RSM Tenon shares plunge after performance warning

Shares in RSM Tenon have dived after the firm said adverse economic conditions have impacted its trading performance.

Shortly after 2.15pm, the share price of the national adviser and accountancy firm had fallen 31% to 9.6p after chief executive Andy Raynor said the uncertain economic situation has impacted performance.

"All of our service lines have experienced challenging conditions, adversely impacting year on year trading performance, particularly in transaction-based activities," he said at the firm's AGM this morning.

He added the firm continues to uphold its obligations to lenders and remains focused on working capital reduction, organic development and cost control.

Raynor said an increased proportion of the company's profits will be weighted towards the end of the year but also warned markets will remain erratic.

In September, the firm posted a 57% increase in profits for the 12 months to July following the full integration of the advisory units of tax firm Vantis.

RSM Tenon publishes its interim results for the six months ending 31 December 2011 on 21 February.