Full Year 2026 Centrepoint Alliance Ltd Earnings Call

August 25, 2026

Speaker #1: You have joined the meeting as an attendee and will be muted throughout the meeting.

John Shuttleworth: Full year results presentation. Everyone is in listen-only mode. For those that don't know me, my name's John Shuttleworth. I'm the CEO of the business, and with me is Brendon Glass, our Chief Financial Officer. There'll be an opportunity to ask questions at the end of the call. If you do have a question, please enter it into the Q&A panel and we'll attempt to answer those that we can. If you ask a question, we don't answer it, then either myself or Brendon will come back to you. Let's kick off. The opening comment I'll make is when I'm about to go through some slides, we've reformatted the way we're presenting the data, and we're going to show you some detail on our 2026 performance, but we're going to set the context of how we've performed over the last few years.

Speaker #2: Full year results presentation. Everyone is in listen-only mode. For those that don't know me, my name is John Shuttleworth. I'm the CEO of the business, and with me is Brendan Glass, our Chief Financial Officer.

Speaker #2: There will be an opportunity to ask questions at the end of the call. If you do have a question, please enter it into the Q&A panel, and we'll attempt to answer those that we can.

Speaker #2: If you ask a question and we don't answer it, then either myself or Brendan will come back to you. All right, so let's kick off.

Speaker #2: The opening comment I'll make is: we're about to go through some slides, and we've reformatted the way we're presenting the data. We're going to show you some detail on our 2026 performance, but we're going to set the context with how we've performed over the last few years.

Speaker #2: And we're also going to give you some guidance on what the business looks like going forward. I'd have to say, in August, it rolled around five years that I've been in the business, and I've never felt so positive about the business.

John Shuttleworth: We're also going to give you some guidance on what the business looks like going forward. I'd have to say, in August, right around five years I've been in the business, and I've never felt so positive about the business. We've got really strong momentum within the business. I think you'll see the slides will demonstrate that. We've got some great emerging opportunities with salary advice and some of the other initiatives. If we actually overlay the things we're doing with AI, which we'll touch on briefly and provide further updates, it's an incredibly exciting time to be in the business. With that, let's kick off. The way I would summarize the results of the business, we have delivered another year of profitable growth, and we're positioned for continued expansion.

Speaker #2: We've got really strong momentum within the business. I think you'll see the slides will demonstrate that. We've got some great, emerging opportunities with salary advice and some of the other initiatives. And then, if we actually overlay the things we're doing with AI—which we'll touch on briefly and provide further updates—it's an incredibly exciting time to be in the business.

Speaker #2: So with that, let's kick off. The way I would summarize the results of the business: we have delivered another year of profitable growth, and we're positioned for continued expansion.

Speaker #2: The sort of thematics are: when you see the detailed slides, we've had five years of execution of a transformed business. We've got a very strong licensee franchise.

John Shuttleworth: The sort of thematics are when you see the detail slides, we've had five years of execution, have transformed the business. We've got a very strong licensee franchise. The salary advice business is emerging as a material growth platform and also material contributed earnings. The acquisitions we've done have expanded earnings and really validate our company's capital allocation approach. Operating margins have continued to improve as the business scales. We've delivered strong shareholder returns that demonstrate value creation, and the team that we have in place has a historical record of executing in the business. So there's credibility that it's the same team that will provide a pathway to higher future earnings. If you look at the results, normalized EBIT are AUD 12.3, up 16% on F25.

Speaker #2: The salary device business is emerging as a material growth platform and also a material contributor to earnings. The acquisitions we've done have expanded earnings and really validate our company's capital allocation approach.

Speaker #2: Operating margins have continued to improve as the business scales. We’ve delivered strong shareholder returns that demonstrate value creation. The team that we have in place has a historical record of executing in the business, which provides credibility that it’s the same team that will provide a pathway to higher future earnings.

Speaker #2: If you look at the results, normalized EBITDA 12.3, up 16% on F25. Revenue of 43 million profit before tax 7.3. The final dividend of 1.75, so that takes the total for the year at 3%.

John Shuttleworth: Revenue of AUD 43 million, profit before tax AUD 7.3 million, the final dividend of AUD 1.75, so that takes the total for the year at 3%, and the cash at the end of June was AUD 14.4 million. This chart is useful because it sets some of that historical context. I will just run through some of the key metrics. You can see the EBITDA growth we have had from AUD 3.4 million in 2021 up to the AUD 12.3 million, which represents a 262% increase. Our net revenue growth has increased from AUD 28 million to AUD 43 million, which is 53%. The employees have gone from 90 to 119, so we have had a 32% increase in staff. But pleasingly, what we have managed to do is really lower the cost to income ratio that has been progressively dropping from 88% down to the current 71%.

Speaker #2: And the cash at the end of June was $14.4 million. This chart is sort of useful because it sets some of that historical context.

Speaker #2: So I'll just run through some of the key metrics. You can see the EBITDA growth we've had, from $3.4 million in 2021 up to $12.3 million, which represents a 262% increase.

Speaker #2: Our net revenue growth has increased from 28 to 43, which is 53%. The number of employees has gone from 90 to 119, so we've had a 32% increase in staff.

