International SIPPs provider STM Group achieved record growth in profits and boosted revenue, according to the company’s latest results.

Revenue was up 24% at £21.5m, from £17.4m in 2016 and pre-tax profits jumped to a record £4m, from £2.8m.

The firm also hailed its “strong balance sheet,” with cash and cash equivalents up 55% at £18.4m, from 2016’s £11.9m.



Other highlights from the report included:

• EBITDA for the period of £4.8 million (2016: £3.1 million)
• Underlying* EBITDA for the period of £4.0 million (2016: £2.6 million)
• Earnings per share of 6.69 pence (2016: 3.99p pence)
• Final dividend of 1.2 pence per ordinary share recommended (2016: 1.0 pence)

Alan Kentish, STM Group chief executive officer, said: “I am delighted that STM has delivered record profits for 2017, against a backdrop of a number of operational challenges.

“However, as a result of this our business now has a more UK regulated focus which I think is beneficial for all our stakeholders.
 
“Moving into 2018, we have a solid recurring revenue platform on which to look to launch new products and to expand our distribution network as part of a strategy to make our business even more robust. 
 
“A continued strengthening of our governance and attention to improving profit margins are also a key deliverable for 2018.
 
“I look forward to updating the market on our developments during the year.”

The company is currently in the process of relocating to the UK. The firm hit the news last year after Mr Kentish was arrested in Gibraltar in October, following allegations related to a tax dispute involving a former client and alleged failure to disclose the proceeds of crime.

The arrest came approximately two years after STM itself filed two Suspicious Activity Reports to the Royal Gibraltar Police during a tax dispute with a client. Mr Kentish was later released without charge and was fully backed by the STM board.