STM Group Plc was formed as a strategic investment company specifically to build a leading financial services group operating in the international corporate and trustee service provider (CTSPs) sector. This is being achieved through acquiring, consolidating and growing high-quality existing CTSPs which offer complementary products and services and that operate from complementary jurisdictions.

The traditional business of CTSPs is to administer and manage personal, family and commercial assets and income streams in tax efficient jurisdictions. The economic factors for CTSPs include demand for more sophisticated tax planning, particularly for high net worth individuals (HNWIs) and those approaching retirement age, and the increased movement and migration of individuals, as evidenced, for example, by the growth in the number of British expatriates living in Southern Spain.

The CTSP market is fragmented in nature, comprising a small number of very large international financial services groups and a large number of relatively small trust and company management businesses regulated by, and operating out of, single offshore jurisdictions. The Directors believe that there is a clear opportunity for consolidation in this market.

STM's first acquisition was Fidecs Group Limited, which was renamed STM Fidecs Limited when the Company was admitted to AIM in March 2007. Founded in 1989 by STM's Deputy Chairman, Tim Revill, Fidecs operates principally from Gibraltar and specialises in financial planning both for HNWIs moving to work, live or retire overseas or making cross-border investments, and for entrepreneurial, predominantly owner-managed, businesses, expanding into or re-locating to other, frequently lower, tax jurisdictions.

The Directors have considerable expertise both of the CTSP sector, and of successfully integrating acquisitions, and believe that there is an opportunity to build a significant group in the CTSP sector, due to a combination of regulatory pressures, increasing compliance requirements, the market need for more sophisticated products and services provided with an international scope, and the pending retirement of owner managers of many existing CTSPs.

The Company acquired two Gibraltar based CTSPs in 2007, the Atlas Group of Companies and Parliament Corporate Services Limited, and also acquired a book of Gibraltar business from Jordans in 2008, all of which acquisitions further consolidated STM's leading position in Gibraltar.

The Group expanded into the Channel Islands with the purchase of Compagnie Fiduciaire Trustees Limited in December 2007 and St George Financial Services Limited in June 2008, consolidating its position in that jurisdiction with the acquisition of the Zenith Group of companies in April 2010.

The Group also has offices in Malta (opened in Sliema in 2010), in Spain (acquired via the Fidecs purchase and complimented by the acquisition of an additional book of expatriate service business in 2008) and in Cyprus (opened in 2012).

admission to the AIM Market on 28 March 2007,


http://stmgroupplc.com/

Shares - Strong performance in 2014, heavy insider buying, and a price to earnings ratio of 8.1 look like an appealing mix.

23 Apr finnCap 45.00 Corporate

Been very undervalued, correcting now.

ST of IC today -



Chart break-out looms



To add to the attraction, STM's share price is on the cusp on a major chart break-out if it can move above 35p, a price level that halted progress last month and also last summer. It think it's only a matter of time before this resistance level is blown away to pave the way for a run up to the 2009 high of 47.5p, the obvious next target. A share price advance of that magnitude would be based on fundamentals, too as, at the 47.5p price level, the shares would still only be rated on 9.5 times 2016 earnings estimates and on a modest 1.2 times book value of 40p a share.

The technical indicators are very supportive of an imminent break-out: the 14-day relative strength indicator is in the mid-60s, so it is not that overbought; the moving average convergence divergence momentum oscillator is on the point of issuing a buy signal; and the share price is positioned bang in line with the 20-day rising moving average, so is not overextended above its short-term trend line.

In my book, that makes STM's Aim-traded shares a strong buy on a bid-offer spread of 33p to 35p, with almost 40 per cent share price offer to my year-end target price of 47.5p on the table. Buy.

AGM Trading Statement
RNS
RNS Number : 9190M
STM Group PLC
13 May 2015



13 May 2015



STM Group Plc

("STM" or "the Company")

AGM TRADING STATEMENT



STM Group Plc (AIM: STM), the multi-jurisdictional financial services group, is pleased to release the following trading statement which will be read out by Michael Riddell, Chairman of STM, at its Annual General Meeting ("AGM") to be held at 11am today.



"STM is pleased to confirm that it has made a good start to the financial year and trading for the start of 2015 is in line with management expectations.



"In our Outlook Statement, released as part of our Final Results in March, we advised that the focus for the Company for this current year was to "further strengthen and maximize its business development activities" to enhance the scalability of the Group and to access an increasingly global client base. We are pleased to report considerable efforts have been made by the Product and Business Development team and that very good progress is being made. In particular, the Company continues to make inroads with regards to increasing its distribution network and has so far in 2015 signed on more intermediaries than in the full previous financial year. Furthermore, STM is in the final stages of setting up a sales office in the Middle East, with recruitment for a further office in Asia well under way.



