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Unaudited Interim Results for the six months ended 30 June 2017

12 September 2017

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 2017.

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Financial Highlights:

2017 2016 Change
Revenue £10.7m £7.9m +36%
Revenue (net of 2016 acquisition) £8.3m £7.9m +5%
Earnings before interest, taxation, depreciation and amortisation ("EBITDA") £2.9m* £1.3m +118%
Profit before taxation £2.4m* £1.2m +100%
Profit before taxation (net of 2016 acquisition) £1.5m £1.2m +25%
Earnings per share 3.89p* 2.27p +71%
Cash at bank (net of borrowings) £11.4m £9.3m +20%
Interim dividend 0.6p 0.5p +20%

* stated including impact of £0.5m release of L&C technical expense reserve

Operational Highlights:

  • Recurring revenue for the period of £8.0 million (2016: £6.0 million)
  • Successful launch of International SIPP product as an alternative to QROPS
  • Continued smooth integration of the L&C acquisition, maintaining predictable revenue stream and delivering annualised direct cost savings of £0.7m
  • Further release of £0.5m L&C technical expense reserve, with potential for further releases
  • Increased deferred income shows visibility of revenue stream

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

"It is pleasing to be able to announce that the 2017 interims have delivered record six month profits for STM, despite the unprecedented UK Spring budget announcement that effectively curtailed new QROPS business by 80%.

"It goes to the core of the STM proposition of the predictable and dependable recurring revenue model that underlying profitability was maintained, whilst the flexibility and innovation of our management team has allowed us to start replacing that lost new business stream, with the International SIPP.

"There is no doubt that the International SIPP catering for the UK expatriate market is a healthy replacement for the expected reduced new business volumes in our QROPS market-place. The fact that the product is more straight-forward to understand as compared to a QROPS, supported by the fact that it is administered by a UK regulated firm, has attracted the interest of the UK expat.

"Furthermore, it is pleasing to see that the re-structuring and cost savings initiated as part of the L&C acquisition, as planned by management, are now bearing fruit in relation to direct cost savings as well as a release of technical reserves to profit from the life assurance company. This was an easy-win for STM, and it is anticipated that there will be further releases in the foreseeable future.

"Following the strong performance to date, and looking forward therefore to the rest of the year, the Board is confident that the Group is performing ahead of existing expectations."

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

 

 

For further information, please contact:

STM Group Plc
Alan Kentish, Chief Executive Officer Tel: 00 350 200 42686
Therese Neish, Chief Financial Officer www.stmgroupplc.com
FinnCap Tel: +44 (0)20 7600 1658
Matt Goode / Emily Watts - Corporate Finance www.finncap.com
Mia Gardner - Corporate Broking
Media enquiries:
Walbrook PR
Tom Cooper / Paul Vann Tel: +44(0)2079338780
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

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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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