REG - STM Group PLC - Acq Completion, Trading Update, Chair Appt, NoR

STMAnnouncement

01/09/2022 07:00

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RNS Number : 8479X  STM Group PLC  01 September 2022

STM Group Plc

("STM", the "Company" or the "Group")

 

Completion of Acquisition, Trading Update, Board Changes

Notice of Interim Results & Investor Presentation

 

 

STM Group Plc (AIM: STM), the cross border financial services provider,
announces 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 ("HIT").

 

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 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.

 

Investor Presentation - 2pm on 14 September 2022

Chief Executive Office, Alan Kentish, and Chief Financial Officer, Nicole
Coll, will be hosting a remote presentation to review the 2022 Interim Results
and prospects at 2pm on 14 September 2022.

 

The presentation will be hosted through the digital platform Investor Meet
Company. Investors can sign up to Investor Meet Company and add to meet STM
Group Plc via the following
link https://www.investormeetcompany.com/stm-group-plc/register-investor
(https://urldefense.proofpoint.com/v2/url?u=https-3A__www.investormeetcompany.com_stm-2Dgroup-2Dplc_register-2Dinvestor&d=DwMGaQ&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=05PHl3GHdShYuaCii2fBRpoqaNr9B1d97X09daeosu0&m=_R4278x6I1MWW9CJ0oRZBNk9FSdmAMLQt2Sb47D8zFU&s=H2GNe8qPcN0oaN8MUSU-9c1mPxuLXEnTcOLM-j1yt2A&e=)
.

 

For those investors who have already registered and added to meet the Company,
they will automatically be invited.

 

Questions can be submitted pre-event to STM@walbrookpr.com
(mailto:STM@walbrookpr.com)  or in real time during the presentation via the
"Ask a Question" function.

 

For further information, please contact:

 STM Group Plc
 Alan Kentish, Chief Executive Officer         Via Walbrook PR

 Nicole Coll, Chief Financial Officer          www.stmgroupplc.com (http://www.stmgroupplc.com)

 finnCap                                       www.finncap.com (http://www.finncap.com)
 Matt Goode / Emily Watts - Corporate Finance  Tel: +44 (0) 20 7220 0500

 Tim Redfern / Richard Chambers - ECM

 Walbrook                                      www.walbrookpr.com (http://www.walbrookpr.com)
 Tom Cooper / Joseph Walker                    Tel: +44 (0) 20 7933 8780
                                               Mob: +44 (http://www.abchurch-group.com) (0) 797 122 1972
                                               STM@walbrookpr.com (mailto: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
(https://urldefense.proofpoint.com/v2/url?u=http-3A__www.stmgroupplc.com&d=DwMGaQ&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=05PHl3GHdShYuaCii2fBRpoqaNr9B1d97X09daeosu0&m=PU7KD9-tYowY3PC9sXem4PQSmJ-Zm8TJB2ox4M8NHwI&s=39Vvq5Ccz7txaqksRCl4B8zUxhpd6elnqEy0XmTed50&e=)

 

 

 

Further disclosure pursuant to Schedule Two, paragraph (g) (i)-(viii) of the
AIM Rules for Companies is set out below.

 

Director's full name: Nigel Norman Birrell

 

Age: 59

 

 Current Directorships                                   Past Directorships

 Lottohelden Limited                                     Serum Limited

 Lottoland Limited                                       European Lotto and Betting Ltd

 Lottoland ESOP Limited                                  649agentur.com Ltd

 Lottohelden EU Limited                                  Gluck Limited

 United Lottery Solutions Limited                        European Lotto and Betting Ltd (Gibraltar Branch)

 Lottoland Services Limited                              EU Lotto Ltd

 Lottoland CZ Limited                                    Lottoland Ltd

 Lottoland Australia Pty Limited                         Lottohelden Ltd

 Lottoland Holdings Limited                              Lottoland (Australia) Investments Pty Ltd

 Deutsche Lotto Und Sportwetten Ltd (Gibraltar Branch)   Domain Venture Partners PCC Limited

 Deutsche Lotto Und Toto-Agentur Ltd (Gibraltar Branch)  Everso Limited

 Crucial Compliance Limited                              Oceana Limited

 Pixtel Limited

 Duke Royalty Limited

 Southern Rock Insurance Company Limited

 Daisy Services Limited

 The Gibraltar Betting and Gaming Association Limited

Mr Birrell was appointed to Domain Venture Partners PCC Limited on 1 November
2016 and resigned on 11 April 2018. Within 12 months of when Mr Birrell
resigned Domain Venture Partners PCC Limited was placed into a solvent court
administration. The administration is ongoing.

 

 

 

.

 

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