INVESTOR RELATIONS

Corporate News

Strategic & Trading Update

23 December 2013

STM Group PLC (AIM:STM), the multi jurisdictional financial services group, announces two proposed Board changes and an update on recent trading.

STM has increasingly focused on the development of specialised financial services products aimed at mass affluent and internationally mobile clients.  This is evidenced by the launch of the STM Life tax compliant German bond announced in July.  STM expects to announce the launch of a series of unique products for the international markets in the New Year. To maximise the potential in this area Alan Kentish will assume the role of Director of Business and Product Development.  Therese Neish, currently Group Financial Controller, will assume responsibilities of the Chief Financial Officer with immediate effect, with a view to being formally appointed to the board of STM in due course.

A combination of a more sophisticated market together with jurisdictional regulation has helped STM design more prescriptive products to meet the demands of both the adviser and their clients.  Many financial services companies in this field are not able to satisfy these requirements from the existing range of products available in the market.  STM believes that it can exploit this niche through a range of tailored solutions, particularly in the STM Life and STM Pensions divisions.

Whilst client and intermediary feedback for STM's strategy is very positive, the timing of product sales has been slower than initially anticipated.  Accordingly, the Board expects to announce EBITDA for 2013 of approximately £1m on revenue of approximately £12.3m.  Expectations for 2014 remain as forecast based on product roll out projections.

STM has continued to strengthen its balance sheet and remains focused on managing its cost base.  The Convertible Loan Note due to be repaid in March 2014 is currently being renegotiated with a favorable outcome expected to include part redemption and part roll over. 

Commenting on the Board changes and current trading, Colin Porter, CEO of STM, said:

"The proposed changes in our Board structure will allow us to focus more specifically on the development of specialised products and distribution opportunities for STM.  This is client and intermediary led, giving us increased confidence in the market's appetite for these tailored solutions.  Alan has excellent connections in the industry and, given his financial services experience, has a valuable insight into the needs of these client groups and how products can be designed to satisfy their needs.

"It remains that the European market has been slower than we would have liked however this is symptomatic of a slower return of confidence than we had anticipated.

"The Board is very optimistic about the prospects for the Group in 2014 and beyond.  Intermediaries have struggled to find products that fit their clients' increasingly specific needs and, against this backdrop, we feel well positioned to benefit from our close relationships with this professional group."

 

For further information, please contact:

STM Group PLC www.stmgroupplc.com
Colin Porter, Chief Executive Officer Tel: 00 350 200 42686
[email protected]


Alan Kentish, Director of Business and Product Development Tel: 00 350 200 78614
[email protected]
FinnCap www.finncap.com
Charlotte Stranner / Chris Raggett - Corporate Finance
Simon Starr - Corporate Broking
Tel: +44 (0) 20 7220 0500
Walbrook PR www.walbrookpr.com
Tom Cooper / Paul Vann Tel: +44 (0) 117 985 8989
Mob: +44 (0) 797 122 1972
[email protected]

 

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

UNITED KINGDOM

Options UK 
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STM is a multi-jurisdictional financial services group listed on AIM, a market operated by the London Stock Exchange.
The Group specialises in the administration of client assets in relation to retirement, estate and succession planning and wealth structuring.

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STM Group companies are regulated where required in their host jurisdictions.

STM in the UK (London & Colonial and Options UK): Financial Conduct Authority - STM in Gibraltar: Gibraltar Financial Services Commission - STM in Malta: Malta Financial Services Authority - STM in Spain: Director General de Seguros, Fondos y Pensiones: STM Nummos, SL figura inscrita en el Registro Mercantil de Cádiz, Tomo 1612, Hoja 6697, Libro 0, Folio 14. CIF B-11301199.

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