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 Shares Traded Last Trade
  0.00 0.0% 27.00 72,675 07:47:46
Bid Price Offer Price High Price Low Price Open Price
26.00 28.00 27.00 27.00 27.00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
General Financial 23.25 3.92 5.73 4.7 16
Last Trade Time Trade Type Trade Size Trade Price Currency
14:20:37 O 7,000 27.38 GBX

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Date Time Title Posts
19/10/202010:19STM Group998
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14/7/200509:52Streetnames - an interesting shell47

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Stm (STM) Most Recent Trades

Trade Time Trade Price Trade Size Trade Value Trade Type
2020-10-20 13:20:3827.387,0001,916.60O
2020-10-20 13:20:2127.5025,0006,875.00O
2020-10-20 10:00:1727.5727,1797,491.92O
2020-10-20 09:50:1927.385,0001,369.00O
2020-10-20 09:19:0028.00700196.00O
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Stm (STM) Top Chat Posts

Stm Daily Update: Stm Group Plc is listed in the General Financial sector of the London Stock Exchange with ticker STM. The last closing price for Stm was 27p.
Stm Group Plc has a 4 week average price of 25.50p and a 12 week average price of 25.50p.
The 1 year high share price is 44.50p while the 1 year low share price is currently 19p.
There are currently 59,408,087 shares in issue and the average daily traded volume is 308,914 shares. The market capitalisation of Stm Group Plc is £16,040,183.49.
smithie6: uf, dissappointing to see such a price fall & after the share price perf. was doing nicely over recent weeks/months at least it has a lot of recurring turnover to support many costs while it navigates this
smithie6: some data per share performance over recent years A) yr to Dec. '14. 2014. no. of shares 53 million & 63m diluted turnover = £15.9m per diluted share = 25.2p net cash £5.7m. per diluted share = 9p B) yr to Dec. '19 no. of shares 59.4 million & 60.4m diluted turnover = 23.3m per diluted share = 38.6p net cash £17.2 m. per diluted share = 28.5p ------ performance - turnover per share up by about 50% wrt 2014 (25.2p to 38.6p /diluted share) - net cash per share up from 9p/share to 28.5p/share (& if had retained cash paid out via divis it would be 28.5p+ ~7p = 35.5p !; from 9p to 35.5p cash/share in 6 years, impressive !) about x3 what it was !! & 28.5p/share is 75% of the share price, whereas it was perhaps 24% in 2014 (if take the share price as 38p, share price rose to 70p at which time the cash/share as a % was much lower of course) ----- at many small AIM cos. they keep raising money by issuing new shares...while the perf. data "per share" normally/often keeps falling at STM you can see that the number of shares is about the same in 2020 as it was at Dec 31 2014. So the various acquisitions made during the intervening years have all been basically/overall funded from profits !, improving the per share data. Excellent. ----- good numbers imo with the high cash /share surely giving good downside protection for the share price, coupled with the high recurring revenue ...hopefully the profit numbers will improve over the next 2 years as the BOD expects (with the share price following along)
smithie6: interesting in March 2015 the co. reported annual eps as 2p (a big jump from previous year) & in 2015 the share price climbed up to 70p in the months after those results yet now the turnover & profit per share are higher (turnover up 50%) but yet the share price is just under 40p ! undervalued imo.
smithie6: Hi Brian interesting I've been in STM for some years as well, going back to when they didnt pay any divi & a divi was a hoped for future event ! (2011-2014 I guess !!) (which started again in June 2016) & since then they have paid about 7p in divi, & still got good numbers for finance & stability/risk, =very good imo. it might be a dull wait for cost cutting (& implementation of new IT) to increase the EPS & the share price but for me its a very good risk/reward situation noting the very high level of recurring just turning the handle over some time it should happen imo.
