Centrepoint identifies 3 growth opportunities for advice business
Centrepoint Alliance has shared its first-half FY25 results with strong performance coming from the acquisition of Financial Advice Matters.
The licensee said easing regulations and strong demand for advice have fuelled a solid first half of FY2024–25.
In an ASX release, Centrepoint Alliance announced a strong performance for the half-year to 31 December 2024, with a normalised EBITDA of $5.3 million up $1.2 million (29 per cent) on H1 FY24.
The firm attributed this to both the acquisition of Financial Advice Matters Group (FAM), which was completed in December 2023, and organic licenced fee growth.
Gross revenue was also up for the half to $159.7 million, up $19.2 million (14 per cent) on H1 FY24, which Centrepoint said was driven by an increase in gross commissions and annuitised adviser fee income received.
“The group continues to deliver consistent earnings and net adviser growth, cementing its position as a leading destination for advisers, servicing both the licensed and self-licensed market segments,” Centrepoint said.
“The market conditions for financial advice remain strong with significant demand for advice services, strong equity markets, and easing of regulation through a series of reforms arising from the Quality of Advice Review.”
Net revenue for the period was up $3.4 million to $20.1 million, while its net profit before tax hit $4.9 million, up $2.5 million (104 per cent) on H1 FY24, driven by $1.2 million growth in EBITDA and $1.3 million FAM contingent consideration release in H1 FY25.
Centrepoint said its EBITDA guidance for FY25 remains in the projected range of $10.25 million to $10.5 million.
“Licensee services has demonstrated resilience and growth despite the tightening adviser recruitment conditions,” Centrepoint said.
As at 31 December 2024, Centrepoint had 556 authorised representatives, representing a net growth of seven, along with 200 self-licensed firms, which was down by three.
“The salaried advice businesses, FAM and Centrepoint’s salaried advisers, have been fully integrated, with all advisers now operating under the unified model,” Centrepoint said. “The business has retained 14 out of the 15 advisers from the FAM acquisition and added a professional year adviser.”
It identified future growth opportunities from having capacity to service more customers with minimal impact on cost base, leveraging industry relationships for client referrals, and strategic and tuck-in acquisitions.
Centrepoint also spruiked the launch of its IconiQ investment and superannuation platform, which it unveiled in October and has since opened to all advisers.
IconiQ Super Wrap, promoted by Ventura Investment Management Limited, a wholly owned subsidiary of Centrepoint, also went live in December 2024, with the licensee noting it is focused on driving inflows.
“Centrepoint continues to demonstrate strong performance and resilience in a dynamic market environment,” Centrepoint added.
“The group’s strength in its core business of licensee services, combined with the FAM acquisition, strategic growth initiatives, technological advancements, cyber security enhancements, and regulatory compliance, position it well for sustained growth and success.”
AUTHOR
Keith Ford
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