Insider Media Limited

National advisory and accountancy service RSM Tenon has revealed a turnover increase of 65 per cent in the second half of 2010. The Birmingham-based firm said underlying profits also climbed by 53 per cent over the six-month period. The firm said it was continuing to reap the benefit of its major mergers with RSM Bentley Jennison and certain assets of Vantis, adding it expected the integrations to deliver about £10m in cost savings over the next year.

The firm, which has two offices in Birmingham and sites in Telford, Stoke and Worcester, added that the two merged businesses were now “fully integrated” into RSM Tenon.

It revealed its half-year results to 31 December 2010 through the London Stock Exchange this morning.

Turnover was up 65 per cent to £121.1m, said the firm. This result included overall organic growth of 3.5 per cent.

Underlying operating profit increased to £13.5m, a 53 per cent rise on the comparable 2009 period which secured £8.8m.

The firm’s audit, tax and advisory service grew by 7 per cent over the period, while its recovery division grew by 8 per cent.

RSM Tenon said that last year’s results were second half weighted in both turnover and margin.

In 2009, Tenon completed its acquisition of RSM Bentley Jennison, and completed its purchase of certain assets of the Vantis group in June 2010. The company said the acquisitions were largely complete, and were fully integrated into the firm. Total cost savings of integration were set at £10m for the next financial year.

Andy Raynor, chief executive of RSM Tenon, said: "We have grown both the turnover and profitability of the Group and our single-minded commitment continues to deliver the expected benefits of recent acquisitions.

"In an economy and marketplace that is increasingly uncertain in outlook, vital to the future are our recurring client base, complementary service lines, better use of resources, and strength from scale.

"We look forward to further realising our potential in the full year."