Centrepoint claims some advice M&As destroyed value

Centrepoint Alliance has reinforced its desire to grow both organically and via acquisition while taking a swipe at the inefficient outcomes of other recent merger and acquisition activity between financial planning licensees.

Centrepoint chief executive, John Shuttleworth used his address to the company’s annual general meeting to reinforce Centrepoint’s credentials with respect to success acquisition integrations and to point to those which have been less successful.

“We have spent significant effort over the year looking at strategic acquisition opportunities to accelerate growth,” he said. “Having completed and successfully integrated the ClearView acquisition, we know what is required to deliver an integrated business with sustainable earnings, and see many acquisitions destroy value due to the loss of advisers creating dis-synergies”.

Shuttleworth also claimed that based on a ranking of advisers Centrepoint was a clear number three in the market with 511 advisers operating under its licenses plus self-licensed firms.

He said that, taken together, this accounting for over 1,300 advisers in the Centrepoint network.

Both Shuttleworth and Centrepoint’s new chairman, Simon Swanson, pointed to the company’s growth agenda and new initiatives noting further moves in the managed accounts area and flagging that, early next year, the company would be announcing details of a new partnership to deliver a portfolio administration solution.

For his part, Swanson said that while Centrepoint would focus on building scale organically through adviser recruitment and increased services, it would selection look at acquisitions to augment growth.

“We will have a sharp focus on ensuring that any acquisitions either increase the scale of the business and/or broaden the level and quality of services that we can deliver to Centrepoint’s adviser community,” he said.

The annual general meeting was told that the company’s market guidance of $7.5 million to $8 million remained on track.