Speaker #2: But pleasingly, what we've managed to do is really lower the cost-to-income ratio, which has been progressively dropping from 88% down to the current 71%.

Speaker #2: The profit before tax—you can see the growth is up 387% from where we were some time ago. The business has consistently paid dividends year on year, and down the bottom, I've just labeled some of the M&As.

John Shuttleworth: The profit before tax, you can see the growth up 387% from where we were some time ago. The business has consistently paid dividends year on year. Down the bottom, I have just labeled some of the M&As. So, a pleasing set of results, but I think really important to show the context of where we have been and that will set some context for where we are heading. As an investor, if you were in the stock five years ago, you would have had 130% total shareholder return. Obviously, the addition of the share price accumulation, the dividends paid. We have put down below a table that shows how we have actually derived that. So, strong shareholder returns and strong dividend yield within the business. Before we get onto some of the detailed slides, I really wanted to set some context about the industry we operate in and some of the tailwinds.

Speaker #2: So, a pleasing set of results, but I think it's really important to show the context of where we've been, and that all sets some context for where we're heading.

Speaker #2: As an investor, if you were in the stock five years ago, you would have had a 130% total shareholder return. Obviously, the addition of the share price appreciation and the dividends paid would—down below, there's a table that shows how we've actually derived that.

Speaker #2: So, strong shareholder returns and a strong dividend yield within the business. Before we get on to some of the detailed slides, I really wanted to set some context about the industry we operate in.

Speaker #2: And some of the tailwinds—so, the need for advice has really never been greater. Just a reminder to everyone: the scale of the pool—we have $19.2 trillion in household wealth, and that's an ABS number.

John Shuttleworth: The need for advice has really never been greater. Just a reminder to everyone, the scale of the pool, we have AUD 19.2 trillion in household wealth, and that is an ABS number. The superannuation system is AUD 4.4 trillion and continuing to grow. There is AUD 13 trillion in land and dwellings. Two key stats that I will draw on later in the slide, we have got around 2.5 million Australians retiring this decade, and another 2 million Australians over the age of 50 with more than AUD 250k in super. Now, why advice is growing is there are five thematics which are really important. The first is there is a great shift from accumulation of retirement, which is driven by an aging population as the baby boomer cohort moves from building wealth to drawing income.

Speaker #2: The superannuation system is $4.4 trillion and continuing to grow. There's $13 trillion in land and dwellings. And two key stats that I'll draw on later in the slide: we've got around 2.5 million Australians retiring this decade, and another 2 million Australians over the age of 50 with more than $250,000 in super.

Speaker #2: Now, why advice is growing is there's five thematics which are really important. The first is there's a great shift from accumulation to retirement, which is driven by an aging population, as the baby boomer cohort moves from building wealth to drawing income.

Speaker #2: We operate in a very complex system, and it's the interplay of superannuation and pension rules, retirement, tax, and social security. A lot of people need advice to navigate that.

John Shuttleworth: We operate in a very complex system, and it is the interplay of superannuation and pension rules, retirement, tax, and social security. A lot of people need advice to navigate that. The number of advisors has declined and been static in recent years. So you are seeing demand exceeding the number of advisors, so more demand, fewer advisors. I will elaborate that on the following slide. Our superannuation system is the fourth largest pool in the world and projected to become the second largest by the early 2030s. The other thing is Australians are living longer. So when you start thinking about those thematics, you understand why advisors have a lot of work. What this chart is trying to demonstrate is the advice gap.

Speaker #2: The number of advisors has declined and then remained static in recent years, so you're seeing demand exceeding the number of advisors—more demand, fewer advisors.

Speaker #2: So, and I'll elaborate on that on the following slide. Our superannuation system is the fourth-largest pool in the world and is projected to become the second-largest by the early 2030s.

Speaker #2: And the other thing is Australians are living longer. So when you start thinking about those thematics, you understand why advisors have a lot of work.

Speaker #2: What this chart is trying to sort of demonstrate is the advice gap. Now, the horizontal black line is derived from, if you take 15,000 advisors—and there's varying numbers about the number of clients advisors have reported—and looking at our own data, it's around 100.

John Shuttleworth: Now, the horizontal black line is derived from if you take 15,000 advisors, and there's varying numbers about the number of clients advisors have reported, and looking at our own data, it's around 100, some say 112. So I've got a range there of, there's probably capacity of around 1.5 to 1.7 million people that could receive advice. If you overlay the number of people that are forecast to retire, the number of people who have large superannuation balances or getting to a significant superannuation balance that need help, there's a significant gap. What we expect will happen is the existing advisors, in the absence of increasing the number of advisors, there's some technology and capabilities that are going to help them service more clients. Firstly, AI.

Speaker #2: Some say 112. So I've got a range there of—there's probably capacity of around 1.5 to 1.7 million people that could receive advice. But if you overlay the number of people that are forecast to retire, the number of people who have large superannuation balances, or are getting to a significant superannuation balance and need help, there's a significant gap.

Speaker #2: Now, what we expect will happen is that the existing advisors, in the absence of increasing the number of advisors, will utilize some technology and capabilities that are going to help them service more clients.

Speaker #2: Firstly, AI — many advisers are using FileNote transcription and starting to use tools to generate records of advice. The whole administration process of delivering advice is becoming easier.

