Completion of Acquisition, Trading Update, Board Changes, Notice of Interim Results & Investor Presentation
01 September 2022
STM Group Plc (AIM: STM), the cross border financial services provider, announces the completion of the acquisition of the portfolio, net assets and trustee companies of the SIPP and SSAS businesses from Mercer Ltd, a trading update for the 6 months to 30 June 2022, Board changes and notice of its Interim Results announcement.
Completion of Acquisition
Further to the announcement made on 26 July 2022, STM is pleased to announce the completion of the acquisition of the portfolio, net assets and trustee companies of the SIPP and SSAS businesses, from Mercer Ltd.
STM expects to report revenue for the six months to 30 June 2022 of approximately £11.3m (2021: £11.4m) with both the Pensions and Life Assurance businesses showing an uplift in revenue compared to the previous half year position. Gibraltar and Malta revenues remain consistent and in line with management expectations. The corporate pensions business revenues continue to grow, however revenues in the UK SIPP business are behind plan as not all strategic partners are fully live. The Group expects to report EBITDA for the period of approximately £1.4m (H1 2021: £1.5m) and net cash as at 30 June 2022 of £17m (2021: £16.5m).
As previously stated, new business levels in the first half of 2022 were slower than anticipated, however the Board anticipates a healthy uplift in new business flow for its Life Assurance businesses in relation to certain of the Group's annuity products, as well as increased new business flows for its SIPP business through strategic partners.
In this regard, STM is pleased to announce that the Options SIPP is partnering with IG Group to provide its pension SIPP wrapper. The solution will enable clients to invest using IG's share dealing and model portfolio services. This service will launch shortly and be made available to new and existing IG clients.
As part of STM's strategic partner program, the Group anticipates that other core products will also be available in the near future via these platforms.
Development of the target operating model continues to improve efficiency and increase margins, primarily driven by the roll-out of the internal administration system and the automation of processes.
Given the opportunities in relation to new business revenue, the Board remains confident that 2022 overall profit expectations will be met.
Appointment of new Chair
The Company is pleased to announce the appointment of Mr Nigel Birrell as non-executive Chairman with immediate effect. Concurrent with this appointment, Duncan Crocker has resigned from the Board with immediate effect, as indicated in the announcement dated 4 August 2022.
Mr Birrell has served as the Chief Executive Officer of Lottoland Group since May 2014. Lottoland is an online bet on lottery operator based in Gibraltar, which operates across multiple territories and has 16 million customers. Mr Birrell has overseen Lottoland's geographic and product expansion into multiple markets. Prior to this, Mr Birrell was a group director on the executive board of bwin.party digital entertainment plc (now Entain plc) the then world's leading on-line gaming business.
Prior to bwin.party, Mr Birrell was a main board director of the FTSE 250 media group HIT Entertainment PLC ("HIT").
In his early career, Mr Birrell worked as an investment banker with both Dresdner Kleinwort Benson and later Donaldson, Lufkin & Jenrette (now Credit Suisse). He holds a Bachelor of Laws (LLB) from the University of London (Queen Mary College) and is a Solicitor of the Senior Courts of England and Wales.
Mr Birrell is non-executive Chairman of Duke Royalty Limited (AIM listed) and also holds a number of other private company non-executive positions.
Commenting on the Board appointment Alan Kentish, Chief Executive Officer, said:
"On behalf of the Company I am delighted to welcome Nigel to the Board and thank Duncan for his contribution. Nigel brings considerable public company and financial services experience and has a track record of growing businesses."
Notice of Interim Results
The Company expects to announce its full Interim Results for the 6 months to 30 June 2022 on 14 September 2022.
Investor Presentation - 2pm on 14 September 2022
Chief Executive Office, Alan Kentish, and Chief Financial Officer, Nicole Coll, will be hosting a remote presentation to review the 2022 Interim Results and prospects at 2pm on 14 September 2022.
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.
For further information, please contact:
STM Group Plc
Alan Kentish, Chief Executive Officer
Nicole Coll, Chief Financial Officer
Via Walbrook PR
Matt Goode / Emily Watts - Corporate Finance
Tim Redfern / Richard Chambers - ECM
Tel: +44 (0) 20 7220 0500
Tom Cooper / Joseph Walker
Tel: +44 (0) 20 7933 8780
Mob: +44 (0) 797 122 1972
Notes to editors:
STM is a multi-jurisdictional financial services group traded 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.
Today, the Group has operations in the UK, Gibraltar, Malta, Australia and Spain. STM has developed a range of pension products for UK nationals and internationally domiciled clients and has two Gibraltar life assurance companies which provide life insurance bonds - wrappers in which a variety of investments, including investment funds, can be held.
STM's growth strategy is focussed on both organic initiatives and strategic acquisitions.
Further information on STM Group can be found at www.stmgroupplc.com
Further disclosure pursuant to Schedule Two, paragraph (g) (i)-(viii) of the AIM Rules for Companies is set out below.
Director's full name: Nigel Norman Birrell
European Lotto and Betting Ltd
Lottoland ESOP Limited
Lottohelden EU Limited
United Lottery Solutions Limited
European Lotto and Betting Ltd (Gibraltar Branch)
Lottoland Services Limited
EU Lotto Ltd
Lottoland CZ Limited
Lottoland Australia Pty Limited
Lottoland Holdings Limited
Lottoland (Australia) Investments Pty Ltd
Deutsche Lotto Und Sportwetten Ltd (Gibraltar Branch)
Domain Venture Partners PCC Limited
Deutsche Lotto Und Toto-Agentur Ltd (Gibraltar Branch)
Crucial Compliance Limited
Duke Royalty Limited
Southern Rock Insurance Company Limited
Daisy Services Limited
The Gibraltar Betting and Gaming Association Limited
Mr Birrell was appointed to Domain Venture Partners PCC Limited on 1 November 2016 and resigned on 11 April 2018. Within 12 months of when Mr Birrell resigned Domain Venture Partners PCC Limited was placed into a solvent court administration. The administration is ongoing.