8th Sep 2020 12:57
(Alliance News) - STM Group PLC on Tuesday said coronavirus hurt its performance in the first half of 2020 but it expects "a step change" in profitability in 2021.
The financial services company said revenue declined to GBP11.8 million in the six months to the end of June from GBP11.9 million reported a year earlier, with pretax profit falling to GBP1.0 million from GBP3.4 million.
The company said Covid-19 has had an impact on its new business expectations as it has seen delays in the take-up of certain product offerings.
STM Group declared dividend of 0.55 pence for the half-year compared to 0.75p paid a year earlier.
Looking ahead, Chief Executive Alan Kentish said: "The challenge and opportunity for us over the next 12 months is to accelerate the conversion to revenue of our healthy new business pipeline, particularly in relation to our flexible annuity product."
"Within the business, as part of our new operating model and drive for improved margins, I am pleased to confirm that our key IT projects remain on track with regards to scheduled completion, which we expect to lead to a step change in profitability in 2021," added Kentish.
AIM-listed STM Group shares were trading 13% lower in London on Tuesday at 31.75 pence each.
By Evelina Grecenko; [email protected]
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