PracticeAccounting FirmsTenon returns to profitability

Tenon returns to profitability

Accountancy consolidator Tenon has fought its way back from the brink with its latest interim figures showing a return to profit.

Link: Tenon management admits to staff fears

The company yesterday reported an operating profit of £1.98m before goodwill, restructuring costs and other exceptional items for the six months to 30 June 2003.

The profit, based on total turnover of £38.7m, was achieved despite Tenon undergoing a radical restructuring process from February following a torrid set of results in 2002.

As part of the company’s rebuilding, the entire management structure was overhauled from the top down, and a senior management group was introduced comprising of the leaders from businesses Tenon acquired. They are now much more involved with the decision-making process than before.

‘Senior management, and junior too, are now thinking they are part of the Tenon they thought they had joined in the first place,’ said chairman Neil Johnson.

The turnaround in the business has been dramatic in terms of the speed atwhich it was undertaken. The company disposed of underperforming areas, such as its technology business, parts of its corporate finance operations and several of its offices. Tenon also managed to cover the costs of this restructuringwith its own cash, and without having to alter its banking facility.

‘Over the last six months, we have gone through a period of correction where we’ve essentially drawn the curtains around the business and got ourselves back on the right footing,’ said Tenon chief executive Andy Raynor. ‘We’re now entering a period of confirmation where we will build on the trends we’ve established.’

The Tenon results follow a warning on Tuesday from fellow consolidator Numerica that the first six months of 2003 would produce a ‘small loss’.

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