One to watch: RSM Tenon

RSM Tenon45.5p -0.25pScotsman says BUY

RSM Tenon provides a range of professional and business services. These include turnaround and corporate recovery, business taxation, accounts and audit, outsourcing and corporate finance. It is the UK's seventh largest accountancy firm with more than 50 offices.

The company has just announced its latest results but these are pretty academic as it is still integrating a major acquisition. RSM Bentley Jennison was bought at the beginning of November, funded by a fully underwritten placing of 45p, which raised 40 million. This had a short-term dilutive impact on the group but its management is confident there will be considerable benefits.

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The shares were at nearly 65p in October and have been under pressure ever since and are unlikely to recover their poise until the benefits of this large corporate manoeuvre are confirmed. However, the company is destined to move out of Aim into a full listing at some point in the not-too-distant future and patient investors could consider picking up the shares at around these levels.

It was John Major who ran away from the circus to become an accountant; prospective investors might want to consider following his example.

• The value of your investment could fall and you may get back less than you invested. You should take professional advice if you have any doubt about the suitability of this company for your portfolio.