PracticeAccounting FirmsChairman goes as Tenon pushes new strategy

Chairman goes as Tenon pushes new strategy

Tenon chairman departs after four years as group takes bold new road

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
forward.  

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.

Related Articles

haysmacintyre celebrates partner promotion and additional hire

Accounting Firms haysmacintyre celebrates partner promotion and additional hire

5h Lucy Skoulding, Reporter
EY director joins Crowe Clark Whitehill as partner

Accounting Firms EY director joins Crowe Clark Whitehill as partner

4d Emma Smith, Managing Editor
RSM announces growth across every business line in 2017

Accounting Firms RSM announces growth across every business line in 2017

6d Lucy Skoulding, Reporter
WorkStyle: Helping accountants to support new contractors

Accounting Firms WorkStyle: Helping accountants to support new contractors

2w ClearSky Accounting | Sponsored
Grant Thornton grows profits while radically reshaping portfolio

Accounting Firms Grant Thornton grows profits while radically reshaping portfolio

2w Alia Shoaib, Reporter
How to protect LLP firms from a damaging team move

Accounting Firms How to protect LLP firms from a damaging team move

2w Clive Greenwood, Lewis Silkin
Grant Thornton reports gender pay gap at 26.6%

Accounting Firms Grant Thornton reports gender pay gap at 26.6%

4w Alia Shoaib, Reporter
5 ways to adapt your accounting services for millennial clients

Accounting Firms 5 ways to adapt your accounting services for millennial clients

1m Receipt Bank | Sponsored