Stm Grp. Share News (STM)

(ShareCast News) - Cross-border financial services provider STM Group announced a pre-close trading update on Thursday, with the board reporting that the group traded in line with market expectations of profit before tax of £2.7m for 2016 - precisely in line with 2015's result.The AIM-traded firm said that, as anticipated, the pricing initiative taken by the board in the earlier part of the year significantly increased the take-on of new business for its QROPS international pensions product with new policies for the second half of the year up around 50% on the first half and 27% on the second half of 2015.STM's board reiterated that while the strategy resulted in a reduction in first year profitability, it would result in an increased level of recurring revenue for future years.That would leave STM well-placed to deliver significant growth in revenue and profit in 2017.The company's board also confirmed that the integration of the acquisition of London & Colonial made in October 2016 into the STM Group continued to run smoothly, with the anticipated integration gains and contribution to profits expected for 2017 starting to come to fruition."STM has made some significant strategic and operational decisions during 2016 to pursue the London & Colonial acquisition as well as to implement the market leading pricing initiative in its international pensions businesses; both of which have proved beneficial to the Group and strengthen growth prospects," said CEO Alan Kentish.He explained that, with the recently announced appointment of Robin Ellison as a further non-executive director to the board, as well as Marina Dominguez Steglich joining as Head of Enterprise Risk Management, the company was continuing to build on its governance and reporting structure."We head in to 2017 knowing that recurring revenue streams from our highly profitable pensions and life businesses have never been higher, giving us cause for optimism for the year ahead," Kentish added.STM said it would announce its final results for the 12 months to 31 December on 14 March.