REG - STM Group PLC - Client Interest Policy and Trading Update

STMAnnouncement

30/05/2023 07:15

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RNS Number : 8865A  STM Group PLC  30 May 2023

STM Group Plc

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

Client Interest Policy and Trading Update

 

STM Group Plc (AIM: STM), the cross border financial services provider,
announces a new interest sharing policy with some of its pension members.

The policy will unify the Group's approach in this regard and will bring it
in-line with other providers that have a similar interest sharing policy. As
part of this change and given the significant rise in bank interest rates over
the last six months, the Company has been negotiating with its banking
partners to obtain the best rates offered by them. The policy will come into
force from 1 July 2023 and is expected to contribute at least £1 million
annualised profit before tax going forward.

In addition to the above, income generated from client assets is expected to
be higher in the current year than in prior year as a result of the increasing
interest rates. Both these uplifts will compensate for lower than expected new
business and some significant non-recurring costs incurred such as the third
party costs in relation to the strategic review. Recurring administration
revenue from existing customers remains in line with management expectations.

Alan Kentish, CEO of STM Group, commented: "In a higher interest rate
environment this approach gives STM an opportunity to actively manage the
yield opportunity for all stakeholders and keep product fees competitive."

 

This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 (as it forms part of retained EU law as defined in
the European Union (Withdrawal) Act 2018).

For further information, please contact:

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

                                                               www.stmgroupplc.com (http://www.stmgroupplc.com)

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

 Tim Redfern (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=)

 

 

 

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