STM Group PLC (AIM:STM) shares fell over 12% on Thursday morning after the company warned that the finalising of its 2022 audits will be delayed as there was a material uncertainty relating to the going concern of two of its life assurance subsidiaries.
The financial services group said there have been a number of reasons for the delay in completing the audits of the subsidiaries including some technical and regulatory matters.
However, STM said its board was confident of the subsidiaries' ability to continue as a going concern from a business perspective as the matter involved the regulatory approval of the managing director role.
"Other than the delay in the audit of the Life Company subsidiaries, the audit across the rest of the group is progressing well," the company said in a statement.
Around 9.55am, STM shares were 12.5% lower at 24.50p.