Trading Update
STM Group PLC
25 July 2007
Press Release 25 July 2007
STM Group Plc
('STM' or 'the Group')
Trading Update
STM Group Plc (AIM:STM), the cross border financial services provider, is
pleased to announce an update on trading in respect of the period from its
admission to trading on AIM on 28 March 2007 up to 30 June 2007.
The Directors are pleased to confirm that trading is in line with their
expectations and that they are comfortable with the current market forecasts for
the full year. The Group's divisions are reporting good results, with a healthy
pipeline of new client instructions throughout.
STM expects to announce its maiden interim results to 30 June 2007 in
mid-September 2007. A further announcement of the date of these results will be
made in due course.
On 9 June 2007, STM announced that it had acquired the Atlas Group ('Atlas') for
a maximum consideration of £0.65 million. The Directors are pleased to announce
that Atlas's integration is progressing ahead of time and budget, with Atlas's
headquarters having already been transferred into the Gibraltar offices of STM's
current principal trading subsidiary, STM Fidecs, which should lead to material
costs savings and benefits.
The Company is currently in detailed discussions to acquire further Corporate
Trustee Service Providers (CTSPs), including those operating in new
jurisdictions. Acquisitions will only be made where they are expected to be
earnings enhancing to the Group, and will benefit STM by expanding the STM brand
and presence.
Commenting on the trading update, Tim Revill, Chief Executive Officer, said: '
The market for CTSPs continues to see robust growth and we are extremely pleased
with the progress that STM has made since we joined AIM in March this year.
With the successful acquisition of Atlas now under our belt, we will continue to
progress with our stated intention to buy and build existing CTSPs. We already
have a number of potential CTSPs to add to the STM brand and we are confident
and excited about the future prospects for the Group.'
- Ends -
For further information, please contact:
STM Group Plc
Tim Revill, Chief Executive Officer Tel: 00 350 51610
Matt Wood, Non-executive director Tel: +44 (0) 20 7752 0215
www.stmgroupplc.com
Daniel Stewart & Company plc
Lindsay Mair / Chloe Ponsonby Tel: +44 (0) 20 7776 6550
Media enquiries:
Abchurch
Henry Harrison-Topham / Charlie Jack Tel: +44 (0) 20 7398 7706
henry.ht@abchurch-group.com www.abchurch-group.com
Notes to editors
STM was formed in 2007 specifically to become a leading financial services group
operating in the Corporate and Trustee Service Provider (CTSP) sector. The
Company listed on the AIM market of the London Stock Exchange on 28 March 2007.
The traditional business of CTSPs is to administer and manage personal, family
and commercial assets and income streams in tax efficient jurisdictions. The
Company's aim is to grow through acquiring and consolidating high quality
existing CTSPs which offer complementary products and services and that operate
in complementary tax efficient jurisdictions to those provided by STM's first
acquisition, the Gibraltar based CTSP, Fidecs Group Limited ('Fidecs'). Fidecs
was acquired by STM upon its Admission to AIM and changed its name to STM
Fidecs.
STM Fidecs is one of the largest financial services firms in Gibraltar and
employs 80 people. It specialises in financial planning for both High Net
Worth individuals ('HNWI') moving to work, living or retiring overseas or making
cross-border investments, and for entrepreneurial, predominantly, owner-managed
businesses, expanding into or re-locating to other, frequently lower tax,
jurisdictions. It also includes an insurance management division, specialising
in providing set up and management services to newly formed insurance companies
operating out of Gibraltar. In the year ended 31 December 2006, Fidecs reported
turnover of £5 million with post tax profit of £1.7 million.
The CTSP market is fragmented in nature, comprising a small number of very large
international financial services groups and a large number of relatively small
trust and company management businesses regulated by, and operating out of,
single offshore jurisdictions. The HNWI market, a key market for CTSPs, has
continued to expand strongly, due to buoyant stock markets, rising house prices
and global economic growth. Leading surveys estimated that aggregate global high
net worth wealth, would grow to US$40 trillion by 2008, an increase of some 40
per cent. over 2004.
Further information on STM Group can be found at www.stmgroupplc.com
This information is provided by RNS
The company news service from the London Stock Exchange