Last checked at 30 May 2023 07:00
STM Group Plc
("STM" or "the Company" or "the Group")
Client Interest Policy and Trading Update
STM Group Plc (AIM: STM), the cross border financial services provider, announces a new interest sharing policy with some of its pension members.
The policy will unify the Group's approach in this regard and will bring it in-line with other providers that have a similar interest sharing policy. As part of this change and given the significant rise in bank interest rates over the last six months, the Company has been negotiating with its banking partners to obtain the best rates offered by them. The policy will come into force from 1 July 2023 and is expected to contribute at least £1 million annualised profit before tax going forward.
In addition to the above, income generated from client assets is expected to be higher in the current year than in prior year as a result of the increasing interest rates. Both these uplifts will compensate for lower than expected new business and some significant non-recurring costs incurred such as the third party costs in relation to the strategic review. Recurring administration revenue from existing customers remains in line with management expectations.
Alan Kentish, CEO of STM Group, commented: "In a higher interest rate environment this approach gives STM an opportunity to actively manage the yield opportunity for all stakeholders and keep product fees competitive."
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 (as it forms part of retained EU law as defined in the European Union (Withdrawal) Act 2018).
For further information, please contact:
STM Group Plc | |
Alan Kentish, Chief Executive Officer
| Via Walbrook PR www.stmgroupplc.com |
finnCap | www.finncap.com |
Matt Goode / Emily Watts / Abigail Kelly - Corporate Finance Tim Redfern (ECM) | Tel: +44 (0) 20 7220 0500 |
Walbrook | www.walbrookpr.com |
Tom Cooper / Joseph Walker | Tel: +44 (0) 20 7933 8780 |
Mob: +44 (0) 797 122 1972 | |
STM@walbrookpr.com |
Notes to editors:
STM is a multi-jurisdictional financial services group traded on AIM, a market operated by the London Stock Exchange. The Group specialises in the administration of client assets in relation to retirement, estate and succession planning and wealth structuring.
Today, the Group has operations in the UK, Gibraltar, Malta, Australia and Spain. STM has developed a range of pension products for UK nationals and internationally domiciled clients and has two Gibraltar life assurance companies which provide life insurance bonds - wrappers in which a variety of investments, including investment funds, can be held.
STM's growth strategy is focussed on both organic initiatives and strategic acquisitions.
Further information on STM Group can be found at www.stmgroupplc.com
.