Company had no liability to deferred taxation at 31 December 2002 or at the previous year end. Page 44 Accounts
The UNITE Group plc 
www.unite-group.co.uk
NOTES CONTINUED
14. CALLED UP SHARE CAPITAL
2002 2001
£’000 £’000
Authorised
155,000,000 (2001: 120,000,000) ordinary shares of 25p each 38,750 30,000
Number of
shares £’000
Allotted, called up and fully paid
At beginning of year 67,957,895 16,989
Acquisition of Peabody UNITE plc 6,783,945 1,696
Shares issued to raise funds 32,857,143 8,214
Share options exercised and scrip dividends 5,789 2
At end of year 107,604,772 26,901
On 16 August 2002, the Company increased its authorised share capital by £8,750,000 to £38,750,000 divided into 155,000,000
ordinary shares of 25p each by the creation of an additional 35,000,000 ordinary shares of 25p each.
Directors’ shareholdings details are disclosed on page 20.
15. RESERVES
Share 
premium Merger Revaluation Profit and
account reserve reserve loss account
£’000 £’000 £’000 £’000
Group
At beginning of year 71,685 40,177 73,588 4,666
Prior year adjustment (see note 1) – – 7,928 (12,975)
At beginning of year – as restated 71,685 40,177 81,516 (8,309)
Premium on issue of ordinary shares 67,026 – – –
Retained loss for year – – – (28,320)
Revaluation in year:
Group investments and development property – – 59,732 –
Joint venture undertaking – – 221 –
Unrealised loss on trading with joint venture – – (33) –
Expenses of share issue (2,478) – – –
Realised on disposal of investment property – – (514) 514
T ransfer in respect of revaluation gains relating to 
amortised goodwill – – (5,268) 5,268
At end of year 136,233 40,177 135,654 (30,847)
Share Investment 
premium Merger revaluation Profit and 
account reserve reserve loss account
£’000 £’000 £’000 £’000
Company
At beginning of year 71,685 40,177 74,800 3,454
Prior year adjustment (see note 1) – – (5,047) –
At beginning of year – as restated 71,685 40,177 69,753 3,454
Premium on issue of ordinary shares 67,026 – – –
Retained profit for year – – – 69
Revaluation in year – – 31,531 –
Expenses of share issue (2,478) – – –
At end of year 136,233 40,177 101,284 3,523 Page 45 Accounts
The UNITE Group plc 
www.unite-group.co.uk
16. COMMITMENTS
Annual commitments under non-cancellable operating leases are as follows:
2002 2001
Land and Land and
buildings Other buildings Other
£’000 £’000 £’000 £’000
Operating leases which expire:
Within one year 46 16 44 71
Between one and two years 100 41 46 16
In the second to fifth years inclusive 472 157 472 100
Over five years 381 7 381 -
999 221 943 187
17. CONTINGENT LIABILITIES
The Group had no contingent liabilities at 31 December 2002.
18. LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION
2002 2001
£’000 £’000
Loss on ordinary activities before taxation is stated after charging/(crediting):
Auditors’ remuneration 145 50
Fees paid to the auditor in respect of other services 106 327
Depreciation and other amounts written off tangible fixed assets 1,694 949
Profit on disposal of fixed assets (465) (238)
Amortisation of goodwill 5,472 75
Hire of plant and machinery – including rentals payable under operating leases 299 294
Hire of other assets – including rentals payable under operating leases 1,024 1,175
£120,000 was paid to the auditors in respect of equity issue costs (2001: £186,000). This amount has been set off against the 
share premium account. £376,000 was paid to the auditors for audit and tax advice in respect of the securitised bond issue and 
this amount is included in issue costs netted off debt. In 2001 £238,000 was paid to the auditors in respect of acquisition costs 
and this amount is included in the cost of investment.
19. EXCEPTIONAL ITEMS
The exceptional cost of £1,303,000 comprises bid costs relating to the Sheffield PPP project incurred since the Group’ s
appointment as Preferred Bidder . As this project is no longer going to proceed, these costs have been expensed to the profit 
and loss account in accordance with the Group’ s accounting policy , but were unusually large due to the size and complexity 
of the proposed project.