value hound: From Master Investor FWIW: STM Group – Looking very cheap indeed By Mark Watson-Mitchell 09 September 2020 £700m assets under management, £17m cash in the bank, £2.5m profits, 85% annual recurring revenue, 9 times earnings, 5% yield and only valued at £19.6m – looking very cheap indeed. Yesterday’s interim results announcement by this financial services group looked disappointing, but that was just the ‘on the face of it’ view. I spoke to the CEO and finance director of the £19.6m capitalised STM Group (LON:STM) and I repeat my opinion of the company set out in my late May profile – that the shares are massively undervalued. The AIM-quoted company has operations in the UK, Gibraltar, Spain, Jersey and Malta. It employs some 260 people and has over 160,000 customers across 126 countries. Its basic business is the delivery of specific financial service products to professional intermediaries, together with the administration of assets for its international clients with a view to help wealth structure for retirement, estate and succession planning. The half-timers to end-June this year reported revenue down £0.1m at £11.8m and pre-tax profits of £1m (£1.1m). The fall back was due to a mix of Covid-19 impact and increased costs, together with heavy IT spend. The staggering point that the market seems to have missed is that it has a magnificent annual recurring revenue running at 85% of the total. Just think of the stability that offers any finance director, or banker, in assessing ongoing commitments. Although the group has a £5.5m acquisition facility with RBS, it is actually carrying a very healthy £17m cash at bank. The group is actively seeking out fresh acquisitions but is mean on its purchase criteria. It is operating an ongoing ‘buy to build’ strategy and has been very successful in doing so. It looks for other companies in its own marketplace operating with revenues of £2m to £3m for which it is prepared to pay 2x revenue. Larger companies elsewhere in the sector are paying 5x to 7x for books of larger revenues. The key factor, though, is the longevity of the pension books that STM acquires. On the new business side, the company has seen a bit of a slowdown in the first half. There is a lot of enquiry and quoting given but decisions have been slowed down by the lack of person-to-person marketing because of the virus. But that will soon start to pick up again. Two thirds of total revenues come from its pensions business, a sixth from life assurance, and similar between corporate trustee and other services. As a matter of interest, it has about £700m of assets under management. The group has some 59.4m shares in issue. Large holders include Premier Miton (16.99%), Clifton Participations Inc and Alan Kentish (CEO) (11.31%), Septer Limited (10.85%), River and Mercantile Asset Management (5.64%), Kestrel Partners (3.69%), and Aeternitas Imperium Privatstiftung (3.59%). The company’s broker, finnCap, is looking for a full-year turnout of £24.1m revenue and £2.5m pre-tax profits, worth 3.5p in earnings and double covering the 1.7p estimated years dividend per share. That is on 9 times earnings and a 5% yield. So, with the 2020 financial year close to ending we look forward to predictions for the 2021 and subsequent year. £28.4m in revenue next year could almost double pre-tax profits to £4.5m, giving 6.2p of earnings and treble covering a 1.8p dividend per share. That would put the shares out on 5.2 times prospective earnings. Then the 2022 year might see £30.2m revenues and £5.9m of profits, with 8.2p of earnings and a four-times covered 2p dividend per share. Well, a 3.9 p/e – what more can I say? If you haven’t already got the message, then surely those estimates will convince you that this group is on an excellent recovery track and that its shares are substantially undervalued. The shares closed last night at 32.5p after a dealing volume of some three and a half times the daily average. My short-term target price seems easily attainable and could give an upside of over 50% from now.
smithie6: perhaps I didnt explain my point enough If a £1000M cap. value company borrow 250M to make acquisitions, when it has no debt, I think we'd all agree it is fairly significant transaction. If a 20M company borrows ~£5M to make acquisitions it is also a fairly significant transaction. I think you have to agree. ----- a £10-20M acquisition by STM would be a merger & require issuing of new shares. For 20M it would be a 50:50 merger. 1 new share for each existing one, given to the owners of the acquired company. (since STM couldnt imo borrow say 20M, & shouldnt !) Would infer a high amount of risk for STM shareholders & loss of control for the existing large shareholders in STM (& they probably wouldn't want that) & such a share based merger would half STM's existing profit/share, while adding the profit of the merged co. That's not the type of deal I would want.
lundun42: Smithie6 you said "little debate here, surprising after the co. taking out a loan of 1/4 of the cap. value of the co......a significant step imo". My point is that surely the cap. value of STM has little relevance to the new loan. Yes it's a step but imho it's not that significant in the context of STMs past borrowing levels and acquisition activities, more like business as usual given their regularly stated strategy of further acquisitions. Yes the latest one has helped the share price and another should do the same but as I intimated before imo so far these aren't of the transformational kind that would really get the share price motoring. A £10-£20m acquisition, now that would be significant! It will be interesting to see what their half year results look like next month.
