INVESTOR RELATIONS

Latest Results

Final Results for the 12 months ended 31 December 2021, Investor Presentation and Board change

STM Group plc (AIM: STM), the multi-jurisdictional financial services group, is pleased to announce its audited final results for the 12 months ended 31 December 2021.

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Financial Highlights

 2021 (reported) 2021
(adjusted)**
2020 (reported) 2020
(adjusted)**
Revenue £22.4m £21.6m £24.0m £20.8m
Recurring revenue % 91% N/A 85% N/A
Profit before other items*£1.4m £1.5m £2.2m £2.4m
Statutory Profit Before Tax £1.2m N/A £2.0mN/A
Margin6%7% 9%11%
Basic and fully diluted earnings per share 2.94p N/A 2.99p N/A
Cash at bank (net of borrowings) £16.8m N/A £14.8m N/A
Final dividend 0.90p N/A 0.85p N/A
Total dividend 1.50p N/A 1.40p N/A

 

* Profit before other items is defined as revenue less operating expenses i.e. profit before taxation, finance income and costs, bargain purchase gain, goodwill impairment and gain on the call options

** Adjusted statistics are net of certain transactions which do not form part of the regular operations of the business as further detailed in Table 2 below

 

Operational Highlights:

  • Recurring revenues remain predictable and a corner stone of the business representing 91% of reported revenues
  • Strategic focus on core activities of pension administration and life assurance leading to disposal of the CTS businesses
  • Growth in the UK proposition as now a key jurisdictional focus following integration of UK acquisitions
  • Centralisation of the business development function to focus on driving increased “top line” growth
  • Implementation of a harmonised IT operating platform largely completed and a commitment to increased investment in Group-wide systems to support central functions
  • Updated to a “hybrid” working environment to keep our colleagues safe and to maximise flexibility and efficiencies regardless of physical location
  • Q1 2022 Launch of Australian superannuation solution for expatriates

 

Commenting on the results and prospects for STM, Alan Kentish, Chief Executive Officer, said:

“Whilst our existing recurring revenue has held up well, it has been frustrating that the significant amount of work and change occurring in the background has not yet resulted in the improved margins or new business growth anticipated.

“The appointment of a centralised head of distribution in October 2021, is a step change that is expected to bring about several new partnership relationships which will expand our existing product distribution.

“Operationally 2021 has been another very busy year, with the completion of major IT migrations. STM now operates all its personal pension businesses on one core in-house administration system. There remains further development work required before we expect to see the full benefits of this initiatives. Further we are looking to optimise various functions across the business to avoid duplication and to become a more agile and forward-looking business.

“Whilst it was disappointing that the Supreme Court did not grant leave to appeal on the Adam’s vs Carey (Options) case, as previously stated this will not have a financial impact on the business as the Company benefits from significant professional indemnity protection. The outcome of the case is very fact specific, and there remains other areas of uncertainty around a SIPP administrator’s duties that would benefit from additional clarity.

“It is with regret that I inform you that Nicole Coll has decided to step down from her role as CFO. Since joining STM, she has significantly contributed to the strategy and development of our optimised operating model. However, she has decided to focus on her non-executive opportunities at this time.  Nicole is committed to ensuring an orderly handover process to the new incumbent over the coming months and I am grateful that she was fully engaged in seeing the audit through to completion. The board wish her well in her future endeavours and have commenced the search process for a new CFO

“We believe that we are well positioned to take advantage of all the hard work and initiatives that we have undertaken in the past few years in addition, to a more efficient centralised operating model. This is expected to increase our operating margins, so that we will be more comparable to our peers but will potentially require some additional resources in the short-term. 

“There is significant energy and activity around realising new business and bringing about further operating efficiencies. The Board and I look forward to updating you in due course.”

 

Investor Presentation – 4pm on Wednesday 8 June 2022

Chief Executive, Alan Kentish, and Chief Financial Officer, Nicole Coll, will be hosting a remote presentation to review the 2021 Results and prospects at 4pm on Wednesday 8 June 2022.

The presentation will be hosted through the digital platform Investor Meet Company. Investors can sign up to Investor Meet Company and add to meet STM Group Plc via the following link https://www.investormeetcompany.com/stm-group-plc/register-investor.

For those investors who have already registered and added to meet the Company, they will automatically be invited. 