The exceptional costs of £9,744,000 comprise costs associated with the early termination of loans and related hedging
instruments as a result of the securitised bond issue. Page 46 Accounts
The UNITE Group plc 
www.unite-group.co.uk
NOTES CONTINUED
20. REMUNERATION OF DIRECTORS
2002 2001
£’000 £’000
Directors’ emoluments 1,144 1,143
The total emoluments of the highest paid Director was £397,000 (2001: £433,000).
The aggregate amount paid to the company money purchase pension scheme in respect of the directors for the year was £28,200
(2001: £20,700). The number of directors to whom retirement benefits are accruing under the scheme is 2 (2001: 2 directors).
Full details of Directors’ remuneration are disclosed on pages 27.
21. STAFF NUMBERS AND COSTS
The average number of persons employed by the Group (including Directors) during the year , analysed by category , was as follows:
Number of employees
2002 2001
Managerial and administration 323 282
Site operatives 34 27
357 309
The aggregate payroll costs of these persons were as follows:
2002 2001
£’000 £’000
Wages and salaries 12,613 8,669
Social security costs 1,258 981
Pension costs 310 242
14,181 9,892
22. INTEREST RECEIVABLE
2002 2001
£’000 £’000
Interest on bank deposits 397 374
Interest on loans to companies under common influence 184 186
581 560 Page 47 Accounts
The UNITE Group plc 
www.unite-group.co.uk
23. INTEREST P A Y ABLE AND SIMILAR CHARGES
2002 2001
£’000 £’000
Amounts payable on bank loans and overdrafts
On loans not wholly repayable within five years 231 4,189
On loans wholly repayable within five years 10,866 4,284
On bank overdrafts 82 59
Amounts payable on other loans
On asset backed bonds 13,527 –
On convertible unsecured loan stock 466 609
On unsecured loan notes 285 231
Finance charges payable in respect of finance lease and hire purchase contracts 102 7
25,559 9,379
T ransfer to cost of investment and development properties (7,411) (2,178)
18,148 7,201
Share of interest payable by joint venture 211 1,167
18,359 8,368
24. TAXATION
(a) Analysis of charge in the year
There was no liabilty to taxation in respect of either year .
(b) Factors affecting the tax charge for the year
The tax credit on the loss on ordinary activities has been reduced from the amount that would arise from applying the prevailing
corporation tax rate to the Group’ s losses, as follows:
2002 2001
£’000 £’000
UK corporation tax at 30% (7,690) (868)
Permanently disallowable expenditure 198 281
Consolidation adjustments not deductible for tax 4,772 721
Non-taxable profits and capitalised expenditure deductible (1,419) (621)
Excess tax losses not utilised in year 6,602 753
Excess of capital allowances over depreciation (2,463) (1,119)
T otal corporation tax and similar taxes charged/(credited) in the profit and loss account – (853)
A proportion of the profits arising in joint ventures has been distributed to Group companies, in whose accounts the related tax
charges have been provided. Page 48 Accounts
The UNITE Group plc 
www.unite-group.co.uk
NOTES CONTINUED
24. TAXATION (continued)
(c) Factors that may affect future tax charges
Deferred taxation balances arising in the Group are set out in detail in note 13.
No deferred tax asset is recognised in respect of intra-group profits due to the significant tax losses within the group and therefore
the unavailability of taxable profits against which the asset can be reversed.
The deferred tax in respect of property revaluation surpluses has not been provided in accordance with FRS19.
25. DIVIDENDS
2002 2001
£’000 £’000
Equity
Interim dividend paid of 0.83p (2001: 0.83p) per 25p ordinary share 897 585
Final dividend proposed of 1.67p (2001: 1.67p) per 25p ordinary share 1,788 1,240
2,685 1,825
26. EARNINGS PER SHARE
Basic earnings per share has been calculated using a weighted average number of shares of 85,398,488 (2001: 56,243,133) as
follows:
Earnings EPS
After goodwill Before goodwill After goodwill Before goodwill
amortisation and amortisation and amortisation and amortisation and
deferred tax deferred tax deferred tax deferred tax
£’000 £’000 pence pence
Y ear ended 31 December 2002
Basic earnings (25,635) (20,163) (30.02) (23.61)
Bond issue – loan cancellation costs 9,744 9,744 11.41 11.41
PPP bid costs written off 1,303 1,303 1.53 1.53
Prior to exceptional costs (14,588) (9,116) (17.08) (10.67)
Y ear end 31 December 2001
Basic earnings (2,040) (2,818) (3.63) (5.01)
The share options and convertible loan stock in issue during 2001 and 2002 do not give rise to any dilutive potential ordinary shares
and therefore the basic and diluted loss per share are the same. Page 49 Accounts
The UNITE Group plc 
www.unite-group.co.uk
27. NET ASSET VALUE ADDED PER SHARE
Net asset value added per share of 40.1p (2001: 63.7p) has been calculated on total gains and losses recognised in the year of
£34,285,000 (2001: £35,830,000) divided by the average number of ordinary shares in issue during the year of 85,398,488 (2001:
56,243,133).
