Turnaround progress at RSM Tenon
ACCOUNTANCY group RSM Tenon says it is making progress in its turnaround plan despite turnover in its first quarter being weaker than expectations.
The listed group said its first quarter, from July 1 to the end of September is usually its quietest trading period, and this year’s performance is consistent with this trend.
It said in a trading update: “The market for our services continues to be challenging. As a result, turnover has been at the lower end of management’s expectations.
“However, with a continued focus on careful management of costs and as a result of the cost reduction exercise undertaken earlier this calendar year, the profitability of the group is ahead of the comparable position in the prior year and in line with management expectations.”
It said its Audit, Tax and Advisory business has shown some variation by region and sub service line, consistent with the challenging market. There has been “some pleasing activity” in Corporate Finance with a second-place ranking in the recent Experian Advisor League Table for volume of M&A deals in the UK for the first 9 months of 2012.
In Recovery and Corporate Turnaround the group has seen “lower levels of activity than might be expected at this point of the economic cycle”.
The Financial Management division has seen a fall in new business ahead of new regulatory changes being introduced in the Retail Distribution Review.
Chief executive, Chris Merry, said: “We continue to make progress in restoring RSM Tenon to profitability. I am grateful to our clients and staff for their continued support as we build on the changes we have made. With new banking facilities in place, we look forward to the future with confidence.”
