LONDON (ShareCast) - (Sharecast News) - Financial services provider STM Group reported underlying revenue of £24m in its final results on Tuesday, up from £22.9m in the prior year.
The AIM-traded firm said its underlying margin for the year ended 31 December was 17%, down from 18% year-on-year, while its profit before tax slipped to £2.4m from £2.6m.

Reported earnings per share came in at 2.7p for 2020, down from 5.73p in 2019, while cash at bank at period end totalled £14.8m, compared to £17.2m a year earlier.

The board declared a final dividend of 0.85p for 2020, up from the 0.75p it paid for the equivalent, second interim, dividend in 2019.

That made for a total dividend for the year of 1.4p per share, compared to 1.5p a year earlier.

On the operational front, STM said stability was apparent in its recurring revenue throughout the Covid-19 crisis, adding that the majority of its key IT projects for improved profitability were now live, with the remaining concluding in the first half of 2021.

Its continued focus on technology would become a "key differentiator" for the company, the board said.

The firm's UK-focussed products, being the Shariah SIPP and the Workplace Pension Plan (WPP), had now launched, as the WPP corporate business moved towards breakeven.

Its flexible annuity pipeline was building, but the board did describe a "slower-than-anticipated" conversion, though it also noted an active pipeline of acquisition opportunities, particularly in the UK.

STM said its strategic focus was on its core activities of pension administration and life assurance, with the post-period end disposals of the corporate and trust service businesses.

"Whilst the year has had challenges, we have achieved a great deal in progressing our three year transformation and growth strategy," said chief executive officer Alan Kentish.

"We see 2021 being a year where a number of strategic initiatives come to fruition that will build on efficiencies within the business.

"There is an energy and focus for the remainder of 2021 in building some key partnerships that will help drive new business volumes."

Kentish added that the company's key acquisition pipeline was "active", and was expected to be a "pillar" of the firm's future growth.

"The recent judgment in the Carey v Adams case will have implications across the whole of the financial services industry who have dealings on an execution-only basis," he said.

"This was a historical claim, and the options management team will continue to drive the business forward as they have done since being part of the STM team.

"STM is an increasingly streamlined and more focused business - the board is optimistic for its future and looks forward to updating on progress in 2021."

At 1130 BST, shares in STM Group were up 0.63% at 31.7p.

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