STM Group PLC Trading Update & Notice of Results (2842V)
August 06 2020 - 1:00AM
UK Regulatory
TIDMSTM
RNS Number : 2842V
STM Group PLC
06 August 2020
STM Group Plc
("STM" or "the Company" or "the Group")
Trading Update & Notice of Results
STM Group Plc (AIM:STM), the cross-border financial services
provider, is pleased to issue a pre-close update for the six months
to 30 June 2020 prior to the release of its interim results.
Trading Update
As noted in our AGM statement there has been limited impact on
the Group's ability to service existing customers and onboard new
business. Our new business pipeline remains healthy and has
continued to grow month on month, albeit conversion timelines on
flexible annuity and bulk transfers of work-place pensions remain
slower than previously anticipated.
This is primarily attributable to the impact of the COVID-19
pandemic , be it the complications of introducing our flexible
annuity product to IFAs and the IFAs own logistics with client
interaction, or, on workplace pensions, the delay by employers and
Employee Benefit Consultants to look to change provider whilst
trying to manage the issues arising due to COVID-19. The
anticipated acceleration in conversions for the workplace pensions
and the London & Colonial flexible annuity pipelines will be
required in the second half of the year to hit our new business
revenue targets for the year.
New business revenues for our QROPs and SIPPs for the expatriate
market remain steady and as expected.
During the first half of the year, we have successfully launched
our new UK brand, "Options, for your tomorrow", and this has been
followed with the launch of our Shariah compliant SIPP and the more
recent Shariah compliant workplace pension solution. Both have been
well received to date, albeit it is too early to predict how much
volume will come through during the next few months, we are
optimistic as to the prospects for this innovative initiative.
Operationally, management has continued to keep a strong control
on costs, which in turn has protected margins and profit
expectations. Importantly, the three main IT projects that will
deliver significantly enhanced operating margins across the key
trading subsidiaries for 2021 remain on track.
Regulatory Update
We are pleased to confirm that agreement had been reached
between the STM Group of companies within Gibraltar (the Companies)
and the Gibraltar Financial Services Commission (GFSC) following
the Deloitte Report. All actions and remediation have been
completed to the satisfaction of the GFSC, the Companies' status as
regulated firms remain unchanged and no further action is
contemplated.
Looking Forward
A primary concern over the last four months has been to keep our
staff safe from Covid-19 and to ensure we adhered to the various
guidelines in the respective jurisdictions that we operate from,
whilst at the same time being able to maintain our service
standards to our customers and other key stakeholders. As of today,
we are progressing a plan to safely bring more staff back to the
office environment, whilst looking to continually develop improved
ways of working and efficiencies driven by learnings from our
experience through COVID-19.
The Group's pursuit of further acquisitions to complement
organic growth progresses, despite the complications that arise as
a result of Covid-19 from a due diligence perspective. STM has a
strong balance sheet and a market leading position to act as a
consolidator in the sector. The Board looks forward to updating the
market as appropriate.
Notice of Results
STM Group expects to announce its interim results on 8 September
2020.
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 www.stmgroupplc.com
Alan Kentish, Chief Executive Officer Tel: Via Walbrook
Therese Neish, Chief Financial Officer
finnCap www.finncap.com
Matt Goode / Simon Hicks - Corporate Finance Tel: +44 (0) 20 7220
Tim Redfern / Richard Chambers - ECM 0500
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 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,
Jersey 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
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END
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