STM Group, the cross-border financial services provider, is delaying its 2020 year end results to early May while it looks into whether a cash provision is needed after the Court of Appeal ruled in favour of a client of Carey Pensions in the recent Adams v Carey case.
In a statement this morning (16 April), STM, the parent company of Options (formerly Carey Pensions), said that following conversations with their auditors, Deloitte, the company's 2020 year end results will be delayed and it is expected that they will now be released in early May.
"A significant exercise is being carried out to determine whether the ruling has triggered an event which would require a provision, as defined by accounting standards, to be included in the Company's financial statements and, if so, requires audit testing to be carried out", STM said.
A significant exercise is being carried out to determine whether the ruling has triggered an event which would require a provision."
It added: "The inclusion of any such provision within the financial statements is not expected to have any impact on the net asset figure or the results of the business due to the claim being covered by the Group's insurance policy and indemnities."
Audit work on all other areas has been substantially completed and no other material adjustments are expected, it further said.
The statement also "confirmed" STM's financial results remained in line with previous guidance, as stated in the trading update dated 3 February 2021.
STM said it expected to report 2020 Revenues of £24.0m, EBITDA of £3.6m, PBT of £2.0m and net cash of £15.5m.
International Investment reported on 1 April the UK's Court of Appeal had voted in favour of Russell Adams and against his self-invested personal pension (SIPP) operator Options Personal Pensions, formerly Carey Pensions, in their long-running legal dispute.
On 7 April, The Pensions Ombudsman confirmed it would reopen its investigations into Carey Pensions claims following the Court of Appeal's latest ruling against the SIPP operator.
On 9 April we reported how STM Group, the cross-border financial services provider, "secured indemnities" and benefited from "significant existing PI cover" which would minimise exposure to historic Carey Pensions issues, which it said in a statement after the Pensions Ombudsman confirmed it would restart Carey Pension claim investigations.
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