Net profit after tax was 1.29 million for the first half of the 2014 financial year, up $2.68 million from the $1.4 million loss in the previous corresponding period.
Total expenses for the group decreased by 12 per cent compared to the previous corresponding period, driven by a $4.6 million reduction in adviser client claims expenses.
Centrepoint managing director John de Zwart said the results reflect the continuous improvements that have been made across the business, particularly in its adviser systems, standards and training.
Mr de Zwart said the wealth management business reported an underlying pre-tax profit of $3 million resulting from “stronger financial adviser engagement and cost management”.
“During this period, our financial adviser relationships have strengthened as a result of our change in culture and this is being reflected in improved service and offerings to our networks,” he said.
Professional Investment Services (PIS) revenues for the half were down seven per cent, however, falling to $11.5 million.
Centrepoint chairman Rick Nelson said this was mainly the result of a “reduction in adviser numbers in 2013 and associated funds under product distribution agreements”.
Despite this, he said the decision to bring the client’s claims team in house within its Professional Investment Services business, as reported by InvestorDaily in November, has been effective in reducing costs.
The Associated Advisory Practices business saw a 20 per cent decline in pre-tax profits to $1.332 million.
“This reduction is the result of scheme costs and investment in the business for further growth,” said Mr Nelson.
