City & Guilds’ parent charity has announced the sale of its commercial awarding organisation and skills training activities, to “secure its long-term future”.
They will be acquired for an undisclosed sum by PeopleCert, a Greek-owned global certification company, at the end of October.
All City & Guilds awarding, assessment and training businesses will transfer via the deal to PeopleCert, trading under the name City and Guilds Limited.
The City & Guilds of London Institute (CGLI) will continue to operate under the City & Guilds Foundation name, which was established in 2015 to promote CGLI’s charitable purposes.
The charity, founded in 1878, will retain its authority to grant CGLI fellowships and continue to operate its Princess Royal Training Awards.
The acquisition will not result in any redundancies, but around 1,400 staff will be transferred out of CGLI, with 10 to 15 employees remaining.
CGLI expects £180 to £200m assets post-sale and will largely rely on the annual earnings from its reserves.
Its most recent accounts for the 2023/24 financial year reported a net positive income of £3.6m, following a £9.6m loss during the previous reporting period, amid “tough” operating conditions.
Planning for new CEO and strategy
Trustees are expected to be appointed shortly, with a search for a permanent chief executive to replace Mike Adamson, the current CEO, due to start in the new year.
The charity is yet to decide on its strategy, including whether it will be a think-tank or research institute, but leaders told Civil Society it will continue to focus on skills and employment.
The charity said the transaction has been made in order for it to “grow and scale up”, which it said would “unlock new and exciting opportunities”.
Ann Limb, Chair of CGLI, said: “This landmark transaction marks the start of another bold new era, securing, in a single move, CGLI’s long-term financial future at the same time as enabling significant investment in the commercial awarding and skills businesses.
“I would like to thank the board for its strong governance, unwavering hard work, and steadfast upholding of the charitable purposes and achievements of CGLI and all its employees throughout the last 30 months of careful negotiation.
“My deep gratitude goes to CGLI’s greatest asset – our employees. Their continued passion and commitment will ensure City & Guilds awards, skills training and the City & Guilds Foundation will not only endure but continue to flourish by forging innovative philanthropic ways of working together to fund a prosperous future for skills and to create greater societal impact and long-term systems change.”
‘Defining moment’ for City & Guilds
Kirstie Donnelly, CEO of City & Guilds, added: “This is a defining moment in the history of the CGLI, enshrining a legacy for the charity with the funding needed to reach more people than ever before.
“For the commercial businesses, it brings the freedom to compete, the investment to innovate, and the market access to scale in the UK and internationally – alongside a parent organisation that shares the City & Guilds values and ambition.
“I am incredibly honoured to be leading the next phase of commercial growth personally as City & Guilds aims to triple its reach to meet the global demand for skills.”
