RSM Tenon – full year results

Peter Donnelly

"This financial year has been a defining period in the history of RSM Tenon, a time of positive transformation and growth. This tenth successive year of underlying profit growth has also included two substantial acquisitions, a move to the Main Market of the London Stock Exchange and also the launch of new branding, which all combine to put RSM Tenon in a positive position for future organic growth”, said Peter Donnelly, office managing director at RSM Tenon in Rochdale.

“In December 2009 we completed the merger of RSM Bentley Jennison, a business almost half the size of Tenon Group PLC. This transaction marked a seminal point in our development as it brought two complementary businesses together and a precise market focus. Other benefits included enhanced brand presence, new territories for specialist services, extended representation throughout England and Wales and the exclusive membership of RSMI, an international network of which RSM Tenon is the second largest member worldwide. In June 2010, we also acquired certain parts of Vantis PLC, which enhanced our geographical spread.

“Our objective has always been to identify profitable markets, respond, adapt and provide the services needed for success. Our Recovery services line has trebled in size in the last four years and now boasts a turnover of £51m nationally, an increase of 17 per cent on 2009. This growth now makes RSM Tenon the largest commercial provider of bankruptcy services in the UK and a close second in the volume of corporate assignments.

“Risk Management services, which is predominantly in the public sector, has also added a further £13.7m to our total fee income. This service line was added to our portfolio after the merger with RSM Bentley Jennison.

“During this whole period of change, we have continued to talk to entrepreneurs and our clients throughout the region. Although the economy remains very challenging, we now feel we are well placed for future development. The state of the economy means that our Recovery teams are still in great demand, but we are also seeing an increase in activity by our transactional teams in Corporate Finance and Tax. We are seeing a considerable number of new businesses coming to us for advice, with an increasing proportion of them looking to expand internationally.

“Our public sector team has also continued to perform well in the year and, although the government cuts will produce an even more challenging environment, we are confident that new opportunities exist for us in these markets.

“Our focus on the entrepreneurial and private business marketplace means that we act for a large number of wealth creators; coupled with the increase in taxation rates, this focus will continue to provide us with substantial opportunities for our advisory tax and wealth management teams.

“The developments that we have undergone over the last year mean that, more than ever before, RSM Tenon now has the range of people and services, the structure, the stability and track record to ensure we continue to effectively advise growing businesses across the region.”

Donnelly concluded: “Combining our careful choice of market with a portfolio of services that provides stable and recurring revenues across the economic cycle means our expectations for the future are positive despite the continued upheaval in the UK economy.”