John Shuttleworth: Many advisors are using file note transcription, starting to use tools to generate Records of Advice, and the whole administration process of delivering advice is becoming easier, which means they can spend more time in front of clients and obviously manage more client books. So we're expecting to see some really positive tailwinds that will help advisors grow their business. If you look at our franchise, firstly turning to our licensee services business, we're the number 2 licensee in the market. What this chart shows in the dark blue bars, they are the advisors that are under our license. The numbers in the brackets are the employed advisors that are with the business. So you can see we've gone from 315, because we can sell services based on the number of firms, and that's grown from 141 to around 200.

Speaker #2: Which means they can spend more time in front of clients and obviously manage more client books. So we're expecting to see some really positive tailwinds that will help advisors grow their business.

Speaker #2: If you look at our franchise, firstly, turning to our licensee services business, we're the number two licensee in the market. What this chart shows—in the dark blue bars—are the advisors that are under our license.

Speaker #2: The numbers in the brackets are the employed advisors that are with the business. So you can see we've gone from 315, just because we didn't sell services based on the number of firms, and that's grown from 149 to around 200.

Speaker #2: So we've had, if you look cumulatively, around 61% growth in the advisor numbers within our business. Now, if you look at the relative health of the advisors within our franchise, it remains strong.

John Shuttleworth: So we've had, if you look cumulatively, around a 61% growth in the advisor numbers within our business. If you look at the relative health of the advisors within our franchise, it remains strong, and a couple of different lenses to look at. Firstly, the fees that they charge per client are rising. So what we've done here is we've analyzed, because we collect all the advisor fee revenue through a system called ComPay, we see exactly what is being charged. In 2023, the average fee across the cohort of licensed advisors was AUD 2,750. That's increased to AUD 3,624. There's many advisors on their forward book charging more, but this is an average fee across the book. Then obviously based on the number of clients and the rising fees, we've seen the average revenue per adviser rise from AUD 442 to AUD 541. So strong underlying economics within the business.

Speaker #2: And a couple of different lenses to look at. Firstly, the fees that they charge per client are rising. So what we've done here is we've analyzed, because we collect all the advisor fee revenue through a system called ComPay.

Speaker #2: We see exactly what is being charged. In 2023, the average fee across the cohort of licensed advisers was $2,750. That's increased to $3,624.

Speaker #2: There are many advisors on their forward book charging more, but this is an average fee across the book. And then obviously, based on the number of clients and the rising fees, we have seen the average revenue per advisor rise from $442 to $541.

John Shuttleworth: Then obviously based on the number of clients and the rising fees, we've seen the average revenue per adviser rise from AUD 442 to AUD 541. So strong underlying economics within the business.

Speaker #2: There are strong underlying economics within the business. I mentioned earlier about the salaried advice business emerging as a growth platform and making a strong contribution.

John Shuttleworth: I mentioned earlier about the salaried advice business emerging as a growth platform and making a strong contribution, and I'll just walk you through and explain this chart and some of the underlying drivers. So if you look back in 2024, the blue line indicates the average revenue per adviser, and the bars are looking at the total revenue across our salaried advice business. We've got the 2024 number where the average revenue per adviser was AUD 338K. This year we're at AUD 502, and based on the modeling, we will be close to AUD 577 by FY27. So that is demonstrating some growth where we've gone from AUD 575 to just over AUD 10 million, and FY27 see that at AUD 13.28 million. What's driving this growth is firstly we're seeing productivity benefits I just mentioned on a previous slide, which is formatting, transcription, ROA generation, reducing the administration.

Speaker #2: And I'll just walk you through and explain this chart and some of the underlying drivers. So if you look back in 2024, the blue line indicates the average revenue per advisor, and the bars are looking at the total revenue across our salaried advice business.

Speaker #2: And we've got the FY24 number where the average revenue per advisor was $338,000. This year we're at $502,000. And based on the modeling, we'll be close to $577,000 by FY27.

Speaker #2: That is demonstrating some growth, where we've gone from $575,000 to just over $10 million; and FY27, we see that at $13.28 million. Now, what's driving this growth is, firstly, we're seeing productivity benefits I just mentioned on a previous slide, which is file noting transcription, RLA generation, and reducing the administration.

Speaker #2: We're also seeing the adoption of separately managed accounts, where they're professionally managed investments being rebalanced by the investment manager, removing some of the investment administration burden from advisors.

John Shuttleworth: We are also seeing the adoption of Separately Managed Accounts where there are professionally managed investments being rebalanced by the investment manager, removing some of the investment administration burden from advisers who have been repricing the advice to reflect market-based fees and are also focused on new client acquisition. Those underlying thematics are helping us grow the business, and I think we expect to see really strong growth. I will show you on a later slide. Over the three years, we have seen a 2.3 times increase in revenue. If we look forward beyond 2027, which is loan, we think a bit further forward, we think it is not difficult to see we could add another 150K in revenue per adviser. That could generate another roughly AUD 3.5 million incremental revenue at a 50% margin. We have seen the margin improve.

Speaker #2: We've been repricing the advice to reflect market-based fees and also focused on new client acquisition. So, those underlying thematics are helping us grow the business.

