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RSM Tenon axes 400 jobs and posts £100m loss
by Sarah Miloudi on Oct 17, 2012 at 08:04
RSM Tenon, the financial services, accounting and tax services provider has axed 400 jobs and posted a loss of £100 million, but the company says it is eyeing growth as it enters the next phase of its recovery plan.
It is no secret RSM has endured a difficult 12 months, something touched on by its new chair Tim Ingram as he unveiled the firm's final results for the year ended in June.
While swinging into loss, Ingram pointed out RSM is on track with its cost savings, adding he now expects a reduction in expenses of £20 million as opposed to the £14 million previously projected. It achieved this, in part, by trimming staff numbers. Over the stretch these have reduced by 12.5%.
But RSM's £101.8 million loss before tax reveals continued weakness. The figure dwarfs the £177,000 loss it made over the previous 12 months.
The sum includes exceptional items costing £77.2 million, including £4.3 million spent following a settlement agreement with the Financial Services Authority and a £7.7 million bill resulting from a review of the business.
Ingram said that RSM is now in the second part of its reconstruction plan rolled out earlier this year, the phase of its strategy focused on consolidating its operations. Next in line, the firm will target splitting its audit, tax and accounting branch into two and achieving growth.
Ingram (pictured) said: 'Structure is important to our success: it needs to be easy for our clients to understand.'
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