Source - LSE Regulatory
RNS Number : 3466Z
STM Group PLC
14 September 2022
 

http://www.stmgroupplc.com/sp/stmgroupplc-logob.png

 

                                          



 

14 September 2022

 

 

STM Group Plc

("STM", "the Company" or "the Group")

Unaudited Interim Results for the six months ended 30 June 2022

and

Investor Presentation

 

STM Group Plc (AIM: STM), the multi-jurisdictional financial services group, is pleased to announce its unaudited interim results for the six months ended 30 June 2022.

Financial Highlights:


2022
(reported)

2022

(underlying)**

2021
(reported)

2021
(underlying)**

Revenue

£11.3m

£11.3m

£11.4m

£10.6m

EBITDA*

£1.4m

£1.7m

£1.5m

£1.6m

Profit before taxation ("PBT")

£0.5m

£0.8m

£0.9m

£0.7m

Profit before other items margin

12%

15%

13%

15%

Earnings per share

0.62p

N/A

1.28p

N/A

Cash at bank (net of borrowings)

£17.0m

£16.5m

Interim dividend

0.60p

0.60p

 

* EBITDA is defined as revenue from continuing operations less operating expenses i.e. profit from continuing operations before taxation, net finance income costs, depreciation, amortization, and non operating items such as bargain purchase gains and gains on the sale of investments

** Underlying statistics are net of certain transactions which do not form part of the regular operations of the business as further detailed in the table below

Operating Highlights:

·             Predictable recurring revenue remains a cornerstone of the business

·             UK Corporate Pensions business revenues continue to grow despite "small pot" legislation having come into effect

·             Strategic partnerships continue to be developed in the UK, for example Options SIPP is partnering with IG Group to provide its pensions SIPP wrapper

·             The Mercer SIPP and SSAS acquisition recently completed, post period end, adds further scale to the UK offering, in line with the strategy, doubling the UK SIPP & SSAS business

·             Further development of operating model to drive increased revenue growth

·             Significant new business now being generated in H2 2022 from our niche annuity products

 

Commenting on the results and prospects, Alan Kentish, Chief Executive Officer, said:

"As previously reported, the first six months of the year have been slower than anticipated for new business, although both the pensions and insurance businesses show an uplift in revenues relative to the prior year comparable period.

"The completion of the SIPP and SASS portfolio acquisition from Mercer Ltd as well as the continued development of several strategic partnerships in the UK further augment the Group's UK focus and provide scale for further growth. Equally, the Corporate pensions business continues to grow despite changes in legislation coming into effect.

"Cost management and operating efficiencies remain key areas of focus for the Plc board.

"Further to the recently announced Board changes, I take this opportunity to express my thanks to Duncan Crocker and Malcolm Berryman who recently stepped down from their roles as Chair and independent Non-Executive Director respectively.  I equally take this opportunity to welcome Nigel Birrell as he assumes the role of Group Chair and as independent Non-Executive Director, I look forward to working closely with him in the coming months.

"There remain a number of exciting opportunities which, albeit slower to come to fruition than we would have liked, makes us optimistic for the future despite the unsettled macro-economic outlook. In particular, our niche annuity products are now starting to produce significant new business."


Investor Presentation: 2.00pm today, 14 September 2022

The Directors will hold a presentation to introduce STM Group Plc to investors and cover the Interim Results and prospects at 2.00 p.m. today, Wednesday 14 September 2022.

 

The presentation will be hosted through the digital platform Investor Meet Company. Investors can sign up to Investor Meet Company and add to meet STM Group Plc via the following link https://www.investormeetcompany.com/stm-group-plc/register-investor.

 

For those investors who have already registered and added to meet the Company, they will automatically be invited. 

 

Questions can be submitted pre-event to STM@walbrookpr.com or in real time during the presentation via the "Ask a Question" function. 

 

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 (as it forms part of retained EU law as defined in the European Union (Withdrawal) Act 2018).

 

For further information, please contact:

STM Group Plc


Alan Kentish, Chief Executive Officer

Via Walbrook PR

Nicole Coll, Chief Financial Officer

www.stmgroupplc.com

finnCap

Tel: +44 (0)20 7600 1658

Matt Goode / Emily Watts / Abigail Kelly- Corporate Finance

Tim Redfern / Richard Chambers - ECM

www.finncap.com

Media enquiries:

Walbrook PR

Tel: +44 (0) 20 7933 8780

Tom Cooper / Joseph Walker

Mob: +44 (0) 797 122 1972

STM@walbrookpr.com



Notes to editors:

STM is a multi-jurisdictional financial services group traded on AIM, a market operated by the London Stock Exchange. The Group specialises in the administration of client assets in relation to retirement, estate and succession planning and wealth structuring.

