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.
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