Integration is on schedule, says RSM Tenon

The group bought RSM Bentley Jennison for about 76m late last year,

and last month spent 6.8m buying assets from failed administration group Vantis.

Tenon said integrating RSM Bentley Jennison continues to be on schedule and should be complete by the new year. The acquisition increased the turnover of the group's Yorkshire operations to 17m, giving it more than 200 staff.

The group now has offices in Leeds, Hull, Wakefield, Grimsby, Doncaster and Harrogate.

Tenon said it continues to look for ways to increase efficiency, which will lead to "modestly increased restructuring costs in the short term". It did not elaborate on how these savings will be made.

"RSM Tenon has generated enhanced results across its whole range of services," said chief executive Andy Raynor. "Strong recurring revenues, prominence in recovery and overall performance improvements have produced success in all divisions.

"Our transactions during the 2009/10 year will be integrated to make strong, organic progress in future periods.

"The business is growth-orientated for all economic circumstances."

The group said its recovery services, which help turn around struggling businesses, have continued to grow and are increasing market share.

Tenon's risk management arm is the only part of the business exposed to the public sector and it has taken steps to protect its profitability, targeting services that can reduce costs and improve efficiency.

Cash generation has been better than market expectations, Tenon added, with over 40 per cent of total bank facilities unused at the end of June.

Tenon bought three advisory offices in London, Leicester and Epsom, a Thames Valley business recovery practice and a financial management business, when AIM-listed Vantis went into administration in June.

The businesses generated revenues of 27m according to unaudited accounts for the year to April 30.

Some 300 staff transferred to Tenon.

Vantis called in administrators FTI Consulting after attempts to reduce its debt levels failed.