Cross-border financial services provider STM Group has stated that it intends to grow its business via acquisitions and that it is well-placed financially to take advantage of any opportunities that may become available due to the covid-19 pandemic.
In a statement released this morning to issue a pre-close update for the six months to 30 June 2020, prior to the announcement of its interim results next month, the company confirmed its acquisition intentions, as well as highlighting that regulatory issues within its Gibraltar-based business are now at an end.
"The Group's pursuit of further acquisitions to complement organic growth progresses, despite the complications that arise as a result of covid-19 from a due diligence perspective," the statement read.
All actions and remediation have been completed to the satisfaction of the GFSC, the Companies’ status as regulated firms remain unchanged and no further action is contemplated," STM statement
"STM has a strong balance sheet and a market leading position to act as a consolidator in the sector. The Board looks forward to updating the market as appropriate."
It also confirmed that previous regulatory uses in Gibraltar have now been fully resolved with the Gibraltar Financial Services Commission (GFSC), confirming that agreement had been reached between the STM Group of companies within Gibraltar and the Gibraltar GFSC following the Deloitte Report.
"All actions and remediation have been completed to the satisfaction of the GFSC, the Companies' status as regulated firms remain unchanged and no further action is contemplated," STM said.
Trading has remained strong but lower than usual due to the pandemic with the company's new business pipeline continuing to grow month on month, albeit conversion time-lines on flexible annuity and bulk transfers of work-place pensions remain slower than previously anticipated.
STM added that the anticipated acceleration in conversions for the workplace pensions and the London & Colonial flexible annuity pipelines will be required in the second half of the year to hit its new business revenue targets for the year. Though new business revenues for QROPs and SIPPs for the expatriate market "remain steady and as expected".
"During the first half of the year, we have successfully launched our new UK brand, "Options, for your tomorrow", and this has been followed with the launch of our Shariah compliant SIPP and the more recent Shariah compliant workplace pension solution," the STM statement added.
"Both have been well received to date, albeit it is too early to predict how much volume will come through during the next few months, we are optimistic as to the prospects for this innovative initiative."
STM Group said that it expects to announce its interim results on 8 September 2020.