14/04/2008 - 15:32

Plan B Group reduces 2008 profit forecast

14/04/2008 - 15:32

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Perth-based wealth management business Plan B Group Holdings Ltd expects its result for FY2008 will be 10% to 15% below the directors' forecast, assuming a continuation of present market conditions for the remainder of this financial year.

Plan B Group reduces 2008 profit forecast

Perth-based wealth management business Plan B Group Holdings Ltd expects its result for FY2008 will be 10% to 15% below the directors' forecast, assuming a continuation of present market conditions for the remainder of this financial year.

 

The full company announcement is pasted below:

 

Plan B Group Holdings Limited (Plan B) wishes to announce that Funds Under Management, Administration or Advice (FUMA) as at 31 March 2008 was $1.81 billion.

During the quarter ended 31 March 2008, total FUMA decreased by 7.2% compared with the position at 31 December 2007.

It is notable that the decrease in the value of Plan B's total FUMA was significantly below the decrease in both the S&P/ASX 300 index (decrease of 14.6%) and the MSCI ex Australia index (decrease of 12.4%) during the same
period.

This reflects the following favourable factors:

- the impact of positive net new inflow of funds achieved during each month in the quarter, including the FUMA transferred onto the company's platform associated with Plan B's PFS Affinity Partners; and
- the fully diversified nature of Plan B's FUMA and its exposure to high quality defensive assets.

This decrease reduces total FUMA below the level of the directors' forecast FUMA for the year ended 30 June 2008 as contained in the Company's IPO prospectus.

As previously stated, over 90% of Plan B's revenues are directly derived from FUMA.

Accordingly, there will be an adverse impact on Plan B's revenues and consequent profitability for the current financial year, as reported in the release of the Company's half-year results in February 2008.

Managing Director, Mr. Denys Pearce said "We remain on track in terms of our long term objectives but there is only one further quarter remaining before the end of this financial year.

In light of the current environment, it is now expected that the result for FY2008 will be approximately 10% to 15% below the directors' forecast, assuming a continuation of present market conditions for the remainder of this financial year."

Plan B has achieved positive net new inflow of funds in every full month so far this financial year. The company has also made a significant investment in expanding its business platform and infrastructure in anticipation of sustained
long-term growth.

The timing and impact of the present market conditions in these circumstances is disappointing.

However, the strength of the company's first half results demonstrates the scalability of Plan B's platform from which it will benefit in future.

In summary, Plan B remains in an excellent position to capitalise over the long term on organic and acquisition growth opportunities and any improvement in investment markets.

 

 

 

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