Cross border financial group STM Group has reported an 11% rise in pre-tax profits to £2.1m ($2.74m, €2.36m) for the latest six month period and unveiled post-Brexit plans for its life business.
The unaudited interim results for the six months to 30 June 2018 also showed earnings before interest, taxation, depreciation and amortisation rose 5% to £2.5m.
Revenue for 2018 was £10.8m, up 6% from £10.2m, excluding the release of a cash reserve worth £500,000 last year. Recurring revenue for the period was £8.5m.
Malta Move
STM also said it would re-domicile its STM Life operation in Malta following a group level review of “Brexit implications”. The group has only recently re-domiciled from its headquarters from Gibraltar to London following the acquisition of London & Colonial.
A company spokesman said: “The process of re-domiciling is in the very early stages with conversations starting with both the Gibraltar and Maltese authorities. The transition will be phased and we do not expect there to be any redundancies as part of the overall migration. There will be further information in due course.”
Chief executive Alan Kentish, said: “The various trading divisions across the group have collectively performed in line with management expectations during the first half of the year and have delivered a solid set of underlying financial results. This performance gives the board confidence in meeting management expectations for the full year.
“The successful integration of Harbour Pensions demonstrates the model for future acquisitions as and when further opportunities arise,” he said. STM Malta acquired Harbour Pensions in November 2017
“The board continues to implement its three-year de-risking strategy by looking to introduce more financial services products for both the expatriate market, as well as the UK market, across the pension and life sectors,” Kentish added.
In a nod to its regulatory position in Gibraltar, STM said it was “working proactively” with the authorities.
