STM Group (AIM:STM) good results but does this business make a happy stock market investment
The multi-jurisdictional financial services group (offshore pensions, trust and fiduciary) announced excellent interim results for the six months ended 30 June 2015. We are never convinced that these type of offshore financial services businesses make happy stock market investments, especially given the likelihood of HMRC attacking their income streams, but STM appears to be delivering for now with an expanding product offering.
STM has trading operations in Gibraltar, Spain, Jersey, Malta and Cyprus. The Group’s Qualifying Recognised Overseas Pension Schemes (QROPS) delivered through Malta have been big income generators over the past few years. Revenue for the six months came in 12% higher at £8.3m, pre-tax profit 40% higher at £1.4m and earnings per share up 18% at 1.38p. The Pensions business delivered the largest share of overall group revenue at £4.48m (2014: £3.76m) with Malta contributing £3.30m (2014: £2.69m) and Gibraltar - £1.18m (2014: £1.16m). Turnover from the Corporate and Trustee Services division accounted for 30% of the Group’s total revenue…