Leaderless Phoenix IT Group finally appoints new CEO

New boss Stephen Vaughan has 'mountain to climb', according to analyst

Phoenix IT Group has appointed industry veteran Stephen Vaughan as its new chief executive, ending its 18-month stint without a permanent leader.

At the same time, the struggling infrastructure services firm has announced plans to raise £8.6m through a share placing to reduce debt and maintain its balance sheet.

Phoenix has handed the reins to Vaughan with immediate effect, meaning interim boss Peter Bertram can resume his previous role of non-executive chairman from 1 April.

The London-listed firm, which sources say is in the process of selling off some of its non-core units as it looks to refocus on its core managed services business, has not had a CEO since Dave Courtley resigned back in October 2012.

Vaughan's 30-year CV in the technology sector may offer some intriguing clues as to Phoenix's potential trajectory under his leadership.

Two of the firms he has helmed – Synstar and Charteris – were sold under his tutelage, the former to HP in 2006 and the latter to French group Sword last month. He is also credited with turning around the performance of Communisis during his stint as the firm's chief executive between 2006 and 2010.

Analyst Megabuyte said Vaughan has the "right skills and experience for the job" but warned that Phoenix's yawning debts and the lack of crossover between the three historical parts of its business – ICM, Servo and its traditional partner services business – means he has a "mountain to climb".

"Today's placing looks like a helpful sticking plaster but Vaughan will need to sort out the root cause of the issues in fairly short order," Megabuyte said.

Bertram said Phoenix would benefit from Vaughan's "strong track record and industry knowledge".

Vaughan added: "I am very pleased to be joining Phoenix at this time. Phoenix has a strong portfolio of service offerings, great staff and an excellent client base. I am looking forward to taking the company into its next stage of development."