Financial planning firm Plan B Group Holdings is optimistic about the remainder of the current financial year after it today reported a 31.8 per cent lift in its first-half net profit.
The state's only listed financial planning firm today booked a net profit of $1.7 million, up on the $1.29 million net profit recorded in the previous corresponding period.
Funds under management, administration or advice surged 48.1 per cent to $2.17 billion and grew 18.3 per cent on the previous six months.
Revenue for the period increased 13.4 per cent from the previous corresponding period $17.52 million.
Plan B managing director Denys Pearce said that the strong increase in revenue and profitability, especially compared with the second half of the prior financial year, was very encouraging for the group.
"The strong investment performance of Plan B's pools on the back of the improvement of global investment markets and the consequent impact on FUMA levels and revenue have been significant during the half-year," he said.
"Very importantly, the group returned to a net positive fund inflow position during this period with net inflows of over $60 million accounting for 23 per cent of the increase in the funds held on Plan B's platforms."
During the period, Plan B transferred the management of its core Australian equities portfolio from an external fund manager to its internal investment division, which is expected to create an additional source of long-term revenue.
"Whilst the contribution to EBITDA has been modest during this period due to start-up costs and the implementation of new operational controls, it is expected that the internal investment division will become an increasingly important contributor to revenue and EBITDA in future periods," the company said in a statement.
Earnings before interest, tax, depreciation and amortisation before impairment grew 22.9 per cent to $3.37 million.
The directors have declared a fully franked interim dividend of 1.5 cents for each share.
