RSM Tenon produced ‘totally unsatisfactory’ year for shareholders

The professional services firm reported an annual pre-tax loss of £101m on revenues of £208m but insisted its underlying business is “resilient”. Chairman Tim Ingram said: “To say that the year... was a disappointment would be an understatement; this year has been totally unsatisfactory for shareholders and other stakeholders.

“The results speak for themselves... but it was unacceptable to have allowed a situation where costs had grown to be in excess of revenues, and bank indebtedness had become a multiple of the company’s market capitalisation.

“Although the external economic environment has not been helpful, the main reason for this state of affairs is that the business had in the past simply not been managed in the way it should have been.

“Of critical importance are the changes that have been, and are being, made to enable the business to provide the profitable returns that it should – and can – provide for shareholders.”

Andy Raynor stood down as CEO in January.

RSM Tenon appointed Mr Ingram as chairman in May. The firm hired a new CEO, Chris Merry, in February.

They embarked on a sharp cost-cutting programme and reduced headcount by 11 per cent over the year.

In May, RSM Tenon, which employs around 200 people in Yorkshire, revealed a £12.1m black hole in its accounts for 2010 and 2011, which it blamed on “significant errors and a change in accounting policy”.

The accountancy watchdog has launched an investigation into PwC over its auditing of RSM Tenon.

PwC vowed to defend its work.

Shares closed up 0.96p at 6.44p last night.