Centrepoint claims robust balance sheet despite cost-containment
Publicly-listed financial planning group, Centrepoint Alliance has instituted cost-saving measures at the same time as reporting to the Australian Securities Exchange (ASX) that it is in a strong financial position and has delivered fee reductions to advisers.
The company reported to the ASX that the board and executive team had volunteered a temporary 20% reduction in pay and non-executive staff had been invited to salary sacrifice six week’s leave over six months.
It said the salary sacrifice leave program would help reduce the company’s salary costs and provide staff with additional flexibility to assist while working remotely and caring for family.
Commenting on the situation, Centrepoint Alliance chief executive, Angus Benbow, said the company had entered this crisis in a strong financial position, with $8.4 million in cash and no debt, as of 31 March, 2020.
“We are able to share the benefits of our scale by providing some fee relief to our advisers,” he said.
The Centrepoint announcement also confirmed the company would be proceeding with a previously-announced on-market share buy-back of up to 10% of ordinary shares.
“The buy-back is in place because the directors believe it is in the best interests of shareholders and reflects confidence in the underlying value of the business, at current price levels.”
Recommended for you
The popularity of ETFs, which are approaching $200 billion in Australia, is a potential threat to the advice landscape if consumers opt to invest directly, according to this senior partner.
A former AMP financial adviser has urged advisers in the BOLR class action against AMP to object to the “unfair and unreasonable” $100 million settlement sum as the objection deadline approaches on 22 May.
Two Victoria-based financial advice practices have merged and rebranded as Forbes Fava Saville Financial Planning, as the firm realises the benefits of added scale.
The Financial Services and Credit Panel has made its latest ruling over a case involving an incorrect Statement of Advice.