PracticeAccounting FirmsTenon’s shares plummet

Tenon's shares plummet

The share price of Tenon has plunged to a new low, just months before the former partners of the accountancy consolidator's constituent firms get their first opportunity to sell their equity.

Link: Tenon director slams pension tax plans

Like much of the rest of the Stock Exchange, the company’s shares have lost much of their value. In three months, Tenon shares have dropped from 50p to 19p, losing 31p or 62% of their value.

The shares are well below their original launch price and just a fraction of their all-time high of 183.50p at the end of 2000.

Tenon chief executive Ian Buckley told Accountancy Age Tenon’s share price was ‘significantly undervalued’

But what could cause Tenon even more worries is that the partners of the firms it first acquired will soon be free to sell their shares.

One of the conditions Tenon put to the firms it acquired was a three year lock-in on the shares it gave the partners. The consolidator’s first acquisition, the non-audit business of Morison Stoneham, was completed in October 2000. Its second one, the Williams Allan Group, was announced shortly after and finalised at the end of the year.

Buckley said he is not worried about the fact the lock-in was ending on a year that began badly. ‘I am sure the partners think, like I do, that the current share price is very undervalued. I am sure they will wait until the share price recovers before they make a judgement.’ he said.

Buckley added the company would have to ‘show that it can deliver profits to the market place, growth and product value’ to bring its share price back up.

War jitters are continuing to hit the entire stock market. In what some analysts are calling ‘black January,’ the FTSE-100 has fallen to its lowest point since 1995.

Related Articles

LLPs in Top 50+50: Will LLPs continue to be the preferred set-up?

Accounting Firms LLPs in Top 50+50: Will LLPs continue to be the preferred set-up?

10h Fergus Payne, Lewis Silkin
BDO’s global revenues pass $8bn

Accounting Firms BDO’s global revenues pass $8bn

6d Alia Shoaib, Reporter
Top 40 International Networks, Associations and Alliances: Finding growth amid uncertainty

Accounting Firms Top 40 International Networks, Associations and Alliances: Finding growth amid uncertainty

1w Philip Smith, Reporter
Top 40 International Networks, Associations and Alliances 2017: Big Four tussle for top spot

Accounting Firms Top 40 International Networks, Associations and Alliances 2017: Big Four tussle for top spot

1w Emma Smith, Managing Editor
BDO reports revenue growth of 5.7%

Accounting Firms BDO reports revenue growth of 5.7%

2w Alia Shoaib, Reporter
Taylorcocks announces merger with Surrey firm

Accounting Firms Taylorcocks announces merger with Surrey firm

2w Emma Smith, Managing Editor
Kingston Smith reports 7% gender pay gap

Accounting Firms Kingston Smith reports 7% gender pay gap

2w Emma Smith, Managing Editor
RSM announces two partner promotions

Accounting Firms RSM announces two partner promotions

3w Emma Smith, Managing Editor