Centrepoint Alliance posted a net loss after tax of $6.3 million, which has been attributed to one-off items including legacy claims, a reduction in deferred tax assets and the impacts from the royal commission.
Restructuring costs were also attributed to the loss in a year where the group replaced the chief executive, reviewed their strategy and restructured the business.
Newly appointed CEO Angus Benbow said the group had to adapt to the changing industry.
“The financial advice industry is facing an increasingly complex and rapidly changing environment, which is impacting the whole industry. It is imperative that our business adapts to the challenges and opportunities this presents,” he said.
Mr Benbow said that Centrepoint was transitioning to become an organisation that puts advisers first.
“We do have a strong community of like-minded advisers that enables us to take a leadership position in the industry as it moves to a more transparent environment,” he said.
The group did grow their EBITDA by 4 per cent to $5.5 million, which was helped by an increase in cash flow said Mr Benbow.
“This is a pleasing outcome given the challenging and uncertain industry backdrop. As a business, we are well placed to grow our strong community of advisers while we transition to a new service model powered through data and insight,” he said.
Licensing is broken.
The sign of things to come for dealer groups
Wait until the ASIC levies kick in around September and your dealer group asks you for $1000 plus
Wait until Grandfathered commissions are banned and the dealer group asks for a substantial increase in licensee fees, with the minimum of $40,000.
All advisers should be asking their licensee what’s the true cost of 1 representative.
If you are worried about $100 a month then you must operate on pretty skinny margins. Centrepoint should already be across the RC issues, for any dealership to whinge and whine now is just spilt milk. Strong dealerships will shake this of so will their reps.