Stm Share Discussion Threads

[smithie6] 06/4/2021 21:42

a few buy trades today & small price rise
hopefully that's a good sign

[smithie6] 06/4/2021 20:59

perhaps the Carey-Adams case increase the case for ppl to use authorised IFAs, with STM then administering the assets (STM administers a few billions !)

& avoiding unauthorised advisers

-----

phps STM will change its application forms to add
"has any unauthorised person/body advised you to transfer your assets to STM ?"

& reject any application that says "yes"

or something along those lines

:-(

[smithie6] 06/4/2021 20:37

sadly I don't have access either. :-(

[welsheagle] 06/4/2021 19:45

Can you provide the gist of Finncap's note, Smithie6

[smithie6] 05/4/2021 14:01

I understand that Finncap have issued a new research note.

[smithie6] 04/4/2021 19:37

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."

[smithie6] 03/4/2021 10:07

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 !!

[jimtech] 02/4/2021 17:06

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:

[smithie6] 02/4/2021 16:45

anyone seen any new profit forecast ?

[lundun42] 01/4/2021 17:05

Probably explains todays share price fall.

"Carey Pensions to pay compensation after split court ruling"

httpx://international-adviser.com/carey-pensions-to-pay-compensation-after-split-court-ruling/

[smithie6] 30/3/2021 09:31

( post moved to correct msg board)

[smithie6] 25/3/2021 11:30

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.

[smithie6] 24/3/2021 19:49

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)

[smithie6] 24/3/2021 15:46

(updated)

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.

[lundun42] 24/3/2021 15:21

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.

[smithie6] 24/3/2021 14:19

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

[smithie6] 05/2/2021 11:53

(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).

[smithie6] 04/2/2021 11:18

" 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....

[lundun42] 04/2/2021 09:50

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.

[smithie6] 03/2/2021 16:23

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.

[smithie6] 03/2/2021 16:20

"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"

[jonnyupite1] 03/2/2021 14:43

Seems a real bargain at this price regarding net cash . Earnings not disappointing considering. Future should be promising