Appendix 4E and Annual Report

ASX announcement

Appendix 4E and Annual Report to 30 June 2016.

  • FY16 statutory NPBT of $4.6m, up 79% on the prior year
  • FY16 EBITDA of $6.4m, up 56% on the prior year
  • FY16 NPAT of $4.3m, down 28% on prior year
  • Fully franked final FY16 dividend of 1.2 cents per share

Centrepoint Alliance Limited (ASX:CAF) (‘Centrepoint’) has made significant progress during the year to become Australia’s most trusted and respected financial services business and at the same time record a net profit before tax of $4.6m, up 79% on prior year, and EBITDA of $6.4m, up 56% on prior year.
Centrepoint also announced a final dividend of 1.2 cps fully franked to be paid on 19 October 2016. Total dividends for FY16 of 2.2 cps consistent with the prior year.

The Wealth business is benefitting from its transformation over the last three years into a client centric contemporary wealth business, focussing on the needs of our client financial advice firms, with profit before tax up 75% to $5.4m compared to the prior year. The business significantly increased the number of quality financial advice firms and grew funds under management and administration.

The Lending business contributed a 22% increase in profit before tax to $2.5m driven by improved efficiencies in a challenging market.

The Group’s net profit after tax of $4.3m included a $1.3m ($4.3m FY15) benefit from the recognition of deferred tax.

Operating cashflow has improved by $6.9m to $4.3m and cash and cash equivalents were $10.2m at 30 June 2016. This leaves the Group in a strong financial position from which to deliver on its strategy of organic and inorganic growth.

The Chairman, Alan Fisher, noted, “The team have done a fabulous job executing on the strategy over the last three years and this is beginning to be recognised in our results and by the market. The focus on quality client outcomes has differentiated Centrepoint from traditional, and typically institutional, competitors and is increasingly attracting like-minded client centric non-aligned advisers and brokers. We look forward to continuing to drive improvements across all areas of our business and improve the experience for our clients.”

The Mortgage business has improved its position with a 13% increase in brokers and the successful outsourcing of its back office functions. The fundamentals of the premium funding business are strong with increased brokers and loans written, with $377 million written in FY16.

Managing Director, John de Zwart, said “The strategy to create a truly differentiated financial advice business in a rapidly evolving sector is leading to solid growth in an exciting market. The Lending team, who have achieved positive results over the past few years in a sector challenged by premium rate reductions, did a superb job to lift profit and maintain volumes.

“Only organisations that focus on their clients will succeed as the pace of change and the options available for client’s increases. Our business is well positioned as the non-aligned leader in our market. Our goal to be the most trusted and respected financial services organisation in Australia is delivering long term sustainable growth.

“We have developed an innovative range of solutions to help non-institutional advisers and brokers thrive. This has been driven by several years of investment in our team, technology and client solutions in both the Wealth and Lending businesses. We recently re-launched the Centrepoint Alliance brand and are now looking to capitalise on our presence and reputation within the financial services industry in the year ahead.”

Investor Briefing

John de Zwart, Managing Director, and John Cowan, Chief Financial Officer, will hold an investor briefing at 10:30am (AEST) on Wednesday, 24 August 2016.

Centrepoint’s Appendix 4E and Annual Report are available here.

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