30th Nov 2018 09:52
LONDON (Alliance News) - STM Group PLC said Friday it is confident annual results will be in line with management expectations.
For 2018, the financial services provider expects its results to show year-on-year growth in adjusted pretax profit. In 2017, it posted adjusted pretax profit of GBP3.2 million. On a statutory basis, pretax profit came in at GBP4.0 million.
The company is anticipating that, in the last quarter of 2018, there will be a "significant release" from the London & Colonial Assurance PLC technical long-term insurance fund, with its board expecting at least GBP500,000.
A year ago, the release amounted to GBP1.3 million.
"The anticipated release of the technical reserve provides a significant positive contribution to earnings, as it has done in previous years," STM said.
It added: "Including this anticipated contribution, the board remains confident that the group will report overall profit before tax for 2018 in line with its previous expectations, with underlying profit before tax, excluding the impact of profits from reserve releases and one off costs, expected to increase year on year."
STM shares were trading down 7.8% at 53.00 pence.
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