Speaker #2: And I think we expect to see really strong growth, and I'll show you on a later slide. So over the last three years, we've seen a 2.3-times increase in revenue.

Speaker #2: Now, if we look forward beyond 2027, which is slow, and we think a bit further forward, we think it's not difficult to see we could add another $150,000 in revenue per advisor.

Speaker #2: That could generate another roughly $3.5 million in incremental revenue at a 50% margin. And we've seen the margin improve. That would add another $1.7 million in contribution from this segment of the market.

John Shuttleworth: That would add another AUD 1.7 million in contribution from this segment of the market. We are very focused on salaried advice and can see that growing significantly. The other piece, we are providing a bit more detail on the platform and the iconic platform. We are very modest in terms of where the baseline Funds Under Administration are, but we see real potential for this to grow. It has taken us a bit longer to commercialize. There has been some headwinds that we have been facing, but we are through that. I will just walk you through the details. The first comment would be, if you actually look at the platform and the feedback we get, and we have got around 60 advisers using the platform today, they are incredibly happy with it. The advisers rate it on par with incumbent platforms.

Speaker #2: So we're very focused on salaried advice and can see that growing significantly. The other piece—we're providing a bit more detail on the platform and the Iconic platform. We are very modest in terms of where the baseline funds under administration are.

Speaker #2: But we see real potential for this to grow. It's taken us a bit longer to commercialize, and there have been some headwinds that we've been facing.

Speaker #2: But we're sort of through that. And I'll just walk you through the details. So the first comment would be, if you actually look at the platform and the feedback we get, we've got around 60 advisors using the platform today.

Speaker #2: They're incredibly happy with it. The advisers rate it on par with incumbent platforms. We have very sharp pricing, and pricing relative to other platforms.

John Shuttleworth: We have very sharp pricing, and pricing relative to other platforms is very competitive, both on the IDPS for investments or self-managed super funds and super. When we are working with clients on setting up bespoke or custom SMAs, being a flexible business, we can stand these things up in two to three months with reputable asset consultants, and we are really focused on a red carpet service, which is resonating well. The proposition has been validated, and we have actually got real money transitioning. This is not a loose pipeline, this is real dollars. You have got the baseline FUA. I mentioned there is around AUD 1 billion in transitions. We have reflected risk-weighted number of AUD 620 million that will transition. We will get further retail penetration as advisers start to use the platform and obviously recruit new key accounts. Then there will be new retail recruitment.

Speaker #2: It's very competitive, both on the IDPS for investments or self-managed super funds and super. When we're working with clients on setting up bespoke or custom SMAs, being a flexible business, we can stand these things up in two to three months with reputable asset consultants.

Speaker #2: And we're really focused on a red carpet service, which is resonating well. Now, the proposition is being validated and we've actually got real money transitioning.

Speaker #2: This is in a loose pipeline. This is real dollars. So, you've got the baseline FUA. As I mentioned, there's around $1 billion in transitions.

Speaker #2: We've reflected a risk-weighted number of $620 million that will transition. We'll get further retail penetration as advisors start to use the platform, and obviously recruit new key accounts.

Speaker #2: And then there'll be new retail recruitment. So, whilst the timeframe is within a range of sort of 2027 to 2028, we can actually see a pathway to getting to over $1 billion in funds under administration.

John Shuttleworth: Whilst the timeframe is within a range of 2027 to 2028, we can actually see a pathway of getting to over AUD 1 billion in Funds Under Administration. I will just reiterate, this platform is really strong. If we can successfully commercialize it is a very strong offering relative to others in the market. What I also wanted to share was a bit of an extended pathway of the business of how does this business get to AUD 20 million in earnings. This is just to make sure it is clear, this is largely organic growth. If you look at our track record historically that I presented on an earlier slide, the walk from 3.4 to 12.3, we have had a 262% increase in five years.

Speaker #2: And I'll just reiterate, this platform is really strong. If we can successfully commercialize it, it's a very strong offering relative to others in the market.

Speaker #2: Now, what I also wanted to share was a bit of an extended pathway for the business—how does this business get to $20 million in earnings.

Speaker #2: And this is just to make sure it's clear—this is largely organic growth. So if you look at our track record historically, as I presented on an earlier slide, the walk from 3.4 to 12.3, we've had a 262% increase in five years.

Speaker #2: If you look on the right-hand side, we believe that we can get—and this is sort of illustrative—and I'll finish with some earnings guidance later.

John Shuttleworth: If you look on the right-hand side, we believe that we can get, and this is illustrative and I will finish with some earnings guidance later, AUD 15 million in FY27. What are the drivers? Well, the licensee service area and the fees we generate from additional recruitment of advisers and some modest adjustments to fees will add AUD 2.1 million. The salaried advice business will add another AUD 1.5 million. We have a modest contribution from platforms, and then we acquired a couple of practices in July when we announced it and completed, which will add another AUD 650K, and we have some direct costs. So that gets us to the 15.

Speaker #2: Fifteen million in FY27. What are the drivers? Well, the licensee service area and the fees we generate from additional recruitment of advisors, and some modest adjustments to fees, will add $2.1 million.

Speaker #2: The salaried advice business will add another $1.5 million. We've got a modest contribution from platforms. And then we acquired a couple of practices in July, when we announced and completed them, which will add another $650,000.

