Cross border financial services provider STM Group had a more challenging H2 than it had been expecting, according to a trading update on Friday.
Revenue was down roughly £0.4m ($540,000, €475,700) against target after certain new business revenues in its UK Sipp business and Gibraltar life business were slower to materialise than anticipated.
It added that there is uncertainty about whether negotiations on a number of large pieces of business – particularly around the London & Colonial annuity product – would conclude before the end of the year. It has, therefore, decided to exclude them from the revised forecast.
Similarly, Ebitda was £0.1m lower after cost savings following the migrations onto new IT systems for the UK and Gibraltar businesses were slow to appear.
As result, the STM board expects to report revenue of £22.5m, Ebitda of £3.4m and statutory profit of £1.5m for 2021.
Looking to next year, the company is targeting profit before tax of at least £2m – excluding any contribution from the London & Colonial annuity product referenced above.
It is also looking for acquisition opportunities that would give STM Group “more scale to its UK businesses”, the firm said.