RSM Tenon reveals expansion plans

BUSINESS advisor RSM Tenon Group revealed plans to further expand its turnaround and corporate recovery division after increasing its turnover by 20 per cent.

The company, which was formed after Tenon Group bought Leeds-based RSM Bentley Jennison for up to 76.3m in December, said turnover for the division rose to 23.2m in the six months to December 31 2009.

Revenue from continuing activities came in at 73.5m down slightly on 74.9m in the same period last year.

Operating profit, before amortisation of acquired intangibles, deferred consideration interest and exceptional items, increased by 100,000 to 8.8m, which the group said provided a stable platform from which to grow the enlarged business.

At the bottom line, after one-off costs and amortisation, profitys fell from 2.23m from 6.46m.

Nationwide, the practice has more than 50 offices and nearly 3,000 staff.

The Yorkshire operation, which has offices in Leeds, Harrogate, Hull, Wakefield, Grimsby and Doncaster, employs about 200 staff.

Tenon raised 40m by placing about 88.9 million shares at 45 pence apiece and issued up to 47.8 million shares to help fund the acquisition. Today, the company also said that it had used less than 50 per cent of its increased bank facilities of 75m.

Chief executive Andy Raynor said: "We have again delivered profits in line with expectations whilst completing the largest acquisition in the history of the Group.

"Integration plans are well advanced and provide a clear opportunity for further margin and revenue enhancement over the next twelve months.

"As announced at the time of the acquisition on December 9, and in recognition of the scale and ambition of the business, the company intends to move to the Official List in the first half of 2010, subject to the receipt of the necessary approvals from the UK Listing Authority."

He added: "We will continue to further expand our turnaround and corporate recovery offering especially alongside our recently acquired offices in Birmingham, Bristol and Leeds.

"Historical insolvency statistics suggest that levels of appointments continue to rise to peak levels two to three years post downturn and therefore further organic growth is also expected."