Speaker #2: And we've got some direct costs, so that gets us to the $15. Now, if we look at 2028 and 2029, if we just look at our licensee services business, we think that can quite easily, based on historical momentum and projections, add $3.

John Shuttleworth: Now if we look at 2028 and 2029, if we just look at our licensee services business, we think that can quite easily based on historical momentum and projections add AUD 3 million, and the salaried advice business could add AUD 3.5 million, and then we have obviously got some direct costs associated. So without adding further acquisitions, we can see a clear pathway to getting to AUD 20 million in earnings, based on the existing modeling and track record we have, and then also the limbs we have going forward within the business. On acquisitions, I just wanted to give a bit of a recap on some of the deals we have done, and some of these were over a period, and you can see the timeline going a few years back, the ClearView business that was bought for AUD 12 million. We then bought the Financial Advice Matters business.

Speaker #2: And the salaried advice business could add $3.5 million. And then we've obviously got some direct costs associated. So, without adding further acquisitions, we can see a clear pathway to getting to $20 million in earnings.

Speaker #2: Based on the existing modeling and track record we have, and also the lens we have going forward within the business—on acquisitions, I just wanted to give a bit of a recap on some of the deals we've done, and some of these were over a period.

John Shuttleworth: On acquisitions, I just wanted to give a bit of a recap on some of the deals we have done, and some of these were over a period, and you can see the timeline going a few years back, the ClearView business that was bought for AUD 12 million. We then bought the Financial Advice Matters business.

Speaker #2: And you can see the timeline going a few years back. The Clearview business that was bought for $12 million. We then bought the Financial Advice Matters business.

Speaker #2: Recently, the Brighter Super Book, and more recently, KENS and Finical. The key message is that we have actually bought well and we've integrated well. We've done five transactions all up.

John Shuttleworth: Recently, the Brighter Super book and more recently, Cairns Wealth and Pinnacle Wealth. The key message is that we have actually bought well, and we have integrated well. We have done five transactions all up, AUD 24 million in total consideration, AUD 12.5 million in cash deployed. Each of the transactions has been earnings accretive. We have been quite selective about the transactions we have done, and we look forward to, in the future, announcing some more transactions because we think that, coupled with the organic growth, can really generate some significant growth for the business. Finally, before I hand over to Brendon Glass, just two slides and talking about AI. I do not almost feel these slides quite justify the amount of effort and work we are putting into this. But the key message, firstly, is we have been doing a lot of work to build the core foundations.

Speaker #2: $24 million in total consideration, with $12.5 million in cash to be deployed. Each of the transactions has been earnings-accretive. We've been quite selective about the transactions we've done.

Speaker #2: And we look forward to, in the future, announcing some more transactions, because we think that, coupled with organic growth, can really generate some significant growth for the business.

Speaker #2: Finally, before I hand over to Brendan, just two slides, and talking about AI. I almost don't feel these slides quite justify the amount of effort and work we're putting into this.

Speaker #2: But the key message, firstly, is that we have been doing a lot of work to build the core foundations. So, when AI first came out, I described it as a lot of ad hoc experimentation.

John Shuttleworth: When AI first came out, I would describe it as a lot of ad hoc experimentation, and we are moving to a governed in-house capability on an extensible architecture and infrastructure to support our roadmap. So what we have completed is, firstly, we set all the governance frameworks up. We have all the policies, we have firm-wide training, all staff have access to AI, and the adoption is strong within the business. The capability building is really moving to that extensible architecture. We recently hired a head of AI engineering that has been appointed to work with the business to build in-house capabilities. So we are not going to just go out and buy external capabilities. We see this as a core capability and a distinctive competence we need to build within our business that we can really leverage and augment our traditional business with. The third area is really building this platform.

Speaker #2: And we're moving to a governed in-house capability on an extensible architecture and infrastructure to support our roadmap. So what we've completed is, firstly, we set all the governance frameworks up.

Speaker #2: We've got all the policies. We've got firm-wide training. All staff have access to AI, and the adoption is strong within the business. The capability building is really moving to that extensible architecture.

Speaker #2: We've recently hired a Head of AI Engineering who has been appointed to work with the business to build in-house capability. So, we're not going to just go out and buy external capabilities.

John Shuttleworth: We recently hired a head of AI engineering that has been appointed to work with the business to build in-house capabilities. So we are not going to just go out and buy external capabilities. We see this as a core capability and a distinctive competence we need to build within our business that we can really leverage and augment our traditional business with. The third area is really building this platform.

Speaker #2: We see this as a core capability and a distinctive competence that we need to build within our business, which we can really leverage and use to augment our traditional business.

Speaker #2: The third area is really building this platform, so this extensible, governed architecture. So it's all the infrastructure where we build it once and then can configure and deploy different agents and applications on top of that core platform.

John Shuttleworth: So this extensible governed architecture. It is all the infrastructure where we build it once and then can configure and deploy different agents and applications on top of that core platform. The way to think about some of the things that we are doing, and it is the AI roadmap, there is a couple of different themes. The first one is making advisors more efficient, and that is how we give them time back. So that is formatting and transcription, SOA generation, ROA, pre-vetting advice documents is getting the AI to review advice before it goes out, which is helpful to the advisor and reduces risk. There are tools on the market, but we are also building some of our own capability. Making ourselves more efficient. So they are things like we do file audits with the professional standards team to review it.

