Tenon Group PLC (AIM: TNO), specialised in advising entrepreneurs, said underlying profits for the full year are in line with the expectations set prior to the global financial crisis and the onset of the UK recession.
In a trading update ahead of reporting results for the 12 months to end-June 2009, the group said it has seen excellent growth in its Recovery and related service lines, with revenue ahead by in excess of 30 percent over the prior year.
Organic growth rates have increased again in the second half of the year. Profits from its non-recovery services are second half weighted with all services, including corporate finance, making an improved contribution in this period.
Actions taken at the outset of the second half to reduce costs and increase efficiency have proved successful and have continued. These actions and other profit improvement initiatives are expected to result in further increases in operating margins.
Prospects for the next financial year are encouraging, with a reduced cost base and continuing rapid growth in the Recovery division. Additionally, the group is experiencing increased interest in tax and financial planning services, it added.
Chief Executive Andy Raynor said: “Tenon has maintained its long-term track record of delivering profits to expectations and has overcome challenging economic conditions. The business is well placed to take advantage of new opportunities that we have identified for the future.”