Centrepoint growing wealth business

December half-year results for financial advice group Centrepoint Alliance were buoyed by the performance of its wealth division and the sale of its premium funding business.

The ASX-listed company's wealth segment reported a 29% EBITDA increase on the previous corresponding period to $4 million, which was supported by steady growth in new clients, a growing salaried advice business and healthy fund flows into managed accounts solution, the company said.

The sale of its insurance premium funding business for $21.4 million to Bank of Queensland recorded a $4.5 million gain, further boosting its bottom line.

Centrepoint's after-tax profit, which  inched $0.7 million year-on-year to $4.6 million, was dented by an increase in pre-July 2010 legacy claims provisions to $3.7 million (2015: $149,000).

"We are continuing to invest in growing or adviser services and funds management business, along with our own salaried advice business. We are also excited with our recent investment in R Financial Educators Pty Ltd ('RFE') who have signed up 18 accounting firm joint ventures. We have also seeded a new life insurance initiative and look forward to developing this over the next 12 months," Centrepoint chair Alan Fisher said.

Managing director John de Zwart said the group's goal was to be the most trusted financial services business in Australia.

"We have a superb team, leading solutions and strong advocacy from our clients. We will continue to offer innovative solutions to help non-institutional advisers deliver best advice and thrive in a rapidly changing environment," de Zwart added.

Read more: Centrepoint AllianceAlan FisherAustraliaBank of QueenslandJohn de ZwartRFER Financial Educators Pty Ltd
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