STM Group PLC Trading Update & Notice of Results (6523K)
July 11 2017 - 1:00AM
UK Regulatory
TIDMSTM
RNS Number : 6523K
STM Group PLC
11 July 2017
STM Group Plc
("STM" or "the Group")
Trading & Corporate Update
and Notice of Results
STM Group Plc (AIM: STM), the cross border financial services
provider, announces the following trading and corporate update:
Trading & Corporate Update:
The Board is pleased to report progress post its AGM trading
update issued on 24 May 2017. As previously announced, the Board
was confident that the Group's existing recurring revenue model was
robust and has therefore been focussed on actively pursuing
additional initiatives to further build on the Group's
profitability.
As was previously indicated, the anticipated reduction in new
QROPS applications has indeed occurred in line with management
expectations, and management has pro-actively downsized new
business teams in both Malta and Gibraltar accordingly.
One of the above mentioned initiatives was to launch the
International SIPP product through its UK based SIPP business,
London & Colonial, via STM's worldwide network of financial
intermediaries. The International SIPP would be a product offering
that complemented the existing SIPP offering for the UK marketplace
already in existence at London & Colonial; and expectations
were that this SIPP product would replace some of the reduction in
QROPS applications.
The International SIPP was launched in April 2017, and
management is pleased to announce that the take up of the product
has progressed well. Whilst still in the early stages of marketing
the new product internationally, the Group has seen a very healthy
uplift on new applications from month to month. Current volumes of
new applications of the International SIPP are some three times
that of the UK SIPP offering, and are likely to continue to build
on that ratio.
It is believed that the International SIPP, whilst not having
the same potential advantages as that of a QROPS, is a simpler
product for the UK expatriate market to understand.
The fact that management took the decision to retain its
business development infrastructure, despite the fall in new QROPS
business, now enables the Group to continue its further growth in
the International SIPP product for the foreseeable future.
International SIPP applications have contributed to a steady
second quarter performance, complementing a solid first quarter
performance under the old QROPS regime. STM Life has equally had a
strong first quarter performance.
Looking forward therefore to the second half of the year, the
Board is confident that the Group is performing ahead of existing
expectations with management now expecting revenue of GBP19.8
million and profit before tax of GBP3.2 million.
In respect of potential consolidation in the industry,
management believes that the QROPS markets in Malta and Gibraltar
have started to stagnate and there is starting to be a realisation
by some of the smaller QROPS providers that have not yet attained
critical mass that they will be unable to grow their books of
business further. This is starting to generate opportunities for
the Group, with its strong balance sheet, to potentially acquire
other books of QROPS business.
Alan Kentish, CEO of STM, commented:
"The UK 2017 Spring Budget presented challenges for STM, however
I am pleased with how, as a business and a management team, we are
starting to overcome them. As expected, our core profitability was
unaffected by the budget, given our well recognised and understood
recurring revenue model. We feel confident that we have the tools
and infrastructure to grow our profit line substantially for the
foreseeable future.
"With the possibility of some straight-forward "bolt-on"
acquisitions in the QROPS sector, along with the imminent launch of
our Australian pension offering, and some further efficiencies in
how we process our existing business coming on stream shortly, we
are currently optimistic about the Group's growth prospects."
Notice of Results:
STM will announce its Interim results for the six months to 30
June 2017 on Tuesday 12 September 2017.
For further information, please contact:
STM Group Plc
Alan Kentish, Chief Executive Tel: 00 350 200 42686
Officer www.stmgroupplc.com
alan.kentish@stmgroupplc.com
Therese Neish, Chief Financial Tel: 00 350 200
Officer 42686
therese.neish@stmgroupplc.com
FinnCap www.finncap.com
Matt Goode / Emily Watts Tel: +44 (0) 20 7220
- Corporate Finance 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
tom.cooper@walbrookpr.com
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.
STM has operations in the UK, Malta, Gibraltar, 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), 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
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTFMGMNNGDGNZM
(END) Dow Jones Newswires
July 11, 2017 02:00 ET (06:00 GMT)
Stm (LSE:STM)
Historical Stock Chart
From Apr 2024 to May 2024
Stm (LSE:STM)
Historical Stock Chart
From May 2023 to May 2024