RSM Tenon Share Discussion Threads

[papaduke] 01/3/2012 17:47

dugganjoe, you should be on stage my friend!!....love the expensive horse post!!.


i dont hold, just watching

[dugganjoe] 01/3/2012 09:04

all just a pile of goodwill to write off

[jonc] 01/3/2012 09:03

I would suggest that if 10% of the staff are to leave then there will be some hemorrhage of clients particularly if part of the staff reduction is at senior level or higher.

[ny boy] 01/3/2012 08:15

Primed here for a takeover, I expect a takeout price 20p+ M&A activity is really starting to gain traction in the markets.

[daz] 29/2/2012 22:22

Fortunately for TNO, it's not easy to move jobs, most companies including accountancy firms are looking to cut costs rather than expand and TNO have just got rid of a number of people themselves.

The writing has also been on the wall for some time, so I think those able to move probably already have. Whether they still have senior management of the right calibre remains to be seen.

I think the company is very difficult to value at the moment, nobody can be certain whether it will pull through or not, so who can say what the risk premium should be. My line of thinking behind buying today was that it is pretty much priced to go bust at current levels so any positive news ought in theory be well received.

As a consequence of the valuation problem, I think the share price could be very volatile, particularly in reaction to any news that comes out, good or bad.

The most positive sign I can think of is if any of the directors start buying, with the company in the state it is, that would be a real sign of confidence

[wiganer] 29/2/2012 15:11

Taking off like a Boeing!

[the shuffle man] 29/2/2012 14:52

I think a rights issue is on the cards.

Debt would reduce, interest payable would reduce which would feed straight through to the bottom line coupled with the cut in costs would return the company to profitability.

[imastu pidgitaswell] 29/2/2012 13:47

It certainly could. For the level of revenue they generate, they should be able to make a good return. It's the abject management and refusal to confront reality (i.e. they acquired badly) that has stuffed them.

Now that the management has been changed and they are facing reality, with support from the bank (and it's in their favour that it's Lloyds, who have their own issues on support and rebuilding...) - well, they have a chance. What they really need to know clearly is the level of their recurring revenue, and at an absolute minimum keep it steady, so they can plan costs accordingly.

I do agree that as a share investment it could do very well - it could also go bust. Put it this way, if I was short, I would close. If I was already long from higher up, I'd stick with it. Being neither, I'm inclined to stay away. But never say never...

[knigel] 29/2/2012 13:26

Well, what about a fund raising at some point before October?

[nigelpm] 29/2/2012 12:57

enviro - that fact that they've just written off £60m in goodwill tells you all you need to know about those acquisitions! There's no need for further comment from management IMHO.

A real kitchen sink statement this morning - assuming all goes well we might have seen the low point.

[daz] 29/2/2012 12:20

Thanks for the reminder but I did see that, I think Lloyds will want to see proof that the company can be saved before extending the facility, in some ways I'm surprised that cost saving measures haven't been even more draconian.

Management will have to come up with a credible plan quickly, there's no room for manoeuvre, progress will need to be demonstrated over the next 6 months for the company to have a chance. it's back to the wall stuff but that's why they've hired a turnaround specialist.

[dugganjoe] 29/2/2012 11:32

Hope you havent missed this bit

- Dependence on continued access to external funding- the Group has substantial levels of borrowings. If the Group is not able to secure appropriate funding beyond 31 October 2012, then, at that time it may no longer be a going concern.

[daz] 29/2/2012 11:30

Agree about the uncertainty of the business but some of the greatest share price gains come from management turnarounds, if they have saved £14m a year for an upfront cost of only £6m, that will make a big dent in the debt mountain and could give them some breathing space with the banks.

Certainly not safe but could be big upside if they can demonstrate further progress, took a small stake this morning.

[envirovision] 29/2/2012 09:16

Missing in todays report statement is an open admission about the purchase of Bentley Jennison and vantas being a catastrophic mistake having paid way way to much, why an earth can't they just be upfront and honest ? I assume there are most likely significant groups of execs protecting their jobs, thats why !

That aside though, An open admission of what many suspect, that the companies accounts and its financial reporting in the past had contained significant errors.

How can any company that has or wants the slightest ounce of credibility use the services of RSM for its accounts ?

Frankly any company that I had to invest in or do business with that was using RSM, I would give a wide berth to myself.

I rather suspect there is a good chance this company wont be around this time next year, certainly not in a listed form imo. More shareholder pain to come imo.

[kenbachelor] 28/2/2012 17:42

JonC - Why 3p tomorrow?

[jonc] 28/2/2012 16:29

3p tomorrow?

[still waiting] 23/2/2012 20:25

results due soon, won't be a pretty sight imho..

[still waiting] 21/2/2012 08:02

another tax saving plan flushed away..

[still waiting] 20/2/2012 18:41

another big dump there..

[imastu pidgitaswell] 15/2/2012 09:34

Well I wish him luck - used to work with him a long, long time ago.

An impressive CV, makes me wonder what he sees in it, although as he finished his last role some 6-8 months ago, that may be a factor.

Still not touching it with a bargepole, but as they say, never say never - worth checking on 29th February.

[still waiting] 15/2/2012 08:22

another shocking RNS today, bad undertones continue...