RSM Tenon Share Discussion Threads

[aleks_atanasov] 25/1/2012 17:08

"Corporate defaults may almost double in Europe as companies struggle to refinance debt and banks hoard cash borrowed from the European Central Bank or use it to buy government bonds.

Europe's default rate may soar to 8.4 percent or more, from 4.8 percent at the end of 2011 as the recession bites and company financing dries up, according to Standard & Poor's. Petroplus Holdings AG (PPHN) became the latest victim of the tough stance banks are adopting when the region's biggest independent oil refiner said this week it will file for insolvency after losing access to $2.1 billion of credit lines.

"It's very challenging for anyone to raise money from lenders right now," said Andrew Cleland-Bogle, a Frankfurt- based director at corporate finance specialist DC Advisory Partners. "Combine that with increased bank capital requirements and you can see that although banks are getting money they're very selective when it comes to lending it. 2012 is going to be a very, very tough year."

[edwardt] 24/1/2012 17:52

they are toast, is what you are correctly saying !

[imastu pidgitaswell] 24/1/2012 14:46

Blimey Ken, sorry to hear that - I am a silent reader of your BARC stuff, and have been for many years.

39,000 of these used to be worth something, sadly no longer, thanks to the either delusional or dishonest Mr Raynor.

On the debt question - it was £66m at 30 June 2010, and factoring in their failure to do anything useful about their working capital position ("By simplifying processes, rationalising information flows and involving client directors earlier in the working capital management process, we reduced the lock-up period to below 100 days in the second half of the year. We seek further reductions during 2011/12" - nice story, pity about the actuality) and the operating losses and consequent cash outflow - including about £600k to Raynor for his pay-off, I think £80m is about right - as they say, close to the headroom of £88m.

Fortunately, they have all that asset backing - some £150m odd of net assets. Unfortunately, £180m of them are intangible.

So negative net tangible assets, loss-making, cashflow negative including commitments to pay for acquisitions (presumably way-overpriced), and with their business contracting.


Apart from that...

[aleks_atanasov] 24/1/2012 14:24

which means the banks can pull the plug at any time..

[still waiting] 24/1/2012 14:16

actually £88m of facilities and now with no/little headroom, with no doubt a load of redundancy costs to finance in Feb 2012 when workload dries up across the sector anyway....

[still waiting] 24/1/2012 13:58

a loss making business with £80m debt and facilities used up and still requiring more..

mv is still way too high...

[kenbachelor] 24/1/2012 08:56

I don't know what you are all grumbling about. I've got 39,000 of these and they've gone up a total of £29.25 this morning. They are the only blue stock in my portfolio!

[whyme] 24/1/2012 00:29

One for the sock draw I think at least for a year or more unless it is taken over by an interesting party for a fraction of a price it was 12 months ago.

[still waiting] 23/1/2012 22:51

if I were a TNO client I would be telling them to shove their fixed fee and would be moving to slash my bill by at least 50%..

that's what is happening in the market now as the sme market is melting quicker than an artic ice-cap....

[still waiting] 23/1/2012 22:29

an accountant re-stating its own accounts!!!!

not a good way to promote yourselves to clients, I'm sure HMRC is mightly impressed by their standard of accounts production as well....

[nigelpm] 23/1/2012 22:21

Too much negativity here I think.

[still waiting] 23/1/2012 22:16

from having plenty of headroom it now sounds like that has all but gone with covenant tests still to adhere to AND with the write offs just starting...


it's not going to be pretty.

[atlantic57] 23/1/2012 21:42

nigepm your post is very sensible.
To turn round an accountancy business in these times is going to be a mamoth job and it will take some time.

[nigelpm] 23/1/2012 21:36

In two very distinct minds here.

Top up or not?

Everything looks awful BUT there's a point of maximum pessimism and if TNO survive this will certainly prove to be a great point to have bought.

Will ponder on.

[dugganjoe] 23/1/2012 19:45

vantis hit the fan

[still waiting] 23/1/2012 19:17

been busy today, this is the start of the end game,,, write off the intangibles, it is a people business after all and with clients chasing lower fees the client base here will quickly evaporate..

you can sense all the partners cashing in their chips ASAP..

[skyracer] 23/1/2012 17:35

Skyracer - 25 Mar'10 - 14:33 - 20 of 701 edit

What a shabby company this is. Yet more options excercised at 10p. They really know how to look after themselves. Well, if you invest in this you only have yourself to blame. You will be disappointed, always jam tomorrow. Quite frankly there are many far better opportunities out there, with share prices rising strongly. Tenon exciting accountants? You must be joking, only for the self-serving Directors.

Sorry, but I told you so. Tenon was a far too cosy and self-serving setup, ordinary shareholders looked destined to be shafted even two years ago.

[atlantic57] 23/1/2012 17:26

Some good intelligent posts on here !

Lets see what emerges

[vision88] 23/1/2012 16:44

Claims Direct is a great big pile of poo that needs flushing away to the nearest sewer that it rightly belongs to

[paulypilot] 23/1/2012 16:23

Hi,

I've been monitoring this one, with a view to buying some for a rebound, but have to say it's looking very dodgy now - am taking it off my watch list.

How is it that a firm of accountants can make such a hash of things? As I used to work for one of the large accountancy firms, my answer would be that they are not actually very commercial people - i.e. accountants who work in public practice may be technically knowledgeable, but clueless when it comes to actually running s business, so it seems.

So many of these groups that grow rapidly through acquisitions seem to come unstuck. Bad luck to holders, but it looks too high risk now for any bottom-fishing for me.

Regards, Paul.