28. RECONCILIATION OF OPERATING PROFIT TO OPERATING CASH FLOWS
Restated
2002 2001
£’000 £’000
Operating profit 1,127 3,408
Depreciation and amortisation charges 7,166 1,167
Decrease in stocks 1,532 2,124
Increase in debtors (805) (19,417)
(Decrease)/increase in creditors and provisions (3,033) 3,912
Loss on sale of fixed assets – 25
Net cash inflow/(outflow) from operating activities 5,987 (8,781)
29. ANAL YSIS OF CASH FLOWS
Restated
2002 2001
£’000 £’000
Returns on investment and servicing of finance
Interest received 581 560
Interest paid (21,162) (8,885)
Exceptional interest paid (7,742) –
Net cash flow from returns on investment and servicing of finance (28,323) (8,325)
Acquisitions and disposals
Purchase of subsidiary undertaking (1,541) (4,017)
Cash balances acquired with subsidiary 331 397
Net cash flow from acquisitions and disposals (1,210) (3,620) 
Capital expenditure and financial investments
Purchase of tangible fixed assets (196,147) (86,088)
Disposal of tangible fixed assets 2,960 3,063
Purchase of own shares – (50)
Net cash flow from capital expenditure and financial investments (193,187) (83,075)
Financing
Issue of share capital 55,024 38,188
Movement on bank and other loans 171,088 68,856
Movement on loan notes (4,496) –
Finance lease and hire purchase contracts 1,522 (345)
Net cash flow from financing 223,138 106,699 Page 50 Accounts
The UNITE Group plc 
www.unite-group.co.uk
NOTES CONTINUED
30. ANAL YSIS OF NET DEBT
At 1 January Acquired with At 31 December
2002 Cash flow subsidiary Other changes 2002
£’000 £’000 £’000 £’000 £’000
Cash at bank and in hand 5,984 4,274 – – 10,258
Financing
Debt due within one year (41,909) (31,284) – (414) (73,607)
Debt due after one year (151,585) (135,308) (54,807) (2,625) (344,325)
Finance lease and hire purchase contracts (791) (1,522) – – (2,313)
(168,114) (54,807)
Net debt at end of year (188,301) (163,840) (54,807) (3,039) (409,987)
31. PURCHASE OF JOINT VENTURE
On 13 March 2002 the Group purchased the 50% interest held by its joint venture partner for a consideration of £16.2m, £14.6m
satisfied by the issue of shares with the balance in cash. In addition a further £4.8m due by Peabody UNITE to the joint venture
partner was capitalised immediately prior to completion and settled by the issue of shares.
Fair value
Book value adjustments Fair value
£’000 £’000 £’000
T angible fixed assets 103,904 312
a
104,216
Stocks and work in progress 767 130
a
897
Debtors 2,125 – 2,125
Cash 331 – 331
Creditors (25,726) (1,346)
b
(27,072)
Bank loans (54,807) – (54,807)
26,594 (904) 25,690
Purchase of 50% share of net assets 12,845
Settlement of joint venture indebtedness to Peabody T rust 4,836
Goodwill 3,296
20,977
Satisfied by:
Cash (including costs of acquisition, £746,899) 1,541
Shares allotted 19,436
20,977
The fair value adjustments arose as follows:
a) Revaluation of the portfolio of properties to their open market value, and developments in progress to valuation at acquisition, 
by Timothy Butler FRICS, the Head of Group Valuation.
b) A valuation of the cost of breaking Peabody UNITE plc’ s swaps and fixed rate loans as at the completion date.
