Centrepoint Alliance (ASX: $CAF) reports solid financial performance in H1 2024

Centrepoint Alliance Limited (ASX: $CAF) has reported a solid financial performance for the half-year ended 31 December 2023. The company's gross revenue increased by $6.3 million, representing a 4.7% growth compared to the prior comparative period. The acquisition of Financial Advice Matters Group Pty Ltd (FAM) in December 2023 has significantly contributed to this growth. The company's EBITDA (excluding LTI, one-off costs, and asset sale) stood at $4.1 million, marking a $0.4 million increase compared to the prior comparative period. Claims against advisers remained low, with 17 open claims at the end of the period, reflecting the company's prudent risk management and compliance focus.

Executive Commentary on Financial Performance and Strategic Initiatives

The Group's financial performance in the first half of 2024 has been robust, driven by the successful acquisition of Financial Advice Matters Group Pty Ltd (FAM) in December 2023. The acquisition has not only contributed to a significant increase in gross revenue but has also enhanced the company's position in the higher margin salaried advice segment. Additionally, the development and launch of the iQ Portfolios on Macquarie Wrap in December 2023 have been key strategic initiatives to grow the asset management business. The Group's commitment to service excellence is evident in the Net Promoter Score (NPS), which has increased from +13 in August 2022 to +39 by November 2023, reflecting positive sentiment and exceptional service standards. Furthermore, the company's proactive measures to strengthen cybersecurity and resilience underscore our commitment to maintaining the highest standards of cybersecurity to safeguard against potential risks and breaches.

Outlook and Financial Position

Looking ahead, Centrepoint Alliance (ASX: $CAF) is well-positioned to capitalize on the strong market conditions for advice services, supported by significant demand, strong equity markets, and regulatory reforms. The acquisition of FAM has strategically expanded the company's presence and operating scale in the higher margin salaried advice segment, contributing to revenue growth. The successful development and launch of the iQ Portfolios on Macquarie Wrap in December 2023 have been pivotal in advancing the asset management business. The Group's commitment to service excellence, as reflected in the Net Promoter Score (NPS) increase, and the proactive measures to strengthen cybersecurity and resilience, further reinforce the company's competitive edge. With solid financial performance and a focus on strategic initiatives, Centrepoint Alliance is well-positioned for continued growth and success in the financial services industry.