The chief executive of STM Group has said the firm is looking to build its UK business with a range of self-invested personal pension (Sipp) products after it completes the acquisition of Carey Administration.
Alan Kentish said, in the firm’s end of year results statement: “Life and pensions business will continue to be our core focus. With a foot in both the UK and expatriate market we are uniquely positioned to roll-out complementary products across the two sectors.
“There will be an emphasis on building our UK businesses with the Carey pension acquisition completed in 2019.
“The acquisition enables an additional suite of bespoke Sipp products to be offered by STM to its UK intermediaries.”
Carey acquisition
The cross-border financial services provider recently received regulatory approval for the acquisition of Carey Administration, which it will purchase for a maximum consideration of £400,000 ($529,000, €468,000).
The deal will see the firm enter the UK auto-enrolment (AE) space.
Carey owns two businesses; 70% of Carey Pensions UK, which offers a number of Sipp administration products; and 80% of Carey Corporate Pensions UK, which provides AE workplace pension solutions.
Carey Pensions is still embroiled in a high-profile court case, where it has been locked in a dispute with an individual named Russell Adams, who claims the firm mis-sold him a Sipp in 2012.
Acquisitions on the agenda
STM’s chief also said that the firm was still on the lookout for businesses to acquire.
Kentish added: “In addition, the company will continue to actively seek out new acquisition opportunities.
“Focus on such acquisitions will be in relation to UK workplace master trusts, Qrops [qualifying recognised overseas pension scheme] legacy books of business in Malta or Gibraltar, and UK-based Sipp operators where the opportunity arises.”
Alongside the Carey acquisition, the firm bought the entire issued share capital of Harbour Pensions and its related pension trust schemes in 2017.
Results
The acquisition plans were revealed on the same day STM released its 2018 annual results.
The firm reported no change in profit before tax, which came in at £4m, while turnover remained similarly static at £21.4m.
A further breakdown of the figures can be seen below:
| Operating segment | Turnover 2018 | Turnover 2017 |
| Pensions | £11.5m | £10.2m |
| Life Assurance | £4.7m | £5.9m |
| Corporate Trustee Services | £4.2m | £4.3m |
| Other Services | £992,000 | £1.2m |
| Total* | £21.4m | £21.5m |
*numbers have been rounded up in the table
| Geographical operation | Turnover 2018 | Turnover 2017 |
| Gibraltar | £9.2m | £10.7m |
| Jersey | £2.6m | £2.5m |
| Malta | £7.4m | £6.2m |
| UK | £1.6m | £1.7m |
| Other | £587,000 | £512,000 |
| Total* | £21.4m | £21.5m |
*numbers have been rounded up in the table