In accordance with FRS 2: Accounting for Subsidiary Undertakings, and in order to give a true and fair view, the premium arising 
on acquisition has been calculated as the difference at the date of purchase between the fair value of the consideration given 
and the fair value of the identifiable assets and liabilities attributable to the interest purchased. This represents a departure from 
the Companies Act method which would result in the Group’ s share of Peabody UNITE plc’ s retained profit and loss and revaluation
reserves, during the period that it was a joint venture, being recharacterised as goodwill. The effect of this departure is to increase the
revaluation reserve by £13.6m, to decrease retained profits by £0.1m, and to decrease purchased goodwill by £13.5m. Page 51 Accounts
The UNITE Group plc 
www.unite-group.co.uk
32. PENSION SCHEME
The Group operates a defined contribution pension scheme. The pension cost charge for the period represents contributions
payable by the Group to the scheme and amounted to £310,000 (2001: £242,000). Contributions amounting to £2,037 (2001:
£24,475) were payable to the scheme at 31 December 2002 and are included in creditors.
33. RELATED P ARTY DISCLOSURES
PEABODY UNITE PLC
In the period prior to 13 March 2002, when the Group took full control of its London joint venture, the Group made sales to its joint
venture undertaking, Peabody UNITE plc, totalling £3,034,218 (2001: £18,049,000) for construction services. 50% of these sales
have been recognised in the consolidated profit and loss account.
THE BRISTOL HOTEL GROUP PLC
Mr N Porter and Mr D Ransome are Directors of The Bristol Hotel Group plc and together own 75% of its issued share capital.
At the year-end, £1,950,000 (2001: £2,091,374) was owed by The Bristol Hotel Group plc. Interest of £183,514 (2001: £186,000)
was charged during the year . 
TARGET CONSUL TING LIMITED (FORMERL Y THE DAVID NAISH P ARTNERSHIP)
During the year , David Naish, a Director of the Company , was a partner of T arget Consulting Limited.
During the year , fees of £50,890 (2001: £50,000) were paid to T arget Consulting Limited for taxation advice and compliance services.
All the above transactions were on normal commercial terms.
34. FINANCIAL INSTRUMENTS AND DERIVATIVES
The Group holds or issues financial instruments for two main purposes:
• T o finance the development and subsequent long term retention of investment properties;
• T o manage the interest rate risks arising from its operations and from its sources of finance.
In addition, various financial instruments – such as trade debtors, trade creditors, accruals and prepayments – arise directly from
the Group’ s operations. The majority of financial instruments are of sterling denominations. The Group does not trade in financial
instruments or derivatives.
The Group finances its development and investment activities through a mixture of retained earnings, borrowings and fresh issues
of equity . The Group borrows from major UK clearing banks and building societies, as well as specialist development funding
banks, at both fixed and floating rates of interest, using derivatives where appropriate to generate the desired effective interest 
rate basis. The derivatives used for this purpose are principally interest rate swaps.
The main risks arising from the Group’ s financial instruments are interest rate risk and market price risk, and to a lesser extent,
currency risk. The Board reviews and agrees policies for managing each of these risks and they are summarised below. 
INTEREST RATE RISK
The Group’ s exposure to interest rate fluctuations on its borrowings is managed by using interest rate swaps. The Group’ s policy 
is separated into three areas:
Development finance
All of the Group’ s development borrowing at 31 December 2002 was held at floating rate reflecting the Group’ s view of the stability
of the current interest rate environment and the relatively low cost of adverse interest rate fluctuations in the context of the total
development cost. The Group continues to review the appropriateness of this policy on a regular basis.  Page 52 Accounts
The UNITE Group plc 
www.unite-group.co.uk
NOTES CONTINUED
34. FINANCIAL INSTRUMENTS AND DERIVATIVES (continued)
Refinancing risk
The Group’ s principal exposure to interest rate fluctuations during development relates to movements in longer term interest rates,
which affect the quantum of debt the property income is capable of servicing at completion. Significant adverse movements
undermine the Group’ s capital recycling strategy .
The Group increasingly manages this risk via a programme of pre-hedging, through the use of forward starting interest rate swaps.
