Stm Grp. Regulatory News (STM)

10 Jan 2008 07:00

STM Group PLC10 January 2008 Press Release 10 January 2008 STM Group Plc ("STM", "the Company" or "the Group") Acquisition of Compagnie Fiduciaire Trustees Limited STM Group Plc (AIM:STM), the cross border financial services provider, ispleased to announce the acquisition of Compagnie Fiduciaire Trustees Limited ("CFTL"), based in Jersey, Channel Islands, for a fixed consideration of£315,000 plus deferred consideration equal to the amount by which CFTL's netassets at 31 December 2007 exceeded the regulatory minimum Adjusted Net LiquidAssets requirements (the "Acquisition"). The Acquisition is subject to finalapproval by the Jersey Financial Services Commission ("JFSC"). The fixedconsideration was satisfied wholly in cash on 28 December 2007 from STM'sexisting cash resources and the deferred consideration is payable in cashfollowing finalisation of CFTL's accounts to 31 December 2007 and in any casebefore 31 March 2008. CFTL is incorporated in Jersey and became licensed by the JFSC as a professionaltrustee in August 2002. In March 2006, CFTL's licence was extended to includecompany management. CFTL has an established client base which, in December 2007,comprised 23 trusts, holding in some cases sizeable investment portfolios. In the year ended 31 December 2006, the last date to which audited accounts wereprepared, CFTL reported revenues of approximately £0.4 million and net profitafter tax of approximately £0.1 million. Commenting on the Acquisition, Tim Revill, Chief Executive Officer of STM GroupPlc, said: "We are extremely pleased with the acquisition of CFTL, particularlysince this is our first acquisition within the Channel Islands. Whilst CFTLitself is small scale, it immediately provides us with a CTSP licence and abridgehead into a strategically important jurisdiction. STM Group has numerousexisting client entities in Jersey which are currently receiving corporate andtrustee services from third parties and these can now be transferred into ourown operating subsidiary. In keeping with our acquisitive strategy we expectthis transaction to contribute to shareholder value." - Ends - For further information, please contact:STM Group PlcTim Revill, Chief Executive Officer Tel: 00 350 51610Matt Wood, Non-executive director Tel: +44 (0) 20 7752 0215 www.stmgroupplc.com Daniel Stewart & Co. PlcLindsay Mair / Stewart Dick Tel: +44 (0) 20 7776 6550 www.danielstewart.co.uk Media enquiries:AbchurchHenry Harrison-Topham / Charlie Jack Tel: +44 (0) 20 7398 7706henry.ht@abchurch-group.com www.abchurch-group.com Notes to editors STM was formed in 2007 specifically to become a leading financial services groupoperating in the Corporate and Trustee Service Provider (CTSP) sector. TheCompany listed on the AIM market of the London Stock Exchange in March 2007.The traditional business of CTSPs is to administer and manage personal, familyand commercial assets and income streams in tax efficient jurisdictions. TheCompany's aim is to grow through acquiring and consolidating high qualityexisting CTSPs which offer complementary products and services and that operatein complementary tax efficient jurisdictions to those provided by STM's firstacquisition, the Gibraltar based CTSP, Fidecs Group Limited ("Fidecs"). Fidecs is the second largest financial services firm in Gibraltar and employsover 101 people. It specialises in financial planning for both High Net Worthindividuals ("HNWI") moving to work, living or retiring overseas or makingcross-border investments, and for entrepreneurial, predominantly, owner-managedbusinesses, expanding into or re-locating to other, frequently lower tax,jurisdictions. It also includes an insurance management division, specialisingin providing set up and management services to newly formed insurance companiesoperating out of Gibraltar. In the year ended 31 December 2006, Fidecs reportedturnover of £5 million with post tax profit of £1.7 million. In June and August 2007 STM acquired two Gibraltar based CTS providers, theAtlas Group of companies and Parliament Corporate Services Limited. These twoacquisitions further consolidated STM's leading position in Gibraltar .Parliament has an established client base which, as at 31 December 2006, wasmade up of 275 companies and 115 trusts and Atlas 60 companies and 30 trusts. The CTSP market is fragmented in nature, comprising a small number of very largeinternational financial services groups and a large number of relatively smalltrust and company management businesses regulated by, and operating out of, asingle jurisdiction. Further information on STM Group can be found at www.stmgroupplc.com This information is provided by RNS The company news service from the London Stock Exchange