TIDMSTM
RNS Number : 4652O
STM Group PLC
30 January 2019
STM Group Plc
("STM" or the "Group")
Trading Update
Appointment of COO
and Notice of Results
STM Group Plc (AIM: STM), the cross border financial services
provider, is pleased to announce a trading update for the 12 months
to 31 December 2018, the appointment of a Chief Operating Officer
("COO") to the Board and notice of its final results
announcement.
The Group expects to deliver revenue of GBP21.3 million (2017:
GBP21.5 million) and profit before tax of GBP3.9 million for 2018
(2017: GBP4.0 million), which includes an expected GBP0.5 million
technical reserve release from London & Colonial Assurance plc
(2017: GBP1.3 million). This represents underlying* revenue of
GBP20.5 million (2017: GBP20.2 million) and underlying* profit
before tax of GBP3.7 million (2017: GBP3.2 million) demonstrating
year on year growth in these key metrics of the underlying
business. The consistent theme to our business model remains the
solid recurring revenue stream across the Group which accounts for
77% of total revenue (2017: 75%).
Additionally, the Board is delighted to announce that Peter Marr
has been appointed as Chief Operating Officer of STM and has joined
the Board of Directors with immediate effect. Peter formally worked
as COO of Police Mutual, one of the UK's largest affinity mutual
societies providing insurance, mortgages and savings products to
its members, overseeing a staff in excess of 600 people. Prior to
that Peter was Operations Director at Capita Insurance Services. He
has a track record of delivering improvements and efficiencies to
organisations that he has previously worked in.
The appointment of the COO is the final major appointment for
the Group in enhancing its governance and risk management
framework. Part of this process was commenced in early 2017 with
the appointment of a Head of Enterprise Risk Management and was
enhanced further in 2018 with the appointment of a Group Internal
Auditor. As well as the COO appointment, the Group has also
recently appointed a full-time Group Counsel and Company Secretary,
to take over from Elizabeth Plummer who will retire later on in the
year. These appointments, together with key appointments to the
Board over the past 12 months who each bring with them significant
depth of experience, will add to the robustness of the
business.
Some of the costs of strengthening the Group's governance
framework have been incurred in 2018, however, this overall
investment in infrastructure will result in an increase to our 2018
cost base which will flow through into 2019 and be reflected in
future expectations.
The high proportion of recurring revenue in our business model
together with the enhanced management structure provides the
platform for the Group to deliver a stronger business and will form
the basis for an accelerated growth strategy for the coming three
years. This includes the roll out of more UK orientated products as
well as a migration of all our pension products onto one
administration system which, over time, will allow for more
efficiency gains and an enhanced customer experience.
With the anticipated FCA approval for the Carey acquisition,
announced in October 2018, the integration of this business with
our existing UK SIPP business will allow for an expanded product
range and a stronger UK distribution structure. The acquisition
also allows STM to enter the workplace pensions market, a sector
that is undergoing significant change and which will invariably see
major consolidation of the smaller master trusts, where we
certainly expect to be a player in this consolidation.
* stated net of insurance technical releases and one-off revenue
and costs
Alan Kentish, CEO of STM Group commented:
"Whilst 2018 started off as a challenging year for STM, there is
no doubt that our management team responded admirably and as a
result of the Deloitte review we move into 2019 as a stronger and
more robust business.
"Notwithstanding the challenges, we are pleased to have
delivered a year of growth and been active in making two
strategically significant acquisitions.
"I am delighted that Peter Marr has joined the team, and he will
no doubt be a valuable asset in helping the executives to deliver
increased value and confidence to our shareholders and our wider
stakeholders. 2019 will be a year of consolidation and investment,
but with a new enlarged and experienced Plc board, we will have all
the building blocks in place for our ambitious short term growth
and acquisition strategy."
Notice of Results:
STM expects to announce its final results for the 12 months to
31 December 2018 on Tuesday 26 March 2019.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR").
For further information, please contact:
STM Group Plc
Alan Kentish, Chief Executive Officer Via Walbrook PR
alan.kentish@stmgroupplc.com www.stmgroupplc.com
Therese Neish, Chief Financial Officer
therese.neish@stmgroupplc.com
FinnCap www.finncap.com
Matt Goode / Emily Watts - Corporate Tel: +44 (0) 20 7220 0500
Finance
Tim Redfern / Richard Chambers -
ECM
Walbrook www.walbrookpr.com
Tom Cooper / Paul Vann Tel: +44 (0) 20 7933 8780
Mob: +44 (0) 797 122 1972
tom.cooper@walbrookpr.com
Further AIM disclosures relating to Peter Marr's
appointment:
Peter Marr, age 57, is currently or has been a director of the
following companies within the past five years:
Current directorships Previous directorships
- PMGI Limited
Police Mutual Investment Services
Limited
Police Mutual Financial Services
Limited
PMMG Limited
PM Holdings Limited
Police Housing Fund Limited
PM Central Services Plc
PMHC Limited
Abacus Insurance Holdings Ltd
Forces Insurance Limited
PM Advisory Limited
Abacus Limited
Mortgage Excellence Plc
Save as set out in this announcement, there are no further
matters to be disclosed under Rule 17 or paragraph (g) of Schedule
2 of the AIM Rules for Companies in respect of Mr Marr.
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 UK and 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
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END
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