- Cross-border financial services provider STM warned that it was taking a more conservative view on new business numbers for the remainder of the year.

The Covid-19 crisis had caused delays in securing new business, as many individuals and companies deferred significant financial decisions, STM said.

'Traditionally though, the last quarter of the year has seen solid new business growth for STM, and this was certainly the expectation for 2020, particularly for our workplace pensions solution, as well as our new flexible annuity product,' the company said.

'However, we are now seeing that certain initiatives are not yet delivering the volumes of business that we had expected.'

STM said that despite its Options workplace pensions solution business currently achieving a 50% revenue uplift year-on-year, it was now expected to fall short of its overall revenue target by around £0.32 million.

'In a similar vein, we have previously highlighted that the pipeline of flexible annuity new business continues to grow, but that conversion rates into applications remains frustratingly slow,' STM said.

'Given that this is a relatively new product, expectations from management were that this rate would accelerate over time.'

'To date, we have not seen this happen and therefore it is appropriate to scale-back our anticipated new business numbers for the remainder of 2020 and into 2021.'

At 9:38am: [LON:STM] STM Group PLC share price was -7.5p at 27p

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