Questions can be submitted pre-event to [email protected] or in real time during the presentation via the "Ask a Question" function. 

 

 

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the company's obligations under Article 17 of MAR.

CHAIRMAN’S STATEMENT

I am pleased to share with you the STM Group Plc (“STM”) results for the year ended 31 December 2021.It has been another challenging year in several directions for STM, but we feel encouraged that the working environment is at last starting to get back to normal, and that we will manage to fulfil the true potential of the business.

One of our biggest ambitions for 2021 was to accelerate our new business initiatives. Whilst we had some success in cementing relationships with strategic partners, the delays in implementation meant that there was limited impact to our revenue line in 2021.  New business activity and income whilst driving efficiencies and realising synergies across the Group remains the absolute priority to deliver both enhanced margin and shareholder value.

Importantly the strategic decision to exit the CTS businesses was completed in the first half of the year and has allowed the Plc board and executive team to focus on the core activities of pension administration and life assurance wrappers.

Several significant milestones were achieved in relation to the completion of the IT migrations onto our own administration platform, and whilst we are yet to realise the full efficiencies, we can see these starting to materialise. In addition, the implementation of Group-wide Finance and Risk systems in 2022 will allow for further enhancements.

During the last quarter of the year, Pete Marr (COO) and Therese Neish (CFO), stepped down from their roles and Nicole Coll joined the Plc board as CFO. Nicole has also taken on much of what was formerly part of the COO role. We believe the new structure is the right one for the Company. As part of this restructuring, we are looking to optimise various functions across the business to avoid duplication and to become a more agile and forward-looking business.

Since 2019, we have redefined our purpose and vision, repositioning the Group as a UK centric Plc with more UK focussed pensions and life products. We have embraced our new UK brand, “Options for your tomorrow” which captures our mission to give our customers freedom of choice by providing them with solutions for their tomorrow. There is no doubt that over the last couple of years we have built a much stronger foundation for the business, and it is now up to us to ensure that during 2022 that we take advantage of that infrastructure to deliver enhanced profitability through better efficiencies and accelerated new business growth. As I have said, these remain an absolute focus for the Plc Board.

Finally, I would like to take this opportunity to thank the Group’s Directors, executive and all our colleagues for all their efforts during 2021, in another year dominated by the COVID-19 pandemic. The senior leadership team and staff across the Group have continued to demonstrate their great resilience and commitment through these last few challenging years. I would also like to thank Robin Ellison who stepped down from the Plc board as a non-executive director. It saddens me that Nicole Coll has decided to step down from her role as CFO but I equally take this opportunity to thank Nicole for her contributions to the Group’s strategy and development of our optimised operating model. The Board wish her well in her future endeavours.

 

Duncan Crocker
Chairman

CHIEF EXECUTIVE’S STATEMENT

Introduction

Whilst our existing recurring revenue has held up well, it has been frustrating that the significant amount of work and change occurring in the background has not yet resulted in improved margins or the new business growth anticipated.

Our trading subsidiaries performed as expected in relation to the underlying business, recognising that these various subsidiaries are at different stages of development.

However, our UK SIPP operation fell short on its new business targets; although, some pleasing partnership relationships were finalised that is anticipated to give our new business volumes a boost in 2022 and beyond.  The businesses acquired in 2020 had their first full year as part of the STM Group and performed broadly as expected, with the small shortfall in revenue resulting in a reduced deferred consideration payment.

The Options Corporate Pension business continues to see solid growth, with a year-on-year revenue uplift of almost 50%, moving it into a healthy profit contributor for the Group. The business now has in excess of 250,000 workplace pension members.

With the QROPs market static, our growth will come from our international occupational pensions. Disappointingly, our Gibraltar based life companies did not perform to their full potential in relation to flexible annuity products as new business anticipated has not yet materialised.

The first half of 2021 also saw us achieve the key strategic aim of exiting the Company and Trustee services provider market, selling both the Jersey and the Gibraltar businesses.

Operationally, 2021 has been yet another busy year, with the completion of major IT migrations -STM now operates all its personal pension businesses on one core in-house administration system. Certain efficiencies did not materialise in 2021, as originally planned but with work largely completed, we will now see the benefits starting to materialise in 2022 and beyond.

