FY PBT was in line with forecasts at £2.7m and we leave our 2016 PBT estimate of £3.7m unchanged. Recognising the balance sheet strength, STM has announced a final dividend of 0.9p, and – basing future payments on a 2-3x earnings cover – we expect good growth on this front. Year-end net cash in the balance sheet was £8.0m. On a 10x P/E and an adj EV/EBITDA multiple of 6.6x, STM shares therefore remain inexpensive relative to peers in the SIPP administration secto
02 Mar 2016
Profit growth from pension admin
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Profit growth from pension admin
STM Group PLC (STM:LON) | 57.5 0 0.0% | Mkt Cap: 34.2m
- Published:
02 Mar 2016 -
Author:
Cavendish Research -
Pages:
16
FY PBT was in line with forecasts at £2.7m and we leave our 2016 PBT estimate of £3.7m unchanged. Recognising the balance sheet strength, STM has announced a final dividend of 0.9p, and – basing future payments on a 2-3x earnings cover – we expect good growth on this front. Year-end net cash in the balance sheet was £8.0m. On a 10x P/E and an adj EV/EBITDA multiple of 6.6x, STM shares therefore remain inexpensive relative to peers in the SIPP administration secto