Centrepoint Alliance sees strong first half

Centrepoint Alliance reported an unaudited EBITDA of $2.1 million compared with a loss of $0.4 million in H1FY20. It will pay a fully franked dividend totalling 4 cents per share, comprising 3 cents special dividend and 1 cent interim ordinary dividend.

“Centrepoint Alliance has continued to improve its operating performance and is now well positioned to participate in industry consolidation and seek new strategic opportunities,” said chairman Alan Fisher.

“This financial year is about capitalising on the work conducted through our strategic refresh over the last two and a half years to establish a scalable, recurring revenue business model.”

Mr Fisher said that Centrepoint Alliance had continued to focus on “organic growth and refining [its] cost base” and is now actively pursuing opportunities to unlock the value of the business through scale.

The company also saw “above-budget growth” in funds under management and administration with adviser recruitment remaining strong as it transitioned to a sustainable recurring fee model.

“Centrepoint Alliance has significantly improved its financial position over the three years since the company paid out $15 million in cash dividends in the 2018 financial year. The company has a history of returning excess capital to shareholders, having declared a special dividend of $0.07 per share when it sold its insurance premium funding business in the 2017 financial year,” Mr Fisher said.

“In light of Centrepoint Alliance’s strong operating results, the board has resolved that it is now in shareholders’ best interests that the company should not only resume the periodic payment of ordinary dividends, but also return excess capital to its owners.”