 

Today, the Group has operations in the UK, Gibraltar, Malta, Australia and Spain. STM has developed a range of pension products for UK nationals and internationally domiciled clients and has two Gibraltar life assurance companies which provide life insurance bonds - wrappers in which a variety of investments, including investment funds, can be held.

 

STM's growth strategy is focused on both organic initiatives and strategic acquisitions.

 

Further information on STM Group can be found at www.stmgroupplc.com




 

Chief Executive's Review

Overview

The first half of 2022 was slower than anticipated for new business, although both our pensions' businesses and life assurance businesses are showing an uplift in revenue compared to the previous half year position. Revenues from our businesses in Gibraltar and Malta remain consistent and in line with management expectations, but revenues in the UK SIPP business are behind plan as some strategic partners, whilst onboarded, have yet to fully roll out the product to their distribution network. UK Corporate pensions business revenues continue to grow despite the impact of the "small pots" legislation coming into force. 

Recurring revenue, a cornerstone of our business, continues to hold up well and gives the predictability to build a strategy around organic growth. Like-for-like revenue comparison shows a steady uplift compared to the previous 2021 half year.

Operational expenses for the first six months were £10.8m (2021: £10.6m), broadly in line with management expectations, with overruns in certain businesses being compensated by savings in others. In relation to non-operational expenses, as classified as "other items" on the income statement, the non-cash item of amortisation of the client portfolios and IT development programs are higher than originally anticipated, leading to a reduction in the reported PBT number.

Optimisation of the operating model continues so as to improve efficiency and increase margins.  This is primarily driven by the roll-out of our internal administration system and the automation of processes which will continue into the second half of the year, with margin improvements expected in second half year and into 2023.

Financial review

Financial performance in the period

The Group delivered revenue in the six months to 30 June 2022 of £11.3m (2021: £11.4m). The prior year included revenues from the Corporate Trust Services business of £0.8m which was disposed of in March 2021. Hence, on a like-for-like basis we have seen revenue growth of 7% across the pensions and life businesses.

Recurring revenues for the period have remained consistent whilst organic growth has been achieved in the UK Corporate pensions business and Gibraltar life business.

Profit before other items for the period is £1.4 million (2021: £1.5 million), with reported profit before tax of £0.5 million (2021: £0.9 million). During the period there have been a number of one-off and non-recurring costs such as costs associated with internal restructures. Thus, underlying profit before other items is £1.7 million (2021: £1.6 million) and underlying profit before tax of £0.8 million (2021: £0.7 million).

The reconciliation of reported measures to underlying measures is made up of items which are either non-recurring or exceptional and thus do not form part of the normal course of business. This reconciliation for all three key financial measures is shown in the table below:

RECONCILIATION OF REPORTED TO UNDERLYING MEASURES


REVENUE

EBITDA

PROFIT BEFORE TAX


2022

2021

2022

2021

2022

2021


£m

£m

£m

£m

£m

£m








Reported measure

11.3

11.4

1.4

1.5

0.5

0.9








Add: integration and acquisition costs for H1

-

-

-

-

-

-

Add: other non-recurring costs

-

-

0.3

0.2

0.3

0.2

Less: gain on sale of investments

-

-

 

-

-

(0.1)

Less: bargain purchase gain and derivative asset

-

-

-

-

-

(0.2)

Less: effect of disposal of Companies and Trust Services


(0.8)


(0.1)


(0.1)

Underlying measure

11.3

10.6

1.7

1.6

0.8

0.7


Cashflows

Cash and cash equivalents at 30 June 2022 were £18.1 million (2020: £18.3 million) with cash generated from operating activities being £1.2 million (2021: £1.2 million) thus exceeding our reported profit before tax.

Whilst cash balances have decreased compared to the same period for the prior year, they have remained fairly consistent since the half-year end.

During the period we also repaid £0.3 million of our bank loan with £1.1 million still outstanding. Net cash and cash equivalents as at 30 June 2022 was therefore £17.0 million (2021: £17.3 million).  Whilst the Group had £4.4 million available in the credit facility as at the balance sheet date, this has been fully drawn down to fund the portfolio acquisition from Mercer that completed on 31 August 2022.

