Centrepoint Alliance’s new strategy, which was initially announced to the market last year, has proved successful as the company has reported a profit turnaround for the financial year ended 30 June and posted a pre-tax profit of $1.2 million compared to $3.4 million loss in FY18, the firm said.
Following this, the company’s earnings before interest, tax, depreciation and amortisation (EBITDA) stood at $2.4 million against $1.6 million loss last year.
Centrepoint’s chief executive, Angus Benbow, attributed profit turnaround to a greater focus on providing services to advisers and a strategy that introduced a new pricing model which helped reposition business for growth.
The firm said, in its statement issued to the Australian Securities Exchange (ASX), that it was one of the first in the market to move to a fee-based revenue model, a move which saw 86 per cent of firms in its authorised representative network transition to the new pricing model.
“The financial advice sector’s business model needs to change,” Benbow said.
“We are leading by example and we were one of the first scaled advice businesses to reset pricing.”
Centrepoint said there was a growing number of advisers looking for a ‘quality business service partner’. Following this, the firm announced it had recruited a record number of new financial advisers in the fourth quarter of FY19.
“We know advisers are feeling fatigued with the level of change. This is why we implemented a model where both self-licenced and corporate licensed advisers can access a full suite of business services and support.”
Looking forward, the firm said that the main areas of focus for FY 2020 would be a launch of a fee-based offer for self-licensed advisers, further investment in technology and the firm would continue to drive growth in its licensed network.