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LONDON (Alliance News) - Financial services company STM Group PLC on Tuesday said its pretax profit surged in the first half as it improved its margins and as revenue was pushed higher by consistent growth across its divisions.
STM said its pretax profit for the six months to the end of June rose 40% to GBP1.4 million, up from GBP1.0 million, as its operating margin in the half increased to 17.0% from 13.0%, despite the company having invested in its business development programme in the half.
STM revenue rose to GBP8.3 million from GBP7.4 million, as it benefited from solid growth in its pensions and life businesses in the half and saw its income from annuity fees increase.
The company said it opened new business development offices in South Africa, South East Asia and the Middle East in the half and is optimistic on its outlook for the rest of the year.
"These results are starting to demonstrate the successful roll out of our growth strategy. The product and business development team is now in place and has commenced to formalise new distribution agreements in our target territories. Our experience to date suggests that after the expected lead time, these new representative offices will become a key factor in contributing to enhanced revenue streams," said Chief Executive Colin Porter.
Shares in STM were up 5.1% in early trade to 52.00 pence, one of the best performers in the AIM All-Share.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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