lundun42: Re: Investors champion market wariness and other comments. IMO the market doesn't like surprises and unfortunately STM has regularly delivered over the past few years e.g. Regulator troubles, CEO arrest, last years profits warning. I think they need to start coming good on the optimism put out in the last few annual reports to convince investors that they're on the right track and past issues are well behind them. It's disappointing that the recent share price improvement hasn't held up above 30p but thankfully I was able to take some profits before the price slipped. If it continues to drift down it might be time to pick some up again. Alternatively it would be nice to think that they could be a target for another acquisitive group which might do wonders for the present share price! A larger player could probably strip a lot of cost out as the STM board & head office overheads must be at least circa £2m (e.g.YOY board costs increased 46% - Board shown as £800k in accounts but when you add in any bonuses etc and CoSec and other group exec costs like Risk/Audit it must easily be north of £1.5m), so an immediate uplift in profits for an acquirer who already has those capabilities and can strip out other duplicate costs.
cheshire man: Article in full for those not subscribed Investorschampon STM: shares soar on reassuring results STM Group (LON: STM), the financial services group which is endeavouring to diversify away from its offshore roots, announced encouraging results for the 12 months ended 31 December 2019. A November 2019 trading update saw the share price tumble and the latest announcement reassured that all was not as bad as the market seemed to imply. While revenue rose 9% to £23.2m, pre-tax of £3.9m was marginally below the prior year’s £4.0m. The net cash inflow from operating activities of £3.1m lifted year end net cash £17.2m, although a significant proportion of this balance forms part of the regulatory and solvency requirements. The growth in revenue was due to the acquisition of Carey, which completed in February 2019 and brought new SIPP and workplace pension business. The UK SIPP market is well supported by some excellent businesses and STM may struggle to grow the Carey business in the face of stiff competition, rising professional indemnity costs and legacy issues with the Carey business which included a loss-making auto-enrolment business. STM has attractive defensive attributes with annual recurring revenue of 77% underpinning forecasts. The current rating and valuation (££16.5m) looks very modest for a business which is highly cash generative and was previously forecast to deliver 6.5p of earnings per share in 2021, equating to a forecast multiple of only 4.3x at the current share price of 28p. While earnings are clearly subject to revision that looks very reasonable. The UK businesses acquired, while far less profitable, should also help dispel the air of distrust which appears to hang over its offshore operations.
lundun42: My hope for the shares is that they’re a takeover target from a much bigger player. I don’t hold out much hope the share price improving significantly otherwise. Their previous annual reports have always been pretty optimistic about their growth prospects but so far they don’t seem to be delivering much. DYOR but my view comes from info gleaned from their group and company websites etc. for the three main parts, Corporate Trustee, Pensions and Insurance. The Trustee business is described by STM as legacy and clearly isn’t growing given increased worldwide scrutiny by tax authorities since the panama papers affair which must have killed demand for offshore trusts etc. Their pensions business is europe with QROPS and now UK Sipps and auto enrolment since recent acquisitions. The QROPS operation is shown as the largest part of their total revenue but growth of this must have been badly hit since HMRC introduced the overseas transfer charge a few years ago and for now all movement of Brits heading to sunnier climes with their pensions in tow will have ended for some time to come. I don’t imagine Brexit will help either on that front. In the UK their SIPP business is probably well below critical mass to compete with the big firms and new SIPPS and transfers from final salary schemes must have dried up since the various scandals that caused the FCA to get involved. Smithie6 - You mention about pension savers continuing to save which is true but it looks like they charge fixed fees for pensions so savers adding more money to pensions has no effect on their revenue. They need new customers to grow their fee income and the current and future effects of virus crisis will surely have an impact on the number of new pensions being entered into, either through increased unemployment and fewer new firms needing auto-enrolment pensions. STM has two insurance businesses and fyi their solvency reports are on their websites. It looks like the London Colonial part hasn’t written any new business for many years and the STM one has reported declining premium income since 2016. If you discount the one-off changes to the reserves held by the insurance companies the group reports don’t show any real growth in these businesses. They also stated in 2018 that they were moving the STM insurance business to Malta to deal with brexit which was good news but 2 years on it looks like that hasn’t happened yet as the regulator websites still show it in Gibraltar. If STMs revenue isn’t going to grow they need to reduce their costs if profitability is to at least get back to previous levels. The £500k increased professional insurance cost mentioned in last years profits warning will be baked into the cost base now as well as additional governance costs previously reported so it will be interesting to see if they can do anything about their cost base. In the meantime maintaining the dividend will at least provide some relief to investors.Fingers crossed!
Stm share price data is direct from the London Stock Exchange
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