- 2011 has been a difficult year for STM. Expectations for 2011 were that it would continue to build on the success of 2010 in pursuit of its strategy of creating a product and distribution driven business to complement its traditional professional fees based operation.

That was the case for the first half of 2011, however the second half has seen a deterioration of profitability in certain areas and the pensions and life businesses are yet to reach critical mass.

In addition, the company has taken steps to strengthen its provisions against potentially unrecoverable debtors and work-in-progress as a result of concerns over the economic climate, meaning that STM has turned in a disappointing result for the year.

The year has seen revenues of £9.8 million, which is slightly down on the 2010 figure of £10.5 million, however EBITDA before adjustments to carrying value of investments has fallen from £1.7 million in 2010 to £0.7 million in 2011.

The board is pleased to note however that the 2010 acquisition of Zenith Trust Company Limited has performed in line with expectations and has been a solid and predictable contributor to profitability.

Additionally, the board recognise encouraging trends in the global product sales and distribution market which support the view that the diversification of the STM business will ultimately be very rewarding.

At 9:49am: [LON:STM] Streetnames share price was -0.5p at 19p

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