TIDMSTM
RNS Number : 2613T
STM Group PLC
24 March 2021
STM Group Plc
("STM", the "Company" or the "Group")
Unconditional disposal of Gibraltar CTS and Tax Compliance
businesses
Notice of Results, Analyst Briefing & Investor
Presentation
STM, the multi-jurisdictional financial services group, is
pleased to announce the unconditional sale of its Gibraltar based
trust and company services business and its tax compliance business
(the "Sale Companies") for consideration of GBP2.45 million plus
net assets upon completion of approximately GBP0.57 million.
Focussed strategy:
The sale complements the Company's strategy to focus on its core
activities of pension administration and life assurance. The sale
proceeds will be used to fund organic growth opportunities and
further support the Group's M&A strategy.
The Sale Companies are principally STM Fidecs Management
Limited, STM Fidecs Trust Company Limited, and STM Fiscalis Ltd,
along with a number of non-revenue generating support companies,
including nominee companies. Together these companies generated
revenue of GBP1.7 million during 2020 and made a profit
contribution of GBP0.3 million to STM Group's 2020 profits. In
addition, there are costs of GBP0.3 million that were previously
recharged to the Sale Companies in relation to shared services
which will need to be absorbed by the Group.
The sale has four staged consideration payments totalling
GBP2.45 million, with the amount payable upon completion being
GBP1.25 million, with a further GBP0.5 million six months after
completion, and a further GBP0.375m 12 months after completion. The
final payment, which will be made based upon 2021 audited revenue,
will amount to GBP0.325million and will be subject an adjustment of
1.5 multiple for any revenue deficit below GBP1.567 million or
surplus above GBP1.6 million. The payment for net assets of
approximately GBP0.57 million will be made partly upon completion,
with the remainder being paid over as and when debtors and
work-in-progress are collected by the Sale Companies.
The Sale Companies have been sold to the privately-owned
Sovereign Group which already has a significant presence in
Gibraltar, as well as offices in other jurisdictions that offer
similar trust and company services. The signing of the sale and
purchase agreements and the regulatory approval from the Gibraltar
Financial Services Commission allowing for coterminous completion
were finalised after close of business yesterday, 23 March
2021.
Alan Kentish, Chief Executive Officer of STM, commented:
" We are delighted that the businesses and our colleagues that
work within them, as well as our clients, have gone to a good home
at Sovereign, and I am sure that there will be a smooth and
seamless transition. Exiting the Gibraltar trust and company
business has been a key deliverable on the Group's roadmap and will
allow STM's executive management to focus on STM's core activities
of pension administration and provision of life assurance wrappers.
The release of additional cash will be utilised towards further
investment in the business where necessary, as well as contributing
cash resources towards our inorganic growth strategy
aspirations."
Notice of Results:
STM will announce results for the 12 months to 31 December 2020
on Tuesday 20 April 2021. The Directors confirm their previous
trading guidance for the period, as announced on 3 February
2021.
Investor Presentation: 11am on Thursday 22 April 2021
The Directors will hold a presentation to update investors on
the recent disposal of the Gibraltar CTS and Tax Compliance
businesses and the results for the year ending 31 December 2020 at
11am on 22 April 2021.
The presentation will be hosted through the digital platform
Investor Meet Company. Investors can sign up to Investor Meet
Company and add to meet STM Group Plc via the following link
https://www.investormeetcompany.com/stm-group-plc/register-investor
. For those investors who have already registered and added to meet
the Company, they will automatically be invited.
Questions can be submitted pre-event to STM@walbrookpr.com or in
real time during the presentation via the "Ask a Question"
function.
Analyst Briefing: 9.30am on Tuesday 20 April 2021
An online briefing for Analysts will be hosted by Alan Kentish,
Chief Executive, and Therese Neish, Chief Financial Officer, at
9.30am on Tuesday 20 April 2021 to review the results, disposal and
growth strategy. Analysts wishing to attend should contact Walbrook
PR on STM@walbrookpr.com or on 020 7933 8780.
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
Alan Kentish, Chief Executive Officer Via Walbrook PR
Therese Neish, Chief Financial Officer www.stmgroupplc.com
FinnCap www.finncap.com
Matt Goode / Emily Watts - 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
STM@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.
Today, STM has operations in 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 SIPPs, Qualifying Recognised
Overseas Pension Schemes (QROPS), Qualifying non UK Pension Schemes
(QNUPS). STM 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
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END
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