STM Group completes acquisition and reports uplift in revenue

STM Group Plc (LON:STM), the cross border financial services provider, has announced the completion of the acquisition of the portfolio, net assets and trustee companies of the SIPP and SSAS businesses from Mercer Ltd, a trading update for the 6 months to 30 June 2022, Board changes and notice of its Interim Results announcement.

Completion of Acquisition

Further to the announcement made on 26 July 2022, STM is pleased to announce the completion of the acquisition of the portfolio, net assets and trustee companies of the SIPP and SSAS businesses, from Mercer Ltd. 

Trading Update

STM expects to report revenue for the six months to 30 June 2022 of approximately £11.3m (2021: £11.4m) with both the Pensions and Life Assurance businesses showing an uplift in revenue compared to the previous half year position.  Gibraltar and Malta revenues remain consistent and in line with management expectations. The corporate pensions business revenues continue to grow, however revenues in the UK SIPP business are behind plan as not all strategic partners are fully live.  The Group expects to report EBITDA for the period of approximately £1.4m (H1 2021: £1.5m) and net cash as at 30 June 2022 of £17m (2021: £16.5m).

As previously stated, new business levels in the first half of 2022 were slower than anticipated, however the Board anticipates a healthy uplift in new business flow for its Life Assurance businesses in relation to certain of the Group’s annuity products, as well as increased new business flows for its SIPP business through strategic partners.

In this regard, STM is pleased to announce that the Options SIPP is partnering with IG Group to provide its pension SIPP wrapper.  The solution will enable clients to invest using IG’s share dealing and model portfolio services.  This service will launch shortly and be made available to new and existing IG clients.

As part of STM’s strategic partner program, the Group anticipates that other core products will also be available in the near future via these platforms.

Development of the target operating model continues to improve efficiency and increase margins, primarily driven by the roll-out of the internal administration system and the automation of processes.

Given the opportunities in relation to new business revenue, the Board remains confident that 2022 overall profit expectations will be met.

Appointment of new Chair

The Company is pleased to announce the appointment of Mr Nigel Birrell as non-executive Chairman with immediate effect. Concurrent with this appointment, Duncan Crocker has resigned from the Board with immediate effect, as indicated in the announcement dated 4 August 2022.

Mr Birrell has served as the Chief Executive Officer of Lottoland Group since May 2014. Lottoland is an online bet on lottery operator based in Gibraltar, which operates across multiple territories and has 16 million customers. Mr Birrell has overseen Lottoland’s geographic and product expansion into multiple markets. Prior to this, Mr Birrell was a group director on the executive board of bwin.party digital entertainment plc (now Entain plc) the then world’s leading on-line gaming business.

Prior to bwin.party, Mr Birrell was a main board director of the FTSE 250 media group HIT Entertainment PLC.

In his early career, Mr Birrell worked as an investment banker with both Dresdner Kleinwort Benson and later Donaldson, Lufkin & Jenrette (now Credit Suisse). He holds a Bachelor of Laws (LLB) from the University of London (Queen Mary College) and is a Solicitor of the Senior Courts of England and Wales.

Mr Birrell is non-executive Chairman of Duke Royalty Limited (AIM listed) and also holds a number of other private company non-executive positions.

Commenting on the STM Group Board appointment Alan Kentish, Chief Executive Officer, said:

“On behalf of the Company I am delighted to welcome Nigel to the Board and thank Duncan for his contribution. Nigel brings considerable public company and financial services experience and has a track record of growing businesses.”

Notice of Interim Results

The Company expects to announce its full Interim Results for the 6 months to 30 June 2022 on 14 September 2022.

Click to view all articles for the EPIC:
Or click to view the full company profile:
Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
STM Group

More articles like this

STM Group plc

When can you retire?

When will you be able to claim your state pension? The answer to such a basic question remains uncertain as ministers debate how to balance the rising cost of pensions and the impact of demographic change.  And that could

STM Group plc

Personal Pensions

At Options we put solutions and service at the heart of everything we do. Our Self Invested Personal Pension (SIPP) is a UK registered pension scheme which gives you control, choice and flexibility when planning for your retirement.

STM Group plc

When can I retire?

Can I retire early? There is no longer a fixed age at which you have to retire – it’s up to you. However, you’ll need to be in a secure financial position to fund your retirement years before

STM Group plc

Advice on unretiring and retiring early

Pensions experts Options for Your Tomorrow give some advice to those thinking of retiring early as well as those looking to get back to work after retiring due to the cost of living crisis The news has been

STM Group plc

STM Group Plc appoints new Business Development Manager

STM Group Plc has appointed Paul Jordan as Business Development Manager. He joins the leading cross border financial services company from Binary Capital IM where he was Business Development Director. In addition to more than 15 years’ experience

STM Group plc

How much will I need in my pension?

Savers hoping to retire early with a “comfortable” income will need a pension worth £1m – and to save more than £11,000 a year throughout their career to build up the pot. Early retirement is currently in vogue, with

STM Group plc

Martin Lewis shares state pension warning on Good Morning Britain

Martin Lewis has issued a fresh warning to anyone aged 45 to 70 over their state pension. The money saving expert appeared on Wednesday’s Good Morning Britain alongside Susanna Reid. In recent weeks, Martin Lewis has repeatedly urged people eligible for a state

STM Group plc

17% of UK adults have no retirement savings at all

17% of UK adults do not save for their retirement lives. A significant portion of Brits do not know how much they’ll get in state pensions. This lack of knowledge can affect your retirement planning. Let’s discuss some

STM Group plc

Spring budget 2023: what it means for your finances

Jeremy Hunt delivered his first spring budget today, outling his tax and spending plans for the year ahead. And while significant reforms to the pensions system were expected, after rumours surfaced earlier this week, the chancellor’s decision to

STM Group

The impact of recent market volatility on your pension fund

2022 was a difficult year for financial markets, with a variety of factors causing uncertainty, and you may find that this has affected your pension fund. What has happened? The causes of the difficult financial situation include high global

STM Group

Sharia option in partnership with Wahed Invest

Options are delighted to be working with Wahed Invest and confirm that their Sharia model portfolios are acceptable to be used within our Simple SIPP, providing our clients with a Sharia SIPP option. What is our SIPP?Our SIPP

STM Group

How much pension should I have?

The UK state pension will unlikely be enough to live off in retirement, which is why it’s important to save into a personal pension too. You currently need an average income of £23,300 a year to have a

STM Group

Six reasons to top up your pension

With the end of the 2022/23 tax year edging closer, time is running out to make the most of your tax-free exemptions and allowances before they disappear forever. There is so much more to pensions than just providing

STM Group

The impact of recent market volatility on your pension fund

2022 was a difficult year for financial markets, with a variety of factors causing uncertainty, and you may find that this has affected your pension fund. What has happened? The causes of the difficult financial situation include high global

No more posts to show