Centrepoint announces strong growth in wealth business

Future of Financial Advice

Centrepoint Alliance Limited (ASX:CAF) (‘Centrepoint’), Australia’s leading non-aligned financial services organisation has announced a net profit before tax of $4.6m, up 79% on prior year, and EBITDA of $6.4m, up 56% on prior year. 

Centrepoint also announced a final dividend of 1.2 cps fully franked to be paid on 19 October 2016.

Managing Director, John de Zwart, said, “In the past financial year, we have recruited 59 new professional wealth advice firms. It is evident the strategy to create a truly differentiated financial advice business in a rapidly evolving sector is leading to solid growth in an exciting market.”

Centrepoint’s Wealth business significantly increased the number of quality financial advice firms and grew funds under management and administration, with profit before tax up 75% to $5.4m compared to the prior year.

Centrepoint’s Lending business contributed a 22% increase in profit before tax to $2.5m driven by improved efficiencies in a challenging market.

“The team have done a fabulous job executing on the strategy over the last three years and this is beginning to be recognised in our results and by the market,” noted Centrepoint Alliance Chairman, Alan Fisher. “The focus on quality client outcomes has differentiated Centrepoint from traditional, and typically institutional, competitors, and is increasingly attracting like-minded professional non-institutional advisers and brokers.”

Centrepoint’s operating cash flow has improved by $6.9m to $4.3m (FY15 -$2.6m) and cash and cash equivalents were $10.2m at 30 June 2016, leaving the Group in a strong financial position from which to deliver on its strategy of organic and inorganic growth.

Mr de Zwart said, “Our goal is to be the most trusted and respected financial services business in Australia. Driven by several years of investment in our team, technology and client solutions in both the Wealth and Lending businesses, we have developed an innovative range of solutions to help non-institutional advisers and brokers thrive. As a result, we are seeing long term, sustainable growth. 

“It is our belief that organisations who focus on their clients will succeed as the pace of change and the options available for client’s increases. We have recently invested in a revitalised brand and website for our business and expect that the year ahead will see Centrepoint capitalise on and cement our reputation and presence within the financial services industry.”

For further information or to arrange an interview with Managing Director, John de Zwart, or Chief Financial Officer, John Cowan, please contact Erryn Worth, National Communications and Marketing Manager via email erryn.worth@cpal.com.au.