STM Group, a financial services provider, announced on Tuesday a rise in pretax profit for 2022 due to a significant increase in recurring revenue that contributed to 91% of total reported revenue. The group recorded a pretax profit of £1.6 million, which is an improvement from £1.2 million in the previous year. Revenue for the year totaled £24.1 million, which is in line with the company’s guidance and higher than the previous year’s £22.4 million.
However, despite the positive results, the earnings per share have nearly halved due to a tax charge. The company attributed this decrease to a tax charge of £700,000, compared to a tax credit of £500,000 in 2021. As a result, earnings per share fell to 1.42 pence from 2.94 pence.
The company has cut its dividend for shareholders, declaring a final dividend of 0.6 pence per share, bringing the total payout to 1.2 pence. This is a reduction from the previous year’s total payout of 1.5 pence per share.
Chief Executive Alan Kentish commented on the results, stating that the company is continuously improving its strategy to maximize opportunities and deliver shareholder value. Kentish added that progress has already been made in 2023 and that the company anticipates achieving solid performance for the year compared to 2022.
Despite the positive outlook, shares for the London-listed company have dwindled by 3.9% or 1 pence, standing at 25 pence by 0722 GMT.