RSM Tenon

RSM Tenon
Public Limited Company
Traded as LSE: TNO
Industry Professional services
Founded 2000
Headquarters London, United Kingdom
Key people
 Chris Merry
CEO
Products Audit
Tax
Advisory
Revenue £208.2m (Annual Report 2012)
£5 million (2011 restated)
£0.7 million (2011 restated)[1]
Number of employees
 around 2,600
Website www.rsmtenon.com

RSM Tenon was a professional services firm based in the United Kingdom, which was once listed on the FTSE SmallCap Index. The company was formed from the merger of the Tenon Group with RSM Bentley Jennison in December 2009.[2] The company offered risk management, tax, recovery, financial management and business advisory services. RSM Tenon had been the UK's seventh largest accounting firm[3][4] with a fee income of £200m, employing nearly 2,600 people in over 35 offices across the UK.

RSM Tenon was a member of RSM International, the seventh largest global accounting network[5] with over 700 offices in more than 100 countries.

In November 2011 RSM Tenon was recognised as the ‘National Firm of the Year’ at the 2011 British Accountancy Awards.[6]

In August 2013 the shares of RSM Tenon Group PLC were suspended and the company went into insolvent administration. The trading subsidiaries were immediately purchased by Baker Tilly UK Holdings Ltd,[7] an unquoted company of Chartered Accountants and business advisers operating across the UK through a limited liability partnership Baker Tilly LLP, which in October 2015 re-branded itself as RSM UK.

History

Tenon Group

Tenon was one of the first accountancy firms in the UK not wholly owned by its partners, being a public limited company (PLC) listed on the Alternative Investment Market. It was formed as a "consolidator", inviting existing small local accountancy partnerships to join it and become part of a national company. It acquired five firms in April 2001 for £60 million, making it the 15th largest and the first PLC in the UK league table of accountancy firms.[8] In practice, the company found it difficult to integrate these businesses and its share price dropped to 6.25p in 2003 following the dot-com bubble.[9]

When Tenon was launched, financial audit could not be carried out by a PLC, so the auditors from the predecessor firms formed an associated partnership known as Blueprint Audit.[10] The rules requiring strict separation were relaxed in 2005.[11]

Tenon's public image was characterised by Accountancy Age magazine in 2010 as "quirky but recognisable entrepreneurial-based branding".[9]

RSM Bentley Jennison

RSM Bentley Jennison was a British firm of Chartered Accountants founded in 1984 by David Bentley and John Jennison. It had over 1,000 staff in 15 offices around the United Kingdom in Birmingham, Bristol, Cardiff, Edinburgh, Harrogate, Leeds, London, Manchester, Milton Keynes, Newcastle, Nottingham, Solent, Stoke-on-Trent, Swindon and Telford. It was ranked 14th in the 2007 Accountancy league table of chartered accountants and business advisors.

Bentley Jennison secured a place in the RSM International network when the original UK member, Robson Rhodes, merged with Grant Thornton in 2007. The weekly industry journal Accountancy Age noted that Bentley Jennison had beaten larger rivals to gain this position.[12]

Post-merger

Tenon announced in December 2009 that it was merging with RSM Bentley Jennison in a £76 million deal.[2] Andy Raynor, Chief Executive of Tenon, initially headed the enlarged firm. The former National Managing Partner, Tony Stockdale, and other senior staff at RSM Bentley Jennison joined the PLC Board as Executive Directors.[3] RSM branding replaced Tenon's. The firm announced some rationalisation of offices, but planned to expand in Birmingham, Bristol and Leeds.[9]

In February 2010, the Financial Services Authority imposed a £700,000 fine for mis-selling of structured finance products by Tenon.[13]

RSM Tenon's shares moved up from the AIM to the main UK London Stock Exchange in May 2010. It is the first accountancy firm to be listed there.[14]

At the end of June 2010, RSM Tenon paid £6.8 million to acquire several offices from rival consolidator Vantis when the latter entered administration and was broken up. The acquired businesses had a turnover of £27 million in the preceding year,[15] and contributed to a 31% increase in turnover for the year ended June 2011.[16]

In January 2012, the firm warned of losses "due to pricing pressures amid a difficult economy". Raynor and the firm's chairman Bob Morton stepped down.[17] Adrian Martin became Chairman, and Chris Merry was appointed CEO in February 2012.[18] At the end of that month the firm released half-year results showing a loss after a £60 million goodwill write-off.[1]

Awards

RSM Bentley Jennison won the award for Large Firm of the Year in the Accountancy Age Awards for Excellence 2006.[12]

RSM Tenon won National Firm of the Year at the British Accountancy Awards 2011.[6]

References

  1. 1 2 Crump, Richard (29 February 2012). "RSM Tenon chief draws line under accounting errors". Accountancy Age. Retrieved 1 March 2012.
  2. 1 2 Tenon plans to buy RSM Bentley for up to £76.3m, Yorkshire Post, 9 December 2009. Retrieved 24 January 2012.
  3. 1 2 Tenon and RSM Bentley Jennison announce merger, RSM Tenon press release
  4. ↑ Top 50 +50 Firms 2011, Accountancy Age. Accessed 21 September 2011.
  5. ↑ RSM International
  6. 1 2 British Accountancy Awards 2011: The winners, Accountancy Age, 30 November 2011. Retrieved 14 December 2011.
  7. ↑ http://hsprod.investis.com/ir/tno/ir.jsp?page=news-item&item=1578183585431552
  8. ↑ Top 50: New big fish gobbles up mid-tier rivals, Accountancy Age, 26 June 2001
  9. 1 2 3 RSM Tenon expansion plans on hold after merger, Accountancy Age, 1 April 2010
  10. ↑ Top 50: Consolidation is alive and well, Accountancy Age, 26 June 2001. Includes a list of firms acquired.
  11. ↑ New name rules allow closer auditor links, Accountancy Age, 3 March 2005
  12. 1 2 Bentley Jennison article on Accountancy Age website
  13. ↑ FSA fines RSM Tenon for structured products' flaws, Financial Times, 25 February 2010
  14. ↑ Tenon to step up to main market in May, Accountancy Age, 28 April 2010
  15. ↑ RSM buys Vantis businesses, Financial Times, 1 July 2010
  16. ↑ Singh, Rachael (14 September 2011). "RSM Tenon's result bolstered by audit arm". Accountancy Age. Retrieved 21 September 2011.
  17. ↑ "RSM Tenon Group's top executives stand down". Yorkshire Post. 23 January 2012. Retrieved 24 January 2012.
  18. ↑ Thompson, Jennifer (15 February 2012). "RSM Tenon hires new chief for turnround". Financial Times. Retrieved 15 February 2012.
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