Steve Donovan has stepped down as Managing Director of Manchester-based Armstrong Communications following a management buyout led by Customer Services Director Sally Stothard, who takes over as MD.

Donovan, who founded Armstrong, is now MD of software development company Xarios, but he retains a financial interest in Armstrong.

The cash deal also sees Paul Tobin take an equity stake in the business. He has a track record of growing businesses in the IT sector, initially as Managing Director of CSAR Computers, followed by JM Computing (now trading as jmc.it).

Tobin developed JM from a niche market supplier into a rated IT company, increasing turnover from under £2m to in £8m-plus, and staff numbers from less than 30 to around 100.

Stothard commented: "Our intention is to significantly increase the size of the business through acquisition and organic growth. Paul will provide considerable expertise in these areas which will enable me to focus on customer service."

Advisers on the MBO were the Manchester office of Brabners Chaffe Street.