STM : Unaudited Interim Results for the six months ended 30 June 2023

STM Group Plc (AIM: STM), the multi-jurisdictional financial services group, is pleased to announce its unaudited interim results for the six months ended 30 June 2023.

Financial Highlights:

	2023(reported)	2023 (underlying)**	2022(reported)	2022 (underlying)**
Revenue	£13.2m	£13.2m	£11.3m	£11.3m
Profit before other items*	£1.5m	£1.8m	£1.4m	£1.7m
Profit before taxation ("PBT")	£0.1m	£0.4m	£0.5m	£0.8m
Profit before other items margin	11%	14%	12%	15%
Earnings per share	0.17p	N/A	0.62p	N/A
Cash at bank (net of borrowings)	£13.8m		£16.9m
Interim dividend	-		0.60p

* defined as revenue from continuing operations less operating expenses i.e. profit from continuing operations before taxation, net finance costs, depreciation, amortization, and non-operating items such as bargain purchase gain and loss on the sale of investments

** Underlying statistics are net of certain transactions which are either non-recurring or exceptional and thus do not form part of the normal course of business.

Operating Highlights:

• Recurring revenue resilient at 95% of total revenues, similar to prior periods
• Successful integration of Mercer SIPP and SSAS businesses acquired in the second half of 2022
• Completion of first part of the strategic review
• The strategic review led in turn to a Group-wide technology review as part of a drive to improve efficiencies and margins
• Significant upfront work completed as part of being Consumer Duty ready
• Appointment of new Head of Business Development, leading to increased volumes of illustrations for our flexible annuity products
• Successful implementation of new client interest sharing policy

Post-period Highlights:

• On 11 July 2023, the boards of STM, and PSF Capital GP II Limited as general partner of PSF Capital Reserve LP ("Pension SuperFund Capital"), announced that they had reached agreement in principle on the key terms of a possible cash offer (the "Offer") for the entire issued and to be issued share capital of the Company at a price of 70 pence per share.
• On 5 September 2023, the Company announced revised terms for a possible cash offer at a price of 67 pence per share that would be conditional upon the completion of a disposal of certain parts of the Group that are non-core to the strategy of Pension SuperFund Capital (the "Revised Possible Offer"). It was also announced that Alan Kentish (a director and shareholder of the Company) had signed heads of terms with STM and Pension SuperFund Capital to acquire certain parts of the Group, comprising the UK SIPP businesses and entities connected with the 'funder' of the Master Trust.
• On 27 September 2023, the Company announced it had received a revised proposal, being an offer price of up to 67 pence per share, comprising 60 pence per share payable in cash upon completion of the possible offer and a further 7 pence per share by way of an unsecured loan note, repayable 12 months following the date on which a firm intention to make an offer is announced in accordance with Rule 2.7 of the City Code on Takeovers and Mergers (the "Code"), with repayment contingent on certain conditions that are being discussed between Pension SuperFund Capital and the Company. It also announced discussions with Alan Kentish (a director and shareholder of the Company) with respect to the acquisition of certain parts of the Group had been revised such that it is now proposed that Mr Kentish will only acquire the Group's UK SIPP businesses.
• The Company has also announced in accordance with Rule 2.6(a) of the Code, that a further extension to the date by which Pension SuperFund Capital is required either to announce a firm intention to make an offer in accordance with Rule 2.7 of the Code or to announce that it does not intend to make an offer for the Company had been granted by the Takeover Panel, in order to allow further time for these discussions to be completed. Consequently, Pension SuperFund Capital is required either to announce a firm intention to make an offer in accordance with Rule 2.7 of the Code or to announce that it does not intend to make an offer for the Company by not later than 5.00pm on 11 October 2023.
• There can be no certainty that any offer will ultimately be made for the Company.

For further information, please contact:

STM Group Plc
Alan Kentish, Chief Executive Officer	Via Walbrook PR
Therese Neish, Chief Financial Officer	www.stmgroupplc.com
Cavendish Capital Markets Ltd (Nominated Adviser and Broker)		Tel: [phone]
Matt Goode / Emily Watts / Abigail Kelly- Corporate Finance Tim Redfern - ECM		https://www.cavendish.com
Walbrook PR		Tel: [phone]
Tom Cooper / Joseph Walker		Mob: [phone] [email protected]

Notes to editors:

STM is a multi-jurisdictional financial services group traded on AIM, a market operated by the London Stock Exchange. The Group specialises in the administration of client assets in relation to retirement, estate and succession planning and wealth structuring.

Today, the Group has operations in the UK, Gibraltar, Malta, Australia and Spain. STM has developed a range of pension products for UK nationals and internationally domiciled clients and has two Gibraltar life assurance companies which provide life insurance bonds - wrappers in which a variety of investments, including investment funds, can be held.

STM's growth strategy is focused on both organic initiatives and strategic acquisitions.

Further information on STM Group can be found at www.stmgroupplc.com