John Shuttleworth

Leading provider of advice and business services to financial advice firms, Centrepoint Alliance Limited has announced strong growth during FY21, including a net profit after tax of $1.8m and 6% growth in gross revenue.  The company also announced it has agreed to purchase financial advice businesses of ClearView Wealth Limited for $15.2 million.

Announcing its full year results Centrepoint Alliance said despite a challenging year for the advice industry which saw overall adviser numbers decline further, the group had continued boost its member base, amid increased demand for robust compliance and technology solutions.

Key FY21 highlights include:

• Net profit after tax of $1.8m, spurred by continued revenue growth in advice fees, diligent expense management and an expected run-off in legacy funds and administration.
• Gross revenue up by 6% from FY20 to $138m, driven by strong performance of the licensee solutions business and an increase in authorised representative fees.
• Expenses declined 15.7% from FY20 to $26.5m, reflecting management’s continued focus on cost reduction.
• An adviser base of 315 authorised representatives with strong levels of service satisfaction.
• Self-licensed firms increased by 16, including three new wholesale contracts, taking the total number to 149.  An additional 23 existing firms were transitioned to the new fee for service offer.
• Continued investment in technology to enhance the scalable service platform for advisers, with successful integration of Xplan service provider Enzumo following the June 2020 acquisition

John Shuttleworth, Centrepoint Alliance CEO said: “Centrepoint Alliance is proud to have delivered improvements in revenue and profitability throughout FY21 despite challenging trading conditions.

“When I joined Centrepoint Alliance earlier this month, I found a business that benefits from a very favourable position in a rapidly evolving advice industry, with competitive pricing and capabilities in both the licenced and self-licensed segments.”

Centrepoint Alliance also continued to execute on its strategic priority of offering market-leading technological solutions to advice firms throughout the financial year.

“We know that technology has a clear impact on the profitability and efficiency of our members’ businesses. In FY21 key initiatives included upgrading our CRM system to incorporate business intelligence tools and bedding down the acquisition of Enzumo to enhance our technology and data services,” Mr Shuttleworth said.

“We have also invested in delivering service at scale within our own business, which has resulted in high levels of member satisfaction. Today 93% of enquiries received are resolved within two days, with average turnaround time improving by 20%.”

Acquisition of ClearView Advice

Centrepoint Alliance also announced it will acquire the financial advice businesses of ClearView which include the ClearView Financial Advice Pty Ltd and Matrix Planning Solutions Ltd, and LaVista Licensee Solutions Pty Ltd.

The purchase will be financed by the issue $12.0 million in escrowed CAF shares and a cash consideration of $3.2 million. As a result, ClearView Wealth Limited will become a substantial (25%) shareholder in Centrepoint Alliance.

“This transaction represents the next phase of Centrepoint Alliance’s growth by providing immediate scale and will increase the business’s long-term value and profitability,’ said Mr Shuttleworth.

Well positioned for continued market disruption

Looking forward, Mr Shuttleworth said while continued disruption in the advice sector is expected, Centrepoint Alliance is well positioned to take advantage and will focus on growing its range of licensee solutions to build greater scale and profitability, further investing in technology, and enhancing its portfolio implementation solutions with the goal of keeping costs low.

“We enter FY22 with a positive outlook for growth and look forward to providing quality business services and support to a broader range of financial advice professionals in the year ahead,” Mr Shuttleworth concluded.

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