Stm Grp. Regulatory News (STM)

15 Dec 2008 07:00



STM Group Plc

("STM" or "the Group")

Trading Update

STM Group Plc (AIM:STM.L), the cross border financial services provider, today issues the following trading update.

STM continues to deliver strong performance and the Group expects to deliver results for 2008 at least in line with market expectations, despite the broader economic downturn. As previously stated, STM's business is not dependent upon the value of the underlying assets which the Group administer, whilst the value of these assets may fluctuate due to wider market conditions, STM's income arises largely from fixed fees and fees based on time spent in administration. This week the Group will move all of its Jersey based staff and operations into the newly completed Jersey head office, Windward House, in the new financial district of St Helier. STM anticipates being able to add further to our Jersey operations during the early part of 2009.

Tim Revill, Chief Executive Officer, comments: The market for our services remains robust. Clear visibility of future earnings for 2009 forecasts and beyond coupled with strong market conditions, as evidenced by some significant new client wins in recent weeks, mean we remain confident about the future." 

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Notes to editors

STM was formed in 2007 specifically to become a leading financial services group operating in the Corporate and Trustee Service Provider (CTSP) sector. The Company listed on the AIM market of the London Stock Exchange in March 2007. The traditional business of CTSPs is to administer and manage personal, family and commercial assets and income streams in tax efficient jurisdictions. The Company's aim is to grow through acquiring and consolidating high quality existing CTSPs which offer complementary products and services and that operate in complementary tax efficient jurisdictions to those provided by STM's first acquisition, the Gibraltar based CTSP, Fidecs Group Limited ("Fidecs"). 

Fidecs is the second largest financial services firm in Gibraltar and employs over 101 people. It specialises in financial planning for both High Net Worth individuals ("HNWI") moving to work, living or retiring overseas or making cross-border investments, and for entrepreneurial, predominantly, owner-managed businesses, expanding into or re-locating to other, frequently lower tax, jurisdictions. It also includes an insurance management division, specialising in providing set up and management services to newly formed insurance companies operating out of Gibraltar. For the nine months of trading, since the acquisition of Fidecs Group on the 28 March 2007, to 31 December 2007, STM Group reported revenue of £5.29 million with pre tax profit of £1.78 million and for the subsequent 6 months to 30 June 2008 the reported revenue was £4.26m with pre tax profits of £1.43million.

In June and August 2007 STM acquired two Gibraltar based CTS providers, the Atlas Group of companies and Parliament Corporate Services Limited. These two acquisitions further consolidated STM's leading position in Gibraltar. The Group expanded into the Channel Islands in December 2007, with the purchase of Compagnie Fiduciaire Trustees Limited.  In June 2008, STM increased its presence in the Channel Islands with the acquisition of St George Financial Services Limited. 

The CTSP market is fragmented in nature, comprising a small number of very large international financial services groups and a large number of relatively small trust and company management businesses regulated by, and operating out of, a single jurisdiction. 

Further information on STM Group can be found at www.stmgroupplc.com