The latter part of 2021 saw several personnel changes at executive level with the CFO and COO stepping down and the executive members of the Plc board reduced to a two-person structure. Nicole Coll joined me as that other board member. I would also like to thank Therese Neish and Pete Marr for all their hard work in their time with STM.

These changes have allowed us to revisit our operating model, recognising that our peers generally have a better operating margin than STM. Whilst having three operating jurisdictions does complicate our structure, the executives have taken the decision to centralise many of the business functions.

From a work environment point of view, the year remained challenging with the need keep our STM colleagues safe whilst still having to deal with the inevitable staff absences and continued remote working. I would like to extend my thanks to all of the STM staff for their continued hard work and commitment.

The UK pension market remains in a position of uncertainty as to the extent of the duties of SIPP providers. Disappointingly, in April 2022 the Supreme Court refused Carey (Options) permission to appeal on the Adams case bringing the long-standing case relating to Mr Adams SIPP investment in 2012 to a close. This decision has no direct impact on STM financially due to its ability to recover under the professional indemnity insurance in place at the time, but it has meant the business has made a provision for similar fact cases. In consultation with its professional advisers, its auditors and professional indemnity insurers, the business has agreed a balance sheet provision of £21.4 million, with a corresponding recovery from the professional indemnity insurers on the asset side of the balance sheet.  The Adams case is very specific to the actions of what an unregulated introducer may or may not do.  There remains uncertainty in the industry, such uncertainty is unhealthy for all stakeholders, including consumers, and has resulted in increased costs such as professional indemnity insurance which are invariably passed on to the pension member. Naturally, STM as well as the pension industry, would welcome further clarity in this area.

Finally, I would like to thank Robin Ellison for his contribution to the Plc board and continued support in a consultancy role.

Financial Review

Financial performance in the year

The principal key performance indicators used by the Board to assess the financial performance of the Group are as per Table 1 below.

The Group has reported revenues of £22.4 million (2020: £24.0 million) in the year with profit before other items of £1.4 million (2020: £2.2 million). This reduction in revenue is largely due to the sale of the Company and Trust business offset in part by growth in the pensions business. Pleasingly, recurring annual revenue, which is an important key performance indicator for the Board, has continued to be a significant portion (91%) of the result.

The Group shows both reported and adjusted financial key performance indicators in Table 1 and 2 below as historically the impact of non-recurring movements have not allowed for a clear understanding of operating performance.

Reported profit before tax (“PBT”) for the year amounted to £1.2 million (2020: £2.0 million) with adjusted PBT (defined on a consistent basis with adjusted revenue and profit before other items) for the year of £1.5 million (2020: £2.4 million).

The reported PBT is calculated after deducting net finance costs of £0.3 million (2020: £0.2 million) and various non-cash expenses totalling £0.1m (2020: £0.1m) as well as gain on disposal of subsidiaries of £0.2m (2020: nil). These non-cash items include the movement the fair value of the call option of £0.4m related to the acquisition of Carey (Options) Administration Holdings Limited. This option is exercisable in 2022 based on the audited accounts for 31 December 2021. Additionally, goodwill impairment of £0.8m was recognised following management’s annual impairment assessment across several subsidiaries.

Reported profit after tax (“PAT”) is £1.7m (2020: £1.6m). This increase is largely due to a tax credit of £0.5m following a change in tax treatment in Malta which resulted in a one off, £1m tax rebate being recognised in 2021.

Table 1
 
     
KPI Definition 2021 2020
    
 
Revenue (£’000s)
 
Income derived from the provision of services.
22,355 23,982
 
Adjusted revenue (£’000)
 
Revenue net of non-recurring costs and other exceptional items that do not form part of the normal course of business as per Table 2 below.
21,581 20,815
 
Recurring revenue (£’000s)
 
Revenue derived from annual management charges and/or contractual fixed fee agreements.
20,427 20,334
 
Profit before other items (£’000s)
 
Revenue less administrative expenses i.e. profit before finance income and costs, gain on disposal of subsidiary bargain purchase gain, goodwill impairment and gain on the call options and before taxation.
 
