- Cross-border financial services group STM reported a fall in first-half profit following a rise in insurance costs.

Pre-tax profit for the six months through June declined to £1.0m, down from £3.4m on-year, as revenue edged back to £11.8m from £11.9m.

Underlying profit fell to £1.1m, down from £1.6m, which the company said was largely the result of higher professional indemnity insurance premiums introduced in September 2019.

STM reduced its interim dividend to 0.55p per share, down from 0.75p on-year.

'Covid-19 has presented challenges however the business has responded admirably and, as anticipated, the quality of our recurring revenue stream has under-pinned our half year results,' chief executive Alan Kentish said.

'The challenge and opportunity for us over the next 12 months is to accelerate the conversion to revenue of our healthy new business pipeline, particularly in relation to our flexible annuity product.'

At 2:31pm: [LON:STM] STM Group PLC share price was -4p at 32.5p

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