STM Group PLC AGM Statement (9924F)
24 May 2017 - 4:00PM
UK Regulatory
TIDMSTM
RNS Number : 9924F
STM Group PLC
24 May 2017
STM Group Plc
("STM" or "the Company" or "the Group")
AGM Trading Update
STM Group Plc (AIM: STM), the cross border financial services
provider, is pleased to give an update on trading ahead of its
Annual General Meeting to be held at 11am today; in particular
relating to its business activities subsequent to the 8 March 2017
UK budget announcement ("UK budget") and the implications for the
Group's new business pipeline for its QROPs products.
In response to changes imposed by the UK budget on the costs of
transferring certain pensions to a QROP, management was quick to
launch the International SIPP from its UK SIPP business as an
alternative product to the Gibraltar or Malta based QROP
proposition. Whilst it is still too early to predict the long term
contribution to Group profitability of this product, the Board is
pleased to confirm that there has been considerable interest from
intermediaries in the two months since launch, and that this has
already resulted in a significant uplift in business for the UK
operation which was acquired as part of the London & Colonial
acquisition announced in September 2016.
The ability to quickly launch this alternative product and
promote it as a replacement to the affected QROPs products further
validates the Board's strategy of acquiring the UK business, and
re-enforces the Group's view that it is at the forefront of
delivering financial solutions to the expatriate marketplace.
The expectation that the UK budget changes would impact 80% of
new QROP applications has proved accurate. The businesses in
Gibraltar and Malta have therefore downsized their new business
teams, thereby negating some of the impact on expected
profitability for those operations, and the "annuity" nature of the
revenue streams of the existing books of business remains wholly
unaffected by the changes.
It is too early to say with any degree of certainty the extent
to which the International SIPP offering will replace the foregone
QROP applications, however, the Group has seen a reasonable uptake
of International SIPP applications already and growing interest,
hence expects a proportion of the foregone QROPS revenue will be
clawed back, albeit at slightly lower margins.
Whilst management is hopeful of increasing revenues from new
business applications for its International SIPP, it remains able
to further reduce costs in the business development area should the
International SIPP not gain traction in certain geographical
areas.
Given the impact of the UK budget, the Board continues to
explore possible consolidation opportunities in the QROP market,
however this initiative remains at a very early stage of
progress.
With the imminent launch of the Group's QROP solution for UK
expatriates living in Australia, a strong first quarter from its
life assurance operations and the actions taken to address the
changes in the QROP market, the Board is confident in meeting
revised 2017 market expectations.
For further information, please contact:
STM Group Plc
Alan Kentish, Chief Executive Tel: 00 350 200
Officer 42686
alan.kentish@stmgroupplc.com www.stmgroupplc.com
Therese Neish, Chief Financial Tel: 00 350 200
Officer 42686
therese.neish@stmgroupplc.com
finnCap www.finncap.com
Matt Goode / Emily Watts - Corporate Tel: +44 (0) 20
Finance 7220 0500
Mia Gardner - Corporate Broking
Walbrook www.walbrookpr.com
Tom Cooper / Paul Vann Tel: +44 (0) 20
7933 8780
Mob: +44 (0) 797
122 1972
tom.cooper@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.
STM has operations in the UK, Malta, Gibraltar, 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), and Qualifying Non UK Pension
Schemes (QNUPS). STM has a Gibraltar Life Insurance Company, STM
Life plc, which provides 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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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