27th Mar 2018 11:00
LONDON (Alliance News) - Financial services firm STM Group PLC on Tuesday reported 42% growth in annual profit, as a new self-invested personal pension product boosted revenue growth.
The company delivered 2017 pretax profit of GBP4.0 million, up from GBP2.8 million in the previous year. Revenue increased 24% to GBP21.5 million from GBP17.4 million.
The company's pensions business recorded total revenue of GBP10.2 million, up from GBP9.2 million in 2016. The business accounted for 47% of total group revenue.
As predicted since the UK Spring Budget, company's Gibraltar operation has seen almost no new business with regards to Roll Over Protection Systems, whilst Malta is now only receiving new business from the European Economic Area.
"Conversely, UK Self-Invested Personal Pension business has become the focus of new business growth. In detail, for the nine months following the Budget, new business numbers were 217 ROPs administered by our Malta and Gibraltar offices and 755 SIPPs administered from our UK operations," the company said.
STM declared a final dividend of 1.2 pence per share, up from 1.0 pence of the previous year. This together with the interim dividend paid of 0.6p in November makes a total dividend for the year of 1.8p per share, up from 1.5p paid in 2016.
Looking ahead, expectations are that 2018 new business volumes, and client retention rates will remain in line with those of 2017 post the UK budget, STM said.
"In addition, we continue to seek earnings enhancing acquisitions in the ROPS and UK SIPP sector. We are confident in the group's prospects and that we will deliver trading results in line with our previous management expectations for the new financial year. Furthermore, our key deliverable for the current year is to continue to build on our governance framework and to place more reliance on IT efficiencies," said Chief Executive Alan Kentish.
Shares in STM were up 2.1% at 53.60 pence per share on Tuesday.
Related Shares:
Stm Grp.
