Steve Douglas steps down from consultancy as part of COVID-19 cost-saving measures

News08 Apr 2020Luke Cross

The chief executive of Aquila Services Group has stepped down as part of the publicly listed consultancy group’s cost-saving measures in response to pressures brought about by COVID-19.

Steve Douglas has stepped down from Aquila as part of the company’s response to coronavirus

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Steve Douglas steps down as boss of Altair’s parent company as part of COVID-19 cost-saving measures #ukhousing #coronavirus

The chief executive of Aquila Services Group has stepped down as part of the publicly listed consultancy group’s cost-saving measures in response to pressures brought about by #coronavirus #ukhousing

Steve Douglas leaves his role as group chief executive of Aquila, which is the parent company of housing consultancy Altair – where he began working in 2011 – and treasury management firm Aquila Treasury and Finance Solutions (ATFS).

Mr Douglas, former chief executive of the Housing Corporation and current chair of One Housing Group, said: “It has been a pleasure working with our many clients over the years.

“I’m proud to have led Aquila during our successful growth, and I know that our incredibly professional and committed team of consultants will continue to provide the quality of services that our clients have come to expect of us.

“I wish the Aquila Group all the best for the future, particularly during this tough time for us all.”

The group said in a statement that, similar to many businesses at this time, Aquila needs to reduce costs to match projected revenues and preserve reserves given the uncertainty over when ‘normality’ might return.

It said its leadership team has put in place resources and strategies for the coming months to ensure commitments to clients can continue within the necessary restrictions required to halt the spread of COVID-19.

In an update to the stock markets yesterday (7 April 2020), Aquila’s chair Derek Joseph added that while the company remains profitable and cash generative at the 2019/20 financial year-end, the forecast year-on-year growth will “now not be achieved”.

It said: “The necessary measures implemented by government to mitigate the effects of the COVID-19 virus are having an impact on the ability of the group to progress existing contracts and the willingness of existing and potential clients to make firm commitments in this time of uncertainty.”

Fiona Underwood, chief executive of Altair and a founding director alongside Mr Douglas, added: “It has been a pleasure working with Steve over the past nine-and-a-half years building the Altair brand into what it is today, a leading force and influencer in the housing sector.”

Mr Joseph also expressed gratitude to Mr Douglas, adding: “Steve is a leader in the affordable housing sector, particularly on increasing diversity, and I am sure he will continue to be a major influence.”

Mr Joseph, group chair and founder of Altair, will temporarily assume the responsibilities of an executive chair on a part-time basis “until the crisis has abated and the group can plan how best to return to a growth path”.

Meanwhile, as much of the group CEO’s responsibilities “as is practical” will be devolved to the subsidiaries’ boards.

Growth strategy reviewed

The group said that Mr Douglas’s departure forms part of a number of cost reduction measures being put in place “which have only a marginal impact on ongoing fee-earning capacity but relate to the future expansion plans of the group”.

Aquila posted unaudited figures to the markets in November 2019, reporting £3.9m in revenue and operating profit of £245,000, with a cash balance of £1.1m, in the six months to 30 September 2019.

Its market update yesterday said there had been a direct effect on the final quarter of the financial year ended 31 March 2020 and it has decided not to pay a dividend.

It has also reviewed its business streams for the current financial year.

The aim is to achieve “at least a break-even position for the financial year now beginning and to maintain positive cash balances throughout the period”.

Mr Joseph added: “With an uncertain timetable of normal working the critical factors are both to ensure that sufficient cash flow is available to ensure continued trading whilst at the same time maintaining as much of the trading capacity as we can afford.

“Some of the government’s initiatives will assist at the margins and we plan to rely on our own resources.”

The group now expects to publish its results within the standard four months for the financial year ended 31 March 2020, “at which time the position may be clearer and we can provide an update on both trading and business strategy”.

Aquila listed on the stock exchange in 2015 through a £6.5m reverse takeover of General Industries Plc (GI) by Altair, which had been trading for five years at the time.

It followed that with the acquisition of Murja, which was renamed to ATFS.

In 2018, the group also invested in 3C Consultants, one of the largest providers of IT consultancy to the UK social housing sector, and AssetCore, a platform for storing and managing loan security information with links to lenders, legal advisors, and security trustees.

It then bought Oaks Consultancy – a specialist consultancy in sport, education and the third sector – in June last year for a capped consideration of £1.7m.