Advisory and accountancy group RSM Tenon has confirmed significant losses for the first half of its financial year, signalling a round of job cuts as it seeks to deal with rising costs.
Revenues for the six months to the end of December were £107.8m, down 9.3% on the same period in 2010.
While the company plunged from an operating profit of £8.5m to a loss of £11.4m, "operating exceptional costs" pushed the overall statutory operating loss to £70.6m, compared to a readjusted loss of £1.9m during the same period in 2010.
The readjustment came after a review of historical reporting and accounting revealed a number of significant errors and changes in accounting policy, reducing the prior year's pre-tax profit by £12.1m.
Within the financial management arm of the business, the company had revenues of £13m, down from £14.8m last year.
However, costs relating to a "regulatory change programme", implemented after it was fined by the FSA in 2010 for structured products advice failings, resulted in a loss of £894,000, compared to profit of £3.6m.
On 23 January, the company's share price fell sharply after it issued a profit warning, blaming a "difficult economic environments.
At the time, it also announced the departures of CEO Andy Raynor and chairman Bob Morton with immediate effect.
The company says it has now undertaken a review and commenced a programme to cut costs, including a 10% reduction in headcount.
It has also renegotiated the terms of its debt with Lloyds, although it says the bank has "stated in writing its continuing support for the group".
New CEO Chris Merry said: "Our underlying business performance has been resilient in the face of a tough market environment. We have a clear action plan to drive near term profitability and cash generation.
"The majority of our revenues and cash generation arise in the second half of our financial year and this trend is set to continue. RSM Tenon is fundamentally a sound business. It now has a solid base to build for the future and to deliver an appropriate return for shareholders".
Data quality is key
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