Stm Grp. Share News (STM)

(ShareCast News) - Multi-jurisdictional financial services company STM Group announced its unaudited interim results for the six months to 30 June on Tuesday, with revenue down to £7.9m, compared with £8.3m a year ago.The AIM-traded firm's EBITDA for the period was £1.3m, down from £1.6m, and profit before tax fell to £1.2m from £1.4m.Earnings per share more than doubled to 2.27p, from 1.38p, however, with net cash generated from operations of £2.3m continuing to outstrip profitability, rising from £2.2m.STM's balance sheet remained strong with cash balances increased to £9.3m from £7.1m, well in excess of its regulatory capital requirements.The company's board declared an interim dividend of 0.5p per share."As previously notified, trading in the first four months of the year ultimately fell short of management's expectations, and has thus impacted on our profitability in the first six months," said CEO Alan Kentish."However, I am encouraged by how the pricing initiative implemented by the board during April has resulted in a significant pick-up of new business, with an increase of 78% in monthly new QROPS applications from April to August compared to the average number of applications received in the first four months."This translates into a greater long-term recurring predictable revenue stream, thus generating enhanced shareholder value," he explained.Kentish said the company's focus continued to be to increase its worldwide intermediary network for both its mainstream pensions and life bond products, whilst at the same time looking at strategic opportunities to cater for the niche expatriate sector."I look forward to updating the market in due course on the above."At the same time, STM Group announced it has entered into a conditional agreement with the majority shareholders of London & Colonial Holdings to acquire its entire issued share capital, as well as its subsidiaries for a consideration of up to £5.385m.London & Colonial is a service-led independent financial services group with its head office in Haywards Heath, UK, offering SIPP products in the United Kingdom, Qualifying Recognised Overseas Pension Schemes in Gibraltar and with an insurance business based in Gibraltar.