Share Name Share Symbol Market Type Share ISIN Share Description
Stm Group Plc LSE:STM London Ordinary Share IM00B1S9KY98 ORD 0.1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -0.50 -1.89% 26.00 25.00 27.00 26.50 26.00 26.50 46,199 09:55:57
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
General Financial 22.4 1.2 2.9 8.8 15

Stm Share Discussion Threads

Showing 1126 to 1148 of 1375 messages
Chat Pages: 55  54  53  52  51  50  49  48  47  46  45  44  Older
Can you provide the gist of Finncap's note, Smithie6
I understand that Finncap have issued a new research note.
copy & paste of an article about Sanne

doing similar financial admin. work to STM but its a much bigger company

trades at a p/e of 20.4.

"The shares currently trade on a price earnings ratio of 20.4 times earnings, below the long run average, but by no means cheap. There is a 2.6 per cent prospective dividend yield on offer, but still the group will have to grow if it's to deliver for investors."

Does the ruling mean that no person can move money from 1 class of investment to another without an IFA first agreeing that it is an ok thing to do, for that person's investment situation ?

ie. that a person can not make the decision for themselves for what to do with their own money !!

The ruling shouldn't affect STM figures. When they bought Carey they had seller indemnities and insurance cover so their exposure is minimal.
See RNS here:

anyone seen any new profit forecast ?
Probably explains todays share price fall.

"Carey Pensions to pay compensation after split court ruling"


( post moved to correct msg board)
STM still has an office in Spain
with turnover reduced in H1 to 300k, from 500k. I would guess that it is loss making with such a low turnover, so phps the co. might be looking to sell that as well.

....however, Sovereign didn't want/need it as part of the recent acquisition, or it wasn't offerred.

maybe in the coming days we might see a new profit, turnover etc forecast from Edison or similar

but this 600k reduction in profit won't help/benefit that forecast

but the nett cash situation has increased
& the nett cash versus the cap. value makes the shares attractive imo

(& last part of the bank debt was paid off last October)


the share of annual plc costs charged to the subsidiary of £300k
must be included in the subsidiary accounts otherwise these costs don't exist !!

so, imo, it means that the subsidiary made an annual profit of £600k "before" counting the £300k/year costs that the subsidiary pays to the group plc, giving a result of £300k.

so, selling the subsidiaries reduces the on-going profit by ~600k !
which is a notable % of the group profit. :-(

but the STM MD hopefully has a good use for the money obtained, we've seen a number of acquisitions over recent years & the co. has stated that it is looking at possible acquisitions.

I'm not great with numbers but in simple terms won't the group profit be reduced by £600k? In addition to the £300k profit contribution from the sold subsidiary the announcement also mentions £300k of recharged costs that will now have to be absorbed by the Group.
looks like the subsidiary sale produces a cash lump for the co. of about 2 million pounds (once assets of about 0.6 million is paid for, over X months)

which gives more headroom between the regulatory cash/funds reqt. & what exists to meet the reqt.
(& the regulatory reqt. is slightly reduced. is it £300-400k ??)

& the cash input gives extra firepower to do an acquisition(s) or if none is subsequently made then the cash could pay off a chunk of the remaining bank loan & reduce the interest cost (& reduce the reduction in profit)
My guess is that an acquisition will be made, at some time.

but, the annual group profit has been reduced, by 300k, unless a profitable acquisition is made using the cash from the sale

(maybe the FD stepping down might also be linked to STMs growth in the UK

during most of the FDs 17 years at STM, the co. was Gibraltar based. So logic says that the FD lived/lives in or near Gibraltar & that their friends/family/hobbies are there.

RNS says that the new FD will be UK based, Milton Keynes I assume since that is STMs UK base.
So, perhaps the FD was travelling a fair amount to the UK (& phps to the subsidiary in Malta as well), & phps some pressure from the BOD to relocate to Milton Keynes & phps they didn't want to do it & phps they prefer to stay in the Gib. area. (better weather, drive to go skiing at Sierra Nevada, Spain, Algarve & Africa on the doorstep).

" CFO resignation voluntary or pushed"

voluntary imo
been at STM for 17 years !
so her loyalty book is fully stamped up I think

....says that going to look at other opportunities, but who knows perhaps just going to retire & spend more time doing hobbies, the garden, time with friends/family

one assumes she is quite financially solid after getting a high income for many years & house prices & stock mkts also having risen a lot during that time, & imo is probably able to retire if they chose to.

& being the FD year after year must be quite a grind I assume. & with the increased supervision inside the company phps that has increased. & with the different subsiduaries in different countries with different tax laws it must be a fair task to manage/supervise it all.

& is it now about 250 staff, & costs of about 20 million, a lot movement of pay, NI, etc etc to be supervised, although sure there are staff to do most of that.

apart from acquisitions (2 in 3 years ?) it is recently surely almost identical work each year for the FD, which I assume hence might be a grind, little challenge. The main tasks at STM are I think trying to increase sales, any remaining integration tasks (of acquisitions) & doing the IT projects to automate more of the work; neither being tasks involving the FD.


The MD was previously the IT director & he got the MD job imo in order to apply those skills....& he is part way through the job of renovating/increasing the use of IT (to get the costs down) so he isn't going to go anywhere at the moment, imo....

Maybe the other news also had some effect. Senior management changes often provoke investor activity and a change of sentiment. CFO resignation voluntary or pushed? - hard to tell with carefully worded announcements but perhaps a sign of other Board level change, CEO, etc? but IIRC the CEO owns a chunk of the company so maybe not? However a price move in the right direction regardless.
the recent trades at 26p, 27p, 28p show how sensitive a share price is to the mood of holders....& the boredom factor
& I guess due to mental stop losses

I'm sure that some people sold just because they saw the fall in price from 30p to sell to 26-27p & they started worrying & then just sold; rather than looking at the fundamental numbers.

"if we take the Finncap number of £4.7 million for ebitda

& then take off ~£200k for interest on the loan of £5.5 million (£150k might be closer since >50% of the loan is unused at the moment, so lower % interest rate)

& say £ 500k for tax

would give adjusted (*1) PAT
= £4.7 - 200k - 500k
= £4 million

*1. excluding depreciation & amortisation since they are not cash charges

£4 million versus a cap. value of £18 million.
& this is also roughly the cash generation excluding one offs such as loans, acquisition payments.

nuts imo. bargain"

Seems a real bargain at this price regarding net cash . Earnings not disappointing considering. Future should be promising
Decent enough trading update today. I'm happy to hold.
AFH (wealth management co. based in the midlands with 20,000 clients) has received an agreed takeover offer

share price is up.

is STM a takeover target ?


AFH looks to have revenue & PBT of about 3x that for STM but AFH has a cap. value of 195million, much higher than 3x the cap. value of STM (£18 Million. x3 =~ £54 million)
clearly wealth management is much more highly valued than what STM does !!

...I was just thinking out loud

about any options for STM that might get the share price up

them getting bought up if the expected/predicted increased performance (PBT of 4.7 million for 2021 :-) ) doesnt happen (I think it will) is another option

The idea that STM can transition to becoming an investment manager is frankly bizarre. Administration is a very boring business where the aim is to not make mistakes. From a client of STM's point of view, you want STM to be reliable but also quite invisible. And low risk. No screw ups. This mindset does not marry with investment managment where you have to take (calculated) risks all the time. If they were to "pivot" to IM I'd be inclined to sell out.
Chat Pages: 55  54  53  52  51  50  49  48  47  46  45  44  Older
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