INVESTOR RELATIONS

STM Group Plc (AIM: STM), the multi-jurisdictional financial services group, is pleased to announce its unaudited interim results for the six months ended 30 June 2016.

Financial Highlights:

• Revenue for the period of £7.9 million (2015: £8.3 million)
• EBITDA for the period of £1.3 million (2015: £1.6 million)
• Profit before tax for the period of £1.2 million (2015: £1.4 million).
• Earnings per share more than doubled to 2.27 pence (2015: 1.38 pence)
• Underlying earnings per share impact of tax refund of 1.10 pence (2015: 1.38 pence)
• Net cash generated from operations of £2.3m continues to outstrip profitability (2015: £2.2m)
• Strong balance sheet with cash balances increased to £9.3 million (2015: £7.1 million), well in excess of regulatory capital requirements
• Interim dividend of 0.5 pence per ordinary share declared

Operational Highlights:

• Growth by 12% in annuity fee income streams in both pensions and life businesses
• Increase in recurring fees to 73% of revenue (2015: 66%)
• Temporary suspension of establishment fees has impacted results in the short term but has stimulated an increase in QROPS applications since the pricing change, thus growing recurring revenue for future years
• Continuing profitability and reduced financing costs reflected in the increase in cash at bank to £9.3 million
• Increased deferred income shows visibility of revenue stream
• Business Development offices are now generating new business.

The Board is also pleased to announce that Alan Kentish, having acted as Interim Chief Executive Officer since 1 April 2016, has now been permanently appointed to this role.

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

"As previously notified, trading in the first four months of the year ultimately fell short of management's expectations, and has thus impacted on our profitability in the first six months. However, I am encouraged by how the pricing initiative implemented by the Board during April has resulted in a significant pick-up of new business, with an increase of 78% in monthly new QROPS applications from April to August compared to the average number of applications received in the first four months. This translates into a greater long-term recurring predictable revenue stream, thus generating enhanced shareholder value.

"Our focus continues to be to increase our world-wide intermediary network for both our mainstream pensions and life bond products, whilst at the same time looking at strategic opportunities to cater for the niche expatriate sector.

"I look forward to updating the market in due course on the above."

The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

For further information, please contact:

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