Centrepoint NPAT down 6% amid tightening adviser market

Publicly-listed financial planning group Centrepoint Alliance has pointed to 14% increase in first half gross revenue driven by gross commissions and adviser fees as it posted a 6% decline in net profit after tax to $4.858 million.

Notwithstanding the decline in NPAT, the company told the Australian Securities Exchange (ASX) that it continues to perform well, delivering consistent earnings and net adviser growth “cementing its position as a leading destination for advisers, serving both the licensed and self-licensed market segment.

It said the company continued to perform well, despite tightening recruitment conditions.

“Recent merger and acquisition activities have led to a more cautious approach among advisers switching licensees, with many adopting a wait and see position before making any decisions,” the Centrepoint commentary said.

“However, the pipeline for conversion remains promising, indicating confidence for future growth.”

It said that at the end of the first half there were 556 authorised representatives, representing net growth of seven and 200 self-licensed firms representing a loss of three firms compared to those as at 30 June, last year.

Centrepoint said its salaried advice firms, FAM and Xseed, had been fully integrated, with all advisers now operating under a unified model.

The directors declared an interim dividend of 1.25 cents per share, fully franked.