Full Year Results FY 14/15

Media Release

Centrepoint delivers solid profit.

Centrepoint Alliance Limited (ASX:CAF) (‘Centrepoint’) has announced another solid performance with a net profit after tax of $5.9m, up 78% on the prior year. Underlying profit before tax decreased 15% to $7.0m. Centrepoint also announced a final dividend of 1.2 cps fully franked to be paid on 16 October 2015.

The Centrepoint Funding underlying pre-tax profit was down 52% to $2.5m due to the soft general insurance market impacting the amount of premiums funded. Despite the profit decrease, the business delivered a strong operational result with growth in new broker relationships and loans funded.

Centrepoint Wealth made solid progress in its transformation strategy to become the leader in the wealth advice market, delivering an underlying pre-tax profit up 10% to 7.1m. Funds invested in Centrepoint solutions increased 14% to $2.8bn.

The financial year saw the launch of the salaried advice channel and the innovative separately managed account service (vMAPs). Together these investments provide sustainable growth platforms in the post FOFA world. vMAPs uses latest technology and internationally leading service providers to deliver professionally managed investments at a lower cost with significant advantages over traditional investment solutions.

In addition, Centrepoint established a premium funding business in New Zealand, and formed a new partnership agreement with Steadfast, Australia’s largest and fastest growing broker group.

Centrepoint’s Managing Director, John de Zwart, said the positive results and business growth were largely attributable to the Group’s significant investment in people, technology and client solutions, and its strong focus on support and advocacy for independent professional advisers.

“Our strategy is to achieve sustainable, long term growth by delivering innovative solutions to independent advisers and brokers to support their customer’s needs and support them in operating profitable, sustainable businesses,” John de Zwart said.

“Centrepoint holds strong market positions in its core markets and is well placed to take advantage of the long term growth in non-bank funding and wealth markets.

“With cash and cash equivalents of $12.5m at 30 June, 2015, the Group is in a strong financial position from which to deliver organic and inorganic growth. We have acquired a number of small client books and are active in assisting larger practices to grow or develop succession strategies. We have an experienced team that is making strong progress in rapidly executing its strategy, growing market share through consistent quality service and delivering solid returns to shareholders.

“We are well positioned for sustainable, above market growth, by leveraging our strong client relationships and leading solutions.”

For more information, please contact:

Erryn Worth
National Marketing and Communications Manager
Centrepoint Alliance
T: 0427 158 683 

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