RSM Tenon boss: 'Business is returning to operating profitability'

RSM Tenon returned to underlying EBITDA profitability in the six months ending December 31st, following a period of restructuring and cost reduction, interim results have shown.

RSM Tenon returned to underlying EBITDA profitability in the six months ending December 31st, following a period of restructuring and cost reduction, interim results have shown.

The national professional services firm reported that underlying earnings before interest, tax, depreciation and amortisation (EBITDA) were valued at £1.5m, representing a big improvement on the EBITDA loss of £8.2m recorded in 2011.

Subscribe to MoneyWeek

Become a smarter, better informed investor with MoneyWeek.

The company had revenue of £88.4m, down by £9.8m and operating costs of £86.9m, down by £19.5m.

The adjusted loss from continuing operations per share was 0.88p and net borrowings of £80.4m were recorded compared to total facilities of £93.0m as of December 31st 2012.

Advertisement - Article continues below

The company's headcount has also continued to reduce. During the period to December 31st 2012, the company had on average 2,666 employees. This compared to 3,166 in the previous year.

"Most of the reduction in the current financial year has been through natural attrition rather than redundancy, as we continue to shape the business to a more efficient structure," the interim statement reported.

"Headcount reductions have had an impact on revenue and consequently we approach any further reductions in staff with extreme care. Most importantly, we continue to recruit in key areas, including at Partner level, and have been delighted to welcome 247 new joiners during the first six months of the financial year."

Tim Ingram, Chairman of RSM Tenon, commented: "The significant progress in turning RSM Tenon around is evidenced by these results. The business is now smaller, better organised and properly managed. In a challenging market, we still have much to do, but the direction has been clearly set."

Chris Merry, Chief Executive Officer of RSM Tenon, said: "Markets for our services remain tough and I am grateful to our clients and staff for their continued loyalty. We are delighted that the business is returning to operating profitability and now seek a period of stability to move into a growth phase for RSM Tenon."

Advertisement - Article continues below

RSM Tenon's share price was down 4.76% to 6p at 10:55 on Tuesday.




Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020
Share tips

Class acts going cheap: buy into Europe’s best bargains

Value investing appears to be making a comeback, while shares on this side of the Atlantic are more appealing on metrics such as price/earnings ratios…
16 Jan 2020

Most Popular

Global Economy

Helicopter money is coming very soon – but what form will it take?

We’re heading for a”new normal”, says John Stepek – fiscal stimulus, and lots of it. Here’s what that really means.
16 Mar 2020

The helicopters are being warmed up – we might be closer to a bottom than you think

Governments are starting to act to bolster their economies against coronavirus. But, asks John Stepek, will throwing money at the problem slow the mar…
17 Mar 2020
Investment trusts

Now could be a good time to bag an investment bargain

We like investment trusts here at MoneyWeek. And they can be even better during a market crash.
16 Mar 2020

Why investors shouldn’t overlook Europe

SPONSORED CONTENT - Ollie Beckett, manager of the TR European Growth Trust, tackles investor questions around Europe’s economic outlook and the conseq…
6 Nov 2019