Tenon weathering stock market storm
Tenon, the first UK accountancy business to list on the London Stock Exchange, is surviving well in the storm that has hit world stock markets.
Share prices dropped across the world last week amid fears of recession and profit warnings. In one week indexes fell to lows not seen since 1998, as the FTSE 100 fell 6%, the Dow Jones dropped 7.7% and the Nasdaq shed 7.9% of its value.
But AIM-listed Tenon has gained 5.1% since last week. Stuart Duncan, an equity analyst at Numis, said that its core business, and broad business base have kept the company from this negative trend. Duncan explained that Tenon, which provides business services, is resilient because businesses tend to use outsourcing as a means of cost cutting when they are in trouble.
Duncan added that Tenon ‘does not have exposure to American markets, so they won’t be affected much by the slowdown in the US economy.’
Tenon did not suffer the same fate as accountancy software giant Sage, which tumbled 13.8% after a profit warning from competitors Oracle and Inuit.