its in an upward trend expect around 50+ in short term
it is a divident paying company and has show very good growth

do research before you do anything

2517GEORGE

Have found the statement released by Daniel Stewart yesterday, makes interesting reading and says gives pretty much the same sentiment as we have. See below -

Daniel Stewart said that having been impressed with Tenon management, it is further encouraged by Thursday's statement. The broker said it believes the company's wide geographic coverage and strong presence in the business recovery market will stand it in very good stead during the ongoing downturn. Daniel Stewart highlighted the discrepancy between the valuations of Tenon -- PE ratio of 8.7 times June 2009 -- and Begbies Traynor Group Plc. -- 20.1 times April 2009. The broker said that whilst it believes the latter is a high quality business that will reap the rewards of the rising number of business failures, the same can be said of Tenon. Daniel Stewart said it does not believe the very significant discount to Begbies Traynor is justified.

spitfire43, couldn't agree more, TNO appears to have been left behind somewhat for the time being, I believe around 25% of TNO income is derived from insolvency work (BEG around 75%). I chose TNO over BEG (107ish at the time) hindsight tells me I bought the wrong one, that said I firmly believe TNO will start the catch-up process soon.
2517

I was playing with some forecast figures, and came up with a EPS of 6.65p for the full year, the consensus is 5.4p. And my figure was without taking account of a increase of insolvency work, I just used past results as a guide. So hopefully we should see some upgrades now.

Must admit I'm considering increasing my holdings, if nothing else I would feel safe holding these after the trading update.

Increased holdings today, the sp seems to be starting to move a tad, well that was before I brought some more.

I noticed that TNO have a strong institutional following with all the top 7 holdings above 3%, and JP Morgan topped up in the past week.

sp still slowly moving up, hopefully the start of a re-rating.

good buying volumes Friday after a buy tip in investors chronicle.

see below an aticle in the Telegragh over the weekend, no surprises really, it just confirms what we know is in the process of accuring.

The number of companies that have been placed in administration in the past three months has jumped 60pc compared with last year, official insolvency statistics reveal.

Business recovery experts said the dramatic rise was a sign that the economic slowdown was taking hold.

They warned of a similar jump in company liquidations by the end of the year when the administrations were wound down.

advertisementThe Insolvency Service said that between April and June there were 3,560 liquidations, up 12pc compared with the first three months of the year and a 15pc increase on the second quarter last year.

Receiverships, often initiated by the high street banks and involving businesses that are at least three years old, have also more than doubled.

Nick Wood, recovery and reorganisation partner with accountants Grant Thornton, said banks and major accountancy firms were gearing up for a significant flow of work in the autumn.

"The negative sentiment expressed in a huge range of economic indicators is now feeding through to the real economy, with businesses that a year ago had been able to paper over the cracks now being fully exposed. Unfortunately, this feels like just the beginning," he said.

Geoff Carton-Kelly, head of restructuring and recovery at Baker Tilly, the accountancy firm, said: We expect about 15,000 company insolvencies in 2008, 20pc higher than in 2007, at a rate of over 280 companies per week.

"A sharp drop in discretionary spending is having a direct impact on the corporate insolvency figures, with pubs, clubs and other leisure companies featuring highly among those companies going in to liquidation as well as property developers and associated businesses who are finding life very challenging in the current environment."

The Insolvency Service said the liquidations represented 0.6pc of all active companies.

TNO up 0.75p, with no transactions, so could be another reason.

I have just checked back for transactions for August, which are 1.1m buys against 0.438m sells so far. So I would hope that the sp is starting to reflect this buying pressure.

Could the sp be on the move now.

Looking at the 1 year chart with the sp at 60p now, we had a golden cross at the end of July, this followed an earlier one at the end of May. The next resistance level is at 62.5p which was in November 2007.

Finals are due to be reported 11th September.

Results released today, at first glance they may not look to exciting but when you look at operating profit which is well up, and adjusted EPS of 6.11p (not including amortisation) against basic EPS of 4.69p. I believe the benefits should be seen this next financial year.

Having said this, I will keep a close year on market reaction to results.

See below...........

