RSM Tenon profit up; outlook cautious

British business adviser RSM Tenon Group reported a better-than-expected full-year adjusted pre-tax profit, boosted by acquisitions and a strong performance at its audit division, but the company maintained a cautious stance for the future.

By The Newsroom

Published 14th Sep 2011, 10:07 BST

In a statement, the firm, which has five offices across Yorkshire, said: “The general economic climate is creating a business environment which is difficult to predict.”

RSM Tenon, which operates across the audit and advisory, risk management and financial management segments, said its net debt stood at £65.7m as on June 30, compared with £43.1m last year.

July-June adjusted pre-tax profit rose to £27.1m from £24.1m. Revenue was up 31 per cent at £249.1m.

The company had acquired accountancy firm RSM Bentley Jennison in 2009 and certain units of business advisory firm Vantis last year.

RSM Tenon, which competes with business advisory firms like BDO and Grant Thornton, reduced its dividend to 0.55 pence from 1.6 pence.

The company’s shares, which have more than halved since the beginning of the year, closed at 25 pence last night on the London Stock Exchange.

Yorkshire Grant Thornton