RSM Tenon Group’s top executives stand down

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BUSINESS adviser RSM Tenon Group expects to report a loss for the first half due to pricing pressures amid a difficult economy, and said its top executives stepped down with immediate effect.

The company, which operates across the audit and advisory, risk management and financial management segments, and has an office in Leeds, said Bob Morton and Andy Raynor resigned as its chairman and chief executive respectively.

Deputy chairman Adrian Martin has been promoted as executive chairman, RSM Tenon said in a statement today.

The company, which competes with business advisory firms like BDO and Grant Thornton, said revenue for the six months ended December 31 is expected to be about 10 per cent lower than the previous year as clients were more cautious about transaction-based activities.

“Pricing and similar underlying trading effects account for approximately half of the revenue decline with the balance arising from updated accounting estimates,” RSM Tenon said.

The company, which has been carrying out a comprehensive review of its financial accounts under its new finance chief Adrian Gardner, said it might restate its financial year 2011 results and incur some additional one-off charges for the first half.

The company’s shares, which have fallen 66 per cent in the last three months, closed at 8.25 pence on Friday on the London Stock Exchange, valuing the business at about £26m.