RSM Tenon will be reimbursed £5.5m in cash as a result of a settlement following a dispute between the firm and its insurers.
The dispute concerned the extent to which the insurers would pay for professional indemnity (PI) costs in relation to remedial action the firm had to take as a result of an agreement with the Financial Services Authority.
As a result, the firm announced in February that it had to set aside £1.9m for professional indemnity (PI) expenses which related to its financial management business.
The insurers, according to RSM Tenon, also disagree between themselves as to how the liability should be shared.
In its third quarter trading statement, the firm announced that the arbitrator has now made an award for reimbursement of £5.5m, which will result in an exceptional profit in the 2013 accounts of approximately £2.8m.
RSM also said it anticipates that it will in due course be reimbursed for its costs associated with the arbitration.
The firm does however continue to experience difficult market conditions - saying that revenue continues to be under pressure due to general market conditions.
'Whilst we continue to achieve further cost efficiencies, the market for professional services remains challenging. Our close attention to cost reduction has meant that we have mitigated much of the pressure on revenue and we therefore expect underlying EBITDA to be towards the lower end of management expectations, but significantly ahead of the same period in 2012,' RSM said.
The firm is also in continuous discussions with lenders Lloyds, to reset the terms of its facility on the basis of now holding a smaller business than was previously held the original terms were negotiated.
'Although we have yet to conclude those discussions, we remain in positive dialogue and Lloyds Bank has confirmed that it continues to be supportive of the continuation of the Group as a going concern,' the firm said.
Chief executive, Chris Merry, said the firm continues to make 'good progress in restoring RSM Tenon to operating profitability and to consolidate the business turnaround'.
'The market for our services remains highly competitive and I am grateful to our clients and staff for their continued support,' said Merry.
