Centrepoint Alliance Limited has announced an underlying net profit before tax of $3.2m for the first half ended 31 December 2015, up 16% on the prior period and down 26% on the prior corresponding period (pcp). The Group has a strong financial position with cash of $12m as at 31 December 2015.
The Chairman, Alan Fisher, commented, “We are pleased with the Group’s progress in executing on its strategy. The market environment in both business lines is challenging so it is particularly pleasing to see the transformation of the Wealth business gaining momentum and the Funding business growing its broker relationships and loans. In a market where competitors are reassessing their participation, Centrepoint is strengthening its position as the preferred choice for professional advisers and brokers.”
Centrepoint also announced an interim dividend of 1 cps fully franked to be paid on 29 April 2016.
The Wealth business delivered a solid result with an underlying pre-tax profit of $3.5m up 13% on the prior period. Our new competitive offering is performing well with growth in quality adviser recruitment, funds under management and administration, and adoption of new technology and services. The results were offset by investments being made in people, technology and new solutions, along with a reduction in practice fees following the move to a fixed fee model last year.
The Funding business’ underlying pre-tax profit was up 48% on the prior period. The Premium Funding business wrote a record 15,000 loans during the period. Premiums funded of $212m were flat on the pcp and up 26% on the prior period driven by 12% growth from the eastern states.
Managing Director, John de Zwart, said, “The momentum in the business is exciting as we continue to deliver on our strategy and provide leading solutions and support for professional independent advisers, brokers and their clients.
“The investments we have been making in our team and services will underpin growth in the coming periods. While the markets have been tough, the demand for quality professional advice by Australians has never been greater. We are very optimistic about the future for independent advisers.
“We are proving our ability to transform not just our own business but the businesses of our adviser partners in a rapidly changing market environment.”
