RSM Tenon Share Discussion Threads

[druinsky] 23/1/2012 16:14

I remember when Claims Direct and Help Hire said they had work in progress issues. CD is kaput and HH is 1p.

Nuff said.

[imastu pidgitaswell] 23/1/2012 16:02

Very true atlantic - but as a public company, which is full of qualified accountants, audited by another firm of accountants, with exactly that issue as probably the key risk in its accounting estimates, an investor might have expected management to have a firm grip on the issue. It's not certain at this stage that they did not, but it wouldn't exactly be a surprise.

But of course, as always, there is no sanction that a shareholder (theoretically the part-owner of the business) can take other than turfing the muppet out who created this sorry mess - by which time it's too late to do anything to turn it around. But to do that, he has to be paid off - who really wins in that scenario, the shareholder who has lost 90+% of his investment, or the highly remunerated CEO who also gets a pay-off? The only consolation is that the CEO also owned a lot (2.25 million) shares and will have lost a lot of value of his shares 'awarded' for meeting his 'targets'. As ever, a reward for failure, which at least is heavily diluted. But it's not much of a consolation - he still got heavily salaried and cash-bonused, and remains rich, when all he has actually achieved is virtual bankruptcy and lost a lot of people their jobs.

As for a fundraising, forget it. The time for that was when the price was 150-odd - simply no point now, why put themselves through all that effort - far simpler to just do a pre-pack and walk away, leaving the shareholders with nothing.

[druinsky] 23/1/2012 12:29

I guess there is going to be a rescue fundraising now that the CHief exec has walked the plank
but wtfdik

[atlantic57] 23/1/2012 12:25

The Issue with Many Accounting and legal firms is that staff tend to book time to work in progress which in reality is incapable of being invoiced to the customer.

Given that the bulk of the assets are likley to be Goodwill and Debtors, they look to be in some difficulty.

[dugganjoe] 23/1/2012 09:12

Due to the proportion of costs that are fixed, we expect that we will record a loss before tax (and before amortisation of acquired intangibles, deferred consideration interest and exceptional items) and the magnitude of this loss will be quantified once we complete the interim accounts and associated auditor's review.



Sounds like a Work in progress problem

[imastu pidgitaswell] 23/1/2012 09:11

A lot. Dunno.

That's all you need to know, given the loose version of the truth this lot persist in putting out...

[dugganjoe] 23/1/2012 09:05

how much debt? and when is next covenant test?

[rmillaree] 23/1/2012 08:55

I have to admit with the debt this share looks a bit of a basket case now.

[bobsidian] 23/1/2012 08:51

So the turnaround specialists are perhaps looking to do a turnaround job on their own business. Priceless. Buyer beware.

[imastu pidgitaswell] 23/1/2012 08:47

Still, this sort of thing is infectious amongst the self-appointed great and good of the accountancy 'profession'.

A couple of months ago:



The judges said: "RSM Tenon was a clear winner with a strong approach to making people fundamental to the business. It understands corporate responsibility and its value to the business. The firm punches above its weight and a huge belief that it will succeed and carve out a powerful market niche."

[jonc] 23/1/2012 08:37

Aye there is no accounting for the stupidity of the PI.

[aleks_atanasov] 23/1/2012 08:15

... and private investors are filling their boots again.. 500K shares traded via RSP, mostly buys.

[jonc] 23/1/2012 07:58

.
Still Waiting - 12 Jan'12 - 15:28 - 681 of 683

anyone sense another profit warning coming...

[nehpets81] 13/1/2012 16:27

Welsheagle - depends on your appetite for risk...

If you like a punt, perhaps there's no time like the present. Personally, I'd like to see how close to those banking covenants they come, and long term, if they can ever make any cash!

Maybe never then....

[welsheagle] 12/1/2012 21:26

At what point is this a buy.

[still waiting] 12/1/2012 15:28

anyone sense another profit warning coming...

[big mags] 10/1/2012 15:01

The receivables problem is not going to go away, even with the change of FD. I suspect the RSM business is in the doldrums as it relied excessively on public service contracts which have all but dried up.

The bank will be nervous if, as is suggested on other blogs, the debt is close to or slightly above the £88M facility.

A fundraising in this climate is unlikely, a break up more likely though which of their competitors would pay for goodwill when they can simply cherry pick the key staff or clients?

Clients will start to wonder why they should trust their finances to a company that can't control its own. I noticed more than 22% of shareholders voted against the directors' remuneration and share plans which is not a healthy sign.

All of these negative factors, insufficient on their own to be decisive, can combine to create a powerful negative field around a brand - 10 years ago the same was happening to Andersens in the wake of Enron.

I suspect another round of cost cutting will have begun this week with a view to satisfying the bank that a sufficient reduction in fixed costs has been achieved before the 21 Feb deadline for H1 interims.

[still waiting] 09/1/2012 16:30

heafty sells now..

could this be broken up, they are experts are prepacks....

[wiganer] 09/1/2012 15:13

How right I was. Shame I don't short.

[still waiting] 09/1/2012 14:56

the slide continues....

[still waiting] 06/1/2012 08:19

we still have a few profit warnings to come yet.

[bonio10000] 05/1/2012 19:41

Once the final RSM deferred payments are made - a serious reduction in debt and increase in the share price. Might take 18 months though.

[aracataca22] 05/1/2012 18:11

Any prospects for this share?