Non-bank dealer group Centrepoint Alliance delivered a net profit after tax of $1.7 million for the last six months of 2018, a significant improvement on the $1.9 million loss recorded in the prior corresponding period.
The company boasts a network of 2,447 advisers, 2,096 of which are self-licensed.
Adviser revenue per corporate firm was $23,900 over the half-year, while each self-licensed firm generated $32,600 for the dealer group.
“There remains an unequivocal demand for quality financial advice, and with the structural disruption of the industry that is occurring Centrepoint is uniquely placed to capitalise on these unfolding changes,” Centrepoint chief executive Angus Benbow said.
“We have a strong community of quality licensed advisers, as well as providing services to over 200 self-licensed firms.
“We have made solid progress on our Strategic Refresh over the last six months, working to transform Centrepoint to become a quality scale operator to the adviser market, with a new digitally enabled service offering. It is pleasing to be able to deliver a solid result against this backdrop of transition for the business and industry.”
Chairman Alan Fisher said the group has undergone significant change since the arrival of Mr Benbow in April last year.
“With a new look executive team in place, we have made solid progress over the last six months in delivering our Strategic Refresh, which is consistent with the recent recommendations from the royal commission. We are well placed to capitalise on the disruption taking place across the industry, and the opportunities this presents to a renewed and refocused Centrepoint,” he said.
Mr Benbow outlined the group’s intentions to adapt to the changes impacting the financial advice community when he spoke to shareholders at the Centrepoint AGM late last year.
The CEO said his new strategy looks beyond the short-term to focus on building a new service model that takes advantages of the opportunities he sees playing out as a result of the disruption ahead.
“In the 12 months ahead, Centrepoint will focus on transitioning to an advice and business services organisation where the needs of our advisers are at the heart of everything we do,” he said.
“In an industry often defined by its opaqueness, we will shift the playing field to an environment of trust and transparency, and look to set the standard in what it means to be a trusted adviser.
“To date, we have examined all aspects of our business, including a comprehensive review of our business portfolio. It has also resulted in a new organisational structure to better align to the market opportunities.”
Well done Angus!
Well…solid result???
As per their announcement, a large part of last year’s results’ were provisions set aside for legal claims. Once that removed, the EBITDA excluding one off adjustments, fell from $2.4 million in 2017-18 to $2.1 million for the first half of 2018-19 – 12.5% decline. Grandfathered revenue is still about 10% of the total revenue – which either could directly hit Centrepoint, or would hit their advisers business viability which in turn could impact Centrepoint. With over 2000 advisers, close to zero net profit (sorry, $100k actually) and top heavy expense base, the business model would need a drastic shake-up in order to survive…
Bring back trees. They were the glory days. Any mug at PIS could make a buck. Funny how it’s lost money ever since. 2000 advisers and it’s losing money!
Spot on Georgie Boy. Geezuz, I even sold me old mum a bunch of blue gums back in 99. Told her it was her frigginn Mother’ Day present.
The ATO bastards tried to give her hell: said she just did it for the tax benefits. But I showed them. Mum was a friggin pensioner and didn’t even pay any bloody tax! Bloody idiots
Geezuz Jimmy. Your analyst got this one a bit back to front (sounds like its a bad habit). Have ya seen the frigging CAF share price? Are ya dumb or something? Doncha read the newspapers? Do ya flaming research.
I was with me M8s at the PIS (Professional Investment Services) Chrissy Party back in 2017 and Jonny B Zad said over a few 4XXXs (Jonny was drinking bloody chardony) his inside knowledge was CAF’s a sure thing and no need for a bloody SOA it would just get us all in trouble with Asic (a paper trail, he reckoned). I took his top tip and went out quick smart and rolled me PIS retirement fund into a bloody brand new PIS SMSF (got it for free from Dover’s Viet Kong mates) and double geared the lot into CAF ASX at fifty cents. was the way to go.
Jonny said with all ‘em PIS franking credits an Old Risky couldn’t go wrong.
Then old Jonny’s was PISed off and this new bloke came in who reckons he’s shit hot and the beez neez and what the hell the flamin PIS share price goes down quicker than a bride’s knicker to just thirteen flaming cents and my old woman reckons I am a friggin idiot and she’s kicked me out and bow we’re all on the friggin pension mate.
Now friggin ASIC’s on me back for frigging insider tradin. I’m in more frigging strife than Dover.
Check ya bloody facts before ya write this crap about Bendover matey. Bring back Jonny.
I reckon I know your true identity “old risky” haha
whoever they are, they deserve a gold medal for the funny posts.
CAF is now up 31%.
Nope. She’s gone done again. But I’ve learnt my friggin lessons n gearing up me super: no more PIS play for Old Risky