1,373 2,207
Adjusted Profit before other items (£’000s) Profit before other items and other exceptional non-recurring items that do not form part of the normal course of business as per table 2 below 1,498 2,358
Profit before taxation (£’000s) Revenue less administrative expenses and other items 1,200
 
2,020
 
Adjusted Profit before taxation (£’000s) Revenue less administrative expenses, other items and other exceptional non-recurring items that do not form part of the normal course of business as per table 2 below 1,168
 
 
2,112
 
 
Profit after taxation (£’000s) Revenue less administrative expenses and other items less/add taxation charge/credit 1,742 1,607
Profit margin before other items (%)Profit before other items divided by revenue. 6% 9%

 

Table 2

 Revenue Profit before
  other items
Profit before tax
 2021 2020 2021 2020 2021 2020
 £'000s £'000s £'000s £'000s £'000s £'000s
Reported measure 22,355 23,982 1,373 2,207 1,200 2,020
Less: effect of companies and trust services disposal (774) (3,167) (54) (313) (54) (313)
Less: bargain purchase gain on acquisition and gain on call options     (406) (59)
Less: gain on disposal of companies and trust management     (219)  
Add: integration and acquisition costs    179  179
Less: movement in deferred consideration related to prior year acquisitions     (330)  
Add: impairment of goodwill     798  
Add: other non-recurring costs    179 285  179 285
Adjusted measure 21,581 20,815 1,498 2,358 1,168 2,112

 

Tax Charge and Earnings per Share

The tax credit for the year was £0.5 million (2020: charge of £0.4 million). This is due to a change in tax treatment in the Malta entity which resulted in a one-off £1m tax rebate being recognised in the current year

Earnings per share (“EPS”) for 2021 is 2.94p compared to 2.99p for 2020 There was no dilutive factor in 2021 or 2020.

Cashflows

Cash and cash equivalents amounted to £18.2 million as at 31 December 2021 (2020: £16.4 million) with net cash outflow from operating activities of £0.1 million for the year ended 31 December 2021 (2020: inflow £1.6 million).

During 2020 the Company signed a credit facility with Royal Bank of Scotland (International) Ltd for £5.5 million. The facility has a 5-year term with capital repayments structured over ten years and a final instalment to settle the outstanding balance in full at the end of the 5 years. The Company has drawn down £1.5 million (2020: £1.6 million) of this facility.

As such, net cash, and cash equivalents as at 31 December 2021 were £16.8 million (2020: £14.8 million).

As would be expected for a Group regulated in several jurisdictions, a significant proportion of this cash balance forms part of the regulatory and solvency requirements. The cash and cash equivalents are required for solvency purposes varies as other assets can be used to support the regulatory solvency requirement. The total regulatory capital requirement across the Group as at 31 December 2021 was £16.9 million (2020: £18.3 million).

The balance sheet also gives visibility of future revenue and cash generation and, in line with all administration services businesses, the Group had accrued income in the form of work performed for clients but not yet billed of £1.3 million as at the year-end (2020: £1.3 million). Additionally, deferred income (a liability in the statement of financial position) relating to annual fees invoiced but not yet earned stood at £3.5 million (2020: £3.6 million). Both these figures give good visibility of cash collections and in the case of deferred income revenue still to be earned through the Income Statement in the coming months. 

Dividend

I am pleased to advise that the Board is recommending the payment of a final dividend of 0.90p per share (2020: 0.85p per share), This together with the interim dividend paid of 0.60p in November 2021 (2020: 0.55p) makes a proposed total dividend for the year of 1.50p per share (2020: 1.40p).

Subject to approval at the Company’s Annual General Meeting to be held on 4 August 2022, the final dividend will be paid on 19 August 2022 to shareholders on the register at the close of business on 1 July 2022. The ordinary shares will be marked ex-dividend on 30 June 2022.

Operational Performance

Pensions

Our pension administration businesses continue to be the lifeblood of our group, and the corner stone to our profitability. The Options acquisition made in 2019 has shown significant revenue growth and the integration savings expected from the SIPP business have now started to come through.

Whilst new business levels were slower to come through than we originally expected they were still higher volumes than in prior year within the SIPP and auto-enrolment businesses.

Total revenue across our pensions businesses amounted to £17.6 million (2020: £16.5 million) and accounted for 79% of total Group revenue (2020: 69%). In addition, recurring revenues for the pension businesses remain high at 81% (2020: 75%).

