Well, you don’t invite buy-and-build entrepreneur Ian Smith onto the board and expect him just to sit in the wings (see Maxima adds ‘buy-and-build’ Smith to the Board). So perhaps there was an air of inevitability about the news that Smith has now assumed total control at troubled mid-market software and IT services player, Maxima, with founding executive chairman Kelvin Harrison stepping down and CEO Graham Kingsmill leaving the business. CFO David Memory, who joined Maxima in April 2009 from Netstore at the same time as Kingsmill (see New brace of management at Maxima), remains in post.
Because no buyers were found for the entire business (see Maxima takes down "for sale" sign) Smith is to sell off non-core operating units. He is also making a £2m cash call, placing 10m new shares at 20p. Maxima’s shares closed last night at 27p, before the board changes and placing had been announced.
I have just spoken to Kelvin Harrison who feels extremely positive about the turn of events. Harrison will leave the board but remain as a consultant and as an investor. Harrison founded Maxima in 1999, but some of its ‘ancestor’ businesses go back to the 70’s. Harrison already has a portfolio career, with NED positions at AIM-listed UBC Media and Bucharest-based ERP firm, TotalSoft, amongst others. He also works at the ‘sharp end’ of the Prince’s Trust, doing mentoring and training.
Smith has a big challenge. Maxima lost its direction - or arguably went in too many at the same time (same thing, really). There is plenty of room in the fragmented mid-market for a well-run ERP solutions play. Smith just needs to work out where the profitable spaces really are and see which bits of Maxima he can fit into them.