Pension tax relief changes will boost accountancy firm

The company, which has offices in Leeds, Hull, Wakefield, Grimsby, Doncaster and Harrogate after buying RSM Bentley Jennison for 76m last year, also said it is on track to meet market expectations for the full year.

Last month, the Government announced it would cut the tax relief on pension savings for around 100,000 higher earners, in a move designed to raise 4bn a year and help reduce a record budget deficit.

RSM Tenon's chief executive, Andy Raynor, said these changes will encourage further activity next spring and summer as people make plans about taxation and investments.

"New opportunities have arisen from government announcements and changes to legislation," he added. "These changes will encourage further activity towards the second half of the year within taxation and investment planning."

The company, which is planning to move a greater proportion of its risk-management services to corporate clients, said this would help limit the effects of the Government spending cuts.

The group expects the integration of RSM Bentley Jennison to be largely complete in the New Year and said it is on track to deliver the annual cost savings expected from the deal.

The company said that business from entrepreneurial clients continues to be resilient, especially in the audit, tax and advisory division.

Mr Raynor said the group is continuing to invest in its Recovery service line.

"While industry statistics have shown further reductions in formal insolvency opportunities, our plans remain focused upon increasing market share and improving returns from investments in new locations as the financial year progresses," added Mr Raynor.

In September, the company reported a 37 per cent increase in full-year adjusted pre-tax profits, boosted by the acquisition of RSM Bentley Jennison and some assets from failed administration group Vantis.

Vantis called in administrators FTI Consulting after attempts to reduce its debt levels failed.

RSM Tenon shares, which have risen by a quarter of their value since the company announced its move to the main market of the London Stock Exchange in April, closed up one per cent last night, a rise of 0.75p to 59p.

The acquisition of RSM Bentley Jennison increased the turnover of the group's Yorkshire operations to 17m, giving it more than 200 staff.

The group's recovery services, which help turn around struggling businesses, have continued to grow and are increasing market share.

Tenon's risk-management arm is the only part of the business exposed to the public sector and it has taken steps to protect its profitability, targeting services that can reduce costs and improve efficiency.