Embattled accountancy group RSM Tenon has slashed its cost base to cut losses to £10 million for the six months to 31 December 2012, compared to a loss of £70.6 million over the same period last year.
The size of the group’s workforce reduced from 3,166 to 2,666 individuals over the same period with the company declaring that ‘most of the reduction’ has come from natural attrition.
In Underlying EBITDA (earnings before interest, taxes, depreciation, and amortisation) terms, the company made a profit of £1.5m over the aforementioned interim period, compared to a £8.2m EBITDA loss during the same period in 2011.
The loss on continuing operations stood at £8.9 million for the interim period, down from £70 million for the same period in 2011.
Tim Ingram, chairman of RSM Tenon, said there has been significant progress in turning RSM Tenon around.
He added: “The business is now smaller, better organised and properly managed. In a challenging market, we still have much to do, but the direction has been clearly set.”
Chris Merry, chief executive of RSM Tenon, said markets for the company’s services remain tough.
He added: “The business is returning to operating profitability and now we seek a period of stability to move into a growth phase.”