As would be expected for a Group which is regulated in several jurisdictions, a significant proportion of our cash balance forms part of the regulatory and solvency requirements. It is not possible to determine exactly how much of the cash and cash equivalents are required for solvency purposes as other assets can also be used to support the regulatory solvency requirement. However, the total regulatory capital requirement across the Group as at 30 June 2022 was £16.9 million.  

The balance sheet also gives visibility of future revenue and cash generation and, in line with all administration services businesses, the Group had accrued income in the form of work performed for clients but not yet billed of £1.6 million as at the period end (2021: £1.5 million). This gives some visibility of revenue still to be billed and collected as cash at bank.

Additionally, deferred income relating to annual fees invoiced but not yet earned stood at £3.9 million (2021: £4.0 million). This figure also gives good visibility of revenue that is still to be earned through the Income Statement in the coming months. 

Trade receivables as at 30 June 2022 were £3.4 million (2021: £3.1 million).

Dividend

I am pleased to announce that the Board has declared an interim dividend of 0.60 pence per share which is in line with the prior year. The interim dividend is expected to be paid on 16 November 2022 to those shareholders on the register on 21 October 2022. The ordinary shares will become ex-dividend on 20 October 2022.

Subject to trading continuing to perform in line with our revised expectations, the Board expects to propose a final dividend for the full year.

Review of operations

Pensions

The pensions administration businesses continue to be the cornerstone of our operations.

Pensions revenue for the period was £9.1 million (2021: £8.7 million) representing 81% (2021: 76%) of total Group revenues. Total revenue is split between £4.9 million for QROPS (2021: £4.9 million), £1.9 million (2021: £1.7 million) for the SIPP and SSAS businesses and a further £1.8 million (2021: £1.5 million) for the workplace pensions business. In addition, this year the Group also has a revenue contribution of £0.6 million (2021: £0.6 million) from third party administration and Group Pension Plans.

The recurring revenue percentage for this operating segment remains at 92%, and when combined with the relatively low attrition rates, remains a solid predictor of future divisional profitability.

Opportunities and challenges around the pensions businesses are focused on improving margins in the UK, as well as capitalising on volumes of new business from our strategic partners. Internationally, the focus is on increasing revenue through our occupational pension schemes for international businesses.

Life Assurance

Revenue for the combined Life Assurance businesses amounted to £1.9 million compared to £1.6 million in 2021.   In a similar manner to the pensions operating segment, our life assurance business also has high levels of recurring fees.  

Our flexible annuity products aimed at the UK market remain the key focus for sustainable organic growth within our life businesses. Conversion times for new business remain slow and unpredictable, and continued effort to expand our intermediary base is an important part of improving our new business numbers.  In addition, the businesses are in the process of launching a suite of portfolio bonds for the UK market, which will produce a steady flow of new revenue, giving additional predictability to future organic growth. Distribution of these products will be via our strategic partners and thus additional costs for such products will be minimal.

Outlook

In the second half of 2022, we anticipate a healthy uplift in new business flow for our life assurance businesses in relation to certain of our annuity products, as well as increased new business flows for our SIPP business through our strategic partners; such an example being the recent announcement in relation to our partnering with IG Index.

However, a further benefit of our strategic partner program is that we anticipate that some of our other core products will also be made available soon via these platforms.

Having completed the acquisition of the SIPP and SSAS books from Mercer on 31 August, it is paramount that we integrate this business, and the staff, into our UK Options business in an orderly and efficient manner. The acquisition doubles our UK SIPP and SSAS business and will allow us to gain some benefits of scale. The team based in Cardiff is experienced and keen to bring its own new business relationships and opportunities into the STM family.  

As previously announced, we anticipate the acquisition will generate approximately £0.87m in additional EBIT to STM's current UK business, Options, on an annualised basis, after a twelve month phased integration process.  As a result of transaction costs of £0.3 million, and specific integration costs of £0.3 million, it is anticipated for the four months to 31 December 2022 that the acquisition will be a negative contribution of £0.3 million to the Group's result.

As we move forward towards the last quarter of 2022, we have made some significant changes within our board structure, as well as at subsidiary board level both at non-executive, as well as senior management level. All of the above is conducive to accelerating our revenue growth and improving our profit margins.

I look forward to updating the market with our progress in due course.

