Jobs are under threat at accountancy firm RSM Tenon as it seeks to cut £14 million of costs after reporting major losses.
The restructuring programme was announced after RSM Tenon posted a loss on continuing operations of £70.6 million, after impairment of goodwill of £60.7 million, for the last six months of 2011 compared to a £1.9 million loss in the equivalent period the previous year.
Accounts filed by RSM Tenon, which has a major office on Legge Street, Birmingham, also revealed that in the last six months of 2011 it spent a further £4.3 million on costs relating to a settlement agreed with the Financial Services Authority after an enquiry into its financial advice arm dating back to 2010.
The Post recently revealed both the chief executive and chief financial offier of the firm had stepped down after revealing losses.
It saw revenue fall by 9.3 per cent to £107.8 million across the six-month period.
Chairman Adrian Martin said: “Significant progress has been made since our January 23, 2012 trading update. The financial review has been completed, the prior year accounts restated, funding is in place to October and a new CEO has been appointed.
“Our executive team is fully focused on restoring the business to profitability. We are grateful to all of our people for their continuing loyalty and client service”.
The group said “positive negotiations” continue to secure long term funding.
Its net debt crept up slightly to £76.5 million at December 31, compared to £73.3 million at the same stage in 2010.
Chief executive Chris Merry said: “Our underlying business performance has been resilient in the face of a tough market environment. We have a clear action plan to drive near term profitability and cash generation. The majority of our revenues and cash generation arise in the second half of our financial year and this trend is set to continue. RSM Tenon is fundamentally a sound business.
“It now has a solid base to build for the future and to deliver an appropriate return for shareholders.”