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.
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