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Pensions trading and pricing strategy update

Pensions trading and pricing strategy update

09 August 2016

STM Group Plc (AIM: STM), the cross border financial services provider, announces the following trading update:

Pensions trading and pricing strategy update

The Group announced on 13 July 2016, that it had adjusted its pricing strategy to waive the initial establishment fee for the Group's core product, QROPS. This initiative is initially for a six month period.

The announcement explained that the Group had taken this decision to stimulate and drive new business growth for the benefit of future recurring revenue, albeit at the expense of forgoing the establishment fees from new clients signed up in this promotional period.

By way of a further update on the development of this initiative, management is pleased to announce that the July new business numbers for QROPS saw a 28% increase over those of June, which was in turn a 15% increase over those of May. New business applications in July 2016 represent the highest month of applications over the last twelve months and a 75% uplift on the average number of applications received in the first four months of the year.

Management is also pleased to note that there has been an uplift in business from both existing intermediaries as well as new intermediaries, although it is too early to anticipate whether this growth rate will continue in future months and whether there will be a material impact on the year.

In addition to the above, the Group is pleased to announce the STM Malta Pension Contract Plan is now listed on HMRC's Recognised Overseas Pension Schemes (ROPS) list and is now available to clients and intermediary partners.

Prior to this listing, all STM schemes were trust based, however we are aware that in civil law countries in Europe where trusts are not a familiar concept, many advisers prefer to recommend a transfer to a contract based pension.

The creation of this plan was very much driven by feedback from our existing intermediaries and we look forward to servicing new clients and gaining a stronger foothold in those markets where there is a clear preference for a contract based solution.

Alan Kentish, Interim CEO, commented:

"It is pleasingly to note that whilst still too early to assess exactly how many new QROPS applications will result from the April pricing initiative it has significantly accelerated our new business growth rate from our position during the first quarter of 2016.

"The Contract based QROPS plan is yet another tool in our tool box, and whilst relatively niche in that it is designed for the European civil law countries, it is expected to further increase the number of cases of new business per annum.

"The above, in conjunction with other on-going initiatives referred to in the 13 July 2016 update, is expected to help build a robust recurring revenue stream and deliver long term shareholder value."

 

For further information, please contact:

STM Group Plc  
Alan Kentish, Interim CEO Tel: 00 350 200 42686
alan.kentish@stmgroupplc.com www.stmgroupplc.com
   
Therese Neish, Chief Financial Officer Tel: 00 350 200 42686
therese.neish@stmgroupplc.com  
   
FinnCap www.finncap.com
Matt Goode / Emily Watts - Corporate Finance Tel: +44 (0) 20 7220 0500
Mia Gardner - Corporate Broking
   
Walbrook www.walbrookpr.com
Tom Cooper / Paul Vann Tel: +44 (0) 20 7933 8780
Mob: +44 (0) 797 122 1972
  tom.cooper@walbrookpr.com

 

Notes to editors:

STM is a multi-jurisdictional financial services group listed on the Alternative Investment Market of the London Stock Exchange. The Group specialises in the delivery of a wide range of financial service products to professional intermediaries and in the administration of assets for international clients in relation to retirement, estate and succession planning, and wealth structuring.

Today, STM has trading operations in Gibraltar, Malta, Jersey, and Spain. It has also recently opened satellite offices in South East Asia, the Middle East, and South Africa. The Group continues to expand through the development of additional products and services that its ever-more sophisticated clients demand.

STM has, for example, a dedicated international pensions division which specialises in Qualifying Recognised Overseas Pension Schemes (QROPS) and Qualifying Non-UK Pension Schemes (QNUPS); it also has a Gibraltar Life Insurance Company, STM Life Assurance PCC PLC, which provides life insurance bonds - wrappers in which a variety of investments, including investment funds, can be held.

Further information on STM Group can be found at www.stmgroupplc.com

 

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