Centrepoint Alliance Grows Revenue 13% Amid Profit Dip and Strategic Lending Divestment
Centrepoint Alliance reported a 13% rise in revenue to $179.3 million for the half-year ending December 2025, despite a 15% fall in net profit after tax. The company declared a fully franked interim dividend and announced a strategic divestment of its lending aggregation business.
- Revenue increased 13% to $179.3 million
- Profit before tax declined 29% to $3.5 million due to one-off prior period income
- Net profit after tax down 15% to $3.9 million
- Adviser network expanded to 585 with strong retention
- Strategic divestment of lending aggregation business to Astute Financial Management
Robust Revenue Growth Despite Profit Pressure
Centrepoint Alliance Limited has delivered a solid half-year performance for the six months ended 31 December 2025, with revenue climbing 13% to $179.3 million. This growth was driven by organic expansion in its adviser network and increased activity across its financial advice and investment management services. However, profit before tax fell 29% to $3.5 million, primarily due to a one-off revenue recognition in the prior corresponding period related to contingent consideration from an acquisition.
Expanding Adviser Network and Strategic Focus
The company’s adviser network grew to 585 licensed advisers, a net increase of 14 since July 2025, reinforcing Centrepoint’s position as a leading destination for financial advisers in Australia. High retention rates and a strong onboarding pipeline of approximately 40 advisers underpin this momentum. Centrepoint continues to balance its core licensee services with growth in higher-margin segments such as investment management, platform services, and salaried advice.
Technology and Compliance at the Forefront
Technology remains a strategic priority, with Centrepoint advancing its IconiQ Investment and Superannuation platform, which now manages $501 million in funds; up 51% year-on-year. The company is also integrating artificial intelligence to enhance adviser efficiency and compliance oversight. Regulatory compliance is tightly managed, with the Group meeting new education standards and preparing to deploy an Enterprise Risk Management system in the second half of 2026.
Dividend and Financial Position
Centrepoint declared a fully franked interim dividend of 1.25 cents per share, payable on 16 March 2026. The Group’s net tangible assets per share improved to 1.80 cents, supported by a strong balance sheet with $11.5 million in cash reserves. Earnings before interest, tax, depreciation, and amortisation (EBITDA) increased 17% excluding one-offs, reflecting disciplined cost management and operational efficiency.
Strategic Divestment of Lending Aggregation Business
In a notable strategic move, Centrepoint entered a binding agreement to divest its lending aggregation business to Astute Financial Management. The deal, expected to complete by 31 March 2026, will allow Centrepoint to retain lending back-book revenue, Lending-as-a-Service operations, and salaried brokers, while Astute will take on new lending business revenue. This transaction is forecast to boost Centrepoint’s EBITDA by approximately $0.4 million annually from fiscal year 2027.
Bottom Line?
Centrepoint’s half-year results highlight steady growth and strategic repositioning, setting the stage for future earnings uplift post-lending divestment.
Questions in the middle?
- How will the divestment of the lending aggregation business impact Centrepoint’s revenue mix and adviser relationships?
- What are the growth prospects and competitive positioning of the IconiQ platform in the evolving investment management market?
- How will ongoing investments in AI and compliance technology translate into operational efficiencies and cost savings?
