ANNUAL
FINANCIAL
REPORT
FOR THE YEAR ENDED 30 JUNE 2024
ABN 72 052 507 507
Contents
Directors’ Report ............................................................................................................................................................................... 3
Remuneration Report ...................................................................................................................................................................... 14
Auditor’s Independence Declaration ............................................................................................................................................... 24
Consolidated Statement of Profit or Loss and Other Comprehensive Income ................................................................................ 25
Consolidated Statement of Financial Position ................................................................................................................................. 26
Consolidated Statement of Cash Flows .......................................................................................................................................... 27
Consolidated Statement of Changes in Equity ................................................................................................................................ 28
Notes to the Consolidated Financial Statements ............................................................................................................................ 29
Directors’ Declaration ...................................................................................................................................................................... 75
Consolidated entity disclosure statement ........................................................................................................................................ 76
Independent Auditor’s Report ......................................................................................................................................................... 77
ASX Additional Information ............................................................................................................................................................. 82
Corporate Directory ......................................................................................................................................................................... 84
PAGE 3
ANNUAL REPORT 2024 | Directors’ Report
Directors’ Report
For the Year Ended 30 June 2024
The Directors of Centrepoint Alliance Limited (the Company) present their report together with the financial statements of the
consolidated entity, being the Company and its controlled entities (the Group) for the year ended 30 June 2024.
Directors
Georg Chmiel
Diplom-Informatiker
(Masters equivalent in
Computer Science), MBA,
CPA (USA), FAICD, FICDM
Appointed as independent
Non-executive Director on 7
October 2016.
Appointed as Chair on 11
January 2024.
Experience and expertise
Georg Chmiel has three decades of experience in
rapidly growing, disruptive online businesses and has
led more than 40 acquisitions and seven takeovers
across a range of industries.
Georg is Co-Founder and Chair of Juwai-IQI Holdings,
the largest proptech platform in Asia with a network of
more than 40,000 real estate professionals globally.
Georg was previously Executive Chair of iCar Asia,
Managing Director and CEO of the iProperty Group,
Non-executive Director of Mitula Group and Proptech
Group, and Managing Director and CEO of LJ Hooker
Group, a network of 700 real estate professionals and
mortgage broker offices across 10 countries. Georg
also held the position of Group CFO and Acting CEO at
REA Group. Georg also worked for KPMG, Deutsche
Bank and McKinsey.
Georg is the recipient of the 2024 Outstanding
Corporate Excellence and Sustainability Leadership
Award, the 2023 Master Entrepreneur Award (APEA),
the 2023 Unicorn Award – Scaleup Tech Icon, the 2022
Excellence Award for Digital Transformation (Malaysia
Australia
Business
Council),
the
2022
ASEAN
Distinguished Business Leader Lifetime Achievement
Award and others.
Georg is a CPA (USA), Member of the American
Institute of Certified Public Accountants, Fellow of the
Australian Institute of Company Directors (AICD) and
the Institute of Corporate Directors Malaysia (ICDM),
Board Member of the World Digital Chamber, Executive
Council Member of the Economic Club Kuala Lumpur
(ECKL) and others. Georg holds a Master of Business
Administration (MBA) of INSEAD and a Computer
Science degree of Technische Universität München
(TUM).
Martin Pretty
Graduate Diploma of Applied
Finance, BA, CFA, GAICD
Non-executive Director
Appointed on 27 June 2014.
Experience and expertise
Martin brings to the Board over 20 years’ experience in the
finance sector. Martin’s experience with ASX-listed financial
services businesses included roles with Hub24 Limited, Bell
Financial Group Limited and IWL Limited. Martin currently
works in the investment management industry and has done
so for over a decade since March 2013. He also previously
worked as a finance journalist with the Australian Financial
Review.
Martin holds a Bachelor of Arts (Honours) from the
University of Melbourne, and a graduate Diploma of Applied
Finance from the Financial Services Institute of Australasia
(FINSIA). Martin is a CFA charterholder and a graduate of
the Australian Institute of Company Directors.
PAGE 4
ANNUAL REPORT 2024 | Directors’ Report
Other Current Directorships
Non-executive Chair of Spacetalk Limited, (ASX:SPA)
Non-executive Director of Xamble Group Limited
(ASX:XGL)
Non-executive Director of Kinatico Limited (ASX:KYP)
Former Directorships
Non-executive Director of BUTN Limited (ASX:BTN)
Executive Chair of iCar Asia Limited (ASX:ICQ)
Non-executive Director of PropTech Group Limited
(ASX:PTG)
Special responsibilities
Chair of the Board and member of the Nomination and
Remuneration Committee
Interests in shares and options
969,191 shares indirectly held
Other Current Directorships
Non-executive Director and Chair of Scout Security Limited
(ASX:SCT) and Non-executive Director and Chair of the
Audit and Risk Committee of Spacetalk Limited (ASX:SPA)
Special responsibilities
Chair of the Nomination and Remuneration Committee and
member of the Group, Audit, Risk & Compliance
Committee
Interests in shares and options
180,000 shares indirectly held
PAGE 5
ANNUAL REPORT 2024 | Directors’ Report
Linda Fox
GAICD, CA ANZ, MBA,
Graduate Diploma
(Information Systems),
B.Comm (Accounting)
Non-executive Director
Appointed on 1 December
2023
Experience and expertise
Linda is a Non-executive director with a background in
wealth management, banking and professional services in
organisations that include start-ups, global and multi-billion-
dollar enterprises.
Linda has 25 years of executive experience as a Chief
Financial Officer and Chief Operating Officer overseeing
businesses in Australia, New Zealand and the Asia Pacific
region. She was formerly the CFO for Colonial First State, a
large Australian superannuation and investment provider,
CFO for the International Division of the Commonwealth
Bank of Australia, CFO/COO in organisations such as Merrill
Lynch, Schroder Investment Management and SFG
Australia – an ASX-listed start-up.
Linda is a Chartered Accountant, and a member and
graduate of the Institute of Company Directors. She holds
an Executive MBA, a Graduate Diploma in Information
Systems, and a Bachelor of Commerce.
Linda is a passionate supporter of the performing arts.
Other Current Directorships
Non-executive Director of the Australian Youth Orchestra,
and a member of the Compliance Committee of Investors
Mutual Limited’s listed and unlisted managed investment
schemes.
Former Directorships
Non-executive Director of QV Equities Limited (ASX:QVE).
Special responsibilities
Chairperson of the Group Audit, Risk and Compliance
Committee.
