Accountant Tenon warns of hard times

Accountancy firm RSM Tenon has warned of “extremely challenging” times ahead despite strong growth in its Scottish operation during its last financial year.

Regional director for Scotland Margaret Laidlaw said: “Over the year to 30 June we have seen combined fee growth in Scotland across audit, tax, advisory, financial management, corporate finance and corporate recovery service lines of 9 per cent.

“However, the last six months in particular have been extremely challenging and we are preparing now for more of the same in the year ahead.”

She added: “We’ve got a great deal of respect for the range of Scottish businesses which have negotiated the difficulties of the last four years through a combination of careful financial management, strenuous hard work and an enterprising attitude.”

Her comments come after RSM Tenon reported a 31 per cent increase in turnover in its wider operation. Revenues rose to £249.1 million in the year to 30 June, up from £190.4m.

Underlying profit was up 14 per cent to £30.1m, despite the firm’s operating margin being “held back by trading environment and investment” and falling to 12.1 per cent.

But it reduced its dividend to 0.55p a share, compared to 1.6p in 2010, “to preserve resources in an unpredictable business environment,” chief executive Andy Raynor saying it would focus on “organic development, improving returns and reducing net debt.”