INVESTOR RELATIONS

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 2016.

Financial Highlights:

• Revenue for the period up 8% at £17.4 million (2015: £16.2 million)
• EBITDA for the period of £3.1 million (2015: £3.1 million)
• Profit before tax for the period of £2.8m million (2015: £2.7 million).
• Earnings per share of 3.99 pence (2015: 3.99p pence)
• Strong balance sheet with cash and cash equivalents balance up 49% at £11.9 million (31 December 2015: £8.0 million)
• Final dividend of 1.0 pence per ordinary share recommended giving a total dividend for the year of 1.5p

Operational Highlights:

• Acquisition of UK SIPP business and a life assurance company, London & Colonial Holdings Ltd (LCH), for up to £5.385m, which completed on 21 October 2016
• Smooth integration of LCH businesses generating cost savings – on track to save £500,000
• Significant organic growth rate in STM Life of 32% compared to 2015
• Review of QROPS pricing structure resulting in enlarged long term client base and almost 11,000 QROPS pension members as at 31 December 2016 (2015: 9,688)
• Strengthening of main Board and senior management to support future growth – two new non-executives and new Head of Enterprise Risk Management

Outlook After Spring Budget Announcement

• New QROPS business impaired by budget announcement for non-European clients
• STM's existing 11,000 QROPS members unaffected and this recurring revenue generates over 90% of pensions total revenue
• UK SIPP offering expected to be used by intermediary network as an alternative to QROPS
• STM's other business units which generate 50% of Group revenue are not affected by the budget changes

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

"2016 has been a significant year for the STM Group, delivering solid results and two strategically important developments.

"The 2017 spring budget certainly has thrown a curve ball into our expectations for new QROPS business. However, our business model is based on a robust recurring revenue stream and thus, whilst profits for 2017 will have been impacted, we still expect a growth in profit compared to 2016."

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