At 31 December 2002 approximately £88.2m of the Group’ s anticipated refinancing was hedged for an average term of 21.7 years.
No such pre-hedging was in place at 31 December 2001.
Medium and long term finance
The Group holds its medium and long term bank finance under floating rate arrangements. The majority of this debt is hedged
through the use of interest rate swap agreements. During 2002, the Group’ s policy has been to hedge in excess of 80% of the
Group’ s exposure for terms of approximately 20 years. Mandatory break options are included within these arrangements to
minimise cost. The Group’ s bond issuance attracts a fixed rate of interest over an average life of 19.4 years.
At 31 December 2002, after taking account of interest rate swaps, 92.4% (2001: 82.9%) of the Group’ s medium and long term
borrowing was held at fixed rates, the increase year-on-year reflecting the issuance of £273.5m of long dated fixed rate bonds.
The Group’ s long term finance (after taking derivatives into account) is fixed at an average rate of 6.63% (2001: 7.47%) over an
average unexpired term of 21.5 years (2001: 9.3 years), again reflecting the Group’ s bond issuance.
LIQUIDITY RISK
With respect to its development activities, the Directors have adopted a policy whereby the Group injects the full amount of equity
required for each development before drawing debt under associated facilities. In this way , the funding requirements of each
scheme are substantially “ring fenced” and secured at the outset of works.
The Group’ s medium term banking facilities are fully revolving, allowing the Group to apply its cash surpluses in the temporary
reduction of its debt obligations. 
MARKET PRICE RISK
The Group’ s primary market price risk is interest rate exposure. It monitors this exposure through a process of sensitivity analysis,
estimating the effect on operating cash flow over various periods of a range of possible changes in interest rates.
The Group’ s policy is to accept a degree of interest rate risk, provided the effects of the various potential changes in rates remain
with certain prescribed parameters.
CURRENCY RISK
The Group carries on a small amount of trade in US Dollars and Euros. The Directors do not consider the volumes of this trade
significant enough to warrant a formal foreign exchange policy . T o the extent that this trade increases in the future, the Directors 
will implement an appropriate policy .
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES
The fair value of the Group’ s financial assets does not differ from the book value. The fair value of the Group’ s financial liabilities is
disclosed in note 12 to the accounts.
GAINS AND LOSSES ON HEDGES
At 31 December 2002, the Group had unrecognised losses on hedges of £5,954,000 (2001: losses of £3,916,000). The future
recognition of these losses is dependent upon movement in prevailing interest rates, which the Group has not sought to estimate. Page 53 Accounts
The UNITE Group plc 
www.unite-group.co.uk
NOTICE IS HEREBY GIVEN that the Annual General Meeting of the Company will be held at The Herbert Morrison Room, London
Marriott Hotel, County Hall, Westminster Bridge Road, London SE1 7PB at 9.30 am on 9 May 2003 for the purpose of considering
and, if thought fit, passing the following resolutions which, in the case of resolutions numbered 1 to 7 (inclusive) will be proposed as
ordinary resolutions and, in the case of resolutions numbered 8 and 9, will be proposed as special resolutions.
ORDINARY BUSINESS
1. T o receive and adopt the Directors’ report and financial statements for the year ended 31 December 2002.
2. T o confirm and declare a final dividend on the ordinary shares for the year ended 31 December 2002 of 1.67p per ordinary share
payable to shareholders on the register at the close of business on 11 April 2003.
3. T o approve the Directors’ Remuneration Report for the year ended 31 December 2002.
4. T o re-appoint Nigel Patrick Hall as a Director of the Company .
5. T o re-appoint David Peter Ransome as a Director of the Company .
6. T o re-appoint Geoffrey Keggen Maddrell as a Director of the Company .
7. T o re-appoint KPMG Audit Plc as auditors in accordance with Section 384 of the Companies Act 1985 to hold office until the
conclusion of the next general meeting of the Company at which accounts are laid and to authorise the Directors to determine
their remuneration.
