Volatility hits Plan B forecast
Recent market volatility has impacted financial services group Plan B, which has announced a 7.2 per cent decline in funds under management, administration or advice (FUMA) to $1.81 billion for the first quarter.
However, the company used its announcement to the Australian Securities Exchange this morning to claim that this decrease was significantly below those recorded by both the S&P/ASX 300 index, which had decreased by 14.6 per cent, and the MSCI ex Australia index, which had decreased by 12.4 per cent over the same period.
Despite this, the company acknowledged that the decrease had resulted in FUMA being below the level of the directors’ forecast for the year ended June 30, 2008, as contained in the company’s prospectus.
It said that with over 90 per cent of Plan B’s revenues being directly derived from FUMA, there would be an adverse impact on Plan B’s revenues and consequent profitability.
Commenting on the data, Plan B managing director Denys Pearce said the company remained on track in terms of its long-term performance objectives, but with only one further quarter remaining before the end of the financial year, it was expected that the result would be around 10 to 15 per cent below the directors’ forecast.
AUTHOR
Mike Taylor
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