RSM chairman and CEO quit as trading disappoints
THE chief executive and chairman of listed accountancy group RSM Tenon have stepped down amid a “disappointing” financial performance.
The group, a key player in the region with offices in Manchester, Chorley and Preston, said CEO Andy Raynor and chairman Bob Morton had left their roles with immediate effect. Shares slid 30% on the news which came with a warning that the group will make a first half loss.
Adrian Martin, currently the deputy chairman has taken over at the helm of the business as executive chairman.
He said: “The company’s performance is clearly disappointing and my immediate priority is to instigate and execute the necessary actions to improve profitability and cash generation.
“RSM Tenon has a strong market position and client base, as well as dedicated and loyal employees. The board remains confident of the future prospects for the Company and that a successful turnaround can be delivered.”
The dramatic announcement regarding Mr Raynor came as the group said that it expects to report that revenue in the six months to the end of December is down 10% on the same period the previous year.
It added: “Due to the proportion of costs that are fixed, we expect that we will record a loss before tax and the magnitude of this loss will be quantified once we complete the interim accounts and associated auditor’s review.”
RSM Tenon said it had brought in former global CEO of BDO International, Jeremy Newman, as a consultant to help it develop and implement a plan to improve “significantly the performance and financial position of the company.”
