Centrepoint Alliance has reported the growth of its wealth businesses in the release of its full-year financial results for 2017.
In a statement on the ASX, Centrepoint reported a net profit after tax (NPAT) of $6.5 million for the financial year 2017 – up 51 per cent on the prior year.
Its wealth businesses, which include Alliance Wealth (licensed advice business) and the Associated Advisory Practice (self-licensed advice business) attracted more firms, with 39 new firms recruited this year and a total of 98 firms in the last two years, the report stated.
Centrepoint’s salaried advice business recorded an increase in revenue of 32 per cent with EBITDA up 186 per cent, according the ASX announcement. Adviser numbers increased from four to seven.
During the year, the salaried advice business changed its name from Alliance Wealth & Protection to xseedwealth.
“The business has performed strongly in the year and is moving to the next phase of its growth strategy and increasing the number of advisers,” the report stated.
Centrepoint's Ventura Managed Accounts Portfolio also recorded an increase in net inflows, which were up 71 per cent to $344 million.
Meanwhile, Centrepoint has confirmed it could be acquiring an 80 per cent stake in a retail life insurance product provider aimed at the IFA market.
Australian Life Development (ALD) is a life insurance product provider focused solely on the IFA retail life insurance market, which is set to launch to market in the first half of 2018.
Centrepoint has four options to purchase an additional 20 per cent economic interest in ALD over the period to January 2020, with potential to go to 80 per cent, the ASX announcement said.
In February, Centrepoint subscribed to $5 million in a convertible loan in ALD that will provide seed funding to the ALD business.
Further, Centrepoint announced the departure of its chief executive and managing director John de Zwart.
Centrepoint chairman Alan Fisher said, “Under John’s leadership, Centrepoint has been transformed into a leader in Australia’s financial advice industry, with a series of new strategic growth platforms performing well."
Former CEO of ING Direct Vaughn Richtor will assume the role of chairman at MyState following the retirement of Miles Hampton, the compan...