RSM Tenon falls despite profit leap

SHARES in accountancy firm RSM Tenon plummeted yesterday despite a 50 per cent profit leap after the group warned that growth would slow.

Underlying profits for the listed firm leapt by 53 per cent to £13.5m for the six months to 31 December 2010. Turnover increased 65 per cent to £121.1m.

The interim figures combine Tenons’ acquisition of RSM Bentley Jennison, the rival accountancy business it bought for £76m in 2009.

The two firms had produced combined full year turnover of £240m through 2009.

RSM Tenon said the process of business integration would “continue to require substantial management resource” and warned that growth would progress at a slower pace than originally thought.

Chief executive Andy Raynor said: “Definitely the acquisitions have in absolute terms come through. It’s increased our prominence in the market, although we’ve got a long way to go with the brand.

“The overall scale of the business has helped us to access organic growth we wouldn’t have otherwise had.”

RMS Tenon shares closed down 21.13 per cent at 42p per share.