Plan B to buy $240m book

LISTED Perth-based financial planning firm Plan B Group Holdings is finalising the purchase of Aspire Finance's $240 million mortgage book in its second transaction of the calendar year.

Plan B is expected to settle the deal on Thursday (July 2) and immediately release the details of the transaction to the ASX, which is understood to include the issuance of shares.

The three mortgage brokers who work at Aspire Finance - which is part of Leederville-based Aspire Financial Group (AFG) - will move into Plan B's Central Park offices, bringing the planning firm's total number of mortgage brokers to four.

The purchase is in keeping with Plan B's vision of becoming a diversified wealth manager, although it currently generates more than 90 per cent of revenue from its planning arm's funds under management, administration and advice (FUMA).

The Plan B transaction comes less than five months after the Perth firm paid $7 million in cash and scrip to acquire a majority interest in Melbourne-based wealth advisory business Strategic Financial Management.

Plan B managing director Denys Pearce said the new client base acquired through the mortgage book would provide cross-sell opportunities, and that the bulked up mortgage broking division could also be used to service its existing customers.

Plan B announced last week that it expected to report a net profit after tax of between $2.6 million and $2.8 million for the fiscal year. The company noted that revenue had been eroded through the reduction in FUMA caused by the severe decline in investment markets.

AFG principals Craig Turnbull and Michelle Carden will continue to run their property business with a view of specialising in larger scale property developments.


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