28th Feb 2020 11:26
(Alliance News) - STM Group PLC on Friday said it continues to expect a year-on-year drop in annual profit, in line with the guidance issued in November 2019.
STM shares were trading 14% lower in London at 24.52 pence each on Friday.
The cross border financial services provider expects to reports pretax profit of GBP3.8 million for 2019, down 5% from GBP4.0 million in 2018. Meanwhile underlying pretax profit is expected to be GBP2.5 million, down from GBP3.7 million a year ago.
Revenue, however, is expected to be higher at GBP23.0 million, compared to GBP21.4 million a year ago.
In November, the company had issued a profit warning due to troubles with integration of pension business Carey Administration Holdings Ltd, which was acquired in February 2019 for GBP400,000 and weak UK pension sector.
STM had said that rebranding of Carey was taking longer than expected and was leading to product re-launch delays. The company had also said it faced difficulties stemming from "uncertainties and concerns" within the UK pension sector, with lower than expected levels of new applications in the Pensions division.
STM Group will publish its annual results on March 24.
By Loreta Juodagalvyte; [email protected]
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