Plan B announces 36 per cent profit rise
Plan B Group Holdings Limited (Plan B) has announced a 36.1 per cent increase in net profit after tax to $4.59 million for the financial year 2011 (FY2011).
The strong performance was driven by increased funds under management, administration and advice (FUMA), as well as the completed expansion of the firm's in-house investment management activities and the development of a new investment offering in New Zealand.
Plan B completed its acquisition of Strategic Financial Management Pty Ltd in August 2010 and partially acquired My Adviser Pty Ltd in April 2011. Also in April, Plan B initiated an on-market share buy-back, pursuant to which it may purchase and then cancel up to 2 million Plan B shares. As at 30 June 2011, approximately 316,000 shares have been bought back and cancelled under the program.
Excluding one-off management restructuring costs incurred in the prior financial year, the increase in underlying net profit after tax for FY2011 was 13 per cent.
The Group's expansion of in-house investment management activities - together with increased revenue from new business activity - led to a 7 per cent increase in revenue from $35.8 million to $38.3 million in FY2011.
Plan B's operating expenses were reasonably contained, increasing by a modest 4.3 per cent compared with FY2010. This resulted in the Group's earnings before interest, taxes, depreciation, and amortization (EBITDA) margin increasing to 19.7 from 17.9 per cent the previous year.
Reported earnings per share increased by 33 per cent to 5.52 cents per share for FY2011 from 4.15 cents per share in the previous year.
The Group rounded off the 2011 financial year with a net cash balance of $7.2 million. Net operating cash flows of $5 million enabled the Group to finance its investment activities and other initiatives from internal cash resources.
The Board of Plan B has determined a fully franked final dividend of 2.4 cents per share, up from 2.1 cents per share in the previous corresponding period. This brings the total fully franked dividends for the year to 4.1 cents per share, compared to 3.7 cents per share previously.
The record date for determining entitlements to the final dividend is 9 September 2011, after which the dividend will be paid to shareholders on 23 September.
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