STM Group PLC Sale of Jersey CTS Business (9966X)
10 Mayo 2021 - 01:00AM
UK Regulatory
TIDMSTM
RNS Number : 9966X
STM Group PLC
10 May 2021
STM Group Plc
("STM", the "Company" or the "Group")
Unconditional disposal of Jersey CTS business
STM Group Plc (AIM: STM), the cross-border financial services
provider, is pleased to announce the unconditional sale of its
Jersey based trust and company services businesses (the "Sale
Companies" or "STM Jersey") for a minimum net cash consideration of
GBP1.40 million.
The sale completes the Company's strategy to exit the CTS
sector, and focus on its core activities of pension administration
and life assurance. The sale proceeds will further contribute
towards funding organic growth opportunities and build on the cash
resources available for further M&A activity.
The Sale Companies are principally STM Fiduciaire Limited, along
with a number of non-revenue generating support companies,
including nominee companies. Together these companies generated
revenue of GBP1.48 million during 2020 and made a profit before tax
contribution of GBP0.10 million to STM Group's 2020 profits. STM
Jersey was very much a stand-alone business, and thus there are
minimal shared group costs that will need to be absorbed within the
remaining Group.
The sale has two staged consideration payments totalling GBP1.86
million, with the amount payable upon completion being GBP1.26
million, with the final payment of GBP0.60 million being paid six
months after completion. Cash of GBP0.46 million will be left
within the Sale Companies representing the Jersey capital
requirement, thus giving a net minimum cash consideration for the
Sale Companies of GBP1.40 million. In addition, the sale agreement
allows for a further consideration payment of 50% of any revenue
surplus above GBP1.15 million of revenue that is categorised as
recurring revenue. This calculation will be based on the twelve
months trading from date of completion.
In addition to the consideration receivable from the buyer,
certain net assets relating to debtors and work-in-progress are
ringfenced by the Sale Companies for the benefit of STM, and these
will be paid as these assets are converted to cash at bank. It is
anticipated that this will amount to GBP0.42 million and will be
principally received in the first six months post completion.
The Sale Companies have been sold to the privately-owned
Imperium Group which has its head office in Guernsey. The purchase
of the Sale Companies, complete with its staff and office
resources, is a clear statement of its intentions to have a solid
business platform in Jersey as well. Following regulatory approval
from the Jersey Financial Services Commission, the signing of the
sale and purchase agreement and subsequent completion occurred on
Saturday 8 May 2021.
Alan Kentish, CEO of STM Group Plc, commented:
" We are delighted that the Jersey businesses and our colleagues
that work within them, as well as our clients, have gone to a good
home at Imperium. Imperium have confirmed that there will be
minimal changes, whilst at the same time bringing new business
opportunities, and I am confident that this will ensure a smooth
and seamless transition to new ownership.
"For STM, exiting the Jersey trust and company businesses is an
important deliverable to allow the executive to focus on our core
activities of pension administration and provision of life
assurance wrappers. The additional cash resources will allow for
further investment in our organic growth initiatives, as well as
further potential M&A activity."
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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