Merger will save us £10m, says RSM Tenon

ACCOUNTANCY firm RSM Tenon has said that more than £10m of savings have been identified following the merger between its Tenon and RSM Bentley Jennison businesses – 85% of which which be delivered by the end of its current financial year.

The stockmarket-listed firm said that its year to June 30 had been a “defining period” in its history as a result of the merger, which helped to push turnover upwards by 26% to £190.4m and its pre-tax profits before exceptionals of £14.6m up by 37% to £24.1m.

Chief executive Andy Raynor said the firm, which has six offices across the North West, had achieved ten successive years of underlying operating profit growth and had rapidly integrated both the Bentley Jennison business and the assets recently acquired from Vantis plc to become the third-largest accountancy firm outside of the Big Four.

“Aside from the considerable efficiencies and economies of scale, the merger has created enhanced brand presence, new territories for specialist services and extended representation throughout England and Scotland,” said Raynor.

RSM Tenon’s net debt doubled to £43.1m as a result of the acquisitions, however, and it sounded a warning that government policy on spending and taxation would mean the “significant upheaval” faced by the UK’s economy showed no sign of ending.

Despite this, the firm said that it would continue to reap the benefits from its most recent acquisitions and its “careful choice” of market sectors.

For instance, its corporate recovery division grew by 17% during the year and now has a turnover of £51m.

“Our Recovery services line has trebled in size in the last four years,” said the company’s North West managing director Martin Kirby. “This growth now makes RSM Tenon the largest commercial provider of bankruptcy services in the UK and a close second in the volume of corporate assignments.”

 The firm’s North West offices are at Manchester (x2), Preston, Chorley, Bolton and Rochdale.