- STM Group has made a good start to the financial year and trading for the start of 2015 is in line with management expectations.

"In our Outlook Statement, released as part of our Final Results in March, we advised that the focus for the Company for this current year was to "further strengthen and maximize its business development activities" to enhance the scalability of the Group and to access an increasingly global client base," sad chairman Michael Riddell.

"We are pleased to report considerable efforts have been made by the Product and Business Development team and that very good progress is being made. In particular, the Company continues to make inroads with regards to increasing its distribution network and has so far in 2015 signed on more intermediaries than in the full previous financial year. Furthermore, STM is in the final stages of setting up a sales office in the Middle East, with recruitment for a further office in Asia well under way.

"As announced on 16 April 2015, the majority of the outstanding £2.6m convertible loan notes were successfully resolved, with either repayment or conversion into new ordinary shares in the Company.

"The number of loan note requests for conversion into equity in STM, including full conversion by our Director of Product and Business Development, Alan Kentish, demonstrates significant confidence in the prospects for the Company.

"The effect of these transactions is that the outstanding balance is now only £300,000, which represents the extent of the Company's external borrowings and results in a considerably reduced interest cost to STM. Cash balances continue to grow which, together with the low level of gearing, provides for a strong Balance Sheet from which to grow our business."

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