Centrepoint Alliance posts FY23 results, commits to further M&A
Centrepoint Alliance has announced a net profit after tax (NPAT) of $6.3 million in FY23.
In its full year results for the 2023 financial year, the firm said this was down slightly from $6.5 billion in FY22.
“This is a combination of a gross profit increase of $3.6 million and an expense decrease of $0.5 million,” it said in a statement to the ASX.
Looking at the advice space, it has 511 ARs operating under its license and 196 self-licenced practices supported by an estimated 797 advisers.
Funds under advice was $64 billion with $50 million on average per adviser.
This was helped by stabilisation of adviser numbers post-FASEA and graduate advisers growing off a small base as well as positive regulatory changes from the Quality of Advice Review.
Over 360 advisers are in discussions with the licensee and it said it has strong retention with only two firms, representing less than 5 per cent, moving to another licensee.
The 360 adviser pipeline is divided between 271 who are licensed ARs and 93 self-licensed firms.
Some 30 advice firms are participating in Lending as a Service, which was launched in October 2022, and 27 more are in the pipeline.
“Advisers are experiencing significant demand for services post the COVID-19 pandemic, reflecting a buoyant market for financial advice,” it said.
"Experience pathway will retain advisers and may results in advisers re-entering."
Gross profits from customer contracts increased by $1.7 million on FY22 thanks to the increase in authorised representative (AR) fee revenue generated from acquiring ClearView Advice in November 2021 and increased partner program sponsorship revenue.
The acquisition of ClearView Advice generated $10 million in revenue in FY23, up from $6.8 million in FY22.
However, it was partly offset by reduced investment margin revenue as a result of the cessation of platform margin of $1.7 million derived in FY22 and the sale of Ventura Funds business to Russell Investment Management for $1.7 million.
The sale of Ventura Funds was part of the firm’s restructure of its investment solutions business which it said is "progressing".
Centrepoint Alliance said it is committed to further M&A and has received indicative approval from NAB for a debt facility of $10 million to fund acquisitions.
The board declared a fully franked final dividend of 2 cents per share, delivering a fully franked FY23 ordinary dividend of 3 cents per share.
AUTHOR
Laura Dew
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