Centrepoint Alliance adviser fee up 61%
Centrepoint Alliance has reported a 61% growth in adviser fees to $10 million, which was helped by the average annual adviser fee growth to $36k and a continued transition to a recurring fee model.
At the same time, gross revenue went up by 11% to $131 million, driven by strong growth in new advisers and significant increase in average gross revenue per advice firm. On top of that, 2H20 saw a gross profit up $1.1 million while the management expenses were down $2 million on 1H20.
The firm said in the announcement made to the Australian Securities Exchange (ASX) that the licensed adviser base increased by 6% to 317 in a market that contracted 13% in the past 12 months.
“FY20 has been a busy and successful year for Centrepoint Alliance. The conditions of our operating environment have presented challenges which are significant, but I am pleased to report that these same conditions have provided opportunities for us to demonstrate value to our adviser community,” Centrepoint Alliance’s chief executive, Angus Benbow, said.
Looking ahead to FY21, Benbow stressed Centrepoint Alliance was well positioned to take up opportunities, particularly as smaller licensees seek to adapt their business models following a once-in-a-generation industry transformation.
“Our areas of focus for the year ahead are to continue to attract high quality licensed and self-licensed firms to the Centrepoint Alliance community, enhance the value of our scalable service platform, and actively explore industry consolidation opportunities,” he added.
“We enter FY21 well-positioned to achieve these goals with a robust, cash-generative and scalable platform, backed by the balance sheet strength to grow quickly and opportunistically. In addition, our adviser community has confirmed to us they are extremely satisfied with Centrepoint Alliance and our ability to fully support them in the areas they value most.”
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