INVESTOR RELATIONS

Corporate News

Final Results, Investor Presentation, Board Change

08 June 2022

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 2021.

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Financial Highlights

 2021 (reported) 2021
(adjusted)**
2020 (reported) 2020
(adjusted)**
Revenue £22.4m £21.6m £24.0m £20.8m
Recurring revenue % 91% N/A 85% N/A
Profit before other items*£1.4m £1.5m £2.2m £2.4m
Statutory Profit Before Tax £1.2m N/A £2.0mN/A
Margin6%7% 9%11%
Basic and fully diluted earnings per share 2.94p N/A 2.99p N/A
Cash at bank (net of borrowings) £16.8m N/A £14.8m N/A
Final dividend 0.90p N/A 0.85p N/A
Total dividend 1.50p N/A 1.40p N/A

 

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

** Adjusted statistics are net of certain transactions which do not form part of the regular operations of the business as further detailed in Table 2 below

 

Operational Highlights:

  • Recurring revenues remain predictable and a corner stone of the business representing 91% of reported revenues
  • Strategic focus on core activities of pension administration and life assurance leading to disposal of the CTS businesses
  • Growth in the UK proposition as now a key jurisdictional focus following integration of UK acquisitions
  • Centralisation of the business development function to focus on driving increased “top line” growth
  • Implementation of a harmonised IT operating platform largely completed and a commitment to increased investment in Group-wide systems to support central functions
  • Updated to a “hybrid” working environment to keep our colleagues safe and to maximise flexibility and efficiencies regardless of physical location
  • Q1 2022 Launch of Australian superannuation solution for expatriates

 

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

“Whilst our existing recurring revenue has held up well, it has been frustrating that the significant amount of work and change occurring in the background has not yet resulted in the improved margins or new business growth anticipated.

“The appointment of a centralised head of distribution in October 2021, is a step change that is expected to bring about several new partnership relationships which will expand our existing product distribution.

“Operationally 2021 has been another very busy year, with the completion of major IT migrations. STM now operates all its personal pension businesses on one core in-house administration system. There remains further development work required before we expect to see the full benefits of this initiatives. Further we are looking to optimise various functions across the business to avoid duplication and to become a more agile and forward-looking business.

“Whilst it was disappointing that the Supreme Court did not grant leave to appeal on the Adam’s vs Carey (Options) case, as previously stated this will not have a financial impact on the business as the Company benefits from significant professional indemnity protection. The outcome of the case is very fact specific, and there remains other areas of uncertainty around a SIPP administrator’s duties that would benefit from additional clarity.

“It is with regret that I inform you that Nicole Coll has decided to step down from her role as CFO. Since joining STM, she has significantly contributed to the strategy and development of our optimised operating model. However, she has decided to focus on her non-executive opportunities at this time.  Nicole is committed to ensuring an orderly handover process to the new incumbent over the coming months and I am grateful that she was fully engaged in seeing the audit through to completion. The board wish her well in her future endeavours and have commenced the search process for a new CFO

“We believe that we are well positioned to take advantage of all the hard work and initiatives that we have undertaken in the past few years in addition, to a more efficient centralised operating model. This is expected to increase our operating margins, so that we will be more comparable to our peers but will potentially require some additional resources in the short-term. 

“There is significant energy and activity around realising new business and bringing about further operating efficiencies. The Board and I look forward to updating you in due course.”

 

Investor Presentation – 4pm on Wednesday 8 June 2022

Chief Executive, Alan Kentish, and Chief Financial Officer, Nicole Coll, will be hosting a remote presentation to review the 2021 Results and prospects at 4pm on Wednesday 8 June 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. 

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the company's obligations under Article 17 of MAR.

 

For further information, please contact:

STM Group Plc  
Alan Kentish, Chief Executive Officer
Nicole Coll, Chief Financial Officer
Via Walbrook PR
www.stmgroupplc.com
  
finnCap www.finncap.com
Matt Goode / Abigail Kelly – Corporate Finance
Tim Redfern / Richard Chambers - ECM
Tel: +44 (0) 20 7220 0500
  
Walbrook www.walbrookpr.com
Tom Cooper / Nick RomeTel: +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 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 SIPPs, 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 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.

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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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