AWAG’s audited result sharpens its wealth advisory expansion plan

Audited accounts lift after-tax profit

AWAG’s audited FY2026 result is better than the unaudited version released in August, but the main change is accounting rather than a new operating achievement. Profit before tax came in at $1,209,960, compared with $1,181,079 in FY2025, while profit after tax was $889,469. AWAG said the audit increased after-tax profit by approximately $200,000, principally through the reversal of a $246,000 CHPW commission-cost accrual that was no longer required.

The adjustment increased pre-tax profit by $272,000 after smaller CHPW changes, with the post-tax gain partly offset by movements in payables, receivables, tax liabilities and cash. The company said the changes have no effect on current or future financial performance or financial position because CHPW was sold after year-end and AWAG has no continuing involvement.

Operating earnings improve despite lower revenue

Revenue fell 1.8% to $11.17 million, but total expenses declined by a larger amount to $9.96 million. The company’s revised Appendix 4E reports normalised profit before tax up 30% to $1.21 million, removing a $250,000 non-operating acquisition-related gain from the prior-year comparison. On that basis, the underlying year-on-year comparison is more favourable than the headline reported figures suggest.

Operating cash flow also strengthened, more than doubling to $1.03 million from $466,560. Cash at year-end was $3.54 million, while net assets rose to $13.53 million from $12.62 million. Net tangible assets increased to 9.23 cents per share from 8.01 cents, although earnings per share eased to 1.20 cents from 1.28 cents as the comparison includes the prior year’s different profit mix.

CHPW sale clears path for advisory investments

AWAG’s strategic pivot is now clearer. It sold its 100% interest in CHPW to Springboard Financial for $42,500 after CHPW distributed $900,000 to AWAG in July, then acquired up to 20% economic interests in Springboard Financial Group and Cotham Advisory. The company says removing CHPW eliminates conflicts of interest and gives it room to build a wider portfolio of licensee investments.

That portfolio included investments during the year in First Mutual Australia, SWR Chartered Accountants through Beattie, Avalon Financial Services and joint ventures involving OneLedger Group and CHN Wealth. AWAG’s investments rose to $3.43 million at 30 June, including $2.27 million of Equity Partnership Scheme investments and $95,000 in joint ventures. Many of these private investments are carried at cost, leaving future returns dependent on the performance of the underlying businesses and the royalty or other income streams they generate.

Adviser network and Centrepoint stake drive FY2027 ambitions

AWAG reported 122 advisers or authorised representatives across its investments and Armytage Private, alongside combined funds under management and administration of $4.1 billion. It now expects to approach 150 authorised representatives by December 2026. The company has also lifted its Centrepoint Alliance (ASX:CAF) shareholding to 18.5%, positioning itself, in its own description, for further corporate activity in the listed wealth sector.

The appointment of former IOOF and Insignia managing director Chris Kelaher to AWAG’s board adds relevant sector experience as the company pursues that strategy. Yet the accounts also show the limits of the current model: no dividend was declared, and the board says distributions are unlikely in the near future while it continues to fund investment opportunities. The next test is whether the expanding network and private holdings can convert strategic reach into repeatable earnings without requiring a corresponding increase in risk or capital.