Interests in shares and options
Nil
Anthony Vogel
BEc, MFin
Non-executive Director
Appointed on 6
December 2023
Experience and expertise
Anthony has 20 years’ experience in the finance and
investment sectors. He commenced his career at
Trowbridge Deloitte before moving into institutional
investment roles and funds management. Anthony is
currently an investment manager at Thorney Investment
Group where he commenced in 2017.
Special responsibilities
Member of the Group Audit, Risk and Compliance
Committee.
Interests in shares and options
31,189 shares directly held
PAGE 6
ANNUAL REPORT 2024 | Directors’ Report
Peter Rollason
BSC (Hons), ACA, MAICD
Non-executive Director
Appointed on 12 December
2023.
Experience and expertise
Peter brings to the Board more than 35 years of experience
in the financial services industry in the UK, Asia and
Australia including senior operational roles in banking,
finance broking and strategy.
Peter’s roles have included responsibility for finance,
operations, funding, marketing and business development.
His experience includes executive roles with Midland Bank
International Division (now HSBC), Kleinwort Benson and
NatWest Markets (now Citigroup) in Australia and the Asian
region. Peter was also a Corporate Finance partner at
Deloitte and executive director of Liberty Financial.
Peter qualified as a Chartered Accountant in the UK, is a
Fellow and former member of the National Committee of the
Australian Securitisation Forum, and a member of the
Australian Institute of Company Directors.
Other Current Directorships
Non-executive Director and Chair of the Audit and Risk
Committee of COG Financial Services (ASX: COG), and
Chair and Non-executive Director of Sydney Stock
Exchange.
Special Responsibilities
Member of the Group Audit, Risk and Compliance
Committee.
Interests in shares and options
Nil
Alan Fisher
BCom, FCA, MAICD
Chair of the Board, Independent
Non-executive Director
Appointed on 12 November 2015
and resigned as Chair on 23
August 2023 and Non-executive
Director on 30 September 2023.
Experience and expertise
Alan is an experienced corporate adviser and public
company director. He has a proven track record of
implementing strategies that enhance shareholder value.
He spent 24 years at accounting firm Coopers & Lybrand,
where he headed and grew the Melbourne Corporate
Finance Division. Following this tenure, Alan developed his
own corporate advisory business. His main areas of
expertise include mergers and acquisitions, public and
private equity raisings, business restructurings and strategic
advice. Alan holds a Bachelor of Commerce from the
University of Melbourne, is a Fellow of the Institute of
Chartered Accountants Australia and New Zealand, and a
member of the Australian Institute of Company Directors.
Other Current Directorships
Non-executive Director and Chair of Bionomics Limited
(ASX:BNO) and Non-executive Director and Chair of Audit
and Risk Committee of Thorney Technologies Limited
(ASX:TEK)
Former Directorships
Non-executive Director of Simavita Limited (ASX:SVA)
Non-executive Director and Chair of IDT Australia Limited
(ASX:IDT)
Special responsibilities
Chair of the Board and member of the Nomination and
Remuneration Committee.
Interests in shares and options
Nil
PAGE 7
ANNUAL REPORT 2024 | Directors’ Report
Alexander Beard
BCom, FCA, MAICD
Non-executive Director
Appointed on 1 January 2020
and resigned 30 September
2023.
Experience and expertise
Alexander has a long and distinguished career as a director
of numerous public companies over the past 26 years. He is
former Chief Executive of ASX-listed CVC Limited, where he
oversaw annual shareholder returns in excess of 15% per
annum for over 15 years.
Alexander is a professional investor, Fellow of the Institute
of Chartered Accountants Australia and New Zealand, and
a member of the Australian Institute of Company Directors.
Other Current Directorships
Executive Chairman of Hancock and Gore Limited (ASX:
HNG).
Non-executive Chairman of Anagenics Limited (ASX:AN1)
and FOS Capital Limited (ASX:FOS)
Special Responsibilities
Member of the Group Audit, Risk and Compliance
Committee.
Interests in shares and options
575,000 shares directly held
2,457,426 shares indirectly held
Simon Swanson
BEc, BBus, FCPA, CIP
FANZIIF
Non-executive Director
Appointed on 1 November
2021. Appointed as Chair on
23 August 2023 and resigned
as Chair on 11 January 2024
and resigned as Non-
executive Director on 31
January 2024.
Experience and expertise
Simon Swanson is an internationally experienced financial
services executive having worked for over 36 years across
life insurance, funds management, general insurance and
health insurance. He successfully led the largest life insurer
(CommInsure, Sovereign and Colonial) in three countries
and spent half his career in the Asia Pacific region. Simon
was previously a director of the Australian Literacy and
Numeracy Foundation and former Chairman of ANZIIF's
Life, Health and Retirement Income Faculty Advisory Board.
Simon was effectively the founder of ClearView in its current
form and was appointed as Managing Director of ClearView
Wealth Limited on 26 March 2010. Simon holds a Bachelor
of Economics and Bachelor of Business and is a Fellow of
CPA.
Other Current Directorships
Managing Director of ClearView Wealth Limited
(ASX:CVW).
Interests in shares and options
Nil
PAGE 8
ANNUAL REPORT 2024 | Directors’ Report
Company Secretary
Kim Larkin
Certificate III in Financial
Services, Graduate Certificate in
Commerce, Certificate of
Banking
Company Secretary
Appointed on 23 September
2020.
Experience and expertise
Kim is the Head of Corporate Services for Boardroom Pty
Limited’s Queensland office and currently acts as Company
Secretary for various ASX-listed and unlisted companies in
Australia. Kim is an experienced business professional with
23 years of experience in banking and finance and six years
as in-house Company Secretary of an ASX 300 company
prior to joining Boardroom in April 2013.
Meetings of Directors
The following table sets out the number of Directors’ meetings (including meetings of committees of Directors) held during the
financial year, and the number of meetings attended by each Director (while they were a Director or committee member).
Members
Board of Directors
Nomination and Remuneration
Committee
Group Audit, Risk and
Compliance Committee
Held
Attended
Held
Attended
Held
Attended
G. J. Chmiel
11
11
1
1
5
5
M. P. Pretty
11
11
3
3
4
4
L.W.Y. Fox1
8
8
N/A
N/A
3
3
A. D. Vogel1
8
8
N/A
N/A
N/A
N/A
P. Rollason1
8
8
N/A
N/A
N/A
N/A
A. D. Fisher2
2
2
1
1
N/A
N/A
A.D.H. Beard2
2
2
N/A
N/A
1
1
S.D. Swanson2
5
5
1
1
N/A
N/A
1 Appointed in current financial year
2 Resigned in current financial year
Principal Activities
Centrepoint Alliance Limited and its controlled entities operate in the financial services industry within Australia and provide a range
of financial advice and licensee support services (including licensing, systems, compliance, training and technical advice) and
investment solutions to financial advisers, accountants and their clients across Australia, as well as mortgage aggregation services
to mortgage brokers.
