STM Group posts decent first-half performance

(Sharecast News) - Financial services company STM Group released its unaudited interim results for the six months ended 30 June on Tuesday, reporting a 6% improvement in revenue year-on-year to £10.8m.The AIM-traded firm said its EBITDA was 5% higher at £2.5m, while profit before tax was ahead 11% at £2.1m, thanks to an improved profit before tax margin of 20% - up from 19%.Its earnings per share were up 4% at 3.21p, with cash at bank net of borrowings surging 43% over the same time last year to £16.3m.The board declared an interim dividend of 0.7p, up from 0.6p at the interim a year ago.On the operational front, STM said recurring revenue for the period was £8.5m, up from £8.0m, and explained that its increased profit before tax margin was a result of efficiencies, notwithstanding one-off costs incurred.It said the relocation of its head office during the period gave it a more UK-centric focus, with new chairman and NED appointments since the period ended bringing further "depth and experience".STM said it successfully integrated the Harbour acquisition during the half-year. And confirmed that STM Life was to re-domicile to Malta following a group review of Brexit implications.Gibraltar-regulated entities were said to be "working proactively" to implement the Skilled Person Review recommendations."The various trading divisions across the Group have collectively performed in line with management expectations during the first half of the year, and have delivered a solid set of underlying financial results," said chief executive officer Alan Kentish."This performance gives the Board confidence in meeting management expectations for the full year."Kentish said the successful integration of Harbour demonstrated the model for future acquisitions as and when further opportunities arose."The board continues to implement its three year de-risking strategy by looking to introduce more financial services products for both the expatriate market, as well as the UK market, across the pension and life sectors."In addition, we continue to challenge our processes and systems as part of a programme to increase our profit margins."We look forward to updating the market with further news as the year progresses."