SPECIAL BUSINESS
8. THAT the articles of association of the Company be and are hereby amended by deleting Article 104(A) and replacing it with a
new Article 104(A) as follows:
“The Directors (other than a Managing Director or an Executive Director appointed under these Articles) shall be paid out of the
funds of the Company by way of remuneration for their services as Directors such fees, not exceeding in aggregate £200,000
per annum (or such larger sum as the Company may , by ordinary resolution, determine), as the Directors may decide to be
divided among them in such proportion and manner as they may agree.  Any fees payable under this Article shall be distinct 
from any remuneration or other amounts payable to a Director under other provisions of these Articles and shall accrue from 
day to day .”
9. THAT , in accordance with Article 70 of the Company’ s Articles of Association and the Companies Act 1985, the Company is
generally and unconditionally authorised to make market purchases (within the meaning of Section 163 of the Companies Act
1985) of ordinary shares of 25 pence each in the capital of the Company (“ordinary shares”) on such terms and in such manner
as the Directors of the Company may determine provided that:
(a) the maximum number of ordinary shares which may be purchased pursuant to this authority is 10,760,477;
(b) the maximum price which may be paid for any ordinary share purchased pursuant to this authority is an amount equal to 105
per cent of the average of the middle market prices shown in the quotations for the Company’ s ordinary shares in the London
Stock Exchange Daily Official List for the five business days immediately preceding the day on which that ordinary share is
purchased and the minimum price which may be paid for any such ordinary share shall be the nominal value of that share (in
each case exclusive of expenses payable by the Company in connection with the purchase);  and
(c) the authority hereby conferred shall expire on 9 November , 2004, or if earlier , at the conclusion of the Annual General Meeting
of the Company to be held in 2004 unless renewed before that time, but the Company may make a contract to purchase
ordinary shares under this authority before its expiry which will or may be executed wholly or partly after the expiry of this
authority and may make a purchase of ordinary shares in pursuance of any such contract.
By order of the board
A D Reid
Secretary
Dated 2 April 2003
REGISTERED OFFICE:
Lawrence House
Lower Bristol Road
Bath BA2 9ET
NOTICE OF ANNUAL GENERAL MEETING Page 54 Accounts
The UNITE Group plc 
www.unite-group.co.uk
NOTES
1. A member entitled to attend and vote at the meeting is entitled to appoint one or more proxies to attend and, on a poll, vote on
his/her behalf. A proxy need not be a member of the Company . A form of proxy is enclosed with this notice for use at the meeting.
2. T o be valid, the instrument appointing a proxy (together with the power of attorney or other authority (if any), under which it is
signed, or a notarially certified copy of such power or authority), must be completed in accordance with the instructions set out
on the form and deposited at or posted to the office of the registrars of the Company , Computershare Investor Services PLC,
The Pavilions, Bridgewater Road, Bristol BS13 3FB so as to be received not later than 9.30 a.m. on 7 May 2003. Completion
and return of the form of proxy will not preclude shareholders from attending or voting at the meeting in person.
3. Pursuant to regulation 34 of the Uncertified Securities Regulations 1995, members will only be entitled to attend and vote at the
meeting if they are registered on the Company’ s register of members 48 hours before the time appointed for the meeting, or any
adjournment thereof.
4. Copies of the Directors’ service contracts with the Company are available at the registered office of the Company for inspection
during usual business hours on any weekday from the date of this notice until the date of the meeting and also on the day of the
meeting at The Herbert Morrison Room, London Marriott Hotel, County Hall, Westminster Bridge Road, London SE1 7PB from
9.15 a.m. until the conclusion of the meeting.
NOTICE OF ANNUAL GENERAL MEETING CONTINUED Page 55 Company information
The UNITE Group plc 
www.unite-group.co.uk
COMPANY
INFORMATION
REGISTERED OFFICE
Lawrence House
Lower Bristol Road
Bath BA2 9ET
REGISTERED NUMBER: 
3199160
COMPANY SECRETARY
Andrew D Reid
AUDITORS
KPMG Audit Plc
PO Box 695
8 Salisbury Square
London EC4Y 8BB
FINANCIAL ADVISER AND BROKER
UBS Ltd
1 Finsbury Square
London EC2M 2PP
REGISTRARS
Computershare Investor Services plc
PO Box 82
The Pavillions
Bridgwater Road
Bristol BS99 7NH
www.unite-group.co.uk 1 Londonderry House, Birmingham 
2T rinity Student Village, Preston
3 Central Point, Plymouth
4 Farndale Court, London
5 Sherbourne House, Coventry
6 College Court, Stoke-on-T rent
7 The Fire Station, Aberdeen
8Downsview House, Swindon
9 Park View , Manchester
10 Magnet Court, Newcastle
11 Harry French Halls, Loughborough
12 Firth Point, Huddersfield
13 St Peters Court, Nottingham
14 Camden Court, Newcastle
15 Exchange Works, Sheffield
16 Ewen Henderson Court, London
17 Spring Gardens, Aberdeen
23
67
5
12 13 10 11
15 16
14
Designed by navyblue. Photography by Lee Mawdsley 
(except page 03, 04, 06,1 2,14,1 8 and inside back cover).
