Centrepoint Alliance continues strong growth in 1H FY21; advice technology strategy to spur further expansion
Angus Benbow
Leading provider of advice and business services to financial advice firms, Centrepoint Alliance Limited (ASX: CAF), has announced that its strong growth trajectory continued during 1H FY21.
Gross revenue for the half was $70.6m – an increase of 15% on 1H FY20. Net revenue from authorised representative fees increased by $2.3m.
The Company reported a net profit after tax for the half of $1.6m, compared to a loss of $1.5m for the same period last year.
EBITDA increased by $1.8m from the same period last year to $2.1m (excluding legacy claims) due to advice fee growth, slower runoff of rebates, and continued focus on operational efficiencies.
Centrepoint Alliance continues to grow its position as a scalable service provider to licensed and self-licensed financial advisers and attract quality advisers, with 27 new advisers joining during 1H FY21.
The Company previously announced a resumption of dividend payments and will pay a fully franked special dividend of 3c per share and an interim ordinary dividend of 1c per share.
Mr Angus Benbow, Centrepoint Alliance CEO, said: “We are proud to deliver continued improvements in revenue and profitability in the first half of this financial year.
“The three-year strategic transformation that we commenced during 1H FY19 is progressing according to plan and has allowed us to improve the Company’s operating performance and positioned us to seek new strategic opportunities.”
Mr Alan Fisher, Centrepoint Alliance Chair, said: “Centrepoint Alliance continues to improve its operating performance, and competitive position as the Company navigates structural change in the wealth management industry. While the size of the advice industry as measured by authorised representatives is shrinking, large licensees such as Centrepoint Alliance are gaining share and leveraging the advantages of scale and technology leadership.”
Looking forward, Mr Benbow said Centrepoint Alliance was well-positioned to benefit from ongoing industry fragmentation.
“We enter 2021 placed strongly to drive continued growth and value for our investors and our community with a scalable business model, revenue certainty, an attractive service platform for advisers, and a simple and clean balance sheet.”
Mr Benbow highlighted Centrepoint Alliance’s advice technology strategy as a key driver of further business growth following the Company’s significant investments in Enzumo, data capabilities and partnerships over the past three years.
He noted Centrepoint Alliance’s recent agreement with UK-based Intelliflo will make it one of Australia’s first large-scale licensees to access Intelliflo’s open data architecture benefits. Intelliflo has been working with Centrepoint Alliance-owned Enzumo, its Australian implementation partner, and several pilot Centrepoint Alliance practices over the last 18 months.
“We retain a clear focus on our objectives to enhance value in 2H FY21, as we drive aggressive organic growth in the licensed and self-licensed market, leverage our scale advantage with adviser technology investments and extensions, and actively pursue consolidation opportunities,” Mr Benbow said.
