Centrepoint Alliance Highlights Growth and Strategy at Annual General Meeting
CENTREPOINT ALLIANCE LIMITED (CAF) Share Update November 2024 Thursday 14th
Centrepoint Alliance Reports Strong Growth and Strategic Initiatives at AGM
Centrepoint Alliance Limited (ASX: CAF) has reported notable growth and strategic developments during its Annual General Meeting, emphasizing its strengthened market position and future plans.
Instant Summary:
- Centrepoint Alliance achieved a 168% EBITDA growth over the last 3 years.
- The company has moved from #6 to #3 in the market by licensee size.
- Launch of the IconiQ platform entering the $1.1 trillion platform market.
- Acquisition of Financial Advice Matters, enhancing salaried adviser business.
- Increased market share from 2.4% to 4.9%.
Business Performance
Centrepoint Alliance has reported substantial growth in its financial performance, achieving a 168% growth in EBITDA over the past three years, which translates to a 39% compound annual growth rate. This growth is underpinned by strategic initiatives and a robust business model that has propelled the company to the #3 position in the market by licensee size.
The company has successfully eliminated platform rebates, leading the market in adviser recruitment and increasing its market share from 2.4% to 4.9%. This growth is further bolstered by the acquisition of Financial Advice Matters, which enhances its salaried adviser business.
Strategic Initiatives
Centrepoint Alliance has launched the IconiQ platform, marking its entry into the $1.1 trillion platform market. This platform, developed in partnership with FNZ, offers a competitive pricing structure and advanced features, positioning it as a leading platform solution.
The company is also focused on expanding its asset management business, which has seen increased adoption of new portfolios. The lending business has experienced a turnaround, with 44 advice firms now using the Lending as a Service offering.
Future Outlook
Looking ahead, Centrepoint Alliance remains optimistic about its growth prospects. The company continues to recruit advisers and benefit from industry consolidation. It is focused on accelerating growth in its higher-margin salaried advice business through further acquisitions.
The new IconiQ investment platform is live, with the superannuation platform scheduled for release next month. The company maintains its EBITDA guidance for FY25 in the range of $10m to $10.5m.
The strategic initiatives and growth reported by Centrepoint Alliance are likely to positively impact its stock performance. The successful launch of the IconiQ platform and the company's increased market share demonstrate strong strategic execution, which could enhance investor confidence.
Investor Reaction:
Analysts are likely to view Centrepoint Alliance's growth and strategic initiatives favorably, particularly the launch of the IconiQ platform and the company's improved market position. The continued focus on strategic acquisitions and margin expansion is expected to be well-received.
Conclusion:
Investors should consider Centrepoint Alliance's strong growth trajectory and strategic initiatives as positive indicators for future performance. The company's ability to execute its growth strategy and expand its market presence will be key to maintaining investor confidence.