Centrepoint Alliance shares FY24 results amid strong adviser growth
Centrepoint Alliance is optimistic of benefitting from licensee switching to grow organically as it reports an increase of $1.5 million in its net profit after tax (NPAT).
In its FY24 results, the firm said net profit after tax was $7.8 million, an increase of $1.5 million on the previous year, while net revenue increased to $36.1 million.
The revenue improvement was driven by the acquisition of Queensland advice business Financial Advice Matters (FAM) in December 2023 and organic licensee fee growth which offset legacy investment margin runoff.
FAM offers a range of financial planning and advice services to over 1,450 clients, with funds under advice in excess of $1 billion from eight offices.
Adviser fees were $1.6 million, driven by adviser growth through recently acquired advisers transitioning to full rate card during the year.
The firm said it has 549 authorised representatives, an increase of 38 on the prior year. The self-licensed business finished the year with 203 firms and 825 advisers, which represents a growth of 22 new firms over the year.
It currently sits as Australia’s fourth-largest licensee but will rise to third position upon the completion of AMP’s exit from advice at the end of the year.
“A continued focus on growth in new client service revenue, combined with operating efficiency improvements when integrated with the Centrepoint Group has resulted in FAM’s earnings contributions exceeding initial expectations,” the firm said.
The board declared a final dividend of 1.75¢ per share.
Outlook
The outlook for FY25 is formed around five strategic pillars of:
- Growing licenced and self-licenced advisers
- Growing salaried advisers.
- Building scale in asset management.
- The launch of a superannuation and investment platform.
- Growth in lending.
It particularly flagged organic growth from advisers looking to switch licensees over the next 12–18 months, with 6–7 per cent of advisers switching each year, equating to around 1,000 advisers.
Its new investment platform IconiQ is slated to go live in October 2024 and will provide advisers with an “easy-to-use, feature-rich platform at a very competitive price”, using FNZ technology.
Outlining its rationale behind the launch, it said: “The platform market is attractive, and modest penetration of our advice network can drive significant funds under advice. Independent platforms are growing at the expense of institutional players [and] platform providers trade at significantly higher multiples than pure-play licensees.”
AUTHOR
Laura Dew
Recommended for you
Licensing regulation should prioritise consumer outcomes over institutional convenience, according to Assured Support, and the compliance firm has suggested an alternative framework to the “licensed and self-licensed” model.
The chair of the Platinum Capital listed investment company admits the vehicle “is at a crossroads” in its 31-year history, with both L1 Capital and Wilson Asset Management bidding to take over its investment management.
AMP has settled on two court proceedings: one class action which affected superannuation members and a second regarding insurer policies.
With a large group of advisers expecting to exit before the 2026 education deadline, an industry expert shares how these practices can best prepare themselves for sale to compete in a “buyer’s market”.
