RSM Tenon to restate accounts

RSM TENON, which today saw its chief executive and chairman leave, said it was in "constructive discussions" with its lending bank to set up new facilities.

The firm said that with "limited" headroom, it was engaged in discussions to negotiate new facilities due to the forthcoming end of its deal.

With revenues for the six months to 31 December 2011 expected to be 10% lower than the same period a year earlier, RSM Tenon would record a loss before tax in those circumstances.

CFO Adrian Gardner, who joined the business in 18 October, has been leading a review of the firm's financial reporting that will see some non-cash restatements and to its accounts for the year-end to 30 June 2011 accounts.

Non-cash charges have occurred in the six months to 31 December 2011 figures "outside of our earlier expectation", the firm said in its stock exchange statement.

Pricing and similar underlying trading effects account for approximately half of the revenue decline, while the updated accounting estimates contributing towards the balance of the fall.