Centrepoint Alliance eyes growth ‘in its own backyard’

licensees centrepoint alliance acquisition M&A

27 February 2024
| By Jasmine Siljic |
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Centrepoint Alliance has reported a 63 per cent net profit after tax (NPAT) growth for 1H24 and is looking for acquisitions through firms in its licensee network.

Announcing its results for the six months to 31 December 2023, the financial advice licensee reported a $4.9 million NPAT for 1H24 a 63 per cent rise from $3 million in the previous period.

Centrepoint’s EBITDA was up by 11 per cent to $4.1 million from $3.7 million, while the firm’s revenue grew by 4.7 per cent to $140.5 million.

These results were driven by organic growth and its recent acquisition of Financial Advice Matters Group (FAM) which reached completion on 1 December 2023.

John Shuttleworth, Centrepoint chief executive, said the firm is at an “incredibly exciting” stage of its progression.

“The business has significant scale thanks to the trust placed in us by the 1,338 advisers we service. With the current dislocation in the market, we are seeing significant opportunity as advisers look for a licensee they can trust to help them with the services they need to manage their business,” he remarked.

“The recent acquisition of FAM is an important step to build a larger profitable salaried advice business complementing our licensee services.”

The implementation of FAM into the Centrepoint network boosted its numbers by 19 advisers, which it hopes to grow even further.

Currently, the firm has 1,338 advisers made up of 518 licensed advisers (net growth of seven advisers over the half) and 206 self-licensed firms (net growth of 10 over the half) representing 820 advisers.

With $67 billion in funds under advice (FUA), Shuttleworth added that the business is “looking in its own backyard” for additional growth across its 536 licensed and self-licensed firms in the Centrepoint network.

“The type of firms we are looking for are corporatised practices with high-integrity advisers and those with genuine succession plans. We will be looking at additional acquisitions if we find the right business.”

The CEO continued: “The dislocation in the market is creating opportunities to accelerate movement within the licensed business. We are seeing probably one of the healthiest [adviser] pipelines we’ve seen for some time as firms are opting for a business that has stability.”

Beyond its advice division, building scale in its asset management business remains a key strategic priority.

This includes a suite of managed account solutions launched on Macquarie Wrap in December, alongside a new investment and superannuation platform it is launching in partnership with FNZ in Q3 this year.

“The pending launch of the IconiQ Platform and iQ portfolios launched in December will further expand the services we can offer our community of advisers,” Shuttleworth said.

Centrepoint chair Georg Chmiel commented: “Our executive team has consistently delivered strong results, benefiting from acquisitions, organic adviser growth, and disciplined cost management.

“The business is well placed with our strong community of advisers providing scale. I am confident our pipeline of strategic initiatives will deliver future growth as we continue to build our powerful wealth platform.” 

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