Market factors blamed for Tenon's poor performance

RSM TENON’S disappointing trading statement has been blamed on “continuing economic uncertainty and market factors”, leading to worse-than-predicted full-year profits.

Recovery appointments are slipping and reductions in specialist tax income due to an uncertain legislative environment have pushed profit below expectations, although it remains higher than the prior period.

This increase is due to integration processes and resultant savings, with improvements also seen in working capital lock-up and operating cash flows.

Strongly performing arms included audit, advisory and risk management, while tax planning was weaker with profits in this department standing lower than the corresponding period in 2009/10.

Chief executive Andy Raynor said: “With our integration complete, our primary focus is on providing a tangible and early increase in margins. While disappointingly delayed, predominantly by market factors, we believe we remain in position to deliver the future benefits of our acquisitions and investments.”