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LONDON (Alliance News) - STM Group PLC on Tuesday reported a 59% increase in annual pretax profit, driven by a greater focus on higher margin products, and initiated a progressive dividend policy.
STM, which has been growing its pensions and life assurance product offerings, said it made a GBP2.7 million pretax profit in 2015, up from GBP1.7 million the prior year, as revenue increased by 1.9% to GBP16.2 million and administrative expenses fell by 3.7% to GBP13.1 million.
The company declared a 0.9 pence dividend for 2015, having made no such payment the prior year, and said future dividends will depend on working capital requirements and planned investment.
"Despite the evident success of increasing profitability in the year, 2015 has primarily been a year focussed on building our business development platform to give us a stronger and more dominant market position for our UK expatriate pension offering," STM said.
Having opened representative offices in the Middle East, South Africa, South East Asia in 2015, STM said it wants to broaden its global intermediary network and expend the products its offers in 2016.
"The global market for international pensions is not easy to accurately value, however it is undoubtedly the case that it offers sufficient scale for long-term growth opportunities for STM," Chief Executive Officer Colin Porter said.
"The board expects continued growth during 2016 and beyond which, coupled with the ongoing initiatives to offer an Australian pension solution for expatriates, gives STM exciting opportunities to deliver enhanced profitability," Porter added.
Porter tendered his resignation as CEO in January in favour of pursuing a new opportunity in a "non-competing industry" in the US. He will be replaced by Alan Kentish, director of product and business development, on an interim basis on April 1. Kentish had been chief financial officer when the business floated in 2007.
Shares in STM were up 17% at 57.72 pence on Tuesday morning.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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