RSM Tenon made a pre-tax loss of £7.5m for the six months to 31 December, compared to an £83m loss in the same period in 2011.
The professional services firm saw a big reduction in exceptional costs, which fell to £4.5m from £67m in the second half of 2011. It blames the continued losses on the RDR, a ‘flat economy’ and fewer new business wins.
The £4.5m exceptional costs were made up of £1.9m in professional indemnity expenses relating to its financial management arm and £2.6m relating to redundancy costs and professional fees. The firm made around 400 staff redundant in 2011 as part of a cost-cutting programme.
The accounts show it is in dispute with its professional indemnity insurers over a £4.3m FSA settlement dating back to 2010.
RSM Tenon’s huge losses in 2011 were largely due to exceptional items relating to a £63.7m goodwill writedown and FSA settlement costs related to structured product misselling.
RSM Tenon chairman Tim Ingram says: “The firm is now smaller and properly managed.”
Cube Financial Planning co-founder Mike Godfrey says: “It was sensible for RSM Tenon to cut costs and restructure its business in order to get back on track.”