11th Mar 2014 13:07
LONDON (Alliance News) - Financial services business STM Group PLC said it swung to profit in 2013, boosted by its pensions division.
AIM-listed STM, which provides financial management to high-net-worth individuals, posted pretax profit of GBP269,000 for the year, compared with a loss of GBP4.0 million in 2012, as revenue rose to GBP13.4 million from GBP11.6 million.
STM experienced mixed fortunes across its three main business segments - pensions, life and corporate and trustee service (CTS).
The company said it saw growth in the pensions division, which is now its largest accounting for 44% of group revenue. Revenue for the division increased 64% to GBP5.9 million from GBP3.6 million. While STM Malta remains the larger of the pensions divisions, the firm said the growth came from both Malta and Gibraltar in almost equal volumes.
In addition, STM Life, which provides life assurance products, made strides with revenue totalling GBP600,000 compared with just GBP200,000 in 2012. During the period, the company launched a German tax compliant product, and STM said it is working on developing further niche products and expanding its distribution networks.
"We are confident that STM Life will become a significant contributor towards the group's income and profitability in future periods," the firm said.
STM said its CTS division which now accounts for 44% of group revenue, down from 56%, made GBP5.8 million in revenue, down from GBP6.5 million. It operates in a number of regions including Jersey and Gibraltar.
The firm said within the division, it has been made aware of some clients' financial position which has bought into question the recoverability of some outstanding balances.
"Whilst STM continues to pursue these outstanding balances, and is confident of their recovery, a prudent approach has been taken by increasing the bad debt provisions in both of these divisions," it said.
STM said it is cautiously optimistic for 2014 but said it is too early to declare a dividend and will continue to review its position this year.
The stock was trading at 22.74 pence Tuesday afternoon, down 0.26 pence or 1.1%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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