The administration of our QROPS products continues to be our largest revenue generator accounting for £9.7 million of revenue (2020: £10.1 million). This administration is carried out in Malta and Gibraltar with the revenue continuing to be split 75% and 25% respectively as was the case in 2020. As has been known for a number of years, this product is no longer a growth driver as a result of changes in the UK pension legislation in 2017. Whilst we continue to receive a small number of new members from EEA countries the attrition rate is modestly increasing as we see our member profile age and take advantage of flexi access benefits in Malta.

The SIPP businesses, both Options Personal Pensions and London & Colonial Services Limited, have contributed total revenues of £3.2 million (2020: £3.5 million). The administration for both these businesses is now being carried out from the Milton Keynes offices and the integration savings expected are now starting to come through. The final aspect of this integration, being the IT migration, was completed towards the end of the year and thus the benefits will start to come through in 2022, albeit that further development and enhancements are ongoing.

As mentioned above the auto-enrolment business saw a significant increase in members and this has resulted in increased revenues for the year of £3.3 million (2020: £2.2 million). This is likely to remain a significant growth area.

The final revenue stream of the pensions divisions comes from the acquired Berkeley Burke companies. This acquisition came with a small SSAS business and a Group Pension Plan business providing third party administration. The SSAS business contributed revenues of £0.3 million (2020: £0.1 million) in the year with the Group Pension Plan generating revenue of £1.2 million (2020: £0.6 million).

Life Assurance

The 2021 combined revenue figure was £3.4 million compared to £3.7 million for 2020. Whilst the business saw some new business materialise through the launch of the flexible annuity products this growth has made up for the loss of fee income due to natural attrition on the existing client portfolios.

Our flexible annuity products aimed at the UK market remain the key focus for organic growth within our life businesses. As previously reported our pipeline of potential new business remains significant, albeit, as mentioned above the length of time for that to convert into new business is longer than we originally envisaged.

Corporate and Trustee Services (CTS)

In 2021 the Company has sold its CTS businesses. On 23 March 2021 we sold the Gibraltar business to the privately-owned group which already has a significant presence in Gibraltar, and on 8 May 2021 we sold the Jersey business to the privately-owned group which has its head office in Guernsey. Part of ensuring that we exited the CTS sector in an orderly manner was ensuring that both our work colleagues and our CTS clients would be well looked after going forward. I am pleased to say that this has been the case.

Outlook

We are now well positioned to take advantage of all the hard work and initiatives that we have undertaken in the past few years and will look to further optimise our target operating model. We are confident this will lead to an increase in our unadjusted operating margins, so that we will be more comparable to our peers. In the short term, this may result in increased costs as we redeploy our resources.

In addition, there is significant energy and activity around generating new business. We anticipate a solid steady flow of new SIPP business from our key strategic platform partners, with a further roll-out of additional products from our life companies onto these platforms during 2022. During the last quarter of 2021 we increased our business development team in the UK.

I am also pleased to state that our Australian superannuation solution for expatriates went live at the beginning of February 2022, and has already generated interest from new intermediaries, over and above what we expected from our existing intermediary base. We also continue to have significant interest in our short-term annuity product, albeit conversion of such opportunity is yet to come to fruition.

The ongoing Russian invasion of Ukraine has led to severe economic sanctions against the Russian state, businesses, and personnel. This has exacerbated inflationary pressures and has had wide knock-on impacts on the global economy. We do not expect this to have a material impact on the Group’s operations in the foreseeable future, but management continues to monitor the situation.

Further to the above we remain committed to continued investment in technology both as an enabler for revenue growth but equally to improve operational efficiencies. We equally continue to build on a people strategy that supports the Group’s values supporting engaged customer-focused colleagues who demonstrate business excellence through their level of skills and experience.

The Board remains fully committed to our acquisition strategy and see this as an important pillar of our overall growth aspirations. Focus will be on UK based acquisition targets.

I would like to take this opportunity to thank all my STM colleagues for their continued hard work and professionalism in carrying out their duties, and I hope that the 2022 working environment continues to revert to something more normal.

I look forward to updating the market during 2022 with our progress.

