Revenue grew 16%, to £13.4m, helped by a “substantial”, 64% increase in business from its pensions division, to £5.9m from £3.6m, the company said in a statement to the stock exchange this morning.
During the year, as reported, STM launched a German tax-compliant product, and in its statement today, said “other unique products are expected to follow during 2014”, following the creation of its new business and product development team.
Chairman Julian Telling noted that profitability in 2013 had “lagged, relative to turnover”, as the company invested in such new businesses as the German product range.
“The board is confident this will improve in 2014 with increased efficiencies as well as the development of new products and distribution networks,” Telling added.
Early QROPS pioneer
STM is perhaps best known to financial advisers with expatriate clients for its active role in the development and provision of qualifying recognised overseas pension schemes (QROPS). It was among the first companies to offer a scheme in Malta, which was first recognised by HM Revenue & Customs as a jurisdiction to which UK pensions could be transferred at the end of 2009.
It has also developed schemes that accommodate the transfers of UK pensions of individuals retiring to or returning to the US.
Historically STM's business was in corporate and trustee services (CTS), but this sector has not been growing very much recently, as chief executive Colin Porter noted in his statement today. Porter cited the "downturn in activity resulting from the current economic climate" for the CTS market having "remained challenging" in 2013.
STM listed on the Alternative Invesetment Market of the London Stock Exchange in 2007. It is based in Gibraltar, incorporated in the Isle of Man, and has additional operations in Spain, Jersey, Malta and Cyprus.
The shares fell by 2% today, to 22.5p. Over the past year they have been as high as 30.75p.
Separately today, STM said it was issuing £3.8m-worth of new convertible loan notes, to replace £3.5m worth of convertible loan notes due to be repaid on 19 March. Subscribers inlcude a company of which Alan Kentish, a director of the company, is a potential beneficiary, and Nigel Green, chief executive of the deVere Group and an STM shareholder.
A statement announcing the convertible loan notes issuance noted that STM's directors, with the exception of Kentish, had consulted with the company's nominated adviser and determined that the terms of the loan notes transcactions were "fair and reasonable insofar as the company's shareholders are concerned".
STM Group Plc – 12 months ended 31 December
| 2013 | 2012 | |
| Revenue | £13.4m | £11.6m |
| Earnings before interest, taxation, depreciation and amortisation (EBITDA) | £0.9m | £1.0m |
| Profit/(loss) before taxation | £0.269m | (£3.995m) |
| Cash | £4.1m | £3.4m |
