Centrepoint claims robust balance sheet despite cost-containment


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.”
Recommended for you
Having sold off its advice division for a loss, AMP has reported a 43 per cent reduction in statutory net profit after tax in FY24, with the business now focusing on becoming a retirement specialist.
Financial adviser numbers are up by more than 200 for the financial year, according to Wealth Data, driven by five weeks of back-to-back growth.
Rather than competing on fees, platforms are aiming to stand out by helping advisers achieve scale and efficiency in their practices, offering an even greater range of services to clients.
As financial advice continues to be a major target for M&A, intelliflo has encouraged practices to improve their processes and data management before prospective buyers come knocking.