 

Alan Kentish

Chief Executive Officer

 

 

CONSOLIDATED INCOME STATEMENT

For the period from 1 January 2022 to 30 June 2022

 



Notes

Unaudited

6 months to

30 June

2022

£'000

Unaudited

6 months to

30 June

2021

£'000

Audited

Year to

31 December

2021

£'000


Revenue

4

11,323

11,386

22,355


Administrative expenses


(10,744)

(10,629)

(20,982)


Profit before other items


579

757

1,373


OTHER ITEMS

Gain on disposal of subsidiaries


-

 

 

120

219


Gains on revaluation of financial instruments


-

222

406


Finance costs


(99)

(152)

(330)


Movement on deferred consideration


-

-

330


Impairment of goodwill


-

-

(798)


Profit before taxation


480

947

1,200


Taxation


(111)

(187)

542


 Profit after taxation


369

760

1,742

OTHER COMPREHENSIVE INCOME

Items that are or may be reclassified to profit and loss

Foreign currency translation differences for foreign operations


13

(37)

(33)

Total other comprehensive income/(loss)


13

(37)

(33)


Total comprehensive income for the period/year


382

723

1,709


Profit attributable to:

Owners of the Company


305

800

1,749


Non-Controlling interests


64

(40)

(7)




369

760

1,742


Total comprehensive income

attributable to:

Owners of the Company


318

763

1,716


Non-Controlling interests


64

(40)

(7)




382

723

1,709


Earnings per share basic (pence)

5

0.62

1.28

2.94


Earnings per share diluted (pence)

5

0.62

1.28

2.94

 

The results for the period from 1 January 2022 to 30 June 2022 relate to continuing activities. The results for the period from 1 January 2021 to 31 December 2021 include both continuing and discontinued activities (see Note 6).

 


 

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 30 June 2022

 

 


Notes

Unaudited

30 June

2022

£'000

Unaudited

30 June

2021

£'000

Audited

31 December

2021

£'000

ASSETS





Non-current assets





Property, plant and equipment


1,317

1,692

1,663

Intangible assets


19,437

20,066

19,355

Financial assets


881

697

881

Deferred tax asset


76

85

76

Total non-current assets


21,711

22,540

21,975






Current assets





Accrued income


1,550

1,447

1,311

Trade and other receivables

9

6,549

4,019

7,699

Receivables due from insurers


24,130

3,600

24,130

Cash and cash equivalents

8

18,118

18,207

Total current assets


50,347

27,640

51,347

Total assets


72,058

50,180

73,322






EQUITY





Called up share capital

12

59

59

59

Share premium account


22,372

22,372

22,372

Retained earnings


14,734

13,836

14,429

Other Reserves


(467)

(482)

(480)

Equity attributable to owners of the Company


36,698

35,785

36,380

Non-controlling interests


(388)

(485)

(452)

Total equity


36,310

35,300

35,928

 

LIABILITIES





Current liabilities





Liabilities for current tax


786

890

640

Trade and other payables

10

9,325

8,081

10,532

Provisions


24,130

3,600

24,130

Total current liabilities


34,241

12,571

35,302

Non-current liabilities





Other payables

11

1,074

1,774

1,628

Deferred tax liabilities


433

535

464

Total non-current liabilities


1,507

2,309

2,092

Total liabilities and equity


72,058

50,180

73,322

 

 

 

 

CONSOLIDATED CASH FLOW STATEMENT

For the period from 1 January 2022 to 30 June 2022

 

 


Notes

Unaudited

30 June

2022

£'000

Unaudited

30 June

2021

£'000

Audited

31 December

2021

£'000

Operating Activities





Profit for the period/year before tax


408

947

1,200

Adjustments for:





Depreciation of property, plant and equipment


333

369

659

Amortisation of intangible assets


445

391

791

Impairment of goodwill


-

-

798

Taxation paid


35

(447)

(14)

Unrealised gains on financial instruments at FVTPL


-

(222)

(406)

(Increase)/decrease in trade and other receivables


1,150

(996)

(2,226)

(Increase) in receivables due from insurers


-

-

(20,530)

Decrease/(increase) in accrued income


(239)

291

8

Increase/(decrease) in trade and other payables


(1,018)

817

(936)

Increase in provisions


-


20,530

Net cash from operating activities


1,186

1,150

(126)

 

Investing activities





Disposal of investments


-

2,330

4,821

Purchase of property, plant and equipment


(13)

(193)

(352)

Increase in intangible assets


(527)

(546)

(1,032)

Net cash used in investing activities


(540)

1,591

3,437

Cash flows from financing activities





Proceeds from Bank loans


-

500

900

Bank loan repayment


(275)

(138)

(1,050)

Lease liabilities paid


(473)

