Shares hit as Tenon tells of tough trading

The statement was made at the company’s AGM on Tuesday.

The company’s chief executive, Andy Raynor, said at the AGM: “While the board continues to be mindful of the economic uncertainty, we have a strong market position as one of the leading accounting-based service providers in the UK.”

In response, analysts at Shore Capital noted that RSM Tenon’s revenues continued to be weighted to the second half of the year.

“Tenon’s banking agreements are set for renewal in July 2012 and we see this as the main downwards pressure exerting itself on the share performance of late,” the broker said in a note.

However, Shore Capital said it believes that a successful renegotiation of contracts and consolidation of the business will see RSM Tenon well-placed to benefit from increased lines of demand for its product offerings.

The broker said that, in its view, RSM Tenon continued to look undervalued, and it repeated a ‘buy’ rating on the stock.

RSM Tenon employs 197 staff at five offices throughout York-shire.