What do they do: http://www.rsmtenon.com/en/About-Us.aspx
Through a comprehensive suite of accounting and consultancy services, we offer intelligent solutions to a national client base that ranges from individuals and entrepreneurially-led owner managed businesses, to large corporations and public sector organisations.
With leadership in the provision of business advisory, risk management, tax, recovery and financial management services, we are the UK’s 7th largest accounting firm with a fee income of £250m, employing nearly 3,000 people with offices in all major commercial centres across the UK.
We help entrepreneurs create, protect and enhance personal wealth. We give board and senior executives the assurance they need to manage their organisation effectively and the proactive support they demand to help them stay ahead of the competition.
http://en.wikipedia.org/wiki/RSM_Tenon
This was flagged up on TMF: http://boards.fool.co.uk/rsm-tenon-12234492.aspx?sort=whole#12236256
and there's a discussion on ADVFN: http://www.advfn.com/cmn/fbb/thread.php3?id=21671650
Positives:
Recent interims: http://www.investegate.co.uk/Article.aspx?id=201102230700106803B
· Turnover up 65% to £121.1m (2009: £73.5m) including overall organic growth of 3.5%
· Underlying operating profit* up 53% to £13.5m (2009: £8.8m)
· Adjusted basic earnings per share* up 4% to 3.14p (2009: 3.01p)
Huge director buying of late
On an future earnings basis the business is currently being valued at a PER of 4.5
Negatives:
Net debt of £73.3m at 31 December 2010, expected to reduce in H2; facilities increased to £93m
Balance sheet built up mainly of goodwill from acquisitions. Article here suggests reasons for market finding
interims unfavourable : http://www.accountancyage.com/aa/news/2028435/tenons-share-price-hit-wip
Mainly large increase in WIP - likely given acquisitions so not unexpected.
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There was a big movement up today which wasn't rocket science. When the disconnect between future discounted cashflows and market cap get this badly out of line there is only one way to go. Working in the accounting industry I can tell you that times are tough but not THAT tough. 30p for Tenon will be laughed at in a few years I reckon.
DYOR as always.