 

Alan Kentish
Chief Executive Officer

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR FROM 1 JANUARY 2021 TO 31 DECEMBER 2021

 Note 31 December 2021
£000’s
31 December 2020
£000’s
Revenue 9 22,355 23,982
Administrative expenses 10 (20,982) (21,775)
Profit before other items 11 1,373 2,207
OTHER ITEMS    
Finance costs (330) (246)
Gain on disposals of subsidiaries 4 219
Gains on revaluation of financial instruments  406 59
Movement on deferred consideration 5 330 -
Impairment of goodwill 15 (798) -
Profit before taxation  1,200 2,020
Taxation 13 542 (413)
Profit after taxation  1,742 1,607
OTHER COMPREHENSIVE INCOME    
Items that are or may be reclassified to profit or loss    
Foreign currency translation differences for foreign operations (33) (1)
Total other comprehensive loss  (33) (1)
Total comprehensive income for the year  1,709 1,606
Profit attributable to:    
Owners of the Company 1,749 1,777
Non-Controlling Interests (7) (170)
 1,742 1,607
Total comprehensive income attributable to:    
Owners of the Company 1,716 1,776
Non-Controlling Interests (7) (170)
  1,709 1,606
Earnings per share basic (pence)* 0 2.94 2.99
Earnings per share diluted (pence)* 23 2.94 2.99

 

* Earnings per share disclosed in the prior year annual report and accounts was 2.70p based on profit after taxation/weighted average number of shares. This has been restated in the current year and is based on profit attributable to owners of the company/weighted average number of shares.

The results for 2021 relate to continuing activities. Disposed of activities in 2021 are disclosed in note 4.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
FOR THE YEAR FROM 1 JANUARY 2021 TO 31 DECEMBER 2021

 Note 31 December 2021
£000’s
31 December 2020
Restated*
£000’s
ASSETS    
Non-current assets    
Property and office equipment 14 1,663 1,970
Intangible assets 15 19,355 19,912
Other financial assets  881 475
Deferred tax asset  76 75
Total non-current assets  21,975 22,432
Current assets    
Accrued income  1,311 1,319
Trade and other receivables 17 7,699 5,473
Receivables due from insurers 18 24,130 3,600
Cash and cash equivalents 19 18,207 16,409
Assets held for sale   5,978
Total current assets  51,347 32,779
Total assets  73,322 55,211
EQUITY    
Called up share capital 21 59 59
Share premium account 21 22,372 22,372
Retained earnings  14,429 13,541
Other reserves  (480) (447)
Equity attributable to owners of the Company  36,380 35,525
Non-controlling interest  (452) (445)
Total equity  35,928 35,080
LIABILITIES    
Current liabilities    
Liabilities for current tax  640 1,197
Trade and other payables 24 10,532 11,374
Provisions 18    24,130 3,600
Liabilities directly associated with assets held for sale   1,154
Total current liabilities  35,302 17,325
Non-current liabilities    
Other payables 0 1,628 2,284
Deferred tax liabilities  464522
Total non-current liabilities 2,0922,806
Total liabilities and equity 73,32255,211
      

*The restatement relates to the reclassification of provisions as a separate line item on the balance sheet as well as an associated insurance receivable as detailed in note 18.

These financial statements were approved by the Board of Directors and authorised for issue on

7 June 2022 and were signed on its behalf by:

 

AR Kentish                                               N Coll
Chief Executive Officer                             Chief Financial Officer

 

 

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2021

Note 31 December 2021
£000’s
31 December 2020
£000’s
ASSETS  
Non-current assets  
Property and office equipment 14 239 249
Intangible assets 15 1,961 1,097
Financial assets  881 475
Investments 16 16,013 20,809
Total non-current assets  19,094 22,630
Current assets    
Trade and other receivables 17 13,215 12,074
Cash and cash equivalents 0 2,463 2,257
Total current assets  15,678 14,331
Total assets  34,772 36,961
EQUITY    
Called up share capital 21 59 59
Share premium account 21 22,372 22,372
Retained earnings  (1,205) 2,172
Other reserves  162 162
Total equity attributable to equity shareholders  21,388 24,765
LIABILITIES    
Current liabilities    
Trade and other payables 24 12,484 11,148
Total current liabilities  12,484 11,148
Non-current liabilities    
Other payables 0 900 1,048
Total non-current liabilities  900 1,048
Total liabilities and equity  34,772 36,961

These financial statements were approved by the Board of Directors and authorised for issue on

