RSM Tenon in profit boost

ACCOUNTANCY?firm RSM Tenon posted a 37 per cent increase in full-year adjusted pre-tax profit yesterday, thanks to two acquisitions.

The accountancy and advisory firm, which moved to London’s main market in May, said adjusted pre-tax profit was £24.1m, up from £17.6m a year ago.

It raised its dividend by seven per cent to 1.6p per share.

The company bought professional services firm RSM Bentley Jennison for about £76m in December 2009 and some assets of Vantis for up to £6.8m in June.

RSM Tenon chief executive Andy Raynor said the business had been “stable” and that the firms it had dealt with were weathering the storm.

He said the economy still faced challenges but that he was confident his clients remained “ambitious, tough and resilient”.

Meanwhile, turnover rose 26 per cent to £190.4m. Net debt at the end of June rose £22m to £43.1m from a year ago. RSM Tenon said it increased its bank facilities by £36.5m to £80.5m in the year.

Raynor said: “Organic sales growth and margin improvements are now our key aims for 2011 and 2012.”

He added: “Our acquisitions have been prudent and helped us. Overall companies have been surviving despite the economic problems and have been neither helped nor hindered by the government.”

RSM Tenon is the UK’s seventh largest accounting firm and has offices across Britain and has a workforce of more than 3,000.

The company’s shares have risen by some 55 per cent since late-June and are at near ten-month highs, but yesterday the stock closed five per cent down at 56p.