PAGE 9
ANNUAL REPORT 2024 | Directors’ Report
Operating and Financial Review
Operating Review
Key Messages
Centrepoint has maintained business momentum, delivering another strong year of financial performance. Centrepoint continues
to grow the core licensee service business whilst also driving growth in higher margin salaried advice with the acquisition and
successful integration of Financial Advice Matters (FAM). FAM is a Queensland financial advice practice. With the acquisition, the
salaried advice business has increased from four to 19 in the Centrepoint Group.
In addition, Centrepoint has launched of a range of managed accounts, the IQ Portfolios by Ventura, continued to grow its lending
business, and is on track to launch the new IconiQ investment and superannuation platform in the first half of 2025.
Financial
Strong financial performance for the financial year ended 30 June 2024 (FY24) saw Group earnings before interest, tax and
depreciation (EBITDA) (before long term incentives (LTI) and one-off) of $9.1m, up $1.5m (+20%) on the prior financial year, mainly
due to FAM acquisition, organic licenced fee growth and disciplined expense management.
Licensee Services
Centrepoint’s Licensee Services division has continued the momentum established over the last three years, and is now a preferred
destination of advisers, recording the highest net adviser growth in the market. The financial year ended with 549 authorised
representatives, which was an increase of 38 on the prior year – double our nearest competitor. Of the top ten licensees, only three
firms recorded net growth, with seven of the top 10 firms collectively losing 327 advisers.
Centrepoint’s self-licensed business finished the year with 203 firms, with 825 advisers onboarding 22 new firms, and 16 completed
Australian Financial Services Licence (AFSL) applications over the year. This represented 17% of the total number of new financial
planning AFSLs issued by the Australian Securities and Investments Commission (ASIC) over the period.
Centrepoint is delivering licensee services at scale. Over the year there were 49,130 email service requests and 16,924 service
calls, representing a 22% increase on the prior year. All cases are tracked using Salesforce, and 82% of requests are resolved
within two days.
Salaried Financial Advice
Growing the salaried advice division is a key strategic priority due to the high margin contribution and opportunity for further growth.
In December 2023 the acquisition of FAM was completed. FAM is one of the largest corporatised financial planning businesses in
Queensland, with 15 advisers and 1,550 household clients. The business has performed well, generating revenue of $3.57 million
and EBITDA of $1m over seven months from the date of acquisition.
Following the acquisition of FAM and the integration with existing salaried advisers, the business now has 19 advisers, servicing
over 2,100 household clients.
Lending Solutions
The core lending aggregation business providing services to 80 brokers and has a loan book of $3.5 billion.
A new offer, Lending as a Service, was launched 18 months ago and has continued to grow, with 44 advice firms using the service
and over 200 loans settled.
The combined lending business generated revenue of $1.7m and EBITDA of $770k in FY2024.
Investment Solutions
The investment solutions business has progressed two key strategic initiatives, which will deliver revenue diversification and growth
over the medium term.
In the second half of 2024, a new range of professionally managed portfolios, the IQ Portfolios, were launched on the Macquarie
Group Platform and Hub 24. The portfolios are constructed by the Ventura Investment Management Limited team in partnership
with Morningstar, which consists of four growth and three income investment options across different risk profiles.
PAGE 10
ANNUAL REPORT 2024 | Directors’ Report
The development of the new IconiQ investment and superannuation platform in partnership with FNZ, a global leader in platform
administration services, has progressed and is on track for launch in the first half of 2025. The investment platform will be launched
first, followed by the superannuation platform (The trustee being, Equity Trustees Superannuation Limited). IconiQ will provide
customers with a superannuation and investment platform comprised of a broad range of investments at a competitive price point.
Risk and Compliance
Reinforcing a culture of compliance across the network is an ongoing focus. The Company’s supervision and monitoring framework
ensured that throughout the financial year the authorised representatives’ services to customers were monitored which included
the compliance audit of 2,336 customer files. A new compliance monitoring system, Hub Connect, has been launched, which
provides real time monitoring of key risks across the adviser network.
Cybersecurity and resilience
Cybersecurity remains a top priority to ensure the protection of both company and customer data. Over the last 12 months,
significant efforts have been made to strengthen cybersecurity and resilience. This includes the implementation of a Third Party
Cyber and Data Privacy Review Program to enhance oversight of external partners that store customer data. Furthermore, a secure
portal has been implemented for all customer communications, enhancing the security of sensitive information exchanges. These
proactive measures underscore the Company’s commitment to safeguarding against potential risks and breaches.
Regulatory reform
The Federal Government has pushed forward with regulatory changes aimed at reducing the regulatory burden for advisers and
reducing the cost of advice for consumers. The first tranche of the Delivering Better Financial Outcomes Bill passed in early July
2024, and includes the removal of cumbersome Fee Disclosure Statements, flexibility for delivery of Financial Services Guides and
the retention of insurance commissions amongst others. Tranche 2 is due later in calendar year (2024) and will include legislation
to replace the lengthy Statement of Advice and modernise the Best Interests Duty, including removing the prescriptive safe harbour
steps.
Financial Performance and Position
For the financial year ended 30 June 2024, the Group reported a net profit after tax of $7.8m compared to a net profit after tax of
$6.3m for the financial year ended 30 June 2023. This reflects an increase in gross profit of $1.9m and income tax benefit of $2.4m
offset by an expense increase of $2.9m.
30 June 2024
$'000
30 June 2023
$'000
Gross profit from contracts with customers
35,512
31,960
Gross profit
36,637
34,754
Expenses
(31,032)
(28,140)
Profit before tax
5,605
6,614
Income tax benefit/(expense)
2,162
(275)
Net profit after tax
7,767
6,339
Gross profit from customer contracts increased by $3.6m from the prior year. This increase is primarily attributed to the FAM
acquisition that occurred on 1 December 2023, which has contributed an additional $3.6m to Group revenue.
