STM Group predictable recurring revenue remains cornerstone

STM Group Plc (LON:STM), the multi-jurisdictional financial services group, has announced its unaudited interim results for the six months ended 30 June 2022.

Financial Highlights:

Profit before taxation (“PBT”)£0.5m£0.8m£0.9m£0.7m
Profit before other items margin12%15%13%15%
Earnings per share0.62pN/A1.28pN/A
Cash at bank (net of borrowings)£17.0m £16.5m 
Interim dividend0.60p 0.60p 

* EBITDA is defined as revenue from continuing operations less operating expenses i.e. profit from continuing operations before taxation, net finance income costs, depreciation, amortization, and non operating items such as bargain purchase gains and gains on the sale of investments

** Underlying statistics are net of certain transactions which do not form part of the regular operations of the business as further detailed in the table below

Operating Highlights:

·             Predictable recurring revenue remains a cornerstone of the business

·             UK Corporate Pensions business revenues continue to grow despite “small pot” legislation having come into effect

·             Strategic partnerships continue to be developed in the UK, for example Options SIPP is partnering with IG Group to provide its pensions SIPP wrapper

·             The Mercer SIPP and SSAS acquisition recently completed, post period end, adds further scale to the UK offering, in line with the strategy, doubling the UK SIPP & SSAS business

·             Further development of operating model to drive increased revenue growth

·             Significant new business now being generated in H2 2022 from our niche annuity products

Commenting on the results and prospects, Alan Kentish, STM Group Chief Executive Officer, said:

“As previously reported, the first six months of the year have been slower than anticipated for new business, although both the pensions and insurance businesses show an uplift in revenues relative to the prior year comparable period.

“The completion of the SIPP and SASS portfolio acquisition from Mercer Ltd as well as the continued development of several strategic partnerships in the UK further augment the Group’s UK focus and provide scale for further growth. Equally, the Corporate pensions business continues to grow despite changes in legislation coming into effect.

“Cost management and operating efficiencies remain key areas of focus for the Plc board.

“Further to the recently announced Board changes, I take this opportunity to express my thanks to Duncan Crocker and Malcolm Berryman who recently stepped down from their roles as Chair and independent Non-Executive Director respectively.  I equally take this opportunity to welcome Nigel Birrell as he assumes the role of Group Chair and as independent Non-Executive Director, I look forward to working closely with him in the coming months.

“There remain a number of exciting opportunities which, albeit slower to come to fruition than we would have liked, makes us optimistic for the future despite the unsettled macro-economic outlook. In particular, our niche annuity products are now starting to produce significant new business.”

Click to view all articles for the EPIC:
Or click to view the full company profile:
STM Group

More articles like this

STM Group plc

Pension Awareness 2023

Pension Awareness is back. Bigger than ever. Better than before. We’re celebrating 10 years of making a positive difference. Over the last decade, we have contributed to helping and improving the financial lives of millions of people. An incredible achievement. Get involved from 11th –

STM Group plc

STM Group further updates on PSF Capital offer

STM Group plc (LON:STM) has provided the following update. On 11 July 2023, the Company announced (the “2.4 Announcement”) that it was in discussions with PSF Capital GP II Limited as general partner of PSF Capital

STM Group plc

Pension scams

Pension scams often involve attractive offers that aim to persuade you to transfer your pension pot (or release funds from it). If you’re worried about money and want to use your pension to repay debts, contact

STM Group plc

How much do I need to save for retirement?

Inflation has pushed a comfortable retirement further out of reach for many savers, who now need to build a pot of nearly £600,000 to achieve financial freedom, new research reveals. The rising cost of living requires

STM Group plc

Continued growth in ESG & Sharia-compliant products

The climate emergency, plus many other economic and political crises, have made many of us think more carefully about how our investment decisions affect the world around us. When it comes to planning for retirement that

STM Group plc

Commercial property SIPPs offer many advantages for investors

Commercial property SIPPs offer many advantages for investors, especially for groups of individual SIPPs where they can use part of their individual pension pot to buy commercial properties which would otherwise be beyond their individual capability. 

STM Group plc

STM Group agreement, PUSU Deadline extended

On 11 July 2023, PSF Capital GP II Limited as general partner of PSF Capital Reserve LP announced that they had reached agreement in principle on the key terms of a possible cash offer for the entire issued

STM Group plc

The future of SIPPs

SIPPs have always evolved to meet changing demands, and will continue to be an important pension wrapper. In this article we explain why the future is bright for SIPPs in 2023, and beyond. A growing market

STM Group plc

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 happens next?

STM Group plc

STM Group agrees in principle to takeover bid

Options Pensions’ parent company STM Group has agreed in principle to a takeover bid by Pension Superfund Capital, a company founded by industry veteran Edi Truell. In an announcement to the stock exchange this morning (July 11),

STM Group plc

STM Group AGM to be held on 22nd August 2023

STM Group Plc (LON:STM), the cross border financial services provider, has clarified that the AGM Statement announcement on the 28 June 2023 stated the incorrect time for the Annual General Meeting. The Meeting is to be

STM Group plc

How to start a private pension

As the cost of living goes up, many people are finding that they need both State and private pensions to fund a good retirement. Estimates suggest that over £11 billion were contributed to private pensions in the 2020-21