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Wednesday, February 23, 2011

RSM Tenon sees 2011 profitability growth at slower pace

RSM Tenon sees 2011 profitability growth at slower pace : British business adviser RSM Tenon Group posted a 53 percent jump in underlying operating profit, boosted by a strong performance at some of its units, but forecast 2011 profitability to progress at a slower pace than originally anticipated.

"Many commentators expect 2011 to be a critical period for distressed companies and individuals, and we are well placed to take advantage of this," the company said in a statement.

With bank credit expected to remain tight and the government's austerity measures yet to kick off, analysts warned that difficult conditions would persist in personal insolvencies.

RSM Tenon operates across the audit and advisory, risk management, financial management and specialist tax segments.

July-December underlying operating profit was 13.5 million pounds ($21.9 million) compared with 8.8 million pounds in 2009.

Revenue was up 65 percent at 121.1 million pounds.

The company's tax, audit and advisory business recorded a strong organic growth of 7 percent, while recovery services saw a 3.5 percent organic growth.

The company recorded exceptional costs of 5.8 million pounds related to acquisitions of accountancy firm RSM Bentley Jennison in 2008 and certain units of business advisory firm Vantis Plc in 2009.

RSM Tenon shares, which have shed 9 percent since the company forecast first-quarter results that were in-line with market expectations, were down 12.68 percent at 46.5 pence at 0829 GMT, making it one of the biggest losers on the London Stock Exchange. ($1 = 0.616 British Pounds) articel from reuters.com... For the latest updates PRESS CTR + D or visit Stock Market news Today

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