Investors in RSM Tenon have this morning (24 January 2012) been calling for an emergency rights issue following the resignation of the two top directors.
The news came after the group confirmed it would have to restate its accounts resulting in the departure of chief executive Andy Raynor and chairman Bob Morton.
Serial investor and City bigwig Crispin Odey was reported in the national media claiming the company was now in need of a cash injection, labelling yesterday’s events ‘shocking’.
In a statement to the stock exchange RSM Tenon confirmed that “headroom remains limited” with regards to its banking funding limits adding that it is currently in discussions with its lending bank as the current facility is due to expire.
Adrian Martin, the new executive chairman said the company’s performance has been disappointing and his priority will be to improve profitability and cash generation.
He added: “RSM Tenon has a strong market position and client based, as well as dedicated and loyal employees.
“The board remains confident of the future prospects for the company and that successful turnaround can be delivered.”
The company’s nomination committee has now started the search fro a new chief executive with the position being advertised to both internal and external candidates.