30th Nov 2020 17:57
STM Group PLC - AIM-listed fiduciary service provider and asset structuring to high-net-worth individuals - For 2020, continues to expect pretax profit of GBP2.0 million on revenue of GBP23.7 million, with earnings before interest, taxes, depreciation and amortization of GBP3.6 million. Notes trading for 2020 in line with current market expectations.
For 2021, expects revenue growth of about 7%, with operating expenses expected to increase marginally, leading to increased Ebitda margins.
"The improved Ebitda margin is largely as a result of both direct savings and increased operational efficiencies on the back of the IT projects invested in during the year. Further investment is expected in this area which has been reflected in the board's revised financial expectations," company adds.
Chief Executive Alan Kentish says: "The prolongued nature of the Covid-19 pandemic has had a more significant impact than we previously anticipated. This is frustrating but does not greatly affect the strong core existing business which gives us reliable revenue visibility and a stable long term platform to operate from."
Current stock price: 30.55 pence
Year-to-date change: up 27%
By Paul McGowan; [email protected]
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