Gross profit increased by $1.9m from prior year. Normalised gross profit increase is $3.6m excluding FY23 one-off revenue of
$1.7m (relating to the sale of Ventura Funds business to Russell Investment Management Limited). The drivers of gross profit
movement are as follows:
PAGE 11
ANNUAL REPORT 2024 | Directors’ Report
Gross Profit Movement
$’m
FY23 Gross profit
34.7
Revenue from FAM
3.6
Increase in revenue from authorised representative fees
1.6
Investment margin revenue reduction
(1.0)
Partner program and consulting revenue reduction
(0.6)
Normalisation for one-off revenue in FY23 from the sale of business to Russell Investment
Management Limited
(1.7)
FY24 Gross profit
36.6
Expenses increased by $2.9m, driven by employee-related expenses of $2.3m primarily due to $1.9m in additional employment
costs from the FAM acquisition ($1.6m from additional headcount and $0.3m one-off redundancy costs), and an increase in
depreciation and amortisation of $0.5m (contributed by the FAM client relationships acquired of $0.2m, AASB 16 amortisation on
Right-of-use assets for FAM office premises of $0.2m, and renewal of Melbourne lease during the year of $0.1m).
The Group recognised an income tax benefit of $2.2m (30 June 2023: expense of $0.3m). The movement in the current year is
predominantly a result of an increase in net deferred tax asset recognised from historical tax losses of $2.0m with the remaining
$0.2m being movement in deferred tax balances from temporary differences. The Group continues to assess future taxable income,
which is part of the assessment of tax losses to be recognised increasing the income tax benefit in profit and loss.
At 30 June 2024 the Group held net assets of $33.3m (30 June 2023: $31.2m), and net tangible assets of $2.8m (30 June 2023:
$10.1m) representing net tangible assets per share of 1.42 cents (30 June 2023: 5.13 cents). This reduction is primarily due to the
acquisition of FAM.
The Group’s net assets increased by $2.2m during the year primarily due to $7.8m net profit after tax, and $0.3m share-based
payment expense offset by $5.9m in dividends paid. The dividends paid include a fully franked ordinary dividend totalling $4.0m
paid in September 2023 pertaining to the FY23 results, and an interim fully franked ordinary dividend of $1.9m paid in March 2024
pertaining to the 1H24 results.
The Group held $12.2m in cash and cash equivalents as at 30 June 2024 (30 June 2023: $15.6m). Cash movement during the
year is summarised below:
Cash Flow Movement
$’000
Cash receipts
Gross cash from operations
7,556
Loan borrowings received for FAM acquisition (net of repayments)
3,200
Interest received
436
Convertible loan proceeds
140
Proceeds from sale of investment management rights to Russell Investment Management Limited
207
Cash payments
Payment for acquisition of FAM
(6,255)
Dividend paid to shareholders (net of received)
(5,938)
Payment for intangible assets and property, plant and equipment
(1,301)
Repayment of lease liabilities
(822)
Gross claims paid1
Finance costs
(323)
(302)
Total Movement
(3,402)
1Gross claims paid excludes recovery from ClearView Wealth Limited (ClearView) for $0.2m in respect of a ClearView claim indemnified by
ClearView pursuant to the Share Sale Agreement between the Company and ClearView.
PAGE 12
ANNUAL REPORT 2024 | Directors’ Report
Dividends
On 22 August 2023, the Company declared a fully franked ordinary dividend of 2.0 cents per share in respect of the results for the
year ended 30 June 2023. Total dividend declared was $3,957,637.78 with 15 September 2023 as the record date and 29
September 2023 as the payment date.
On 23 February 2024, the Company declared an interim fully franked ordinary dividend of 1.0 cents per share in respect of the
results for the half-year ended 31 December 2023. Total dividend declared was $1,988,818.89 with 4 March 2024 as the record
date and 18 March 2024 as the payment date.
On 21 August 2024, the Company declared a fully franked ordinary dividend of 1.75 cents per share in respect of the results for the
year ended 30 June 2024. Total dividend declared was $3,480,433.06 with 20 September 2024 as the record date and 3 October
2024 as the payment date.
Shares and Performance Rights
A total of 16,697,881 performance rights exist as at 30 June 2024. Total performance rights are comprised of:
•
1,000,000 performance rights from FY20 Long-Term Incentive (LTI) offer issued in previous financial years that met vesting
conditions but which remain unexercised
•
8,000,000 performance rights from FY22 LTI offer issued to CEO on 2 November 2021
•
3,000,000 performance rights from FY22 LTI offer issued to CFO on 24 December 2021, and
•
4,697,881 performance rights from FY23 LTI offer issued to CEO, CFO and key senior leaders on 16 December 2022.
Significant Changes in the State of Affairs
There have been no significant changes in the state of affairs of the Group during the year and up to the date of this report.
Events Subsequent to the Balance Sheet Date
Other than the dividend declaration in Note 8, there are no other matters or events which have arisen since the end of the financial
year, which have significantly affected or may significantly affect the operations of the Group, the results of those operations or the
state of affairs of the Group in subsequent financial years.
Likely Developments
Likely developments in the operations of the Group and the expected results of those operations in future financial years have been
addressed in the Operating and Financial Review and in the subsequent events disclosure Note 22. The Directors are not aware
of any other significant material likely developments requiring disclosure.
Environmental Regulation
The Group’s operations are not regulated by any significant environmental regulation under a law of the Commonwealth or of a
State or Territory.
Corporate Governance Statement and Practices
The Group’s Corporate Governance Statement for the financial year ended 30 June 2024 was approved by the Board of Directors
on 21 August 2024. The Corporate Governance Statement is available on the Group’s website:
www.centrepointalliance.com.au/investor-centre/corporate-governance/.
Indemnification and Insurance of Directors and Officers
During the financial year, the Group paid a premium for a policy insuring all Directors of the Company, the Company Secretary and
all Executive Officers against any liability incurred by such director, secretary or executive officer to the extent permitted by the
Corporations Act 2001 (the Act).
The liabilities insured are legal costs that may be incurred in defending civil or criminal proceedings that may be brought against
the officers in their capacity as officers of the Group, and any other payments arising from liabilities incurred by the officers in
connection with such proceedings, other than where such liabilities arise out of conduct involving a wilful breach of duty by the
officers or the improper use by the officers of their position or of information to gain advantage for themselves or someone else to
cause detriment to the Group.
Details of the amount of the premium paid in respect of insurance policies are not disclosed as such disclosure is prohibited under
the terms of the contract.
PAGE 13
ANNUAL REPORT 2024 | Directors’ Report
The Company has not otherwise during or since the end of the financial year, indemnified or agreed to indemnify any officer of the
Company against a liability incurred by such officers.
