ferrets stock to watch: plan b group holdings

Ferret's Stock to Watch: PLAN B GROUP HOLDINGS
08:29, Monday, 30 July 2007

NEWCOMER TO THE ASX HITS THE FLOOR RUNNING FOR EXPANSION

Sydney - Monday - July 30: (RWE Aust Business News)
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OVERVIEW
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Plan B Group Holdings Ltd (ASX:PLB) has hit the ground running,
announcing the creation of a new business alliance with NZ-based Polson
Higgs Business Advisors - only 15 days after joining the ASX list.

The wealth management company's subsidiary, Partnership Financial
Services Ltd (PFS), has executed a three-year Affinity Partner agreement
with Polson Higgs Wealth Management.

It will provide wealth management advice to its client base,
utilising the operational processes and systems that PFS provides.

It is Plan B's first move in terms of the organic growth strategy
outlined in the prospectus for the company's recent IPO.

"Following our very successful listing on the ASX earlier this
month, Plan B is now embarking on the next phase of geographic growth by
targeting acquisition of or alliance with suitable wealth management
businesses in Australia and New Zealand," said Denys Pearce, Plan B's
managing director.

It is expected that practices who contract to be affinity
partners of PFS will be a rapidly growing segment of Plan B's business,"
he declared.

David Newman, CEO of PFS, said "At Plan B we are very particular
in ensuring the firms we engage with under the PFS banner are of the
highest quality.

"Polson Higgs has all the philosophical attributes and ethos that
we look for in a partnership.

"I am delighted that this alliance is now in place and I look
forward to the benefits for both firms and most importantly for the
Polson Higgs clients."

Plan B Group reported on July 11 that funds under management
administrtion and advice as at June 30 was $1.75 billion.

This compares with the directors' forecast of $1.65 billion
contained in the company's recent prospectus.

The company has recorded a strong inflow of funds which the
directors believe was positively affected by the recent governnment
changes to Australia's spuerannuation sector.

SHARE PRICE MOVEMENTS
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Shares of Plan B Group on Friday fell 6.5c to $1.58. Rolling high
for the year is $1.65 and low $1.36. The company has 74.9 million shares
on issue with a market cap of $118.4 million.

In its lodgement prospectus for ASX listing, the company made an
initial public offering of 30 million shares at $1 per share.

The offer was fully underwritten by Taylor Collison.

Shares offered under the prospectus will represent about 40 per
cent of the expanded issued share capital of Plan B.

Plan B is a leading non-aligned fee-based wealth management firm,
with a full-service business model structured for growth.

Plan B has over 20,000 retail and institutional clients in
Australia and New Zealand with over $1.6 billion in funds under
management, administration and advice.

In its prospectus, Plan B forecast FY08 net profit of $5.4
million on net revenue of $36 million, translating to a price to earnings
ratio of 13.9 times.

The forecast dividend yield in FY08 is 4.3 per cent fully
franked.

Executive chairman and co-founder of Plan B, Bryan Taylor, said
Plan B had a track record of profitable expansion over a period of more
than 20 years.

"Listing on the ASX was a logical next step for Plan B and would
provide the company with the springboard for our next growth phase," Mr
Taylor said.

BACKGROUND
**********

Plan B Group Holdings Ltd is a boutique wealth management company
with operations in Australia and New Zealand.

It is an Australasian wealth management business with a history
of profitable expansion over a period of more than 20 years.

Plan B's headquarters is in Perth and covers most key points of
the wealth management value chain, including strategic advice, portfolio
administration, funds management, life insurance, estate planning and
trust management services, providing an important point of
differentiation.

The company was among the first Australian advisory firms to
replace commission payments with more transparent fees for service.

Plan B Wealth Management is the first Australian company to
achieve accreditation by CEFEX, an independent global certification
organisation that provides comprehensive assessments of risk and
trustworthiness of investment fiduciaries.

In 2002, Plan B recognised that clients' interests would be
better served by adopting a structured asset-class based approach to
investing, rather than the active funds strategy pursued by many in the
industry.

In establishing pooled funds on this basis, not only was the
company better placed to serve its clients, it also created a vertically
integrated business that is distinctive in the marketplace.

The Plan B proposition has resonated with a large number of
wealthy, sophisticated clients, both corporate and personal.

As a result Plan B now has an established footprint in Australia
and New Zealand.

ENDS

Copyright © 2007 RWE Australian Business News. All rights reserved.