RSM TENON’S turnover is at the lower end of management expectations, according to an interim mangament statement, but its profitability is up due to a huge cost-cutting regime in the last financial year.
The firm embarked on a cost-cutting drive which included reducing its workforce by 10.8% -equivalent to about 338 staff – resulting in an annual salary cost saving equivalent to £17m, according to the firms end of year results.
The listed firm said it had made savings of about £20m on an annualised basis in its end of year statement. However, net debt increased to £79.5m across the group and affiliated entities such as RSM Tenon Audit.
In its first-quarter results for 2012/13, audit, tax and advisory continue to be “challenging”. But corporate finance has been buoyant, with the company taking second place in the Experian Advisor League Table on merger and acquisition activity for the first nine months of 2012.
RSM Tenon CEO Chris Merry (pictured) said: “We continue to make progress in restoring RSM Tenon to profitability. I am grateful to our clients and staff for their continued support as we build on the changes we have made. With new banking facilities in place, we look forward to the future with confidence.”
The firm said it was trading “comfortably” within its banking facilities, which were arranged at the end of the last fiscal year.
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