Stm Grp. Share News (STM)

(ShareCast News) - STM Group, an international financial services provider, has had fewer clients sign up to their pension schemes than expected due to the uncertainty surrounding Brexit.The group's pension division particularly the Qualifying Recognised Overseas Pension Scheme (QROPS) has been the company's key growth driver over the last two years.In April, the group decided to change QROPS pricing structure in order to attract more clients. The establishment fee for an initial trial period of six months has been waved. The benefits of this outweigh the costs as each new client won has an expected fee generating life of 20-25 years.Despite a reasonable uplift in new QROPS applications in the last two months, the results did not match the management's expectations. The board attribute this to competitors' more aggressive pricing policies but more importantly the recent UK referendum.Uncertainty around the Brexit result has resulted in expatriates delaying their decision on whether to export their pension out of the UK into QROPS.However, the company believes the uncertainty can work in the firms favour in the future. "Now that the referendum outcome is known, and given the concerns about the UK economy, certain of our intermediaries believe that there is potential for an increase in QROPS applications by expatriates wishing to have more certainty on their pension benefits." The results of this uplift will most likely materilise later on in the year or the beginning of 2017.Interim chief executive Alan Kentish said: "It is still relatively early days to assess exactly how many new QROPS applications will result from the April pricing initiative however it has certainly put STM at the forefront of intermediaries' minds when they are advising their client base on the QROPS product."The group's expectations for the first half of the year are profit before tax at $1.2m and turnover at £7.9m, which is comparable with 2015 results. Meanwhile its balance sheet remains strong with net cash at £9m, which supports the recently announced dividend policy. Half year results ending 30 June 2016 will be released on 13 September 2016.Shares fell by 9.59% to 33p at 1210 BST on Wednesday.