History drags on Centrepoint result
History has proved a drag on Centrepoint Alliance with the company pointing to legacy claims having impacted its latest result.
Centrepoint Alliance’s core continuing operations (excluding one-off expenditure) has produced a growth in EBITDA of nine per cent to $2.4 million from the prior comparable period (PCP), but the business still experienced a net loss after tax of $0.8 million.
The financial planning dealer groups said that the loss was caused by significant investments into new advice technology and additional outsourced services for advice firms, marketing and salaried advisers.
It also pointed to legacy claims relating to financial product advice given prior to 1 July, 2010, the announced appointment of Angus Benbow as chief executive and the decision to unwind the executive loan share scheme as contributing factors.
Its funds under management and administration increased 14 per cent from the PCP, hitting $3.9 billion, with gross inflows consistently above $500 million.
Centrepoint’s managed account offering also delivered strong results following robust support from investors, with balances increasing by 83 per cent over the last 12 months to $434 million.
Going forward, Neos Life, a life insurance business offering products through financial advisers, would be a focus for Centrepoint, with the company making strategic investments in its development last year. It would also shortly launch its Presidium portfolios offering, following its appointment of a chief investment officer.
Centrepoint also announced a fully franked interim ordinary dividend of 1.2 cents per share.
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