Stuart Dean is to join Leonard Cheshire as its new chief financial officer, two months after the Charity Commission launched an investigation into the disability charity’s “challenging financial situation”.
Dean, who starts at the charity in September, joins from England’s health and social care regulator the Care Quality Commission, where he spent eight years designing and implementing a new market failure regime as director of corporate providers and market oversight.
The appointment comes after the Charity Commission opened a statutory inquiry, which is said to aim at supporting the charity.
Leonard Cheshire spent more money than it raised in each of the past four years and admitted in its most recent accounts that, in a “severe but plausible” scenario, it could go bust within a few years.
Leonard Cheshire said this was a critical time for the charity, following successful measures to strengthen its financial position, including through reducing its operating costs and increasing income.
“Good progress has already been made putting in place the foundations for sustainable growth as part of a three-year turnaround plan – with delivery of high quality social care placed at the heart of the charity’s ambitions,” it said.
The charity said that after a transition period, Dean would succeed Nigel Armitt, who has been interim CFO at the charity since November 2021.
Armitt’s LinkedIn profile describes him as a “company doctor saving the ‘patient’ to survive and succeed”.
Achievements described on Armitt’s profile during his time at Leonard Cheshire include doubling the charity’s bank facility, delivering cost reductions and an increase in income, instituting a “major change and restructure programme”, improving reporting, the “quality of service” of the finance team and systems and processes and work with external advisers to restructure the organisation.
Ruth Owen, chief executive of Leonard Cheshire, said: “I’m delighted to have someone of Stuart’s calibre and knowledge of our sector joining my executive team.
“Positive results are being seen as we strengthen our overall financial position, following difficult but necessary decisions at the start of 2022.
“Stuart’s track record speaks for itself, and he will play a key role driving forward further financial improvements and modernisation as we look to achieve our longer-term ambitions.”
Leaders restructured the organisation in 2022 in a bid to save £18m a year, laying off hundreds of staff. In the same year, it also served eviction notices to some residents in its care homes, citing “chronic underfunding” from government contracts.
Dean said: “I’m delighted to be joining Ruth and her wider executive team at this exciting time. Financial turnaround is being strongly underpinned, and I look forward to being part of repositioning the charity to ensure its ongoing impact and effectiveness while further strengthening its sustainability.”