Speaker #2: The way to think about some of the things that we're doing is the AI roadmap. There are a couple of different themes. The first one is making advisors more efficient.

Speaker #2: And that's how we give them time back. So that's file noting and transcription, SOA generation, ROA. Preventing advice documents is getting the AI to review advice before it goes out, which is helpful to the advisor and reduces risk.

Speaker #2: There are tools on the market, but we're also building some of our own capability, making ourselves more efficient. So there are things like, we do file audits with the professional standards team to review it.

Speaker #2: How do we augment the existing Professional Standards team with AI to improve the breadth of coverage, the depth, and make that business more efficient?

John Shuttleworth: How do we augment the existing professional standards team with AI to improve the breadth of coverage, the depth, and make that business more efficient? If you do audit, then you can present documents. We are also doing lots of work because we are a service business. We get a lot of service queries about AI augmentation through service bots for the different queries we get. Then down the track, once we have got all this infrastructure, we will look at can we build new services and products and basically turn our platform into new propositions, sort of broadly under the thematic digital advice. The way to think about this build is it all requires foundational infrastructure.

Speaker #2: If you do audit, then you can prevent documents. We're also doing lots of work because we are a service business. We get a lot of service queries about AI augmentations through service bots for the different queries we get.

Speaker #2: And then down the track, once we've got all this infrastructure, we'll look at whether we can build new services and products, and basically turn our platform into new propositions.

Speaker #2: Sort of broadly under the thematic of digital advice, the way to think about this build is that it all requires foundational infrastructure—so, the knowledge corpuses we build that the AI draws on.

John Shuttleworth: The knowledge corpuses we build that the AI draws on, the data and the richness of the data we have in the business, having the appropriate guardrails to make sure that the AI does not hallucinate, the management of access, and obviously the robust infrastructure that we build. So that is a bit of a signal on what we are doing. I will now hand over to Brendon, who will take you through some of the detailed financial slides.

Speaker #2: The data and the richness of the data we have in the business, having the appropriate guardrails to make sure that the AI doesn't hallucinate, the management of access, and obviously the robust infrastructure that we build.

Speaker #2: So that's a bit of a signal on what we're doing. I'll now hand over to Brendan, who'll take you through some of the detailed financial slides.

Speaker #1: Thank you, John. Looking at the financial results summary, our gross revenue was up $39.6 million, and that's underpinned by the growth in our advisors within our licensee network as well as our in-house advisors.

Brendon Glass: Thank you, John. Looking at the financial results summary, our gross revenue was up AUD 39.6 million, and that is underpinned by the growth in our advisors within our licensee network, as well as our in-house advisors servicing the increased demand from our clients. Our net revenue was up AUD 2.1 million on PCP, five times faster growth than our expense growth of AUD 0.4 million. Our normalized EBITDA of AUD 12.3 million was up 16%, and that is driven by organic licensee fee growth, increased contributions from our salary advice business, and continued operating leverage. Our net profit before tax was AUD 7.3 million. Once you strip out the AUD 1.3 million in contingent liability release for the financial advice acquisition in 2025 was up 22%, and our NPAT was up 25% to AUD 6.4 million.

Speaker #1: Servicing the increased demand from our clients, our net revenue was up $2.1 million on PCP—five times faster growth than our expense growth of $0.4 million.

Speaker #1: Our normalized EBITDA of $12.3 million was up 16%, and that's driven by organic licensee fee growth, increased contributions from our Salary Advice business, and continued operating leverage.

Speaker #1: Our net profit before tax was $7.3 million. Once you strip out the $1.3 million in contingent liability release for the financial advice acquisition, in 2025 it was up 22%.

Speaker #1: And our impact was up 25% to 6.4 million. Now, looking at the normalized EBIT earnings walk for the last five years, you can see that it's grown by nearly 3.5 times.

Brendon Glass: Now looking at the normalized EBIT earnings walk for the last five years, you can see that it has grown by nearly 3.5x. That is underpinned by two high-quality businesses. As John has mentioned, we have seen licensee fees contributing AUD 15.2 million over that five-year period, and salary advice emerging, in particular in the last three years since Financial Advice Matters acquisition, contributing AUD 9.2 million. Further my comments on the revenue growth contribution to the EBITDA improvements, I just want to take you through how the business has managed offsetting headwinds as well as how we have managed the cost base to deliver that earnings growth. So you can see in the orange bar that in the last five years, there has been a reduction in investment solutions revenue of AUD 6.7 million.

Speaker #1: Now, that's underpinned by two high-quality businesses, as John has mentioned. We've seen licensee fees contributing $15.2 million over that five-year period, and salaried advice, emerging in particular in the last three years since the Financial Advice Matters acquisition, contributing $9.2 million.

Speaker #1: Now, further to my comments on the revenue growth contribution to the EBITDA improvements, I just want to take you through how the business has managed offsetting headwinds, as well as how we've managed the cost base to deliver that earnings growth.

Speaker #1: So, you can see in the orange bar that in the last five years there's been a reduction in Investment Solutions revenue of $6.7 million.

