Final Results for the 12 months ended 31 December 2022
27 June 2023
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 2022.
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Financial Highlights:
| 2022 (reported) | 2022 (adjusted)** | 2021 (reported) | 2021 (adjusted)** | |
| Revenue | £24.1m | £24.6m | £22.4m | £21.6m |
| Profit before other items* | £3.3m | £4.7m | £2.8m | £2.9m |
| Margin | 14% | 19% | 13% | 13% |
| Earnings per share^ | 1.42p | N/A | 2.94p | N/A |
| Cash at bank (net of borrowings) | £13.9m | N/A | £16.7m | N/A |
| Final dividend | 0.60p | N/A | 0.90p | N/A |
| Total dividend | 1.20p | N/A | 1.50p | 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
^ The decrease in EPS was largely as a result of having a tax credit of £0.5 million in 2021 as compared to a tax charge of £0.7 million in 2022
Operational Highlights:
- Recurring revenues remain predictable and a corner stone of the business representing 91% of reported revenues, building on the 2021 base
- All personal pension businesses (with the exclusion of the Mercer acquisition) now on one administration system
- Launch of the Malta occupational pension on a straight through processing technology
- Corporate pensions (auto-enrolment) effectively negates most of the financial impact of the “small pots” legislation by negotiating share of investment management fees
- Growth in the UK proposition as a key jurisdictional focus following integration of UK acquisitions
- Centralisation of the business development function driving increased “top line” growth – new Group Head of Business Development joined earlier in the year
- Analysis of value chain identifies further opportunities to generate revenue and profits, including interest sharing policy.
- Revitalised PLC board, as well as some changes at senior management level
Commenting on the results and prospects for STM, Alan Kentish, Chief Executive Officer, said:
“These results demonstrate the solid underlying performance of our business, in a market which continues to evolve and present opportunities for an independent such as STM.
“We are conscious that we have not yet realised our true potential, and are working towards a revised strategy to maximising the opportunities and to deliver shareholder value. Progress has been made in 2023 and we look forward to updating the market at the earliest opportunity.”
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 Therese Neish, Chief Financial Officer | Via Walbrook PR www.stmgroupplc.com |
| finnCap | www.finncap.com |
| Matt Goode / Emily Watts – Corporate Finance Tim Redfern - ECM | Tel: +44 (0) 20 7220 0500 |
| 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 UK, Gibraltar, Malta 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