Shake-up at top of Orchestream

A FURTHER slump in the performance of network software group Orchestream led chief executive Ashley Ward to fall on his sword today. Ward, 48, is said to have resigned after a disagreement with non-executives, led by chairman Alan Bates, about Orchestream's strategy. Negotiations surrounding his compensation - Ward received £399,000 last year - are continuing.

After leading the group to a £214m flotation in 2000 and watching its value rise to almost £1bn, he has presided over a 99% slump in the shares to 7p. Chief financial officer Anthony Finbow, 38, takes over as chief executive until a management review is completed in the next few weeks.

The shake-up was unveiled as it emerged that losses in the quarter to 31 March widened 117% to £4.7m on the same period a year earlier. Sales of £3.4m were up 55% on a year ago, but £1.3m less than the previous quarter.

The group booked a £350,000 provision for bad debt and is owed £10.9m by customers. Only £14.7m of the £49m raised at flotation remains, but £1.2m of that will go on redundancy and restructuring in the current quarter.