INVESTOR RELATIONS

Corporate News

Unaudited Interim Results for the six months ended 30 June 2020 & Investor Presentation

08 September 2020

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 2020.

Download
The full results are available to
view and download in PDF format


Financial Highlights:

 

2020
(reported)

2020
(underlying)**

2019
(reported)

2019 (underlying)**

Revenue

£11.8m

£11.8m

£11.9m

£11.6m

Profit before other items*

£1.8m

£1.9m

£2.1m

£2.3m

Profit before taxation (“PBT”)

£1.0m

£1.1m

£3.4m

£1.6m

Profit before other items margin

15%

16%

18%

20%

Earnings per share

1.33p

1.45p

5.30p

2.30p

Cash at bank (net of borrowings)

£17.6m

N/A

£17.3m

N/A

Interim dividend

0.55p

N/A

0.75p

N/A

* Profit before other items is defined as revenue less operating expenses i.e. profit before taxation, finance income and costs, depreciation, amortisation, bargain purchase gain and gain on the call options

** Underlying statistics are net of certain transactions which do not form part of the regular operations of the business as further detailed in the table below

Highlights:

  • Pensions administration business underpinning increase in recurring revenues
  • Stability of Group revenue demonstrated through the Covid-19 virus
  • Successful transition to remote working arrangements
  • Key IT projects for improved profitability remain on track with full benefits expected in 2021
  • Carey acquisition now fully integrated, and UK rebranding of “Options, for your tomorrow” successfully launched
  • Acquisition opportunities continue to be presented
  • UK orientated products – Shariah SIPP and Workplace Pensions solution now launched, opportunity for international solution as well
  • Workplace Pensions corporate business moving towards break-even
  • Flexible annuity pipeline building, but frustration in slower than anticipated conversion

Post period end:

  • Acquisition of the Berkeley Burke Small Self Administered Schemes (“SSAS”) and Group Personal Pension (“GPP”) companies, driving UK centric business growth on scalable operating platform

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

“Covid-19 has presented challenges however the business has responded admirably and, as anticipated, the quality of our recurring revenue stream has under-pinned our half year results.  The challenge and opportunity for us over the next 12 months is to accelerate the conversion to revenue of our healthy new business pipeline, particularly in relation to our flexible annuity product.

“Within the business, as part of our new operating model and drive for improved margins, I am pleased to confirm that our key IT projects remain on track with regards to scheduled completion, which we expect to lead to a step change in profitability in 2021.

“The recent acquisition of the Berkeley Burke SSAS and GPP companies are a welcome addition to the UK business portfolio, and demonstrates our commitment to further building our UK operations and delivering on our growth potential. In addition, we continue to pursue acquisition opportunities where we are in active discussions.”

Investor Presentation: 4pm on Thursday 10 September 2020

The Directors will hold a presentation to introduce STM Group Plc to investors and cover the Interim Results and prospects at 4.00 p.m. on Thursday 10 September 2020.

The presentation will be hosted through the digital platform Investor Meet Company. Investors can sign up to Investor Meet Company and add to meet STM Group Plc via the following link https://www.investormeetcompany.com/stm-group-plc/register-investor.

For those investors who have already registered and added to meet the Company, they will automatically be invited. 

Questions can be submitted pre-event to [email protected] or in real time during the presentation via the "Ask a Question" function.

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 Via Walbrook PR
www.stmgroupplc.com
Therese Neish, Chief Financial Officer
FinnCap Tel: +44 (0)20 7600 1658
Matt Goode / Emily Watts - Corporate Finance www.finncap.com
Tim Redfern / Richard Chambers - ECM
Walbrook Tel: +44 (0) 20 7933 8780
Tom Cooper / Paul Vann Mob: +44 (0) 797 122 1972
[email protected]

 

Notes to editors:

STM is a multi-jurisdictional financial services group which is listed on AIM, a market operated by 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 the UK, Gibraltar, Malta, Jersey and Spain. 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 Self-Invested Personal Pensions (SIPPs) for expatriates, Qualifying Recognised Overseas Pension Schemes (QROPS), Qualifying Non UK Pension Schemes (QNUPS). STM has two Gibraltar Life Assurance Companies which provide life insurance bonds – wrappers in which a variety of investments, including investment funds, can be held.

Further information on STM Group Plc 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