Speaker #1: That's a result of the cessation of platform rebates. They were discontinued, and they are no longer a prevalent issue in the business. You can see that the cost base has been managed very effectively compared to the revenue growth of $24.4 million.

Brendon Glass: That is a result of the cessation of platform rebates that were discontinued, and they are no longer a prevalent issue in the business. You can see that the cost base has been managed very effectively compared to the revenue growth of AUD 24.4 million. Employment costs are up just AUD 5.6 million, including the acquisition of SAM and the broader Superbook, and other direct costs are up just AUD 2.4 million, driving that growth to AUD 12.3 million. From a balance sheet perspective, I will take you through the cash and cash equivalents in the following slide. The intangibles and goodwill has decreased by AUD 1.8 million, and that is due to the AUD 2 million annual amortization of our client book intangibles. From a loan movement perspective, the loan payables increased by AUD 1.4 million.

Speaker #1: Employment costs are up just $5.6 million, including the acquisition of FAM and the broader SuperBook. Other direct costs are up just $2.4 million.

Speaker #1: Driving that growth to $12.3 million. From a balance sheet perspective, I'll take you through the cash and cash equivalents in the following slide. The intangibles and goodwill have decreased by $1.8 million.

Speaker #1: And that's due to the $2 million annual amortization of our client book intangibles. From a loan movement perspective, the loan payables increased by $1.4 million.

Speaker #1: That's due to the $3 million additional drawdown in June 2026 for the recently announced Astute acquisitions, and $1.6 million in principal repayments for the year.

Brendon Glass: That is due to the AUD 3 million additional drawdown in June 2026 for the recently announced Astute acquisitions and AUD 1.6 million in principal repayments for the year. From a timing perspective, our trade and other payables decreased by AUD 1.4 million, and our NCA increased by AUD 2.5 million to AUD 5 million. Taking a look at the cash flow in some detail. The start position was AUD 13.7 million. We delivered really strong cash from operations of AUD 10.6 million. There was one-off cost of AUD 0.6 million for the year. That was primarily due to the redundancy costs for the sale of the lending business to Astute in April, as well as some advisory costs for our M&A projects. From a timing perspective, our working capital outflow was AUD 0.9 million. We had income tax cash payments of AUD 2.2 million for the year. We derived interest income of AUD 0.5 million.

Speaker #1: From a timing perspective, our trade and other payables decreased by $1.4 million, and our NTA increased by $2.5 million to $5 million.

Speaker #1: Now, taking a look at the cash flow in some detail, the start position was $13.7 million. We delivered really strong cash operations of $10.6 million.

Speaker #1: There was a one-off cost of $0.6 million for the year. Now, that was primarily due to the redundancy costs for the sale of the lending business to Astute in April.

Brendon Glass: There was one-off cost of AUD 0.6 million for the year. That was primarily due to the redundancy costs for the sale of the lending business to Astute in April, as well as some advisory costs for our M&A projects. From a timing perspective, our working capital outflow was AUD 0.9 million. We had income tax cash payments of AUD 2.2 million for the year. We derived interest income of AUD 0.5 million.

Speaker #1: As well as some advisory costs for our M&A projects. From a timing perspective, our working capital outflow was $0.9 million. We had income tax cash payments of $2.2 million for the year.

Speaker #1: We derived interest income of $0.5 million. I've commented on the net bank borrowing impacts. From an operational risk financial requirement perspective, there was a $0.4 million loan reserve outflow for our investments platform business, which is emerging, as John mentioned.

Brendon Glass: I have commented on the net bank borrowing impacts. From an operational risk financial requirement perspective, there was a AUD 0.4 million loan reserve outflow for our investments platform business, which is emerging, as John mentioned. In our other bucket, there was AUD 1.6 million outflows, and that is principally the lease liability payments, so it is circa AUD 1 million. We returned AUD 6.1 million in dividends to our shareholders. Now looking at the financial snapshot. The P&L management category shows some really strong trends over the last three years. Our employment cost net revenue has decreased continuously from 52.6% to 51.3%. You can see the continued positive operating jaws of the business. Our normalized EBIT margin has increased from 25.2% to 28.6%. Our recurring revenue has gone from 84% to 88%, showcasing that highly annualized sticky revenue base from licensee services and salaried advice.

Speaker #1: In our other bucket, there was $1.6 million in outflows, and that is principally the lease liability payments of circa $1 million. And we returned $6.1 million in dividends to our shareholders.

Speaker #1: Now looking at the financial snapshot, the P&L management category shows some really strong trends over the last three years. Our employment costs as a percentage of net revenue have decreased continuously from 52.6% to 51.3%.

Speaker #1: You can see the continued positive operating jaws of the business. Our normalized EBIT margin has increased from 25.2% to 28.6%. Our recurring revenue has gone from 84% to 88%.

Speaker #1: Showcasing that highly annuitized, sticky revenue base from licensee services and salary advice. Our licensee contribution margin has continued to increase as well, rising from 43.9% up to 47.9%.

