RSM Tenon warns on full-year profits

REGIONAL accountant RSM Tenon said its performance has been held back by economic uncertainty and proposed tax changes.

In a trading update covering January 1 to May 6 the firm, created from the merger of Tenon and RSM Bentley Jennison in late 2009, warned profits for the year to June 30 would be, “below current market expectations, although ahead of the prior period”.

RSM Tenon has two offices in Manchester and others in Preston, Chorley, Bolton and Rochdale.

The company said a slower market in recovery would reduce divisional profits for the full-year. Reductions in specialist taxation income due to recent legislation have also affected expectations. Overall turnover is expected to be £250m.

Chief executive Andy Raynor said: “In a challenging market we are returning the business to its strong record of working capital management. With our integration complete, our primary focus is on providing a tangible and early increase in margins. 

“Whilst disappointingly delayed, predominantly by market factors, we believe we remain in position to deliver the future benefits of our acquisitions and investments.”