Centrepoint Alliance LimitedASX: CAF

Investor Presentation – Half Year Results

· Issued by Centrepoint Alliance Limited
PowerPoint Presentation Half Year Results Centrepoint Alliance Limited 31 December 2015 ASX:CAF

Corporate snapshot

Shareholder structure KPM, 5% Adam Smith, 6% River Capital, 6% Retail & other, 56%

Capital Structure

Share price (19 February 2016)

$0.36

Fully paid ordinary shares

153.2m

Options and performance rights

4.0m

Market capitalisation

$55.2m

Cash (31 December 2015)

$12.0m

Drawn corporate debt (31 December 2015)

$0.2m

Thorney, 27%

Valuation

Enterprise Value (EV)

$43.3m

CY15 Underlying EBITDA

$7.16m

EV/ Underlying EBITDA ratio

6.1x

Statutory CY15 EPS

2.5 cps

CY15 P/E ratio

14.6x

CY15 total dividend

2.2 cps

CY15 dividend yield

6.1%

Share price (2 years)

$0.6

$0.5

$0.4

$0.3

$0.2

$0.1

Page 2

$-

Feb-14 May-14 Aug-14 Nov-14 Feb-15 May-15 Aug-15 Nov-15

source: finance.yahoo.com

1H16 Financial highlights

  • Underlying pre-tax profit of $3.2m down 26% on pcp, and up 16% on pp. Statutory net profit after tax of $0.7m was down 75% and 76% on pcp and pp respectively

  • The underlying results were driven by:

    • Growth in funds management and administration revenues ($0.8m) and salaried advice revenues ($0.8m) were offset by

    • Lower Wealth fees ($1.8m) following the implementation of fee for service model

    • Lower platform rebates and grandfathered income ($0.9m)

      In addition, the statutory net profit was impacted by premises restructuring resulting in $0.6m after tax impact (EPS impact of 0.38 cents)

  • Wealth underlying profit of $3.5m was down 13% on pcp and up 13% on pp

  • Funding underlying profit of $1.4m was down 15% on pcp and up 48% on pp

  • Interim fully franked dividend of 1 cent per share

  • Strong balance sheet with $12.0m in cash

    1H16 Operational highlights

  • Wealth's new sustainable revenues performing well with salaried advice and product solution strategies being implemented

  • Wealth is recruiting quality practices following the exit of institutional and non-institutional licensees

  • Premium funding lifted market share and maintained loan volumes despite commercial premiums being down. A record 15,000 loans were written during the period following 12% growth in the eastern states

  • Strong expense control enabled continued investment in salaried advice, M&A activity, new adviser technology and product solutions and establishment of adviser service centre

  • Legacy claims continuing long term decline