Commenting on the results and prospects for STM, Colin Porter, CEO, said:
"These results demonstrate the continued delivery of a new look STM, with more focus on supporting the IFA markets with product initiatives in the expatriate pensions and life assurance arena that meet their specific needs. As predicted, this has allowed us to differentiate ourselves from the traditional corporate and trustee service provider industry, where the market remains challenging, and places STM in an enviable position for continued growth and profitability for the coming years."
I am pleased to present the interim results for the six months ended 30 June 2014, which show the Group performing in line with management expectation.
The growth in turnover experienced in 2013 continues to be delivered during 2014. Pleasingly, profitability, which was previously lagging turnover, has also increased during the first half of 2014 as the Group has been able to take on this revenue with little further investment in resources being needed.
The Business and Product Development team, newly structured earlier in the year, has been working tirelessly to deliver further specialised financial services products which cater for the specific needs of our clients. They have also made inroads into tailoring our products to meet the requirements in new jurisdictions, again with a focus on the pensions and life assurance markets. This focus has been primarily aimed at the International IFA market, rather than the traditional routes to market of accountancy and law firms for the Corporate and Trustee Service ("CTS") Provider sector.
This has resulted in solid and steady continued growth in our Pensions division. I am also pleased to note that STM Life is now gaining traction and becoming a Group profit contributor with turnover and profitability increasing month on month.
Whilst, as previously reported, the CTS sector remains challenging given the economic climate, the Board believes that there remain opportunities in emerging and less developed markets.