Manchester-based Grafenia Plc has sold its Dutch business arm for around £1.7m and parted company with chief executive Tony Rafferty ‘by mutual consent’.

Grafenia owns, which Rafferty started in the 1990s.

Grafenia PLC, which is AIM-listed, said in a statement: “Following the disposal of Grafenia BV, in the short term, the scale of the group’s operations will materially reduce. Accordingly, and by mutual agreement, Tony Rafferty has decided to step down as chief executive and to leave the company.

“He will be available to assist the Group during the transition period and intends to retain his equity stake for the foreseeable future. The Board wishes to thank Tony for his years of unstinting service and drive making the Group what it is today.”

Chief technology officer Peter Gunning will take over as acting chief executive.

The firm will announce its half-year results to the end of September in November, but warned profits would be ‘modest’, with full-year revenues likely to be ‘materially lower than previously expected on a like-for-like basis.’