Centrepoint Alliance (Centrepoint) intends to rebuild itself as a diversified financial services group, with acquisitions part of its growth strategy.
Earlier this year, the listed financial services firm entered a merger agreement with the parent company of dealer group Professional Investment Services (PIS).
The merger agreement with Professional Investment Holdings (PIH) is part of a rebuilding stage for Centrepoint, the group's managing director Tony Robinson said.
"Recognising the need to expand and diversify the group through acquisition, considerable effort was directed during the past year into identifying and evaluating suitable target businesses," Robinson said in the firm's annual report.
"As a consequence of this, an agreement was signed with the PIH Group for a merger between the two organisations."
Robinson said the PIH acquisition represents an opportunity for the group to move closer to becoming a diversified financial services group.
"To assist with the implementation of that strategy, the company has successfully raised capital and has accumulated significant cash reserves with a view to funding new acquisitions and regrowing the IPF (insurance premium funding) business," he said.
Centrepoint's rebuild comes after the group entered the 2009/10 financial year in difficult circumstances, Robinson said.
In June 2009, the company was suspended on the Australian Securities Exchange, witnessed the departure of its managing director and two directors, and was required by its banker to reduce its borrowings.
"In order to secure future bank funding, Centrepoint was required to shed its non-core interests and, commencing in June 2009, to promptly implement a significant downsizing of its core insurance premium funding business," Robinson said.
"This downsizing ... was largely completed during the first quarter of the 2010 financial year."
The group made a full-year net profit after tax of $559,000, representing 40 cents a share.
