John Shuttleworth

With a pipeline of potential advisers and M&A opportunities, Centrepoint Alliance aims to drive size of the licensee to further consolidate its position as largest non-institutional licensee.

Posting its full-year financial results to the ASX on Wednesday morning, the firm posted a $6.3 million net profit after tax, slightly down from $6.5 million in FY22.

Centrepoint reported $19.7 million of authorised representative (AR) fee revenue, and $242.9 million of advice fee revenue, for total revenue from contracts with customers of $271 million.

The group paid $238.4 million of advice fee revenue to advisers and generated “gross profit” (or revenue before employee-related expenses, finance costs and tax) of $34.8 million.

Centrepoint has 511 advisers under the licensee while offering services to another 797 self-licenced advisers for a total of 1308 total adviser relationships.

According to data in Centrepoint’s investor presentation, sourced from Wealth Data, it is the third-largest licensee, behind Insignia and AMP.

This network accounted for $64 billion in funds under advice (FUA), with an average of $50 million in FUA per adviser, and 154,000 clients in the network.

The organisation will continue to seek growth through M&A activity, including potential licensee groups, and has received an indicative approval from NAB for a debt facility of $10 million to fund acquisitions.

Additionally, it claimed to have 271 ARs and 93 self-licensed firms in the pipeline to potentially join the network.

However, Centrepoint CEO John Shuttleworth makes it clear that adviser pipeline and the M&A opportunities are separate initiatives.

“The sales pipeline that we have is largely around individual authorised reps and practices that we recruit,” Shuttleworth tells Professional Planner.

“We track everything in Salesforce, there are different stages, but they are largely conversations taking place with authorised reps that would be with other licensees. The M&A side is separate to that.”

Centrepoint acquired Clearview’s advice business in 2021 and the M&A opportunities the company has identified will be along similar cultural lines.

“When we did the acquisition of the Clearview advice business and we brought Clearview and Matrix advisers across, that was a terrific acquisition because the businesses were culturally aligned,” Shuttleworth says.