Plan B records $4.3m net profit

Perth-based boutique wealth management firm Plan B Group Holdings Ltd has announced a $4.3 million net profit, over the $4.2 million forecast in the company's recent initial public offer.

The full text of a company announcement is pasted below

Boutique wealth management company, Plan B Group Holdings Limited (ASX: PLB) is pleased to announce a $4.33 million net profit after tax for the year ended 30 June 2007.

The profit is in line with forecast earnings of $4.2m in the Company's recent Prospectus issued ahead of the Australian Stock Exchange listing on 12 July.

Plan B's basic earnings per share for the year ended 30 June 2007 were 7.59 cents and Plan B Directors have declared a final dividend of 1 cent per share in respect of the last quarter of FY2007, in line with the Prospectus forecast.

Group revenue for the period was $33.1 million, an increase of 24.3% over the previous corresponding period and ahead of forecast gross revenue of $32.6 million.

Funds Under Management, Administration or Advice (FUMA) - a key measure of Plan B's growth - amounted to $1.75 billion at 30 June, a 27% increase over the FUMA balance at the end of 2006.

The FUMA balance was also $100 million ahead of Prospectus forecast, with Federal Government changes to superannuation laws leading to higher than expected inflows.

Plan B's Managing Director, Mr Denys Pearce, said the FY2007 result was very pleasing and represented a solid performance across all of the Company's operations.

"Strong FUMA growth throughout the year as well as good new business inflows, particularly in the lead up to 30 June 2007, resulted in the higher than expected revenue and profit," said Mr Pearce.

Mr Pearce said the new financial year had started well and Plan B was on track to meet forecast earnings in FY2008.

"No-one can predict the future course of world investment markets with certainty, but we feel that the benefits of soundly diversified client portfolios and an emphasis on credit risk awareness within our fixed interest portfolio, together with the investments we have made in future growth initiatives, position us very well to meet our FY2008
targets," he said.

Mr Pearce said Plan B also expected a higher contribution in the current year from the Company's expansion into New Zealand following the acquisitions of Strategic Asset

Management Ltd and the business of Rutherford Rede (Northland) in September 2006 and the new business alliance with Polson Higgs Business Advisors announced in July 2007.

"The integration of the acquired businesses is now complete and Plan B has established an outstanding beach head for further expansion in New Zealand," he said.

"As stated in the prospectus, Plan B also has an aggressive growth strategy in Australia and is currently evaluating a number of highly prospective opportunities to build our business and group FUMA.

"We have invested heavily in a platform that can support substantial increases in business activity without the necessity of major new capital or operating expenditure.

"We look forward to reaping the benefits of that in FY2008 and beyond."

The 1 cent fully franked final dividend will be payable on 19 October 2007 to shareholders on the register as at 21 September 2007.