Cross-border financial services firm STM Group has reported it had £1.6m ($2.04m, €1.86m) in profit before tax for the 12 months ending 31 December 2022.
This was a 33% rise from £1.2m the year before.
The group also announced revenues of £24.1m (2021: £22.4 million). This £1.7m increase in revenue was “largely due to the acquisition of the Mercer books”, which contributed £800,000 of revenue in the year, and revenue growth in the life companies of £1.5m.
The sale of the corporate trustee service companies in 2021, which contributed £800,000 of revenue that year, account for the balance in this movement.
Recurring annual revenue has continued to be a significant portion (92%) of the total revenues achieved.
The results come after the firm announced that the Gibraltar financial regulator has not yet given approval for a managing director to join two of its subsidiaries. This regulatory setback had impacted the firm’s ability to release the 2022 financial results.
Alan Kentish, chief executive at STM Group, said: “Whilst we have made progress with the underlying business performance as compared to 2021, new business growth has not been at the speed or levels that I would have wanted or expected.
“Our new business revenue for our pensions businesses, particularly in the UK self-invested personal pension (Sipp) market, whilst steady was below our previous expectations, with reliance being placed on a number of strategic partners that have not, as yet delivered new business in line with those previous expectations. Our UK personal pensions business saw organic growth of circa 9% in terms of new Sipp policies, but this was offset by similar levels of attrition.
“This general shortfall was somewhat compensated for by an uplift in new business in the Gibraltar based life assurance businesses, and in particular in relation to the short-term annuity product. The acquisition of the Sipp and Ssas book from Mercer in September 2022 was however particularly pleasing.
“We also continue to see increased activity from intermediaries in the form of illustrations for our flexible annuity products issued from our Gibraltar life companies, albeit the lead time to receiving applications remains frustratingly slow.
“During 2022 and into 2023, there has been significant changes to the senior leadership team as well as the Plc board. These changes have included a new managing director for both the Malta and Gibraltar businesses, the redundancy of our dedicated acquisition resource, and the appointment of a new head of business development.
“In addition, there has been a change of chairman and of the independent non-executive directors at Plc level. I would like to thank all of the above individuals for their contributions to STM over the years.”