Publicly-listed financial planning group, Centrepoint Alliance has instituted cost-saving measures at the same time as reporting to the Australian Securities Exchange (ASX) that it is in a strong financial position and has delivered fee reductions to advisers.
The company reported to the ASX that the board and executive team had volunteered a temporary 20% reduction in pay and non-executive staff had been invited to salary sacrifice six week’s leave over six months.
It said the salary sacrifice leave program would help reduce the company’s salary costs and provide staff with additional flexibility to assist while working remotely and caring for family.
Commenting on the situation, Centrepoint Alliance chief executive, Angus Benbow, said the company had entered this crisis in a strong financial position, with $8.4 million in cash and no debt, as of 31 March, 2020.
“We are able to share the benefits of our scale by providing some fee relief to our advisers,” he said.
The Centrepoint announcement also confirmed the company would be proceeding with a previously-announced on-market share buy-back of up to 10% of ordinary shares.
“The buy-back is in place because the directors believe it is in the best interests of shareholders and reflects confidence in the underlying value of the business, at current price levels.”
Comments
This company will struggle shortly. Their non-aligned self licensed advisers have been hit up for circa $10-20k in fees for what is basically a poor outsourced offering that could be easily replaced with best of breed consultants. Meanwhile their aligned advisers (PIS/Alliance Wealth) have just had huge fee increases levelled at them, with many opting to leave or retire. The plug has been pulled out and I’m not sure the tap is running fast enough...
Plus the management team are hopeless! PDMs with no practice, advice experience or quals - forget it! Where's the value there? Their charming personality?
Spot on P.Diddy! And I see they've just punted two of their executives as well - does a cashed up business with nothing to fear need to do that? Seems at odds with the line they're pushing..
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