Maxima to sell non-core units

Buy-and-build veteran Ian Smith seizes reins of loss-making VAR

VAR Maxima has announced plans to offload parts of its business, under the stewardship of newly crowned executive chairman Ian Smith.

The loss-making Microsoft, SAP and Citrix partner recently ruled out a sale of the entire business - one option on the table under a strategic review launched in April.

After concluding that review, Maxima has opted instead to sell off non-core operating units, a process it said would take place over the coming months. The London-listed firm also plans to raise up to £2m through a share issue to strengthen its balance sheet, cut debt and fund its future development.

Maxima, which posted a pre-tax loss of £9m on sales of £45.7m for its fiscal 2011, also announced a change in its top management.

Industry veteran Ian Smith, who recently came on board as non-executive director, has been appointed as executive chairman with immediate effect.

Meanwhile, chief executive Graham Kingsmill has resigned and will leave the company. Chairman Kelvin Harrison has also stepped down but will be retained in a consulting capacity.

Smith said: "The announcements we have made today will end the strategic review process, which has been a heavy burden on the management team and created uncertainties for all stakeholders in the company. The new funding will provide time to ensure that the process of disposals will create the best outcome for shareholders, customers and employees.

"In order for me to execute our plans, it was necessary for me to take full executive responsibility, so the supportive nature in which the board invited me to join Maxima and the way in which both Kelvin and Graham have decided to step down and allow me clear control is fully appreciated and I would like to thank them both for their considerable input over recent years."