Centrepoint profit spikes 78 per cent

Centrepoint profit spikes 78 per cent

Centrepoint Alliance has continued its upward trajectory in the full year to 30 June reporting a net profit after tax of $5.9 million, which is up 78 per cent on the prior year.


Underlying profit before tax decreased 15 per cent to $7 million, down from $8.3 million.

The final dividend of 1.2 cents was also lower than the previous corresponding period high of 2.2 cents.

In 2013 the company made a loss of $7.8 million and clawed its way back to an after-tax profit of $3.3 million for the 2014 financial year.

Despite this year’s positive after-tax result Centrepoint Funding’s underlying pre-tax profit was down 52 per cent to $2.5 million.

The company said that this was due to a softer general insurance market impacting the funding of premiums.

“Despite the profit decrease, the business delivered a strong operational result with growth in new broker relationships and loans funded,” a Centrepoint statement said.

Centrepoint Wealth progressed in its transformation strategy and delivered an underlying pre-tax profit up 10 percent  to $7.1 million. Funds invested in Centrepoint solutions increased 14 per cent to $2.8 billion.

Centrepoint 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.

“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,” Mr de Zwart said.

“With cash and cash equivalents of $12.5 million 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.”

 

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