Douglas in hot seat at Advtech

PRIVATE education conglomerate Advtech, owner of the Crawford College, Trinity House and Varsity College brands, has appointed “insider” Roy Douglas as its new CEO.

CAPE TOWN — Private education conglomerate Advtech, owner of the Crawford College, Trinity House and Varsity College brands, has appointed “insider” Roy Douglas as its new CEO, replacing long-serving Frank Thompson.

Mr Thompson was brought back in an acting capacity in March, following the resignation of Leslie Maasdorp after only four months in the hot seat.

Mr Douglas’s appointment yesterday was not widely expected. Talk was that Advtech was looking outside the company for its new CEO. There were even suggestions that Mr Thompson — who reinforced his reputation vastly by fending off a hostile bid by rival Curro Holdings earlier this year — might reconsider his retirement and stay on as CEO.

Mr Douglas joined Advtech in 2012, and was charged with the turnaround of the tertiary education division. He was not involved in formulating the group’s strategy only, but also had extensive corporate experience across a variety of sectors.

This could serve Advtech well in the years ahead, with the company recently finalising plans to raise R850m in fresh capital in a rights issue. The fundraising exercise will underpin efforts to grow Advtech’s private education brands more aggressively.

Mr Douglas has held senior positions at packaging group Nampak and consumer brands giant Unilever, and was involved in the listing of House of Fraser on the London Stock Exchange, as well as in a last-ditch effort to rescue glass business AG Industries in 2009.

Alistair Lea, a portfolio manager at Coronation Fund Managers, said the appointment ensured continuity at Advetch. Coronation is the biggest shareholder in Advtech.

“They might have risked opting for a younger CEO from outside the company. But Mr Douglas has been involved in the business for three years and brings a steady hand,” he said.

Mr Thompson stressed that Mr Douglas played a pivotal role in Advtech’s accelerating growth and expansion.

Mr Douglas said the company had many exciting opportunities to explore. Advtech has been on an acquisition spree in the past 18 months, buying smaller private-school firms such as Maravest, Centurus and Summit. It has also indicated a willingness to contest the lowerfee private-school market, where Curro has a lucrative niche.