RSM Tenon’s share price plummets following dividend cut
Shares in firm fall more than 10% after its announcement to slash annual dividends
RSM TENON’S share price has fallen by more than 10% following yesterday’s announcement it will cut dividend payments.
Shares this morning stood at 21.91p, a significant decline, after it was announced the firm was slashing annual dividend payments to 0.55p from 1.6p, The Financial Times reports.
In the last week the firm has had a share price high of 27.75p with a 52 week top price of 66.25p.
In its latest results out this week, RSM Tenon posted a turnover increase of 31% to £249.1m for the year ending 30 June 2011, compared to £190.4m for the previous year.
According to chief executive Andy Raynor, the dividend cut and changes to increase banking facilities are to allow the firm flexibility in uncertain market conditions going foward.
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