Expect investors to warm to the merits of Aim-traded STM (STM:62p), a company that administers offshore pensions, when it release half-year results on 11 September.
Firstly, STM has resolved the spat it had with the Gibraltar Financial Services Commission (GFSC) regarding its Qualifying Recognised Overseas Pension Schemes (Qrops) business in that country. Qrops is an offshore pension scheme approved by HMRC and used by expatriates and internationally mobile employees whose tax domicile can change as a consequence of employment. Gibraltar accounts for 10 per cent of STM’s Qrops revenues, with its Malta operation accounting for the balance. STM’s auditor Deloittes has filed its report, most of the findings of which relate to operational issues and procedures. Some have already been addressed, and the cost impact is not material.
Secondly, STM has strengthened its corporate governance by appointing a group internal auditor, and is recruiting a chief operating officer so that chief executive Alan Kentish can focus more on group strategy. Appointing an additional non-executive director is a good move.