Divi cut but profits up at RSM Tenon
LISTED accountancy group RSM Tenon has reported an uplift in profits, but announced its is cutting its dividend, saying it needs to preserve resources in a time of uncertainty.
The firm, the seventh-largest in the country, said turnover in the year to June had risen 31% to £249.1m, while profits before amortisation and exceptionals rose 12% to £27.1m.
The group, which has operations in Yorkshire, said organic growth had been ‘modest’ and its operating margin had fallen from 13.8% to 12.1% after being held back by the trading environment and investment in the business.
The results are the first full-year figures since the £76.3m acquisition by Tenon of RSM Bentley Jennison in late 2009.
Commenting on the results chief executive Andy Raynor said: “The general economic climate is creating a business environment which is difficult to predict.
“However, our balanced profile of services allows us to focus on organic development, improving returns and reducing net debt. By maintaining our prudent stance we look forward to further progress.”
Chairman Bob Morton said the results had been achieved “against the background of further economic turmoil and a changing tax legislative framework.”
He said this had affected some parts of the group, but thanks to recent acquisitions it was now diversified and had a “balanced mix of services”.
Regarding the proposed reduction in dividend from 1.6p per share last year to 0.55p he said: “In common with all businesses, we have reviewed the need to preserve our resources during a period of unsettling events and worsening financial and economic outlook.”
From a regional perspective the firm said much progress had been made.
Neil Sevitt, regional director for the North said: “Having brought together our Yorkshire, North East and North West offices to create one Northern Region at the start of 2011, the benefits of consolidation are already creating opportunities both internally and externally.
“Working as a cohesive team across the North enables us to share best practice, create focussed and experienced client service teams and streamline our processes, resulting inexceptional service levels for our clients.”
He said the firm had focused on working with clients to develop international opportuntines, maximising the strength of the RSMi international network.
“As a region we are seeing increased opportunities in the AIM market and also the manufacturing, academies and charities sectors. Our sector experts in these fields are working with our clients to provide the specialist advice they need.”
The Northern region he said was the national leader of a sector task force providing specialist advice to schools as they convert to Academy status.
Led by two directors, Ian Wallace and Alan Dunwell, the team has already advised around 30 of the new academies.
