RSM Tenon says watchdog has stepped back

Michael Bow
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BELEAGUERED accountancy firm RSM Tenon yesterday warned its most recent turnover figures had disappointed management expectations, but the firm was still making impressive profits.

The company, which announced it is cutting 400 staff to trim costs and turn around the business, said in its interim management statement yesterday that revenues in the first quarter were at the “lower end of management expectation”.

However, due to cost cutting the firm said it had managed to improve profits compared to last year.

RSM Tenon, listed on the FTSE 250, also said the “heightened supervision” its financial management division received from the Financial Services Authority after a £700,000 fine in February, for failings in advice and sales processes. was at an end. The firm described its current relationship with regulators as “business as usual”.

The firm’s first quarter, running from July until the end of September, is traditionally its weakest period, and analysts said it was unlikely RSM turned a profit in the period. RSM Tenon announced a restructure of the business in February on the back of a continued losses of £8.9m for the full year ending June 2012.

“We continue to make progress in restoring RSM Tenon to profitability,” chief executive Chris Merry said. “With new banking facilities in place, we look forward to the future with confidence.”

The bank entered into new arrangements with its lenders to extend the maturity facility to December 2014. The firm is aiming for an earnings margin of 10 to 15 per cent.