STM Group PLC (LON:STM) shares were higher today after the financial services group said it expected its full year performance to likely come in ahead of expectations.
In a trading update, the small cap firm added: "Looking forward therefore to the second half of the year, the Board is confident that the Group is performing ahead of existing expectations with management now expecting revenue of £19.8mln and profit before tax of £3.2mln."
The firm reported progress and reiterated that its existing recurring revenue model was robust, helping it focus on initiatives to build profitability.
READ:STM Group up by a quarter as pension sales surge
In April this year, STM launched an International Self Invested Personal Pension through its UK-based SIPP business, London & Colonial, and the group said the take-up of the product has progressed well, with a healthy uplift on new applications from month to month.
The group said: "Current volumes of new applications of the International SIPP are some three times that of the UK SIPP offering, and are likely to continue to build on that ratio."
"International SIPP applications have contributed to a steady second quarter performance, complementing a solid first quarter performance under the old QROPS regime. STM Life has equally had a strong first quarter performance," it added.
Alan Kentish, STM's CEO, commented: "The UK 2017 Spring Budget presented challenges for STM, however I am pleased with how, as a business and a management team, we are starting to overcome them. As expected, our core profitability was unaffected by the budget, given our well recognised and understood recurring revenue model. We feel confident that we have the tools and infrastructure to grow our profit line substantially for the foreseeable future."
In afternoon trading, STM shares were up 5.5%, or 2.50p at 48.0p.