Tenon shares hit new low
Shares in Tenon, the UK's largest accountancy consolidator plunged to a record low this week, after the group suffered its first major setback since formation.
The AIM-listed group’s shares continued to fall following a profits warning. Although this morning Tenon’s share price remained unchanged since yesterday’s close at 76.5p, the company has fallen a further 4% since Tuesday, when they dropped over 25% to 80p.
Revised profits for 2001 will be between £500,000 and £1m against an expected £6m.
The shares plummeted against a background of accountancy-related stocks rising markedly in value. The Accountancy Age ADVFN index rose 10% to a new high of 90.26.
Tenon results for the year ending 31 December are to be released in late February, but more than 30p was wiped off its price as the profits announcement was made, falling to less than half its high of 174p. When the group floated, its shares were valued at 100p.
Tenon issued a profits warning on Friday, stating it was paying the ‘price of rapid expansion.’
Defiant Tenon chief executive Ian Buckley said: ‘The integration process has meant too many senior directors have been spending time focussed internally, and not charging, while integration costs have been significant.’
He added that the firm was still on track to hit analysts’ estimated profits of up to £16m in 2002 on turnover that should reach £100m.
The group was still looking to ‘selectively’ expand next year, he said, including a move into financial services.
Shares in rival AIM-listed accountancy group Numerica appeared to be relatively unaffected by the news, with its stock falling just 1p to 113.5p.
Links