INVESTOR RELATIONS

Corporate News

Trading Update and Notice of Results

24 January 2018

STM Group Plc (AIM: STM), the cross border financial services provider, is pleased to announce a pre-close trading update and notice of final results.

Trading Update and review of 2017

The Board is pleased to announce that the Group has traded in line with market expectations, and expects to deliver a profit before tax for the year to 31 December 2017 of not less than £3.8 million (2016: £2.8 million).

A key component enabling the delivery of record PBT was the ability to launch STM's International SIPP (ISIPP) product post the March 2017 UK budget announcement. The Budget effectively made the Recognised Overseas Pension Scheme (ROPS) product for new applications non-viable for non-EEA countries due to the punitive Overseas Tax Charge being imposed. This affected 80% of all new ROPS business for STM. Pleasingly ISIPP volumes are now comparable to the lost ROPS new business.

Just as importantly, our existing business across the Group, particularly in relation to our pensions and life businesses, continues to perform as expected. This annual recurring revenue stream makes up over 70% of our revenue, giving predictability over our underlying monthly performance.

Update on approval and integration of Harbour Pensions Limited

As previously announced on 13 November 2017, STM signed a Sale and Purchase Agreement to acquire the Malta based ROPS provider, Harbour Pensions Limited. This is subject to Malta Financial Services Authority (MFSA) approval, which we understand will be forthcoming shortly. We expect the business, which currently generates in excess of £800k of recurring revenue, to be integrated into STM's Malta pensions business within six months of completion, thus allowing for some healthy efficiency gains.

The Company will continue to look for other possible "bolt on" acquisitions that would allow for enhanced profit margins.

Update on STM Group Plc head office move to UK

The Board took the decision during the fourth quarter of 2017 to review the location of its head office. The Directors have now decided to move its head office out of Gibraltar, and relocate this to the UK as from January 2018. This decision has been well received by intermediaries, investors and other various stakeholders in our business, who recognize the benefits of being based in the UK. This relocation is now in progress.

Commenting on the achievements of 2017 and prospects for the Group, Alan Kentish, CEO of STM said:

"With the UK budget instantly curtailing most of our new ROPS business in March and the exceptional circumstances of the fourth quarter, 2017 has certainly brought its unexpected challenges. Pleasingly, however, management was able to react proactively which allowed the business to perform in line with management expectations.

"The Group's annual recurring revenue continues to underpin our business. However, 2017 has resulted in significant changes to our geographic footprint and business proposition - an upsizing of our UK business and less reliance on our Gibraltar and Malta pension businesses.

"Such a repositioning of our business is time consuming and required some integration during 2017. This investment brings opportunities in 2018 to improve our profit margins.

"The Board looks forward to updating the market in more detail as part of our final results announcement."

Notice of Final results

STM will announce its Final results for the 12 months to 31 December 2017 on 27 March 2018.

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

 

For further information, please contact:

STM Group Plc
Alan Kentish, Chief Executive Officer Tel: 00 350 200 42686
[email protected] www.stmgroupplc.com
Therese Neish, Chief Financial Officer Tel: 00 350 200 42686
[email protected]
FinnCap www.finncap.com
Matt Goode / Emily Watts - Corporate Finance Tel: +44 (0) 20 7220 0500
Mia Gardner - Corporate Broking
Walbrook www.walbrookpr.com
Tom Cooper / Paul Vann Tel: +44 (0) 20 7933 8780
Mob: +44 (0) 797 122 1972
[email protected]

 

Notes to editors:

STM is a multi jurisdictional financial services group which is listed on the AIM Market of the London Stock Exchange. The Group specialises in the delivery of a wide range of financial service products to professional intermediaries and the administration of assets for international clients in relation to retirement, estate and succession planning and wealth structuring.

Today, STM has operations in United Kingdom, Malta, Jersey, Spain and Gibraltar. The Group is looking to expand through the development of additional products and services that its ever more sophisticated clients demand. STM has developed a specialist international pensions division which specialises in UK SIPPs, Qualifying Recognised Overseas Pension Schemes (QROPS) and Qualifying Non UK Pension Schemes (QNUPS). STM has a Gibraltar Life Insurance Company, STM Life 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 
(part of STM Group Plc)
1st Floor Lakeside House
Shirwell Crescent
Furzton Lake
Milton Keynes
Buckinghamshire
MK4 1GA

UNITED KINGDOM

London & Colonial Services Limited
(part of STM Group Plc)
1st floor
21 Perrymount Road
Haywards Heath
West Sussex
RH16 3TP
UK

GIBRALTAR

PO Box 575
Montagu Pavilion
8-10 Queensway
Gibraltar
GX11 1AA

MALTA

San Gwakkin Building
Level 1
Triq is-Salib tal-Imriehel
Zone 4
Central Business District
Birkirkara, CBD4020
Malta

SPAIN

Edif. Sotovila
Plaza Mayor
P.N. de Guadiaro
Sotogrande
Cadiz
11311
Spain

HEAD OFFICE

Suite 315
5 Chancery Lane
London,EC4A 1BL
UK

REGISTERED OFFICE

1st Floor,
Viking House,
St Paul’s Square, Ramsey,
Isle of Man,
IM8 1GB.

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.

Legal Disclaimer | Privacy Notice | Sitemap
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.

© STM GROUP PLC • 1st Floor, Viking House • St Paul’s Square, Ramsey, Isle of Man IM8 1GB • 00350 200 42686
All Rights Reserved - STM Group PLC