STM Group FY revenues grow despite Covid-19
By Iain Gilbert
Date: Monday 30 Nov 2020
(Sharecast News) - Financial services provider STM Group said on Monday that it expects to deliver revenues of £23.7m for the twelve months ending 31 December despite "significant macro-economic challenges" experienced throughout the year.
STM anticipates that underlying earnings will come to £3.6m for the year and pre-tax profits will hit around £2.0m thanks to a "strong recurring revenue base from existing business", leaving its foundation for its future growth and profitability predominantly unchanged.
The AIM-listed group also adopted "a more prudent methodology to its guidance" for the coming year and beyond and now anticipates revenue growth of roughly 7% year-on-year in 2021, whilst operating expenses were only forecasted to increase "marginally" as a result of both direct savings and increased operational efficiencies.
Chief executive Alan Kentish said: "The prolonged nature of the Covid-19 pandemic has had a more significant impact than we previously anticipated.
"This is frustrating but does not greatly affect the strong core existing business which gives us reliable revenue visibility and a stable long term platform to operate from."
As of 1010 GMT, STM shares were up 6.26% at 32.94p.
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