The firm has also announced an executive change which will see Christine Hallett, formerly managing director of STM’s UK businesses, appointed director of group distribution and tasked with building a new team around her. 

STM also announced plans to go live on two platforms with a white-label SIPP product before the year end.  

In its update for 2021 trading, the firm said the second half proved to be a “frustrating period for the group” although it expects better times next year. Some expected new business in its UK SIPP business and Gibraltar life business this year was slower to materialise than expected resulting in approximately £0.4m less 2021 revenue.  

The company said that a number of “large pieces of business currently under negotiation”, particularly related to its London & Colonial annuity product, should boost revenue and profitability if they materialise. 

The company says the introduction of new IT platforms for the UK and Gibraltar businesses should also help reduce costs. Staff resource savings have yet to substantially materialise but are expected to do so in 2022.  

The firm anticipates revenue of £22.5m, EBITDA of £3.4m and statutory pre-tax profit of £1.5m for 2021.  STM has also taken steps in the third quarter to move to a “more efficient” operating model which should help operating margins.  

The group expects “profitable growth” next year and is targeting pre-tax profit of at least £2m, excluding any contribution from the London & Colonial annuity product. STM said the business continues to look for acquisition opportunities that would give more scale to its UK businesses. 

STM has operations in the UK, Gibraltar, Malta and Spain. It has a range of pension products for UK nationals and internationally-domiciled clients and two Gibraltar life assurance companies which provide life insurance bonds.