Centrepoint reports 1H17 profit increase
Centrepoint Alliance has announced a profit after tax of $4.6 million for the first half of 2017, up from $700,000 on prior comparable period.
The wealth businesses reported operating earnings before interest, tax, depreciation and amortisation (EBITDA) of $4 million, up 29 per cent on prior comparable period.
The firm attributed the result to steady growth in new clients, a growing salaried advice business and healthy fund flows into its managed accounts solution.
The group result also included a $4.5 million boost from the previously announced sale of the Premium Funding business for $21.4 million, which the firm said strengthened its financial position, which had $35 million cash and no debt.
Managing director, John de Zwart said: “We are continuing to invest in growing our adviser services and funds management businesses, along with our own salaried advice business”.
“We are also excited with our recent investment in R Financial Educators Pty Ltd (RFE) who have signed up 18 accounting firm joint ventures. We have also seeded a new life insurance initiative and look forward to developing this over the next 12 months,” he said.
The board announced an increase in ongoing annual dividend from 2.2 cents per share to 4.5 cents per shares with an interim dividend of 2.25 cents per share fully franked to be paid in April.
AUTHOR
Malavika Santhebennur
Recommended for you
An adviser has received a written reprimand from the Financial Services and Credit Panel after failing to meet his CPD requirements, the panel’s first action since June.
AMP has reported a 61 per cent rise in inflows to its platform, with net cash flow passing $1 billion for the quarter, but superannuation fell back into outflows.
Those large AFSLs are among the groups experiencing the most adviser growth, indicating they are ready to expand following a period of transition and stabilisation after the Hayne royal commission.
The industry can expect to see more partnerships in the retirement income space in the future, enabling firms to progress their innovation, according to a panel.