7 June 2022 and were signed on its behalf by:

 

AR Kentish                                              N Coll
Chief Executive Officer                            Chief Financial Officer

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR FROM 1 JANUARY 2021 TO 31 DECEMBER 2021

 Note 31 December 2021
£000’s
31 December 2020
Restated
£000’s
OPERATING ACTIVITIES    
Profit for the year before tax  1,200 2,020
ADJUSTMENTS FOR:    
Depreciation of property and office equipment 14 659 793
Amortisation of intangible assets 15 791 570
Taxation paid (14) (299)
Reclassification to assets held for sale   (725)
Unrealised gains on financial instruments at FVTPL 6 (406) (59)
Impairment of goodwill 15 798
(Increase)/decrease in trade and other receivables 5,17,19 (2,226) 3,385
(Increase) in receivables due from insurers 18 (20,530) (3,600)
Increase/(decrease) in accrued income 8 (485)
Increase/(decrease) in trade and other payables 5,20,24 (936) (3,612)
Increase in provisions 18 20,530 3,600
Net cash from operating activities (126) 1,588
INVESTING ACTIVITIES  
Disposal of investments 4 4,821
Purchase of property and office equipment 14 (352) (70)
Increase in intangible assets 15 (1,032) (875)
Consideration paid on acquisition of subsidiary 5 - (1,447)
Cash acquired on acquisition of subsidiary 5 - 27
Net cash used in investing activities 3,437 (2,365)
CASH FLOWS FROM FINANCING ACTIVITIES  
Proceeds from bank loans 24,25 900 1,600
Bank loan repayment 24 (1,050) (1,200)
Lease liabilities paid  (469) (843)
Dividends paid 21 (861) (772)
Net cash from financing activities (1,480) (1,215)
Increase/(decrease) in cash and cash equivalents 1,831 (1,992)
Effect of movements in exchange rates on cash and cash equivalents (33) (5)
Cash and cash equivalents at the beginning of the year 16,409 18,406
Cash and cash equivalents at the end of the year 19 18,207 16,409

 

*The restatement relates to the reclassification of provisions as a separate line item on the balance sheet as well as an associated insurance receivable as detailed in note 18.

STATEMENT OF CONSOLIDATED CHANGES IN EQUITY
FOR THE YEAR FROM 1 JANUARY 2021 TO 31 DECEMBER 2021

  Share
Capital
£000’s
Share
Premium
£000’s
Retained
Earnings
£000’s
Treasury
Shares
£000’s
Foreign Currency Translation
Reserve
£000’s
Shares
Based
Payments
Reserve
£000’s
Total
£000’s
Non-Controlling Interests
£000’s
Total Equity
£000’s
Balance at
1 January 2020
59 22,372 12,536 (549) (59) 162 34,521 (275) 34,246
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD
Profit for the year1,7771,777(170)1,607
Other comprehensive income
Foreign currency translation differences(1) (1) (1)
Transactions with owners, recorded directly in equity
Dividend paid(772) (772) (772)
31 December 2020 and
1 January 2021 59 22,372 13,541 (549) (60) 162 35,525 (445) 35,080
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD
Profit for the year1,7491,749(7)1,742
Other comprehensive income
Foreign currency translation differences(33) (33) (33)
Transactions with owners, recorded directly in equity
Dividend paid(861) (861) (861)
Changes in ownership interest
31 December 2021 59 22,372 14,429 (549) (93) 162 36,380 (452) 35,928

 

STATEMENT OF COMPANY CHANGES IN EQUITY
FOR THE YEAR FROM 1 JANUARY 2021 TO 31 DECEMBER 2021

 Share Capital
£000’s
Share premium
£000’s
Retained earnings
£000’s
Total
£000’s
 
Balance at 1 January 2020
59 22,372 3,144 25,575
Loss for the year (38) (38)
Dividend paid (772) (772)
At 31 December 2020 and
1 January 2021
59 22,372 2,334 24,765
Loss for the year (2,516) (2,516)
Dividend paid (861) (861)
At 31 December 2021 59 22,372 (1,043) 21,388

 

Page last up-dated: 08 June 2022

UNITED KINGDOM

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The Group specialises in the administration of client assets in relation to retirement, estate and succession planning and wealth structuring.

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