Latest Results

Final Results for the
12 months ended 31 December 2016

The full results are available to
view and download in PDF format

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 2016.

Financial Highlights:

  • Revenue for the period up 8% at £17.4 million (2015: £16.2 million)
  • EBITDA for the period of £3.1 million (2015: £3.1 million)
  • Profit before tax for the period of £2.8m million (2015: £2.7 million).
  • Earnings per share of 3.99 pence (2015: 3.99p pence)
  • Strong balance sheet with cash and cash equivalents balance up 49% at £11.9 million (31 December 2015: £8.0 million)
  • Final dividend of 1.0 pence per ordinary share recommended giving a total dividend for the year of 1.5p

Operational Highlights:

  • Acquisition of UK SIPP business and a life assurance company, London & Colonial Holdings Ltd (LCH), for up to £5.385m, which completed on 21 October 2016
  • Smooth integration of LCH businesses generating cost savings – on track to save £500,000
  • Significant organic growth rate in STM Life of 32% compared to 2015
  • Review of QROPS pricing structure resulting in enlarged long term client base and almost 11,000 QROPS pension members as at 31 December 2016 (2015: 9,688)
  • Strengthening of main Board and senior management to support future growth – two new non-executives and new Head of Enterprise Risk Management

Outlook After Spring Budget Announcement

  • New QROPS business impaired by budget announcement for non-European clients
  • STM's existing 11,000 QROPS members unaffected and this recurring revenue generates over 90% of pensions total revenue
  • UK SIPP offering expected to be used by intermediary network as an alternative to QROPS
  • STM's other business units which generate 50% of Group revenue are not affected by the budget changes

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

"2016 has been a significant year for the STM Group, delivering solid results and two strategically important developments.

"The 2017 spring budget certainly has thrown a curve ball into our expectations for new QROPS business. However, our business model is based on a robust recurring revenue stream and thus, whilst profits for 2017 will have been impacted, we still expect a growth in profit compared to 2016."

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




Page last up-dated: 14 March 2017


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