"As announced on 16 April 2015, the majority of the outstanding £2.6m convertible loan notes were successfully resolved, with either repayment or conversion into new ordinary shares in the Company. The number of loan note requests for conversion into equity in STM, including full conversion by our Director of Product and Business Development, Alan Kentish, demonstrates significant confidence in the prospects for the Company. The effect of these transactions is that the outstanding balance is now only £300,000, which represents the extent of the Company's external borrowings and results in a considerably reduced interest cost to STM. Cash balances continue to grow which, together with the low level of gearing, provides for a strong Balance Sheet from which to grow our business."

ST of IC today - New target price 60p.

Director Dealings
RNS
RNS Number : 8552N
STM Group PLC
21 May 2015







21 May 2015



STM Group Plc

("STM" or "the Company")

Director Dealings



STM Group Plc (AIM: STM), the multi-jurisdictional financial services group, is pleased to announce that Michael Riddell, Chairman of STM, acquired 137,000 shares in STM on Wednesday 20 May 2015 at 36.5p per share, representing 0.23% of the issued share capital of the Company.

25 Jun finnCap 55.00 Corporate

STM Jersey Acquittal
RNS
RNS Number : 4382R
STM Group PLC
29 June 2015



29 June 2015





STM Group Plc

("STM" or "the Group")

STM Jersey Acquittal



STM Group Plc (AIM: STM), the multi-jurisdictional financial services group, is pleased to provide an update on the attempted prosecution brought against STM Jersey by the Attorney General for the States of Jersey as notified to the market on 2 April 2015.



STM Jersey has been acquitted of all charges and found not guilty, therefore will not be sanctioned professionally or financially.



Commenting on the court ruling, Colin Porter, Chief Executive of STM Group, said:



"STM Jersey has always fully cooperated with the Attorney General and was confident of its conduct, so this is a pleasing outcome."

STM Jersey Acquittal & JFSC Public Statement
RNS
RNS Number : 4869S
STM Group PLC
08 July 2015



8 July 2015





STM Group Plc

("STM" or "the Group")

STM Jersey Acquittal & JFSC Public Statement



STM Group Plc (AIM: STM), the multi-jurisdictional financial services group, provides the following update with respect to STM Fiduciaire, the Group's Jersey division.



As announced on the 29 June, STM Jersey and its former employee were found not guilty and acquitted of all criminal charges brought by the Attorney General in Jersey relating to a criminal investigation into its obligations to file one specific suspicious activity report. The investigation related to matters pertaining in 2011. The acquittal brings the criminal prosecution to a conclusion.



In 2012 a separate regulatory investigation was conducted by the Jersey Financial Services Commission into STM Jersey's systems and controls.



The Jersey Financial Services Commission ("JFSC"), has now released a statement, which was agreed between STM Fiduciaire Ltd and the JFSC in 2012 and was agreed between the parties would be issued upon a determination that no court case would be brought or the conclusion of any court case brought by the Attorney General against a former employee. STM understands the statement agreed between STM Fiduciaire Ltd and the JFSC relates to the conclusion of the regulatory investigation in 2012.



The JFSC's public statement recognises STM Ficuciaire's full cooperation in the investigation and highlights the 'robust action' taken by STM Fiduciaire to remediate its position. A number of shortcomings were identified during the investigation in relation to corporate governance and compliance, principally in relation to STM Jersey's handling of internal suspicious activity reports. The JFSC's public statement sets out the shortcomings together with the jointly agreed remediation programme.



STM took a number of positive steps at the time of the investigation in 2012 and subsequently to strengthen management and compliance within the business. STM also put in place a jointly agreed remediation programme, which has now been successfully completed, to rectify the issues identified in the investigation at that time. STM Fiduciaire and the JFSC as the Regulator have an open and constructive ongoing relationship.

ST of IC today - So no matter what way I look at it STM’s shares are far too lowly rated on a bid-offer spread of 44p to 47p. Strong buy.

Closed up 8.33%

Interim results

stm-closer-dividend-list

1 Sep finnCap 60.00 Corporate

STM Group PLC (STM:LSE) set a new 52-week high during today's trading session when it reached 57.20. Over this period, the share price is up 108.00%.

STM Group PLC (STM:LSE) set a new 52-week high during today's trading session when it reached 65.90. Over this period, the share price is up 144.07%

ST OF IC - I rate them a decent buy on a bid-offer spread of 45p to 47p given there is potentially 60 per cent upside to my maintained target price of 80p. Buy.

/runaway-stm-still-worth-backing