INVESTOR RELATIONS

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 2017.

Financial Highlights:

• Revenue for the period up circa 24% at £21.5 million (2016: £17.4 million)
• EBITDA for the period of £4.8 million (2016: £3.1 million)
  • Underlying* EBITDA for the period of £4.0 million (2016: £2.6 million)
• Profit before tax for the period of £4.0 million (2016: £2.8 million).
  • Underlying* Profit before tax for the period of £3.2 million (2016: £2.3 million)
• Earnings per share of 6.69 pence (2016: 3.99p pence)
  • Underlying* Earnings per share of 5.29 pence (2016: 3.15 pence)
• Strong balance sheet with cash and cash equivalents balance up 55% at £18.4 million (31 December 2016: £11.9 million)
• Final dividend of 1.2 pence per ordinary share recommended (2016: 1.0 pence)

*Underlying statistics are net of insurance technical releases and one-off costs

Operational Highlights:

• UK administered International SIPP product launched to compensate for part of the lost ROPS market
• Refocus on expansion in UK regulated products but still for expatriate market
• Acquisition of London & Colonial fully integrated and delivering anticipated returns
• Strengthening of the Group's corporate governance with the new role of Head of Enterprise Risk Management
• Bolt on acquisition in Malta
• Life assurance business now a significant revenue and Group profit contributor following acquisition and organic growth

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

"I am delighted that STM has delivered record profits for 2017, against a backdrop of a number of operational challenges. However, as a result of this our business now has a more UK regulated focus which I think is beneficial for all our stakeholders.

"Moving into 2018, we have a solid recurring revenue platform on which to look to launch new products and to expand our distribution network as part of a strategy to make our business even more robust.

"A continued strengthening of our governance and attention to improving profit margins are also a key deliverable for 2018.

"I look forward to updating the market on our developments during the year."

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

For further information, please contact:

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 the UK, Gibraltar, Malta, 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 Qualifying Recognised Overseas Pension Schemes (QROPS), Qualifying Non UK Pension Schemes (QNUPS). STM also 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