STM Group Plc (LON:STM), the cross-border financial services provider, announces that following conversations with their auditors, Deloitte, the Company’s 2020 year end results will be delayed and it is expected that they will now be released in early May.
The delay is due to the ruling in relation to the Adams v Carey case as announced by the Company on 1 April 2021. A significant exercise is being carried out to determine whether the ruling has triggered an event which would require a provision, as defined by accounting standards, to be included in the Company’s financial statements and, if so, requires audit testing to be carried out. The inclusion of any such provision within the financial statements is not expected to have any impact on the net asset figure or the results of the business due to the claim being covered by the Group’s insurance policy and indemnities.
Audit work on all other areas has been substantially completed and no other material adjustments are expected.
STM Group confirms that the financial results remain in line with previous guidance, as stated in the trading update dated 3 February 2021. The Company expects to report 2020 Revenues of £24.0m, EBITDA of £3.6m, PBT of £2.0m and net cash of £15.5m.