Printed by Fulmar Print.
9
1
4
8
17
AS THE UK’S LEADING SPECIALIST PROVIDER OF
AFFORDABLE, HIGH QUALITY ACCOMMODA TION
SERVICES FOR STUDENTS AND NHS KEY
WORKERS, UNITE IS MEETING A NEED THA T IS
GREA TER THAN EVER. WE OFFER AN UNRIVALLED
RANGE OF ACCOMMODA TION AND CUSTOMER
SUPPORT SERVICES, TOGETHER WITH PROJECT
MANAGEMENT FOR FAST -TRACK MODULAR
MANUFACTURING TECHNIQUES AND DESIGN 
& BUILD. WORKING IN PARTNERSHIP WITH 
OUR PUBLIC SECTOR CLIENTS, WE DELIVER
INTEGRA TED SOLUTIONS TO THEIR INDIVIDUAL
REQUIREMENTS.
“UNITE IS TRANSFORMING THE MARKET FOR
AFFORDABLE, HIGH QUALITY ACCOMMODA TION
FOR STUDENTS AND NHS KEY WORKERS
ACROSS THE UK.”
SECURED BED SP ACES 
26,346
+51% increase
NET ASSETS 
£308.1m
+52% increase
RENT AL INCOME*
*including Peabody UNITE as if it had
been consolidated for the full year 
£32.4m
+72% increase
CONTENTS
01 Overview and highlights
02 Group at a glance
04 Chairman’s statement
06 Chief Executive Officer’s review
10 Love living UNITE style
12 Our community
14 Chief Financial Officer’s report
16 Market update
18 Board of directors
20 Directors’ report
23 Corporate governance
25 Directors’ remuneration report
28 Independent auditors’ report
29 Consolidated balance sheet
30 Consolidated profit and loss account
30 Consolidated statement of total 
recognised gains and losses
31 Company balance sheet
32 Consolidated cash flow statement
32 Reconciliation of net cash flow to 
movement in net debt
33 Note of consolidated historical cost 
profits and losses
33 Reconciliations of movements in 
shareholders’ funds
34 Notes to the financial statements
53 Notice of the Annual General Meeting
55 Company information
56 New UNITE accommodation LIVE THE WHOLE
STUDENT
EXPERIENCE
The UNITE Group plc Annual Report & Accounts 2002
The UNITE Group plc
The T ower Building
T welfth Floor
11 Y ork Road
London SE1 7NX
T 020 7902 5050
F 020 7902 5051
info@unite-group.co.uk
www.unite-group.co.uk
Bristol  London  Stroud  Edinburgh  Manchester
LIVE THE WHOLE STUDENT EXPERIENCE The UNITE Group plc Annual Report & Accounts 2002 Page 56 New UNITE accomodation
The UNITE Group plc 
www.unite-group.co.uk
ABERDEEN
Spring Gardens
The Fire Station
BIRMINGHAM
Londonderry House
COVENTRY
Sherbourne House
HUDDERSFIELD
Firth Point
LONDON
Ewen Henderson Court
Farndale Court
LOUGHBOROUGH
Harry French Halls
MANCHESTER
Park View
NEWCASTLE 
Camden Court
Magnet Court
NOTTINGHAM 
St Peter’ s Court
PLYMOUTH
Central Point
PRESTON
Trinity Student Village
SHEFFIELD
Exchange Works
STOKE-ON-TRENT
College Court
SWINDON
Downsview House
UNITE
ACCOMMODATION
OPENED IN 2002