STM Group's conversion timelines remain slowed
Cross-border financial services provider STM Group warned on Wednesday that conversion timelines had remained slower during the Covid-19 crisis.
Although STM said trading in the first four months of the year had been in line with its revised expectations, it added that conversion timelines on flexible annuity remained slower than anticipated.
The AIM-listed company also stated the implementation of its target operating model and IT projects to improve performance and enhance operating margins were continuing as planned.
STM's new business pipelines also saw further growth.
The firm also highlighted that growth through acquisitions remained core to its medium-term ambitions and stated the board was still actively pursuing acquisitions that would strengthen its position as a niche pensions administrator in the UK market.
"The recurring revenue business model and strength of the group balance sheet gives the board confidence that STM is well placed to navigate the challenges presented by the current Covid-19 pandemic, and can continue to pursue its growth strategy as we emerge from this period of uncertainty," said STM.
As of 1005 BST, STM shares were down 1.93% at 27.95p.