STM Group PLC Trading Update (8951S)
19 Noviembre 2021 - 01:00AM
UK Regulatory
TIDMSTM
RNS Number : 8951S
STM Group PLC
19 November 2021
STM Group Plc
("STM", the "Company" or the "Group")
Trading Update
STM Group Plc (AIM: STM), the cross border financial services
provider, announces a trading update for the 12 months to 31
December 2021 and the outlook for 2022.
The second half of the year to date has proved a frustrating
period for the Group, with certain anticipated new business
revenues in its UK SIPP business and Gibraltar life business being
slower to materialise than anticipated, contributing approximately
GBP0.4 million less to 2021 revenue and EBITDA expectations.
Furthermore, there are a number of large pieces of business
currently under negotiation, particularly around the London &
Colonial annuity product, that would generate a material uplift in
revenue and profitability for 2021. As uncertainty remains as to
whether these policies will be incepted prior to year-end, the
Board has taken the prudent view that these should not be reflected
in revised forecasts.
The Group's EBITDA position has been further impacted by
approximately GBP0.1 million by a slower than anticipated reduction
in its cost base following the migrations onto new IT platforms for
the UK and Gibraltar businesses; with an additional delay for the
migration of the Malta business until mid-December 2021. Whilst the
majority of the savings on software fees have come to fruition, the
staff resource savings have yet to substantially materialise but
are expected to do so moving into 2022.
As a consequence of the above, the Board now anticipates that
the Group will report revenue of GBP22.5 million, EBITDA of GBP3.4
million and statutory profit before tax of GBP1.5 million for
2021.
As indicated in the interim trading update, STM has taken
significant steps during the third quarter of 2021 to move to a
more efficient target operating model which, in turn, will see the
business return to better operating margins. In addition, Christine
Hallett, formerly Managing Director of STM's UK businesses, was
appointed as Director of Group Distribution as of 1 November 2021.
Christine is building her new business development team with a
focus on capitalising on the Group's existing business
relationships, as well as those in the pipeline. In this regard,
STM expects to go live with two platforms with a white-label SIPP
product prior to the year end.
We therefore anticipate profitable growth next year, targeting
profit before tax of at least GBP2 million, excluding any
contribution from the London & Colonial annuity product
referred to above, given the small volume of policies and
uncertainty on timing. Furthermore, the business continues to look
for acquisition opportunities that would give more scale to its UK
businesses.
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
Nicole Coll, Chief Financial Officer www.stmgroupplc.com
finnCap www.finncap.com
Matt Goode / Abigail Kelly - 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 traded on
AIM, a market operated by the London Stock Exchange. The Group
specialises in the administration of client assets in relation to
retirement, estate and succession planning and wealth
structuring.
Today, the Group has operations in the UK, Gibraltar, Malta and
Spain. STM has developed a range of pension products for UK
nationals and internationally domiciled clients and has two
Gibraltar life assurance companies which provide life insurance
bonds - wrappers in which a variety of investments, including
investment funds, can be held.
STM's growth strategy is focussed on both organic initiatives
and strategic acquisitions.
Further information on STM Group can be found at
www.stmgroupplc.com
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