PIH costs weigh down Centrepoint Alliance
Listed premium insurance funding company Centrepoint Alliance has told the market it won’t break even for the six months to 30 June 2010 as a result of costs associated with its proposed merger with Professional Investment Holdings (PIH).
The group said “significant” transaction costs related to the proposed merger with PIH, the parent company of Professional Investment Services, had been included in its half-year results.
They include fees to advisers and previously agreed bonuses, as well as due diligence costs, exceeding $400,000 after tax.
The group, led by managing director Tony Robinson, said the result of these costs was that the previous target of break-even for the six-month period had not been achieved.
Centrepoint struggled during the 2008-09 financial year, recording a net loss of $30.5 million and coming under pressure from its bankers to reduce its gearing levels.
The merger with PIH is expected to be implemented by 1 January, 2011.
Recommended for you
Compared to four years ago when the divide between boutique and large licensees were largely equal, adviser movements have seen this trend shift in light of new licensees commencing.
As ongoing market uncertainty sees advisers look beyond traditional equity exposure, Fidante has found adviser interest in small caps and emerging markets for portfolio returns has almost doubled since April.
CoreData has shared the top areas of demand for cryptocurrency advice but finds investors are seeking advisers who actively invest in the asset themselves.
With regulators ‘raising the bar’ on retirement planning, Lonsec Research and Ratings has urged advisers to place greater focus on sequencing and longevity risk as they navigate clients through the shifting landscape.
