RSM Tenon chief executive Andy Raynor and chairman Bob Morton have resigned following a 10% slump in revenues in the last six months of 2011.
Former BDO International chief executive Jeremy Newman has agreed to become a consultant to the firm to help it improve its performance and financial position.
RSM Tenon, a listed entity on the London Stock Exchange, reported a 10% decrease in profits in the six months to 31 December 2011 compared to the corresponding period in the previous year. RSM Tenon said half of its revenue decline is the result of pricing and similar underlying trading effects.
This is a blow to the firm after annual results were up 31% to £249m ($394m) in the year to 30 June 2011.
Newman stepped down from the BDO International post in September 2011, stating he wished to pursue a career outside of professional services.
RSM Tenon deputy chairman and senior independent non-executive director Adrian Martin has been appointed executive chairman while a new chief executive is sought.
“The company’s performance is clearly disappointing and my immediate priority is to instigate and execute the necessary actions to improve profitability and cash generation,” Martin said.
The company will announce its interim results on 29 February 2012.