Regulatory issues could lead to significant cost implications if no solution can be found with the Gibraltar Financial Services Commission. Notwithstanding this, the company has acquired a QROPS business in Malta. We note that 75% of the revenues are recurring, which provides some resilience to the model. Our estimates exclude any cost impact, as it is too uncertain to accurately assess this, but we increase our underlying estimates by 6% in 2018 and 5% in 2019 to allow for the acquisition.
17 Nov 2017
Between a rock and a hard place
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Between a rock and a hard place
STM Group PLC (STM:LON) | 57.5 0 0.0% | Mkt Cap: 34.2m
- Published:
17 Nov 2017 -
Author:
Cavendish Research -
Pages:
6
Regulatory issues could lead to significant cost implications if no solution can be found with the Gibraltar Financial Services Commission. Notwithstanding this, the company has acquired a QROPS business in Malta. We note that 75% of the revenues are recurring, which provides some resilience to the model. Our estimates exclude any cost impact, as it is too uncertain to accurately assess this, but we increase our underlying estimates by 6% in 2018 and 5% in 2019 to allow for the acquisition.