(437)

(469)

Dividends paid

7

-

(505)

(861)

Net cash from financing activities


(748)

(580)

(1,480)

Increase/(decrease) in cash and cash

equivalents


(102)

2,161

1,831

Reconciliation of net cash flow to movement in net funds





Analysis of cash and cash equivalents during the period/year





Increase/(decrease) in cash and cash equivalents


(102)

2,161

1,831

Effect of movements in exchange rates on cash and cash equivalents


13

4

(33)

Balance at start of period/year


18,207

16,409

16,409

Balance at end of period/year


18,118

18,574

18,207

 



 

STATEMENT OF CONSOLIDATED CHANGES IN EQUITY

For the period from 1 January 2022 to 30 June 2022

 

 

 

Share

Capital

£000's

Share

Premium

£000's

Retained

Earnings

£000's

Treasury

Shares

£000's

Foreign Currency Translation

Reserve

£000's

Shares

Based

Payments

Reserve

£000's

Total

£000's

Non-Controlling Interests

£000's

Total Equity

£000's

Balance at

1 January 2021

59

22,372

13,541

(549)

(60)

162

35,525

(445)

35,080

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

Profit for the year

-

-

1,749

-

-

-

1,749

(7)

1,742

Other comprehensive income

Foreign currency translation differences

-

-

-

-

(33)

-

(33)

-

(33)

Transactions with owners, recorded directly in equity

Dividend paid

-

-

(861)

-

-

-

(861)

-

(861)

Changes in ownership interest

31 December 2021 and

1 January 2022

59

22,372

14,429

(549)

(93)

162

36,380

(452)

35,928

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

Profit for the year

-

-

305

-

-

-

305

64

369

Other comprehensive income

Foreign currency translation differences

-

-

-

-

13

-

13

-

13

Transactions with owners, recorded directly in equity

Dividend paid

-

-

-

-

-

-

-

-

-

Changes in ownership interest

At 30 June 2022

59

22,372

14,734

(549)

(80)

162

35,398

(388)

(36,310)

NOTES TO THE CONSOLIDATED RESULTS

For the period from 1 January 2021 to 30 June 2022

 

 

1.  Reporting entity

 

STM Group Plc (the "Company") is a company incorporated and domiciled in the Isle of Man and was admitted to trading on the London Stock Exchange AIM Market on 28 March 2007. The address of the Company's registered office is 18 Athol Street, Douglas, Isle of Man, IM1 1JA. The Group is primarily involved in financial services.

 

2. Basis of preparation

 

Results for the period from 1 January 2022 to 30 June 2022 have not been audited.

 

The consolidated results have been prepared in accordance with International Financial Reporting Standards ("IFRS"), interpretations adopted by the International Accounting Standards Board ("IASB") and in accordance with Isle of Man law and IAS 34, Interim Financial Reporting.

 

3.  Significant accounting policies

 

The accounting policies in these consolidated results are the same as those applied in the Group's consolidated financial statements for the year ended 31 December 2021. No changes in accounting policies are expected to be reflected in the Group's consolidated financial statements for the year ended 31 December 2022.

 

4.  Segmental Information

 

STM Group has four reportable segments: Pensions, Life Assurance, Corporate Trustee Services and Other Services. Each segment is defined as a set of business activities generating a revenue stream and offering different services to other operating segments. The Group's operating segments have been determined based on the management information reviewed by the CEO and Board of Directors.

 

The Board assesses the performance of the operating segments based on turnover generated. The performance of the operating segments is not measured using costs incurred as the costs of certain segments within the Group are predominantly centrally controlled and therefore the allocation of these is based on utilisation of arbitrary proportions. Management believes that this information and consequently profitability could potentially be misleading and would not enhance the disclosure above.

 

The following table presents the turnover information regarding the Group's operating segments:

 

Operating Segment

Unaudited

6m 2022

£'000

Unaudited

6m 2021

£'000

Audited

2021

£'000

Pensions

9,072

8,690

17,597

Life Assurance

1,910

1,638

3,402

Other Services

341

284

582


11,323

10,612

21,581

Corporate Trustee Services

-

774

774

Total

11,323

11,386

22,355

 

 

Analysis of the Group's turnover information by geographical location is detailed below:

Geographical Segment

Unaudited

6m 2022

£'000

Unaudited

6m 2021

£'000

Audited

2021

£'000

Gibraltar

2,976

3,172

6,099

Malta

3,755

3.670

7,288

United Kingdom

4,251

3,822

7,952

Jersey

-

445

445

Other

341

277

571


11,323

11,386

22,355

 

 

5.  Earnings per Share

 

Earnings per share for the period from 1 January 2022 to 30 June 2022 is based on the profit after taxation of £368,000 divided by the weighted average number of £0.001 ordinary shares during the period of 59,408,088 basic.

