Clarity Commerce Solutions’ shareholder revolt has gathered serious momentum with 47.4 per cent of shareholders at the AIM-listed software group now supporting action to oust chief executive Graham York.

Rebels speaking for 16.1 per cent of Clarity, led by former chairman Bob Morton and erstwhile Sherwood International management duo George Matthews and Steve Bellamy, have called a special shareholders’ meeting following a recent profit warning. As well as its poor share price performance, they criticise York’s management style, alleging poor financial controls and weak standards of corporate governance.

A recent profit warning from the company, floated at 125p in 2000 and currently worth £13.92 million at 68.5p a share, proved a call to arms. ‘I just think its extremely poor management,’ complained Matthews.

‘The company hasn’t had a finance director in seven years. Growth has come through seven acquisitions but it has shrunk organically.’

Inadequate integration has led to ‘a bit of a property empire. And he has lots of different niches in the UK, US, Germany and France, leaving the group thinly spread from a management point of view.’

Now claiming support from a further 31.3 per cent of the shareholding (before all investors have been canvassed), the trio alleges a lack of a coherent strategy and focus, and ‘inappropriate expenditure on air charter services’.

A simple majority will ensure change, with Matthews, Bellamy and Groundlinks (holding shares in trust for the Morton family) planning to install Bellamy as chief executive, Matthews as chairman and Morton as a non-executive.