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RSM Tenon share price plummets 27% as chief exec steps down
by Alex Steger on Jan 23, 2012 at 09:12
The share price of RSM Tenon has fallen by 27% on the news that its chief executive and chairman have left the company following a profit warning for the second half of 2011.
Shares in the advisory and accountancy firm began the day at 8.25p but have dropped to 5.89p after the company announced the departure of chief executive Andy Raynor and chairman Bob Morton with immediate effect.
Adrian Martin, currently the company's deputy chairman and senior independent, non-executive, director, has been appointed executive chairman.
Raynor (pictured) has left theTenon board with Morton remaining in a non-executive capacity.
Tenon’s results for the last six months of 2011 are set to be published on 29 February with the company already having said it expects to make a loss before tax.
It said: ‘We currently expect to report that revenue in the six months to 31 December 2011 was approximately 10 per cent lower than in the corresponding period in the previous year. Due to the proportion of costs that are fixed, we expect that we will record a loss before tax.’
Martin said: "The Company's performance is clearly disappointing and my immediate priority is to instigate and execute the necessary actions to improve profitability and cash generation.
‘RSM Tenon has a strong market position and client base, as well as dedicated and loyal employees. The board remains confident of the future prospects for the company and that a successful turnaround can be delivered.’
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