PracticeConsultingTenon chief happy with progress made

Tenon chief happy with progress made

Ian Buckley, Tenon chief executive, has said he is happy with the progress of the UK-quoted accountancy consolidator, after it announced a small pre-tax profit in its latest interim results.

Buckley told AccountancyAge.com that Tenon had seen a ‘massive amount of activity’ in the last six months’ and was ‘trading broadly in accordance with expectations’.

‘We will reach our revenue target of Pounds 100m by the end of next year,’ he predicted confidently.

Based on figures in this year’s Accountancy Age Top 50, this would put the consolidator amongst the ten biggest firms in the UK. It currently occupies the 15th position on the table.

For the six months to 30 June 2001, Tenon reported a profit before taxation and amortisation of Pounds 1.2m on the back of revenues of Pounds 19.3m. Tenon’s turnover since it listed in March 2000 now stands at Pounds 58m.

A total of five firms were acquired during this period including non-audit businesses of the Lathams Group, Scott Oswald, Jennings Johnson, the Godfrey Allan Group and the corporate recovery business of Horwath Clark Whitehill.

The acquisition of these firms added revenues of nearly Pounds 3m to Tenon’s turnover for the period. Buckley said further acquisitions would be made in the next six months.

A breakdown of the consolidator’ turnover shows that more than half of its revenue was generated from the bread-and-butter services of accounting and taxation. But the firm showed a strong mix with financial services and corporate recovery and insolvency accounting for almost a third of Tenon’s activities.

Consultancy work remained a small part of the consolidator’s revenue generation bringing in Pounds 661,000, but this is a significant increase since 31 December 2000, when consulting revenue were reported at just Pounds 99,000.

Looking ahead to the next six months, Buckley said: ‘The focus will now be on integration and creating one business.’

He said the worldwide recession was his biggest worry, but pointed out that ‘historically professional services companies managed to come out pretty well [during recessionary times]’.

Links

Tenon closes in on top ten status

Revolution in the mid-tier

Tenon predicts top ten place

Accountancy Age?s Top 50 table

Tenon Group online

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