Indemnification of auditor
To the extent permitted by law, the Company has agreed to indemnify its auditor – BDO Audit Pty Ltd, as part of the terms of its audit
engagement agreement against claims by third parties arising from the audit (for an unspecified amount). No payment has been
made to indemnify BDO Audit Pty Ltd during or since the end of the financial year.
Rounding
The Company is a company of the kind referred to in the ASIC’s Corporations (Rounding in Financial/Directors’ Reports) Instrument
2016/191 dated 24 March 2016, and in accordance with that Instrument, amounts in the financial report are presented in Australian
dollars and have been rounded to the nearest thousand dollars, unless otherwise stated.
PAGE 14
ANNUAL REPORT 2024 | Remuneration Report
Remuneration Report
The Remuneration Report for the year ended 30 June 2024 outlines the remuneration arrangements of the Key Management
Personnel of the Group in accordance with the requirements of the Act and its regulations. This information has been audited
as required by section 308(3C) of the Act.
The Remuneration Report is presented under the following sections:
•
Key Management Personnel
•
Remuneration philosophy
•
Group performance
•
Nomination and Remuneration Committee (NRC)
•
Employment contracts
•
Details of remuneration
•
Shareholdings of Key Management Personnel
•
Option holdings of Key Management Personnel
•
Other transactions with Key Management Personnel and their related parties
For the purposes of this Remuneration Report, Key Management Personnel (KMP) of the Group are defined as those persons
having authority and responsibility for planning, directing and controlling the major activities of the Group, directly or indirectly,
including any Director (whether executive or otherwise) of the Company.
Key Management Personnel
The Key Management Personnel of the Company during the financial year were as follows:
G. J. Chmiel
Director (non-executive), appointed as Chair on 11 January 2024
M. P. Pretty
Director (non-executive)
L.W.Y. Fox
Director (non-executive), appointed 1 December 2023
A. D. Vogel
Director (non-executive), appointed 6 December 2023
P. Rollason
Director (non-executive), appointed 12 December 2023
A. D. Fisher
Chair and Director (non-executive), resigned as Chair on 23 August 2023 and non-executive
Director on 30 September 2023
A. D. H. Beard
Director (non-executive), resigned 30 September 2023
S.D. Swanson
Director (non-executive), appointed as Chair on 23 August 2023, resigned as Chair on 11 January
2024 and resigned as non-executive Director on 31 January 2024
B. M. Glass
Chief Financial Officer
J. G. Shuttleworth
Chief Executive Officer
There were no further changes of KMP after the reporting date and before the signing of this Remuneration Report.
PAGE 15
ANNUAL REPORT 2024 | Remuneration Report
Remuneration Philosophy
The performance of the Company depends on the quality of its Directors, executives and employees. To prosper, the Company
must attract, motivate and retain skilled and high-performing individuals. Accordingly, the Company’s remuneration framework
is structured to provide competitive rewards to attract the highest calibre people.
The level of fixed remuneration is set to provide a base level of remuneration that is appropriate to the position and competition
in the market. It is not directly related to the performance of the Company. Fixed remuneration is reviewed annually, and the
process consists of a review of company-wide, business unit and individual performance, relevant comparative remuneration
in the market, internal relativities where appropriate, and external advice on policies and practices.
Short-term incentives in the form of potential cash bonuses are made available to Executive KMP. Any award is based on the
achievement of pre-determined objectives.
Long-term incentives are made available to certain Executive KMP in the form of performance rights, shares or options. The
Directors consider these to be the best means of aligning incentives for Executive KMP with the interests of shareholders.
The remuneration of Non-executive Directors of the Company consists only of Directors’ fees.
Group Performance
Shareholder returns for the last five years have been as follows:
2024
2023
2022
2021
2020
GROUP
Net profit/(loss) after tax – ($’000)
7,767
6,339
6,492
1,847
(2,000)
Earnings per share (EPS)(basic) – (cents per share)
3.92
3.23
3.63
1.28
(1.35)
Earnings per share (EPS) (diluted) – (cents per share)
3.51
2.92
3.35
1.18
(1.35)
Share price ($)
0.29
0.23
0.29
0.22
0.09
Dividends paid – (cents per share)
3.00
2.00
2.50
4.00
–
Nomination and Remuneration Committee (NRC)
The role of the NRC includes the setting of policy and strategy for the appointment, compensation and performance review of
Directors and executives, approving senior executive service agreements and severance arrangements, overseeing the use of
equity-based compensation and ensuring appropriate communication and disclosure practices are in place.
Non-executive Directors are not employed under specific employment contracts but are subject to provisions of the
Corporations Act in terms of appointment and termination. The Company applies the Australian Securities Exchange (ASX)
listing rules that specify aggregate remuneration shall be determined from time to time by shareholders in a general meeting.
The maximum aggregate remuneration for the financial year ended 30 June 2024, which was approved by a resolution of
shareholders at the Annual General Meeting on 29 November 2016, is $550,000.
The remuneration of the Non-executive Directors does not currently incorporate a performance-based component. Within the
limits approved by Company shareholders, individual remuneration levels are set by reference to market levels.
Executive Directors (of which there are none) and executives are employed under contracts or agreed employment
arrangements that specify remuneration amounts and conditions.
The Board has introduced an incentive system for executives and senior employees based on issuing performance rights in
the Company.
The Company’s Securities Trading Policy prohibits Directors from entering into margin lending arrangements, and also forbids
Directors and senior executives from entering into hedging transactions involving the Company’s securities.
Details of current incentive arrangements for KMPs, where they exist, are shown in the succeeding sections.
PAGE 16
ANNUAL REPORT 2024 | Remuneration Report
Employment Contracts
Details of the terms of employment of the named Executive KMP are set out below. Those executives that do not meet the
KMP definition are not included here.
John Shuttleworth
Chief Executive Officer
Brendon Glass
Chief Financial Officer
Employment commencement date:
4 August 2021
Employment commencement date:
4 June 2020
Term:
No term specified
Term:
No term specified
Discretionary incentives:
Short-term incentive
Eligible from the date of appointment to participate in the
Company’s short-term incentive plan, the terms of which
are at the absolute discretion of the Board.
Eligible to receive a short-term incentive of up to 50% of
base salary in respect of each financial year in which Mr
Shuttleworth is employed by the Company.
Long-term incentive
As approved in the 2021 Annual General Meeting, the
CEO was issued with 8,000,000 performance rights on 2
November 2021 under the Company’s approved Long-
Term Incentive Plan (LTIP).
