Tenon posts £1.5m loss

Tenon, the AIM-listed accountancy group, remained enigmatic about buyout
plans for the company as it posted a £1.5m statutory loss for the the six months
to the end of December 2005.

The group was expected to disclose further details on the possibility of an
MBO for the group by chief executive Andy Raynor with the interim results, but
chairman Neil Johnson would only say that ‘a number of expressions of interest
were being explored’ and could not predict ‘with certainty’ the review of
options for the business.

 Johnson even went so far as to suggest that an MBO might not go ahead at
‘A transaction is only one of the alternatives that may prove attractive, as our
group is well-positioned and has substantial potential value,’ Johnson said.

The £1.5m loss compared with a £1.9m profit over the previous period. Profit
before tax, goodwill amortisation, terminated operations and other exceptional
items halved from £4.2m to £2m.

Revenues, however, were up, climbing from £47.2m to £52.1m. The group said
that outsourcing, financial services and tax service lines had experienced
‘double digit growth’ over the last six months and added that it was confident
of a ‘vibrant future’.

Tenon’s share price was unchanged at 24.25p on the back of the news.

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