Shares digital

Tenon (TNO:AIM) – Interims PTP: £6.0m (£5.0m) Divi: 1.2p (1p)

The fruits of the accountants’ recent acquisitions are starting to flow through, leaving it well positioned for an expected upturn in business insolvencies. The company acquired Unity in the summer, so now about a fifth of revenues are derived from recovery work. With the UK economy slowing rapidly – some even predicting a recession – the effects of the credit crunch (high borrowing costs) are starting to feed through into the real economy.

With the addition of Unity, corporate recovery for £13.5 million, or 18% of overall revenues at £75.8 million represents growth of 29% on last year, and 13% like-for-like stripping out Unity’s contribution. Since the half-year the company has further acquired Haines Watts Business Recovery, so recovery work is now expected to account for more than 20% of full-year revenues.

Shares says: Tenon practices what it preaches with good working capital management. Tightly-run ship will make most of deteriorating economic backdrop.

by: Simon Keane