Tenon Group Plc., a national adviser dedicated to entrepreneurs, posted a higher pretax profit as turnover rose versus last year.

For the year ended June 30, 2008, the group reported a pretax profit of 12.4 million pounds compared with 12.3 million a year ago while revenues increased to 160.3 million from 136.7 million.

'With our financial and management strength we are very well placed to take advantage of the opportunities we expect to arise in the current market conditions and to continue to invest in the future of our business,' chief executive Andy Raynor said in a statement.

He added the company remains very ambitious for increased market presence, greater sales focus and further acquisitions.

Tenon Group also recommended an increased dividend of 1.4 pence per share, up 17 percent from the 1.2 pence paid in 2007.

See broker comment below.........

full-year results which prompt both Charles Stanley Securities and Numis Securities to reiterate their "buy" recommendations. Charles Stanley says the results, which came in ahead of its expectations, may prompt modest upgrades after the analyst meeting. The broker has a 75 pence target price on Tenon. Numis notes that Tenon's 19 percent increase in underlying EPS to 6.1 pence surpasses its expectation of 5.6 pence. The broker says it expects to increase its forecasts by about 7 percent, and has increased its target price to 81 pence from 77.

Article from todays Times. see below...............

There was a time when Tenon, the tax advisory and corporate restructuring specialist, looked sorely in need of its own services.

After a period of vigorous expansion it was one of three AIM companies floated at the turn of the decade to consolidate smaller accountancy firms it was left with debt four times that of its stock market value and a 114 million post-tax loss. But over the past five years it has got to grips with working capital, paid down debt and consistently produced double-digit gains in sales and profits.

Those virtues were on display in yesterdays full-year results: turnover up 17 per cent, earnings up 19 per cent, the dividend raised 17 per cent and net debt down to 9.1 million. Revenues from corporate finance rose 62 per cent: a figure to put investment banks to shame.

That strength will be difficult to sustain, as will Tenons so-far resilient sales of personal financial services. The counterweight is provided by the recent growth through acquisition of its corporate recovery practice where revenues are running at 40 million, making Tenon the same size as the better-known Begbies Traynor, and giving it ready leverage to economic downturn. The recent retrenchment of Grant Thornton and BDO Stoy Hayward from its niche advising private entrepreneurial companies should also help.

At 58p, up p, or eight times this years earnings, buy on weakness.

Today and yesterday it's starting to tick up now.

Huge volume today 390k buts and 140k sells.

Are investors finally seeing the opportunity here?

Another day of good volumes, 515k buts against 116k sells, and sp nearly at 60p now.

Things are looking up..........

I think the reason for the rising sp is a buy recommendation in Investors Chronicle which I haven't seen.

Price 3.5p up now to 61.5p

With 2.7m buys against 193k sells.

Just noticed a very good buy update from Numis dated 12/09/08. See below -

2008 profit = 18.4m and EPS = 7.0p

2009 profit = 20.1m and EPS = 7.6p

We should see plenty more upgrades during the year. imo

A good article in shares today, which says Tenon are fast catching up with Begbies. Tenon should generate 40 million of Recovery work against 45 million for Begbies in this financial year, but Begbies still have better margins. But with Tenon on a PE of 9.4 against Begbies 21.1, Charles Stanley says the gap looks to large and have a 75p price target which would give a PE of 13.

Huge buying volume today yet sp remained unmoved, this can't last.

This weeks Share mag ran a sector report on speciality and consumer finance, and concluded with two buys, one was Provident Financial and the other Tenon.

There was nothing new to report, but they did highlight the PE difference between Bagbies at 19.3 and Tenon at 9.5, which is too large even with better margins at Begbies.

Worth looking at following link which includes comments from Carl Jackson (Head of Business Recovery Tenon) . Which makes me more confused with the recent weakness in share price.

http://www.telegraph.co.uk/finance/financetopics/recession/3275282/Business-failures-rocket-as-banks-call-in-the-receivers.html

BEG was also down, but that may be partly due to 7.8m more shares being released.
Everything seems to be dragged down in this market. Looks like TNO is no exception, but I would still expect them to produce good results, so may be worth buying before that in anticipation.