ASX Announcement
- 1H16 underlying profit before tax of $3.2m, down 26% on the pcp and up 16% on prior period
- 1H16 statutory NPAT of $0.7m, down 75% on the pcp
- Fully franked interim dividend of 1 cent per share
Centrepoint Alliance Limited (ASX:CAF) ('Centrepoint') announces an underlying net profit before tax of $3.2m down 26% on the prior corresponding period and up 16% on the prior period.
The Wealth business delivered a solid result with an underlying pre-tax profit of $3.5m which was down 13% on the prior corresponding period and up 13% on the prior period. The transformation of the business to a modern wealth advice business is progressing to plan and is well recognised for its competitive offering and trusted team. The move to a fee for service model in May last year resulted in a drop in adviser fee revenues. This is gradually being offset by strong growth in professional advisers to the group. The business also achieved good growth in funds management and salaried advice revenues partially offset by a drop in product rebates.
The Funding underlying pre-tax profit was down 15% on the prior corresponding period and up 48% on the prior period. The premium funding business wrote a record 15,000 loans during the period offsetting commercial insurance premium rate reductions. Premiums funded of $211m was flat on the prior corresponding period and up 26% on the prior period driven by 12% growth in the eastern states.
Statutory net profit after tax was impacted by onerous lease provisions of $0.6m relating to a major premises restructure across the group.
Centrepoint also announced an interim dividend of 1 cps fully franked to be paid on 29 April 2016.
The Chairman, Alan Fisher commented 'We are pleased with the Group's progress in executing on its strategy. The market environment in both business lines is challenging so it is particularly pleasing to see the transformation of the Wealth business gaining momentum and the Funding business growing its broker relationships and loans. In a market where Institutional competitors are reassessing their participation, Centrepoint is strengthening its position as the preferred choice for quality advisers and brokers.'
The momentum in the salaried advice channel and the innovative separately managed account service are increasingly important drivers in the Wealth result. Together these investments provide sustainable growth platforms in the post FOFA world.
The investment in people, technology and client solutions in both Wealth and Funding has continued. The Group's strategy is to achieve sustainable, long term growth by delivering innovative solutions to independent advisers and brokers to support their customer's needs.
The Group had cash and cash equivalents of $12m as at 31 December 2015. The Group has a strong financial position from which to deliver organic and inorganic growth.
The Group is well positioned in both businesses for sustainable growth by continuing to support professional advisers and brokers thrive in attractive markets.
Investor BriefingJohn de Zwart, Managing Director, and John Cowan, Chief Financial Officer, will hold an investor briefing at 10am (AEDT) on Thursday, 25 February 2016.
If you wish to participate in the briefing please register by visiting our ASX Announcements section of the Investor Centre on the Centrepoint website - http://www.centrepointalliance.com.au.
Centrepoint's Appendix 4D and Half Year Report are appended.
For further information please contact:
John de Zwart
Managing Director Centrepoint Alliance Limited Ph: +612 8987 3002
CENTREPOINT ALLIANCE LIMITED
AND ITS CONTROLLED ENTITIES
ABN 72 052 507 507
Appendix 4D
Half year ended 31 December 2015
RESULTS FOR ANNOUNCEMENT TO THE MARKET
In thousands of Australian dollars Revenues from ordinary activities | Down | 8 % | to | $24,049 |
Profit before tax and non-controlling interests | Down | 66% | to | $1,221 |
Profit after tax attributable to members | Down | 75% | to | $714 |
Dividends (distributions) | Amount per security | Franked amount per security |
Interim dividend | 1.0 cents | 1.0 cents |
Previous corresponding period | 1.0 cents | 1.0 cents |
Record date for determining entitlements to dividend | 24 March 2016 | |
Payment date of dividend | 29 April 2016 | |
Dividend Reinvestment Plan | ||
Plan active | ||
Discount | ||
Pricing period | ||
Last DRP election date | ||
Net tangible assets per share | 31 Dec 2015 14.99 cents | 30 June 2015 14.85 cents |
Yes |
2% |
28 March 2016 to 8 April 2016 |
25 March 2016 |
Results are extracted from the attached Half Year Financial Report for the six months ended 31 December 2015 which was subject to an independent review.
For explanation and commentary on the results refer to the Directors' Report in the attached Half Year Financial Report.
AND ITS CONTROLLED ENTITIES
ABN 72 052 507 507
HALF YEAR FINANCIAL REPORT
FOR THE SIX MONTHS ENDED 31 DECEMBER 2015