On 16 December 2022, the Board approved the CEO
issuance of 865,385 performance rights under the
Company’s approved Long-Term Incentive Plan (LTIP).
Required notice by Executive KMP and Company:
Six months.
Termination entitlement:
Statutory entitlements and so much of the total fixed
remuneration as is due and owing on the date of
termination. Also, any short-term incentive or long-term
incentive not vested may be paid or granted at the
discretion of the Board.
Discretionary incentives:
Short-term incentive
Eligible from the date of appointment to participate in the
Company’s short-term incentive plan as amended or varied
from time to time by the Company in its absolute discretion
and without any limitation on its capacity to do so.
Long-term incentive
On 11 November 2021, the Board approved the CFO
issuance of 3,000,000 performance rights (in three
tranches) issued on 24 December 2021 under the
Company’s approved Long-Term Incentive Plan (LTIP).
On 16 December 2022, the Board approved the CFO
issuance of 625,000 performance rights under the
Company’s approved Long-Term Incentive Plan (LTIP).
Required notice by Executive KMP and Company:
Six months.
Termination entitlement:
Statutory entitlements and so much of the total fixed
remuneration as is due and owing on the date of
termination. Also, any short-term incentive or long-term
incentive not vested may be paid or granted at the
discretion of the Board.
PAGE 17
ANNUAL REPORT 2024 | Remuneration Report
Details of Remuneration
Details of the nature and amount of each element of remuneration for each KMP of the Group are shown in the table below:
Short-term benefits
Post-employment
Long-term benefits
Share-based payments
Year
No. of days
remuneration
Salary &
Fees
$
Cash
Bonus
$
Superannuation
$
Cash
incentives
$
Long
service
leave
$
Performance
rights2
$
Shares
$
Termination
/Resignation
payments
$
Total
$
Performance
related
%
Share
related
%
G. J. Chmiel
2024
366
105,833
-
-
-
-
-
-
-
105,833
-
-
2023
365
85,000
-
-
-
-
-
-
-
85,000
-
-
M. P. Pretty
2024
366
105,000
-
-
-
-
-
-
-
105,000
-
-
2023
365
93,333
-
-
-
-
-
-
-
93,333
-
-
L.W.Y. Fox1
2024
213
44,670
-
4,913
-
-
-
-
-
49,583
-
-
2023
-
-
-
-
-
-
-
-
-
-
-
-
A. D. Vogel1
2024
208
48,441
-
-
-
-
-
-
-
48,441
-
-
2023
-
-
-
-
-
-
-
-
-
-
-
-
P. Rollason1
2024
202
42,706
-
4,698
-
-
-
-
-
47,404
2023
-
-
-
-
-
-
-
-
-
-
-
-
A. D. Fisher3
2024
92
25,439
-
2,798
-
-
-
-
-
28,237
-
-
2023
365
122,172
-
12,828
-
-
-
-
-
135,000
-
-
A.D.H. Beard3
2024
92
19,144
-
2,106
-
-
-
-
-
21,250
-
-
2023
365
76,923
-
8,077
-
-
-
-
-
85,000
-
-
S.D.
Swanson3
2024
162
66,250
-
-
-
-
-
-
-
66,250
-
-
2023
365
60,000
-
-
-
-
-
-
-
60,000
-
-
B. M. Glass
2024
366
325,000
93,000
27,399
-
-
65,842
-
-
511,241
18.19%
12.88%
2023
365
325,000
132,000
25,292
-
-
78,545
-
-
560,837
23.54%
14.01%
J.G.
Shuttleworth
2024
366
450,000
125,000
27,399
-
-
184,763
-
-
787,162
15.88%
23.47%
2023
365
450,000
100,000
25,292
-
-
275,527
-
-
850,819
11.75%
32.38%
Total
2024
1,232,483
218,000
69,313
-
-
250,605
-
-
1,770,401
-
-
Total
2023
1,212,428
232,000
71,489
-
-
354,072
-
-
1,869,990
-
-
1 Appointed in current financial year
2 Accounting expense in accordance with AASB 2, not yet vested
3 Resigned in current financial year
PAGE 18
ANNUAL REPORT 2024 | Remuneration Report
Performance rights, shares and options awarded, vested, lapsed and forfeited
Name
Year
Grant date
Fair value at grant date
$
Vesting Date
Target share price hurdle
$
Expiry date
Vested
in year
No.
Lapsed
in year
No.
Forfeited
in year
No.
J. G.
Shuttleworth
2022
2-Nov-2021
$0.2275 for 2,000,000 shares
on 30 November 2022
$0.2028 for 2,000,000 shares
on 30 November 2022
$0.1780 for 2,000,000 shares
on 30 September 2023
$0.1432 for 2,000,000 shares
on 30 September 2024
Tranche 1 – Up to
4,000,000 on 30
November 2022
Tranche 2 – Up to
6,000,000 on 30
September 2023
Tranche 3 – Up to
8,000,000 on 30
September 2024
Share price equalling or exceeding:
$0.30 for 2,000,000 shares
$0.35 for 2,000,000 shares
$0.42 for 2,000,000 shares
$0.55 for 2,000,000 shares
Three years
from the date
of vesting
noting that
vesting may
roll into
subsequent
years.
-
-
-
2023
16-Dec-2022
$0.10
1-Nov-2025
50% to vest if threshold absolute TSR
CAGR1 ≥ TDSP2:
- 10% per year3 during performance
period4; or
- 33% over entire performance period4
100% to vest if threshold absolute TSR
CAGR1 ≥ TDSP2:
- 15% per year3 during performance
period4; or
- 52% over entire performance period4
Three months
from the date
of vesting.
-
-
-
1 Threshold Total Shareholder Return Compounded Annual Growth Rate (TSR CAGR) measured with the use of the Test Date Share Price Start of $0.27 (90-day volume weighted average price of Centrepoint
shares on the ASX prior to and including 31 October 2022)
2 Test Date Share Price (TDSP) determined each period using the 90-day volume weighted average price of Centrepoint shares traded on the ASX period prior to and including 31 October annually
3 31 October annually within the performance period
4 31 October 2022 to 31 October 2025 (inclusive)
PAGE 19
ANNUAL REPORT 2024 | Remuneration Report
Name
Year
Grant date
Fair value at grant date
$
Vesting Date
Target share price hurdle
$
Expiry date
Vested
in year
No.
Lapsed
in year
No.
