STM Life moves to Malta ahead of Brexit as group profits rise 11%
Gibraltar-based STM Group posted an 11% rise in first-half profit as it grew organic revenue and an efficiency drive boosted margins. The financial services provider is Brexit-proofing its business by moving part of the operation to Malta.
Pre-tax profit for the six months through June rose to £2.1m, as revenue rose 6% to £10.8m. The company declared an interim dividend of 0.7p, up 17% on-year.
“The various trading divisions across the group have collectively performed in line with management expectations during the first half of the year, and have delivered a solid set of underlying financial results,” chief executive Alan Kentish said in a statement.
The company is shifting its STM Life business to Malta ahead of Brexit: “The STM Life board has now made its decision to redomicile from Gibraltar to Malta so as to be in a position to service its EEA based clients going forward, and this project has now commenced,” according to the statement.
“The Board continues to implement its three year de-risking strategy by looking to introduce more financial services products for both the expatriate market, as well as the UK market, across the pension and life sectors. In addition, we continue to challenge our processes and systems as part of a programme to increase our profit margins,” Kentish added.
Listed on the AIM Market of the London Stock Exchange, STM has operations in the UK, Gibraltar, Malta, Jersey and Spain.
Gibraltar continues to lead, with a H1 turnover of £4.49m, followed by Malta’s £3.7m. Jersey accounted for £1.4m and the UK operations came in at £835,000.