Centrepoint Alliance Limited (ASX Code: CAF) has announced a net profit after tax of $6.5m, up 51% on the prior year.
Centrepoint also announced a fully franked special dividend of 7.0cps in addition to a final dividend of 1.2 cps fully franked]. Total dividends paid for FY17 is $18.0m.
Centrepoint’s Wealth business enjoyed strong growth with revenue for the salaried advice business growing 32% and EBITDA 186%. Alliance Wealth (licensed advice) and Associated Advisory Practices (self-licensed advice) continue to attract quality firms with 39 new firms recruited this year, and a total of 98 firms in the last two years.
Centrepoint’s Funds under Management and Administration increased 19% to $3.7bn and gross inflows increased 23% to $1.1bn. Managed accounts grew by 250% during the period.
This financial year has seen the appointment of a new Chief Investment Officer and additions to the sales and client servicing teams, as well as significant investments in new growth initiatives. These include R Financial Educators Pty Ltd (RFE) and Australian Life Development (ALD). RFE is focused on developing joint ventures with accountants to leverage their client base and provide financial advice. ALD is a standalone Australian based insurance business offering well rated, adviser and client focused life insurance products through financial advisers.
Centrepoint’s Managing Director, John de Zwart, said the positive results and business growth were largely attributable to the Group’s continued investment in people, technology and client solutions, and its strong focus on supporting and enabling its advisers to deliver quality client outcomes.
“Our strategy is built on the belief that our clients’ wellbeing is at the core of who we are and what we do. Our focus is on delivering innovative solutions to our advisers to support their customers and help them to operate a profitable professional business,” John de Zwart said.
“Our focus on delivering quality client outcomes differentiates us from traditional, and typically institutional, competitors, and is increasingly attracting like-minded, client-centric advisers.
Centrepoint Chair, Alan Fisher, said it is pleasing to see the hard work and commitment of all involved being rewarded with these results.
“They are a solid indication that our strategy is working, and the Group is well positioned for sustainable, above market growth.”