Brendon Glass: Our licensee contribution margin has continued to increase as well, 43.9% up to 47.9%. You can see the emerging impact of the salaried advice revenue, AUD 6.2 million to AUD 10.3 million, noting there is a AUD 200,000 increase on the slide that John took you through because there is a AUD 200,000 amount attributable to the advisors themselves. From the cash profit after tax perspective, again, strong growth, AUD 7 million in 2024, rising to AUD 8.5 million in 2026. From a shareholders' return perspective, you can see that strong dividend yield, 8.6% in 2026. From a basic earnings per share perspective, growth from 2.59 cents to 3.12 cents. Our annualized return on equity remains above 20% at 21%. So over to you, John, for the outlook.

Speaker #1: And you can see the emerging impact of the salary advice revenue—$6.2 million to $10.3 million. Noting there's a $200,000 increase on the slide that John took you through, because there's a $200,000 amount that's not attributable to the advisors themselves.

Speaker #1: From a cash profit after tax perspective, again strong growth—$7 million in FY24, rising to $8.5 million in 2026. From a shareholder return perspective, you can see that strong dividend yield.

Speaker #1: 8.6% in 2026. From a basic earnings per share perspective, growth from 2.59 cents to 3.12 cents. And our annualized return on equity remains above 20%, at 21%.

Speaker #1: So, over to you, John, for the outlook.

Speaker #2: Yeah. Look, the final slide before you—just to see if there are any questions online—is that the guidance we're putting out for normalized EBITDA is $14.5 to $15.5 million.

John Shuttleworth: Yeah, look, the final slide before we just see if there is any questions online is that the guidance we are putting out for normalized EBITDA is AUD 14.5 million to AUD 15.5 million. Putting a range in there. I think what we have hopefully demonstrated is there is strong momentum in the business, some really good initiatives. As I said at the outset, we are feeling really positive about where the business is at. You are really looking at a business that has got a team that has delivered over the last five years. If we continue to execute just organically, that will give us growth. Then Brendon and myself are very focused on additional acquisition opportunities that will hopefully put some growth on top of that. So thanks for your time and listening. We might just see if there are any questions on the call.

Speaker #2: Putting a range in there. I think what we've hopefully demonstrated is there's strong momentum in the business, some really good initiatives, and, as I said at the outset, we're feeling really positive about where the business is at.

Speaker #2: You're really looking at a business that has got a team that's delivered over the last five years. If we continue to execute just organically, that will give us growth.

Speaker #2: And then Brendan and I are very focused on additional acquisition opportunities that will hopefully put some growth on top of that. So thanks for your time and listening.

Speaker #2: We might just see if there are any questions on the call. So, Sonar, I think—can you just let us know if we've got any questions in the Q&A chat?

John Shuttleworth: Sona, I think, can you just let us know if we have got any questions in the Q&A chat?

Speaker #3: Yes, John. So, EBITDA from funds management seems to be going backwards. When do you expect this division to break even?

[Company Representative] (Centrepoint Alliance): Yes, John. So EBITDA from funds management seems to be going backwards. When do you expect this division to break even?

Sona Araujo: Yes, John. So EBITDA from funds management seems to be going backwards. When do you expect this division to break even?

Speaker #1: Yeah, I think if I looked at it, if I just take the platform, and if you break down the investment solutions business, you've got a couple of different things in there.

John Shuttleworth: Yeah. I think if I just take the platform, and if you break down the investment solutions business, you have a couple of different things in there. You have managed accounts, and we have Ventura Managed Account Portfolios and some new managed accounts. So that business is already profitable. The platform, being a new capability that at this stage is subscale, is the area that is causing the kind of earnings drag. When we get to around AUD 1 billion in FUA, that will be at the break-even point. So you have part of the business with the VMAPS, the IQ portfolios, and the existing SMAs that are already profitable. But the issue is largely getting to that scale. So I would say, let us call it between 18 months and 2 years, we should have that platform at break even.

Speaker #1: You've got managed accounts, and we've got Ventura managed account portfolios and some new managed accounts. So that business is already profitable. The platform, being a new capability that at this stage is subscale, is the area that is causing the kind of earnings drag.

Speaker #1: When we get to around $1 billion in FUA, that will be at the break-even point. So, you've got part of the business with the VMAPs, the IQ portfolios, and the existing SMAs that are already profitable.

Speaker #1: But the issue is largely getting to that scale. So I would say, let's call it between 18 months and 2 years, we should have that platform at break-even.

[Company Representative] (Centrepoint Alliance): There are no further questions, John.

Sona Araujo: There are no further questions, John.

Speaker #3: No further questions John.

Speaker #1: Okay, well if you do have a question, Brendan, my details are on the ASX announcement. I'd like to just thank everyone on the call for their support.

John Shuttleworth: Well, if you do have a question, Brendon, my details are on the ASX announcement. I would like to just thank everyone on the call for their support. We will be reaching out to some of the investors and offering an investor update. If you have got specific questions, just get in touch. But thanks very much for listening, and we look forward to providing a further update. Appreciate your time.

Speaker #1: We'll be reaching out to some of the investors and offering an investor update. If you have got specific questions just get in touch but thanks very much for listening and we look forward to providing further update.

Speaker #1: Appreciate your time.

Speaker #2: Thank you.

Brendon Glass: Thank you.

[Company Representative] (Centrepoint Alliance): Goodbye

Operator: Goodbye

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Full Year 2026 Centrepoint Alliance Ltd Earnings Call

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