Release Date: February 24, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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Centrepoint Alliance Ltd (ASX:CAF) reported strong financial performance driven by organic adviser growth and disciplined cost management.
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The company achieved a net growth of 7 advisors over the past six months, ending the period with 556 advisors.
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The launch of the iconic investment and superannuation platform in partnership with FNZ was a major milestone.
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The IQ portfolios outperformed their investment objectives in 2024, with inflows building across five platforms.
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The company’s net promoter score reached an all-time high of 47, indicating high satisfaction levels among advisors.
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Profit before tax decreased by 300k compared to the first half, primarily due to the group transitioning to a tax-paying entity.
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There was a 0.7 million reduction in other revenue, distributed across partner program revenue, lending, and VMAP funds margin.
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The cost to income ratio, although improved, still stands at 74%, indicating room for further efficiency gains.
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The company faces tightening recruitment conditions, which could impact future advisor growth.
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The transition to a tax-paying entity has impacted financial results, with corporate tax obligations commencing in the second half of FY25.
Q: What is Centrepoint Alliance’s strategy regarding the distribution of IQ portfolios across platforms? A: John Shuttleworth, CEO, stated that Centrepoint Alliance operates on an open architecture model, allowing advisors to choose their preferred platforms. The company aims to provide access to IQ portfolios across multiple platforms, ensuring quality investment options without restricting them to the Iconic platform alone.
Q: Does the guidance range include the one-off fan release of 1.3 million? A: Brendan Glass, CFO, confirmed that the earnings update includes the normalization of any expense or income-based contributions, including the release of the fan burnout, which is already embedded within the numbers.
Q: Is NetWealth absent from the distribution list, and will it be added soon? A: John Shuttleworth, CEO, expressed a desire to include NetWealth on the platform, acknowledging its significance. Discussions with NetWealth are ongoing, and Centrepoint Alliance aims to make its portfolios broadly available, including on major platforms like NetWealth.
Q: What are the benefits of keeping managed accounts distribution exclusively to the Iconic platform? A: John Shuttleworth, CEO, emphasized the importance of providing advisors with choices and not restricting managed accounts to the Iconic platform. The strategy is to maintain open architecture, allowing access across various platforms to serve clients’ best interests.
Q: How has the FA acquisition impacted financial results? A: Brendan Glass, CFO, noted that the FA acquisition contributed significantly to revenue and expense increases. The acquisition resulted in a 2.3 million revenue increase for the first half, with expenses rising by 1.8 million due to six months of trading.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
