Centrepoint Alliance has announced a net profit after tax (NPAT) of $1.6 million for H1 FY21, compared to a loss $1.5 million of the previous corresponding period.
Gross revenue was $70.6 million, an increase of 15%; net revenue from authorised representative fees increased $2.3 million.
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased by $1.8 million to $2.1 million (which excluded legacy claims) due to advice fee growth, slower runoff of rebates, and continued focus on operational efficiencies.
The firm said it continued to grow its position as a scalable service provider to licensed and self-licensed financial advisers and attract quality advisers, with 27 new advisers joining during 1H FY21.
It had previously announced a resumption of dividend payments and would pay a fully franked special dividend of three cents per share and an interim ordinary dividend of one cent per share.
Angus Benbow, Centrepoint Alliance chief executive, said: “The three-year strategic transformation that we commenced during 1H FY19 is progressing according to plan and has allowed us to improve the Company’s operating performance and positioned us to seek new strategic opportunities.
“We enter 2021 placed strongly to drive continued growth and value for our investors and our community with a scalable business model, revenue certainty, an attractive service platform for advisers, and a simple and clean balance sheet.”
Alan Fisher, Centrepoint Alliance chair, said the firm continued to improve its operating performance, and competitive position as it navigated structural changes in the wealth management industry.
“While the size of the advice industry as measured by authorised representatives is shrinking, large licensees such as Centrepoint Alliance are gaining share and leveraging the advantages of scale and technology leadership,” Fisher said.
Benbow said Centrepoint Alliance’s advice technology strategy was a key driver of further business growth following the company’s significant investments in financial planning software Enzumo, data capabilities and partnerships over the past three years.
Centrepoint Alliance’s recent agreement with UK-based Intelliflo would make it one of Australia’s first large-scale licensees to access Intelliflo’s open data architecture benefits.
Intelliflo had been working with Centrepoint Alliance-owned Enzumo, its Australian implementation partner, and several pilot Centrepoint Alliance practices over the last 18 months.
“We retain a clear focus on our objectives to enhance value in 2H FY21, as we drive aggressive organic growth in the licensed and self-licensed market, leverage our scale advantage with adviser technology investments and extensions, and actively pursue consolidation opportunities,” Benbow said.
