Centrepoint continues to benefit from ClearView Advice acquisition

Centrepoint Alliance has reported a net profit after tax of $3.0 million for the first half of the financial year, up from $501 million in the prior corresponding period (pcp).

In its half-year results released to the ASX on Thursday, Centrepoint said that it had delivered strong financial performance, with a normalised EBITDA (excluding LTI awards, one-off costs, and asset sale) of $3.8 million, an increase of 52 per cent or $1.3 million on the pcp.

This, the firm said, was driven by organic licensed adviser fee growth and continued benefits from increased scale as a result of its acquisition of ClearView Advice in 2021.

“Centrepoint is well placed for future growth 14 months post the acquisition of ClearView Advice. The management team has demonstrated their ability to integrate a transformative acquisition and extract expected synergies,” commented Centrepoint chairman Alan Fisher.

The firm noted that it has maintained a clear number three ranking in the market based on adviser numbers, with 511 licensed advisers. Thirty-three new licensed advisers were appointed in the first half and the firm added that the pipeline “remains strong”.

Centrepoint also recruited an additional eight self-licensed firms in December, ending the first half with 194 self-licensed firms representing 771 advisers using Centrepoint Alliance Services.

This took the firm’s total footprint of advisers to 1,282 or an 8 per cent share of the total advice market of approximately 15,900 advisers.

“There is significant opportunity for further growth as Centrepoint Alliance has firmly established itself as the market leader for attracting quality firms looking for a new licensee,” it said.

Centrepoint’s profit before tax increased from $2.8 million in the pcp to $3.7 million, with $1.5 million linked to the sale of Ventura Funds and $1.3 million from increased earnings.

Gross revenue rose by 41 per cent or $38.8 million to $134.3 million while gross profit increased 16 per cent or $2.3 million to $16.4 million. The firm also declared cash of $15.4 million, up 5 per cent or $0.7 million, primarily due to $2.9 million net cash flow from operations.

"The strong financial results delivered in the half reflect a business that is now operating at scale with a lean and uniform operating model,” said Centrepoint chief executive officer John Shuttleworth.

“Having completed integration activities, Centrepoint is in a strong position to focus on growth with our key priorities being organic growth from the core business and commercialisation of our strategic initiatives.”

An interim fully franked ordinary dividend of 0.5 cents plus a fully franked special dividend of 0.5 cents related to the Ventura Funds sale has been declared with a payment date of 17 March.

“We have had a disciplined approach to capital management and a successful sale of non-core assets,” said Mr Fisher.

“Dividend payments have been maintained whilst increasing balance sheet strength. Overall, the business is well positioned to capitalise on M&A opportunities in the current environment.”