Vernon Sankey has stepped down as chairman of Photo-Me International with immediate effect, prompting the photo booth operator's principal shareholders to withdraw an EGM requisition seeking his removal.

Cycladic Capital and Principle Capital were seeking the immediate removal of both Sankey and the company's chief executive, Serge Crasnianski.

Sankey will be replaced on an interim basis by David Young, who was chief executive of Perkins Foods Holdings from 2003 to 2005. Crasnianski is due to step down by 30 November.

Sankey said: "Notwithstanding the overwhelming support I have received from my colleagues on the board, I believe it is in the best interest of shareholders and the company that the matter of the timing of my resignation be brought to a swift conclusion. I have therefore decided to step down with immediate effect".