RSM Tenon in share fall as dividend cut

ACCOUNTANCY firm RSM Tenon saw its share price dented yesterday after announcing that it would slash its annual dividend.

The company said the move was “prudent” in a tough trading environment, while also reporting a rise in profits.

Pre-tax profits increased to £27.1m in the 12 months to 31 June, compared to £24.1m during the same period last year.

RSM, which offers a range of business services, said the acquisitions of RSM Bentley Jennison in 2009 and some assets of Vantis in 2010 had helped to boost the figures.

But it has reduced its dividend to 0.55p per share from 1.6p in 2010 as uncertainty still surrounded the economy.

Chief executive Andy Raynor said the trading environment was difficult to predict but that the company was on course.

“We have improving returns and reducing net debt. We will maintain our prudent stance and we look forward to further progress against our rivals,” he said.

The company said that the performance of its audit division had helped to fuel a rise in profits.

It said its net debt stood at £65.7m on 30 June compared with £43.1m last year.