Centrepoint’s AI Strategy and Adviser Growth Signal Market Re-rating Risks

Strong Financial Momentum

Centrepoint Alliance Limited (ASX, CAF) has delivered a standout performance in FY25, surpassing its guidance with record growth across its core business lines. The company reported a 16% increase in normalized EBITDA to $10.6 million and a 30% jump in net profit before tax to $7.3 million, underpinned by a 13% rise in gross revenue to $326.1 million. This robust financial showing reflects both organic expansion and strategic acquisitions, notably the integration of Brighter Super’s advice review book.

Expanding Adviser Network and Managed Funds

Centrepoint’s adviser network grew significantly, with a net addition of 22 authorised representatives, bringing the total to 571 under its licences. The broader adviser base now totals 1,471, including self-licenced advisers, despite a 19% contraction in the wider advice market. Managed accounts funds under management surged 40%, from $303 million to $423 million, spread across six investment and superannuation platforms. This growth was bolstered by the successful launch and early commercialisation of the IconiQ Superannuation and Investment platform, which continues to onboard advisers and integrate with existing software.

Strategic Focus on Technology and AI

Centrepoint is positioning itself at the forefront of technological innovation in financial advice. The company has embraced artificial intelligence to enhance adviser productivity, compliance monitoring, and operational efficiency. Its phased AI strategy includes infrastructure development, deployment of AI agents for audits and advice generation, and exploring transformative business models. Integration of Microsoft Copilot within a secure Australian cloud environment exemplifies Centrepoint’s commitment to data privacy and governance.

Balanced Growth Strategy and Market Positioning

The company’s five-pillar growth strategy balances the stability of its core licensee services with expansion into higher-margin segments such as investment management and platform services. These adjacent markets offer scalable, recurring revenue streams and command higher valuation multiples. Centrepoint aims to reshape its earnings mix to drive sustainable shareholder value and multiple expansion over time. The Board also highlighted ongoing investments in cyber resilience, ESG governance, and preparation for mandatory climate-related disclosures.

Outlook and Dividend Policy

Looking ahead, Centrepoint Alliance expects underlying EBITDA in FY26 to range between $11.5 million and $12 million, reflecting disciplined financial management. The company remains confident in its growth trajectory, supported by a $1 billion transition pipeline for the IconiQ platform and continued expansion of salaried advice services. A final fully franked dividend of 1.75 cents per share was declared, bringing total dividends for FY25 to 3.0 cents per share. Since July 2021, Centrepoint has delivered a total shareholder return of 125%, underscoring its strong market performance.