Last checked at 23 Dec 2013 07:00
23 December 2013
STM Group Plc
("STM" or "the Group")
Strategic & Trading Update
STM Group Plc (AIM:STM), the multi jurisdictional financial services group, announces two proposed Board changes and an update on recent trading.
STM has increasingly focused on the development of specialised financial services products aimed at mass affluent and internationally mobile clients. This is evidenced by the launch of the STM Life tax compliant German bond announced in July. STM expects to announce the launch of a series of unique products for the international markets in the New Year. To maximise the potential in this area Alan Kentish will assume the role of Director of Business and Product Development. Therese Neish, currently Group Financial Controller, will assume responsibilities of the Chief Financial Officer with immediate effect, with a view to being formally appointed to the board of STM in due course.
A combination of a more sophisticated market together with jurisdictional regulation has helped STM design more prescriptive products to meet the demands of both the adviser and their clients. Many financial services companies in this field are not able to satisfy these requirements from the existing range of products available in the market. STM believes that it can exploit this niche through a range of tailored solutions, particularly in the STM Life and STM Pensions divisions.
Whilst client and intermediary feedback for STM's strategy is very positive, the timing of product sales has been slower than initially anticipated. Accordingly, the Board expects to announce EBITDA for 2013 of approximately £1m on revenue of approximately £12.3m. Expectations for 2014 remain as forecast based on product roll out projections.
STM has continued to strengthen its balance sheet and remains focused on managing its cost base. The Convertible Loan Note due to be repaid in March 2014 is currently being renegotiated with a favorable outcome expected to include part redemption and part roll over.
Commenting on the Board changes and current trading, Colin Porter, CEO of STM, said:
"The proposed changes in our Board structure will allow us to focus more specifically on the development of specialised products and distribution opportunities for STM. This is client and intermediary led, giving us increased confidence in the market's appetite for these tailored solutions. Alan has excellent connections in the industry and, given his financial services experience, has a valuable insight into the needs of these client groups and how products can be designed to satisfy their needs.
"It remains that the European market has been slower than we would have liked however this is symptomatic of a slower return of confidence than we had anticipated.
"The Board is very optimistic about the prospects for the Group in 2014 and beyond. Intermediaries have struggled to find products that fit their clients' increasingly specific needs and, against this backdrop, we feel well positioned to benefit from our close relationships with this professional group."
For further information, please contact:
STM Group Plc |
|
Colin Porter, Chief Executive Officer colin.porter@stmgroupplc.im | Tel: 00 350 200 42686 www.stmgroupplc.com |
Alan Kentish, Director of Business and Product Development alan.kentish@stmgroupplc.im | Tel: 00 350 200 78614
|
finnCap | www.finncap.com |
Charlotte Stranner / Chris Raggett - Corporate Finance Simon Starr - Corporate Broking | Tel: +44 (0) 20 7220 0500 |
Winningtons | www.winningtons.co.uk |
Tom Cooper / Paul Vann | Tel: +44 (0) 20 3176 4722 |
| Mob: +44 (0) 797 122 1972 |
| tom.cooper@winningtons.co.uk |
Notes to editors:
STM is an international financial services group which is listed on the AIM Market of the London Stock Exchange and made its first acquisition in 2007. The Group specialises in estate and succession planning and wealth structuring for high net worth individuals and their families. STM's clients include entrepreneurs, celebrities, sports stars and affluent retirees.
Today, STM has operations in Gibraltar, Spain, Jersey, Malta and Cyprus. The Group is looking to expand through the development of additional products and services that its ever more sophisticated clients demand. STM has, for example, incorporated a Gibraltar Life Insurance Company, STM Life plc, which provides life insurance bonds - wrappers in which a variety of investments, including investment funds, can be held. STM has developed a specialist international pensions division which specialises in Qualifying Recognised Overseas Pension Schemes (QROPS), Qualifying Non UK Pension Schemes (QNUPS) and Employer Funded Retirement Benefit Schemes (EFRBS).
Further information on STM Group can be found at www.stmgroupplc.com