Tenon’s long-serving chairman Neil Johnson announced that he would be
stepping down this morning as the AIM-listed group released its final results
for the year ended 30 June 2006.
Johnson will be replaced by longstanding Tenon investor Bob Morton, who has a
reputation for developing growing AIM companies. The group is planning to focus
on entrepreneurs and has implemented a number of changes to take the business
Andy Raynor, Tenon’s chief executive, said Johnson ‘had been a terrific
support’ for the business, but said that it was time to take the business in a
new direction under Morton’s leadership.
‘Bob has an excellent track record of developing AIM-companies. He has
personally told me that he would not be involved with a business unless he saw
huge growth potential, which is encouraging for us,’ Raynor said.
Johnson’s departure follows a strategic review Tenon undertook of its
business earlier this year. The review was instigated by Raynor to see if the
board could deliver a better deal for shareholders, who had had to deal with a
stagnant share price.
Tenon spoke to a number of bidders during the review, but ultimately
concluded that the business would be best served by remaining listed.
Raynor said that the group had introduced a number of changes to galvanise
the business, including an significant overhaul of management and remuneration
structures. The group has also reduced its net debt from £27.3m in 2005 to
£11.8m in 2006.
Raynor said these actions had improved the performance of the group, which
increased turnover from continuing operations by 24% to £123.6m in 2006. Pre-tax
profit increased 31% from £8m in 2005 to £10.5m in 2006.
‘We have had a great year and delivered excellent growth without the benefit
of any substantial acqusitions,’ Raynor said.
The results were well-received by the market, as Tenon’s share price climbed
9.76% to 33.75p.
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