RSM Tenon boosts turnover and profits in 2010
Strong double digit growth in profits and turnover for RSM Tenon in the last financial year, although acquisition costs climb
Profits climbed at RSM
Tenon by 38% to £26.3m, with turnover increasing 28% to £190.4m.
Turnover and profit margins increase in its audit, tax and advisory division,
plus turnaround and corporate recovery. The firm only saw its turnover fall in
its specialist tax unit.
However, its profit figure doesn’t take into account an increase of more than
£10m in exceptional items at the firm. It spent an extra £8m in integration and
operational review costs in the year ending June 2010, listed on the stock
exchange at a cost of £1.5m, and settled a £1.1m fine from the FSA.
Chief executive Andy Raynor described the past twelve months, in which the
firm acquired Bentley Jennison and parts of Vantis, plus launched on the main
market of the stock exchange, as a “defining period” in the firm’s history. “…A
time of positive transformation and growth,” he added.
The acquisitions brought in £90m of historic turnover, across 20 offices with
1,450 people. More than £10m in savings have been identified which Tenon expects
to be largely complete by December.
Turnover for the previous year was £150.8m, with operating profits of £19m.
Operating exceptional items for 2010 totalled 14.6m, compared to 2.8m in 2009.
But taking into account amortisation, negative goodwill from the Vantis
acquisition and tax on exceptional items saw the net ex-items figure come in at
£13.1m compared to £4.3m a year earlier.
Net debt increased to £43.1m from £21.1m, mainly due to spending £51.1m on
acquisitions and deferred consideration costs.
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