Funds under Management, Administration and Advice ("FUMA") increased by 18.3% during the six month period under review from $1.83 billion as at 30 June 2009 to $2.17 billion as at 31 December 2009. FUMA is 48.1% above the position a year ago as at 31 December 2008.

Funds held and administered within the Plan B platforms increased by 19.3% during the half-year and by 20.1% from a year ago. These increases reflect both the strong recovery in global investment markets in this period together with much improved levels of net new inflows onto the Group's platforms.

FUMA remains the key source of earnings for the Group. Average FUMA held on the Plan B platforms in H1 FY2010 increased by 16.7% from the average in H2 FY2009 and by 3.6% from the previous corresponding average in H1 FY2009. The increase in average FUMA, together with the impact of the acquisition of Strategic Financial Management, is reflected in the resultant increase in the total revenue of the Group.

Overall, earnings before interest, tax, depreciation and amortisation ("EBITDA"), excluding the impact of impairment adjustments during the prior comparative period, increased by 22.9%. The EBITDA margin also increased to 19.2% from 17.7% and 15.1% in the first and second halves respectively of last financial year.

During the half-year, the Group transferred the management of its core Australian equities portfolio from an external fund manager to its internal investment division. This new activity has created an additional source of long term revenue for the Group. 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.

A highlight of the Group's performance was the cash flow from operations generated during the half-year of $3.72 million. This was an outstanding result and enabled the Group to increase its net cash balance to $7.38 million as at 31 December 2009.

The net profit after tax attributable to members for the half-year of $1.70 million represented earnings per share of 2.12 cps.

The Board of Plan B has declared a fully franked interim dividend of 1.5 cents per share. The Record Date for determining entitlements to the final dividend is 11 March 2010 with the dividend to be paid to shareholders on 1 April 2010. The Board has suspended the operation of its dividend reinvestment plan in relation to this interim dividend.

Comment and Outlook

Plan B's Managing Director, Mr 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. 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% of the increase in the funds held on Plan B's platforms."

"The Group also recorded a strong improvement in its operating cash flows and margins during the half-year," said Mr. Pearce.

Mr. Pearce was optimistic for the remainder of the 2010 financial year and expects further improvement in the Group's EBITDA margin and net profit after tax.

Mr. Pearce said Plan B remains active in identifying and evaluating expansion opportunities to build the business in Australia and internationally.

Contact Details
Denys Pearce
Managing Director
Plan B Group Holdings Limited
Tel: (08) 9214 4904
Fax: (08) 9481 6148