Forfeited
in year
No.
B. M. Glass
2022
24-Dec-2021
$0.1668 for 900,000 shares on
30 September 2022
$0.1495 for 600,000 shares on
30 September 2022
$0.1495 for 100,000 shares on
30 September 2023
$0.1188 for 650,000 shares on
30 September 2023
$0.1188 for 50,000 shares on
30 September 2024
$0.0802 for 700,000 shares on
30 September 2024
Tranche 1 – Up to
1,5000,000 on 30-
September-2022
Tranche 2 – Up to
2,250,000 on 30
September 2023
Tranche 3 – Up to
3,000,000 on 30
September 2024
Share price equalling or exceeding:
$0.30 for 900,000 shares
$0.35 for 700,000 shares
$0.42 for 700,000 shares
$0.55 for 700,000 shares
Three years
from the date
of vesting
noting that
vesting may
roll into
subsequent
years.
-
-
-
2023
16-Dec-2022
$0.10
1-Nov-2025
50% to vest if threshold absolute TSR
CAGR1 ≥ TDSP2:
- 10% per year3 during performance
period4; or
- 33% over entire performance period4
100% to vest if threshold absolute TSR
CAGR1 ≥ TDSP2:
- 15% per year3 during performance
period4; or
- 52% over entire performance period4
Three months
from the date
of vesting.
-
-
-
1 Threshold Total Shareholder Return Compounded Annual Growth Rate measured with the use of the Test Date Share Price Start of $0.27 (90-day volume weighted average price of Centrepoint shares on the ASX
prior to and including 31 October 2022)
2 Test Date Share Price determined each period using the 90-day volume weighted average price of Centrepoint shares traded on the ASX period prior to and including 31 October annually
3 31 October annually within the performance period
4 31 October 2022 to 31 October 2025 (inclusive)
PAGE 20
ANNUAL REPORT 2024 | Remuneration Report
Reconciliation of the number and fair value of options, shares and performance rights held by KMP
Name
Balance at the
start of the year
No.
Granted
during the
year1
No.
Value ($)
Exercised
during the
year
No.
Value
($)
Lapsed
during
the year
No.
Value
($)
Forfeited
during the
year
No.
Value
($)
Balance at
the end of the
year
No.
Vested
No.
Unvested
No.
Performance rights
J. G. Shuttleworth
8,865,385
-
-
-
-
-
-
-
-
8,865,385
-
-
B. M. Glass
3,625,000
-
-
-
-
-
-
-
-
3,625,000
-
-
1 Subject to vesting conditions detailed in Performance rights, shares and options awarded, vested, lapsed and forfeited table
PAGE 21
ANNUAL REPORT 2024 | Remuneration Report
Shareholdings of Key Management Personnel
Shares held in Centrepoint Alliance Limited (number)
Balance
1 July 2023
Granted as
remuneration
On exercise of
options
Net change of
other1
Balance
30 June 2024
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
G.J. Chmiel
800,000
-
-
169,191
969,191
M.P. Pretty
105,000
-
-
75,000
180,000
L.W.Y. Fox2
-
-
-
-
-
A. D. Vogel2
-
-
-
31,189
31,189
P. Rollason2
-
-
-
-
-
A.D. Fisher3
-
-
-
-
-
A.D.H. Beard3
7,812,426
-
-
(4,780,000)
3,032,426
S.D. Swanson3
-
-
-
-
-
B.M. Glass
-
-
-
-
-
J. G. Shuttleworth
210,000
-
-
6,000
216,000
1 All equity transactions with KMP other than those arising from the exercise of remuneration options have been entered into under terms and
conditions no more favourable than those the Company would have adopted if dealings at arm’s length. Shares include indirect interests.
2 Appointed in current financial year
3 Resigned in current financial year
Objective
Short-term incentives
The objective of short-term incentives (STI) is to link the achievement of the Group's operational targets with the
remuneration received by the executives charged with meeting those targets. The total potential STI available is
set at a level so as to provide sufficient incentive to the executive to achieve the operational targets and the cost
to the Group is reasonable. The purpose of STI is to focus the Group’s efforts on those performance measures
and outcomes that are priorities for the Group for the relevant financial year and to motivate the employees to
strive to achieve stretch performance objectives.
Long-term incentives
The objective of long-term incentives (LTI) is to reward executives and certain senior managers in a manner that
aligns remuneration with the creation of shareholder wealth. As such, LTI grants are only made to executives
and certain senior managers, who are able to significantly influence the generation of shareholder wealth and
thus have an impact on the Group's performance against the relevant long-term performance hurdles.
Structure
Short-term incentives
In August 2017, the Directors approved a new executive STI scheme based on EBITDA and the achievement of
underlying organisational and team goals. The target EBITDA is approved by the Board for each financial year.
STI payable to executives is up to 50% of Total Fixed Remuneration. On an annual basis, after consideration of
performance against key performance indicators (KPIs), the NRC will review results and determine individual
amounts approved for payment.
For other employees there is an STI scheme where a bonus pool based on results, and approved by the Board,
is weighted by a two-tiered approach with weightings assigned to each level, being Centrepoint Group results
and individual KPIs.
Long-term incentives
LTI awards to qualified employees are made under the LTI plans and are delivered in the form of shares or
rights. Shares vest in tranches over a specified time period and may also have other performance hurdle
requirements, typically related to shareholder return, as determined by the NRC.
Performance rights are rights that can be converted to fully paid ordinary shares in the Company for no monetary
consideration subject to specific performance criteria being achieved. The performance rights will
only vest if certain profit targets are met.
PAGE 22
ANNUAL REPORT 2024 | Remuneration Report
Awards
Centrepoint Alliance Employee Share Plan (CESP) 2022
The Board approved the grant of 4,000,000 performance rights on 20 February 2020 to senior executives of the
Group under the CESP at $0.0579 per performance right.
These are legally held by the Centrepoint Employee Share Plan Trust (CESPT) and not converted into fully paid
ordinary CAF shares until satisfaction of the vesting conditions which were determined on 1 December 2022
based on the following:
If the absolute Total Shareholder Return (TSR) for 30 June 2022 financial year is:
•
Target share price hurdle of 18.0 cents, 50% of the performance rights will vest;
•
Stretch share price hurdle of 20.0 cents, 100% of the performance rights will vest.
The Volume Weighted Average Price (VWAP) at the start of the performance period (29 November 2019), was
$0.13 for the awards granted on 31 January 2020.