 

A reconciliation of the basic and diluted number of shares used in the period ended 30 June 2022 and 30 June 2021 is as follows:


2022

2021

Weighted average number of shares

59,408,088

59,408,088

Share incentive plan

-

-

Diluted

59,408,088

59,408,088

 

6.  Discontinued operation

 

On 23 March 2021 the Group disposed of its Gibraltar company and trustee services ("CTS") and tax compliance businesses. On 8 May 2021 the Group disposed of its Jersey based CTS businesses. These businesses were previously classified as held-for-sale and are now discontinued operations.

 

There results for the discontinued operation included in the six month period ended 30 June 2021 and the year ended 31 December 2021 are shown below. There are no results for discontinued operations included in the six month ended 30 June 2022:

 


£'000

Revenue

785

Expenditure

(736)

Results from operating activities

38

Income tax

_

Results from operating activities, net of tax

38

Gain on sale of discontinued operation

219

Profit from discontinued operation

257

 

The profit from the discontinued operation is attributable entirely to the owners of the Company.

 

7.  Dividends

 

     The following dividends were declared and paid by the Group during the period:

 


Unaudited

30 June

2022

£'000

Unaudited

30 June

2021

£'000

Audited

31 December

2021

£'000





0.0 pence (2021: 0.85 pence) per qualifying ordinary share

-

505

881





 

8.  Cash and cash equivalents

 

Cash at bank earns interest at floating rates based on prevailing rates. The fair value of cash and cash equivalents in the Group is £18,118,000.

 

9.  Trade and other receivables

    

Unaudited

30 June

2022

£'000

 

Unaudited

30 June

2021

£'000

 

Audited

31 December

2021

£'000

Trade receivables

3,421

3,077

3,921

Prepayments

723

581

508

Other receivables

2,405

3,962

3,270

Total

6,549

7,620

7,699

 

10.        Trade and other payables


Unaudited

30 June

2022

£'000

Unaudited

30 June

2021

£'000

Audited

31 December

2021

£'000





Deferred income

3,869

4,014

3,579

Trade payables

547

549

638

Bank loan

550

552

550

Lease liabilities

638

651

747

Contingent consideration

56

700

170

Other creditors and accruals

3,665

5,215

4,848


9,325

11,681

10,532

 

The Company maintains a credit facility with Royal Bank of Scotland (International) Ltd for £5.50 million. The facility has a 5-year term with capital repayments structure over ten years and a final instalment to settle the outstanding balance in full at the end of the 5 years. At the period-end £1.6 million of this facility had been drawn down with £1.2 million outstanding. Interest on the drawn funds is charged at 3.5% per annum over the Sterling Relevant Reference Rate, with the undrawn balance charged at an interest rate of 1.75% per annum over the Sterling Relevant Reference Rate. The facility is subject to customary cashflow to debt service liability ratios and EBITDA to debt service liability ratio covenants tested quarterly and is secured by a capital guarantee provided by several non-regulated holding subsidiary companies within the Group and debenture over these companies. Whilst the Group had £4.4 million available in the credit facility as at the balance sheet date, this has been fully drawn down to fund the portfolio acquisition from Mercer that has completed on 31 August 2022.

11.        Other payables - amounts falling due in more than a year

 

           

Unaudited

30 June

2022

£'000

Unaudited

30 June

2021

£'000

Audited

31 December

2021

£'000

Lease liabilities

273

831

637

Bank loan

625

773

900

Other payables

175

170

91


1,503

1,774

1,628

 

 

12. Called up share capital


Unaudited

30 June

2022

£'000

Unaudited

30 June

2021

£'000

Audited

31 December

2021

£'000

Authorised




100,000,000 ordinary shares of £0.001 each

100

100

100

Called up, issued and fully paid




59,408,088 ordinary shares of £0.001 each

59

59

59

 

 

13. Subsequent events

 

On 31 August 2022 STM completed the acquisition of the portfolio, net assets, and trustee companies of the SIPP and SSAS businesses, from Mercer Ltd for a total purchase price of £3.34m. The acquisition was funded through drawing down the of the unutilised portion of the RBS facility.

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END
 
 
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