LONDON (ShareCast) - (Sharecast News) - STM Group on Tuesday reported flat annual profits and revenues after a year that saw the company enter the workplace pensions market and gain two acquisitions.
The multi-jurisdictional financial services group reported 2018 profit before tax of £4.0m, unchanged from the year before, and said revenue stayed flat at £21.4m, with underlying revenue increasing from £20.2m to £20.5m.

Alan Kentish, chief executive of STM, said: "We are pleased with another solid profitable year at STM, which has been coupled with significant operational progress within the group. Our management, governance and risk structures have been strengthened to ensure that we are well placed to integrate our recent acquisitions, meet our industry compliance needs and can rely on a robust infrastructure to support future growth."

The AIM traded company has entered the workplace pensions market, which it said has created an opportunity to cover a wider market, and with consolidation in the sector already starting to become prevalent, has given the company the ability to accelerate growth by accumulating master trusts that are not applying for authorisation by The Pension Regulator.

Meanwhile, STM also successfully integrated its Harbour acquisition by September after completing the acquisition in February, while it signed the sale and purchase agreement for the acquisition of the UK based Carey pensions in October, a business with annual revenue of £3.5m.

STM had cash and cash equivalents of £17.3m at the end of the year, down from £18.4m at the same point the year before, while it paid out a total annual dividend of 2.0p, 11% higher than last year's 1.8p.

"Our markets continue to evolve and present opportunities for well funded operators. STM intends to be at the forefront of product development and sector consolidation and has a refined short-term strategy to maximise this opportunity," said Kentish.

STM Group's shares were up 1.08% at 47.00p at 1640 GMT.

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