NEWCASTLE University said its annual turnover had smashed all North-East records by reaching £276m.

The annual accounts, which have just been published, show that the university's turnover for the academic year ending July 31 was £276.1m, almost 11 per cent higher than the previous year's figure of £249.7m.

This figure is a record for the North-East, which for the first time has a quarter of a billion pound university, supporting the regional economy through education and research.

Most of the increase is accounted for by funding council grants.

These rose from £89.5m to £105.6m, reflecting strong growth in student numbers.

The university also won £55.5m worth of research grants and contracts and collected £46.4m in academic fees and support grants from UK and international students.

Universities are not-for-profit organisations which measure their success by the grants and fees they attract for teaching and research.

The vice-chancellor, Professor Christopher Edwards, said: "The financial performance of a university is an excellent indicator of its success."