H1 FY25 Results Announcement

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Stock Centrepoint Alliance Ltd (CAF.ASX)
Release Time 24 Feb 2025, 9:24 a.m.
Price Sensitive Yes
 Centrepoint Alliance Reports Strong H1 FY25 Results
Key Points
  • Strong financial performance with normalised EBITDA up 29%
  • Gross revenue up 14% and net revenue up 20%
  • Interim fully franked dividend of 1.25 cents per share declared
Full Summary

Centrepoint Alliance Limited (ASX: CAF), a leading provider of financial advice and services, has announced its Interim Financial Report and Appendix 4D for the six months ended 31 December 2024. The company reported a strong financial performance, with normalised EBITDA (excluding LTI, One-Off Costs & Contingent Consideration Release) of $5.3 million, up $1.2 million (+29%) on H1 FY24. Gross revenue increased by $19.2 million (+14%) to $159.7 million, driven by an increase in gross commissions and annuitised adviser fee income. Net Revenue (Gross Profit) grew by $3.4 million (+20%) to $20.1 million. The company also released a contingent consideration provision of $1.3 million relating to the FAM acquisition. Management expenses increased by $0.4 million (3%) compared to the prior corresponding period, mainly driven by inflationary increases, excluding the impact of the FAM acquisition. The company's net cash position was $9.2 million, down 25% on 30 June 2024, primarily due to $2.6 million in cash provided by operations, offset by $3.5 million in dividends paid, $0.8 million in NAB loan repayments, $0.7 million for payment of software intangibles, $0.5 million for repayment of lease liabilities, and $0.2 million in claims settled. NPBT increased by $2.5 million (+104%) to $4.9 million, driven by the $1.2 million growth in EBITDA and the $1.3 million FAM contingent consideration release. Centrepoint Alliance also declared an interim fully franked ordinary dividend of 1.25 cents per share, with a payment date of 17 March 2025. The company's Licensee Services business demonstrated resilience and growth, with net adviser growth and improved service levels. Centrepoint's Licensee Net Promoter Score reached an all-time high, indicating a high level of adviser satisfaction. The company's salaried advice businesses, FAM and Centrepoint's salaried advisers, have been fully integrated, and the IconiQ Investment and Superannuation Platform was successfully launched.

Guidance

Centrepoint Alliance has maintained its EBITDA guidance for FY25 in the range of $10.25 million to $10.5 million (excluding LTI, One-Off Costs & Contingent Consideration Release).