Profits flat at Tenon after acquisition

ENTREPRENEURIAL business advisory firm RSM Tenon yesterday said profits remained broadly flat over the first half of its financial year after the group completed its largest-ever acquisition, adding that it plans to move to London’s official list before mid-2010.

Tenon said adjusted pre-tax profit came in at £5.9m for the six months to December, up just marginally from the £5.8m it posted for the same period in 2008, while revenues were whittled down 1.9 per cent to £73.5m.

But the group said the integration of RSM Bentley Jennison, which it acquired in December for £76m, was in the advanced stages of completion.

Chief executive Andy Raynor said the acquisition would provide the firm with a “clear opportunity for further margin and revenue enhancement” over the coming year.

Tenon has seen a shake-up in the contributions of its various business divisions over the past half year, with its turnaround and corporate recovery turnover up 20 per cent to £23.2m.

But that was offset by declining revenues at its audit, tax and advisory, specialist taxation and financial management arms.

Audit, tax and advisory contributed 47 per cent of turnover over the period, down from 50 per cent in the first half last year, with £34.7m in revenues generated.

Tenon said that it now plans to further expand its turnaround practice in a bid to take advantage of the traditional post-downturn upswing in activity.

Tenon plans to move to the official list of the London Stock Exchange in the first half of 2010, subject to regulatory approval. The group was originally admitted to the Alternative Investment Market (Aim) in late 2000.