Latest Results

Unaudited Interim Results for the six months ended 30 June 2017

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STM Group Plc (AIM: STM), the multi-jurisdictional financial services group, is pleased to announce its unaudited interim results for the six months ended 30 June 2017.

Financial Highlights:

  2017 2016 Change
Revenue £10.7m £7.9m +36%
Revenue (net of 2016 acquisition) £8.3m £7.9m +5%
Earnings before interest, taxation, depreciation and amortisation ("EBITDA") £2.9m* £1.3m +118%
Profit before taxation £2.4m* £1.2m +100%
Profit before taxation (net of 2016 acquisition) £1.5m £1.2m +25%
Earnings per share 3.89p* 2.27p +71%
Cash at bank (net of borrowings) £11.4m £9.3m +20%
Interim dividend 0.6p 0.5p +20%

* stated including impact of £0.5m release of L&C technical expense reserve

Operational Highlights:

  • Recurring revenue for the period of £8.0 million (2016: £6.0 million)
  • Successful launch of International SIPP product as an alternative to QROPS
  • Continued smooth integration of the L&C acquisition, maintaining predictable revenue stream and delivering annualised direct cost savings of £0.7m
  • Further release of £0.5m L&C technical expense reserve, with potential for further releases
  • Increased deferred income shows visibility of revenue stream

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

"It is pleasing to be able to announce that the 2017 interims have delivered record six month profits for STM, despite the unprecedented UK Spring budget announcement that effectively curtailed new QROPS business by 80%.

"It goes to the core of the STM proposition of the predictable and dependable recurring revenue model that underlying profitability was maintained, whilst the flexibility and innovation of our management team has allowed us to start replacing that lost new business stream, with the International SIPP.

"There is no doubt that the International SIPP catering for the UK expatriate market is a healthy replacement for the expected reduced new business volumes in our QROPS market-place. The fact that the product is more straight-forward to understand as compared to a QROPS, supported by the fact that it is administered by a UK regulated firm, has attracted the interest of the UK expat.

"Furthermore, it is pleasing to see that the re-structuring and cost savings initiated as part of the L&C acquisition, as planned by management, are now bearing fruit in relation to direct cost savings as well as a release of technical reserves to profit from the life assurance company. This was an easy-win for STM, and it is anticipated that there will be further releases in the foreseeable future.

"Following the strong performance to date, and looking forward therefore to the rest of the year, the Board is confident that the Group is performing ahead of existing expectations."

The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.


Page last up-dated: 12 September 2017


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