RSM Tenon in profits hike
National advisory and accountancy service RSM Tenon has revealed a turnover increase of 65 per cent in the second half of 2010. The firm, which has offices in Nottingham, Derby and Leicester, said that underlying profits also climbed by 53 per cent over the six-month period.
The firm said that it was continuing to reap the benefit of its mergers with RSM Bentley Jennison and certain assets of Vantis, adding that it expected the integrations would deliver a contribution of about £10m in cost savings over the next year.
It revealed its half-year results to 31 December 2010 to the 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 June 2009, Tenon completed its acquisition of RSM Bentley Jennison and completed the acquisition 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."
