STM Group trades in line for FY pretax profit

STM Group says it has traded in line with market expectations of profit before tax of £2.7m for 2016, versus £2.7m in 2015.

"As was anticipated, the pricing initiative taken by the Board in the earlier part of the year has significantly increased the take-on of new business for its QROPS international pensions product with new policies for the second half of the year up by circa 50 per cent on the first half of the year and 27 per cent on the second half of 2015," the company said.

"As previously indicated, whilst this strategy resulted in a reduction in first year profitability, it does result in an increased level of recurring revenue for future years. This leaves STM well placed to deliver significant growth in revenue and profit in 2017."

CEO Alan Kentish added:

"STM has made some significant strategic and operational decisions during 2016 to pursue the London & Colonial acquisition as well as to implement the market leading pricing initiative in its international pensions businesses; both of which have proved beneficial to the Group and strengthen growth prospects.

"With the recently announced appointment of Robin Ellison as a further non-executive director to the Board, as well as Marina joining as Head of Enterprise Risk Management, we continue to build on our governance and reporting structure.

"We head in to 2017 knowing that recurring revenue streams from our highly profitable pensions and life businesses have never been higher, giving us cause for optimism for the year ahead."