RSM Tenon boosted by pension changes

BUSINESS advisory firm RSM Tenon yesterday said it expects to benefit from changes to pension legislation in the UK, adding that its first-quarter results and trading to date support market expectations for the full-year.

Last month, the government said it would cut the tax relief on pension savings for around 100,000 higher earners, in a move designed to raise £4bn a year for Treasury coffers.

“These changes will encourage further activity towards the second half of the year within taxation and investment planning,” RSM Tenon said.

The company, which is planning to migrate a greater proportion of its risk management services to corporate clients, said the move would limit the effects of government spending cuts on this service line.

RSM Tenon expects integration of its recently acquired businesses to be largely complete around the turn of the year, and says it is on track to deliver the expected level of annual cost savings.

In September, the company posted a 37 per cent increase in full-year adjusted pre-tax profit, boosted by the acquisition of RSM Bentley Jennison and certain assets of troubled rival Vantis.