On 1 December 2022, these performance rights met vesting conditions. The exercise of these rights remains at
the discretion of the rights holders until the expiry date of 1 December 2025. During FY24, 2,000,000
performance rights were exercised and converted to shares.
CESP23
On 1 November 2021, the Board of Directors approved 8,000,000 performance rights to be issued to the CEO,
and on 11 November 2021 the Board of Directors approved 3,000,000 performance rights to be issued to the
CFO under the CESP. The fair value of the performance rights issued was calculated as at the date of grant
using the Monte Carlo Model. This model took into account the terms and conditions upon which the performance
rights were granted and market-based inputs as at the grant date.
CESP24
On 1 December 2022, the Board of Directors approved 4,697,881 performance rights to be issued to senior
leaders under the CESP. The fair value of the performance rights issued were calculated as at the date of grant
using the Monte Carlo Model. This model took into account the terms and conditions upon which the performance
rights were granted and market-based inputs as at the grant date.
CEO Transitional Terms (short-term and long-term incentives)
The CEO will be eligible for discretionary annual incentive plans, the terms of which are at the absolute discretion
of the Board. Refer to page 16 Employment Contracts for further details.
Option Holdings of Key Management Personnel
No options to purchase shares were held by KMP.
Other Transactions with Key Management Personnel and their
Related Parties
Directors of the Company, or their related entities, conduct transactions with the Company or its controlled entities within a normal
employee, customer or supplier relationship on terms and conditions no more favourable than those with which it is reasonable to
expect the entity would have adopted if dealing with the Director or Director-related entity at arm’s length in similar circumstances.
There are no transactions by Directors in the current or prior financial year other than the ones disclosed above.
PAGE 23
ANNUAL REPORT 2024 | Remuneration Report
Auditor Independence and Non-Audit Services
The auditor – BDO Audit Pty Ltd, has provided a written independence declaration to the Directors in relation to its audit of the
financial report for the year ended 30 June 2024. The Independence Declaration, which forms part of this report is on page 24.
The Directors are satisfied that the provision of non-audit services is compatible with the general standard of independence for
auditors imposed by the Act. The nature and scope of non-audit services provided means that auditor independence was
not compromised.
2024
$’000
2023
$’000
Fees for the audit or review of the statutory financial report and assurance
services that are required by legislation to be provided by the auditor
418
405
Fees for other services (predominantly taxation)
18
29
436
434
Signed in accordance with a resolution of the Directors.
G. J. Chmiel
Chair
21 August 2024
Tel: +61 2 9251 4100
Fax: +61 2 9240 9821
www.bdo.com.au
Level 11, 1 Margaret Street
Sydney NSW 2000
Australia
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of
BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member
firms. Liability limited by a scheme approved under Professional Standards Legislation.
DECLARATION OF INDEPENDENCE BY TIM AMAN TO THE DIRECTORS OF CENTREPOINT ALLIANCE
LIMITED
As lead auditor of Centrepoint Alliance Limited for the year ended 30 June 2024, I declare that, to
the best of my knowledge and belief, there have been:
1.
No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
2.
No contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Centrepoint Alliance Limited and the entities it controlled during
the period.
Tim Aman
Partner
BDO Audit Pty Ltd
Sydney
21 August 2024
PAGE 25
ANNUAL REPORT 2024 | Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Profit or Loss and
Other Comprehensive Income
Note
2024
$'000
2023
$'000
Revenue
Revenue from contracts with customers
4(a)
287,437
271,053
Contractual payments to advisers
4(a)
(251,925)
(239,093)
Gross profit from contracts with customers
35,512
31,960
Interest income
4(b)
548
400
Other income
4(c)
577
2,394
Gross Profit
4(d)
36,637
34,754
Expenses
Employee-related expenses
4(e)
(19,930)
(17,640)
Professional services
(1,413)
(1,390)
Depreciation and amortisation
(2,549)
(2,091)
Subscriptions and licences
(1,795)
(1,846)
IT and communication expenses
(992)
(879)
Low value and variable costs related to property and equipment
14(a)
(405)
(311)
Marketing and promotion
(506)
(475)
Travel and accommodation
(247)
(287)
Expected credit loss reversal
7.1.3
52
22
Finance costs
4(f)
(414)
(136)
Client claims
(8)
(15)
Property costs
14(a)
(140)
(105)
Other general and administrative expenses
(2,685)
(2,987)
(31,032)
(28,140)
Profit before tax
5,605
6,614
Income tax (benefit)/expense
5(a)
(2,162)
275
Net profit for the year
7,767
6,339
TOTAL COMPREHENSIVE PROFIT FOR THE YEAR
7,767
6,339
Net profit attributable to:
Owners of the parent
7,767
6,339
Non-controlling interests
7.1.6
-
-
Net profit for the year
7,767
6,339
Total comprehensive profit attributable to:
Owners of the parent
7,767
6,339
Non-controlling interests
-
-
Total comprehensive profit for the year
7,767
6,339
Earnings per share for profit attributable to the
ordinary equity holders of the parent
Cents
Cents
Basic earnings per share (cents)
9
3.92
3.23
Diluted earnings cents per share (cents)
9
3.51
3.35
The Consolidated Statement of Profit or Loss and Other Comprehensive Income is to be read in conjunction with the
attached Notes.
PAGE 26
ANNUAL REPORT 2024 | Consolidated Statement of Financial Position
Consolidated Statement of Financial Position
Note
2024
$'000
2023
$'000
ASSETS
Current
Cash and cash equivalents
7.1.1
12,206
15,608
Trade and other receivables
7.1.2
7,736
6,205
Loan receivables
7.1.3
29
17
Contract assets
7.1.4
956
370
Other assets
758
1,168
Total current assets
21,685
23,368
Non-current
Loan receivables
7.1.3
85
79
Investments
7.1.5
116
116
Property, plant and equipment
13
413
238
Right-of-use assets
14(b)
2,173
775
Intangible assets and goodwill
15
26,190
17,535
Deferred tax assets
5(c)
7,825
6,002
Other assets
524
-
Total non-current assets
37,326
24,745
TOTAL ASSETS
59,011
48,113
LIABILITIES
Current
Trade and other payables1
7.1.7
10,500
9,271
Unearned income
526
86
Lease liabilities
7.1.8
806
488
Provisions
16
5,244
3,939
Loan payable
7.1.9
1,600
-
Total current liabilities
18,676
13,784
Non-current
Lease liabilities
7.1.8
1,357
315
Provisions
16
546
417
Loan payable
7.1.9
1,600
-
Deferred tax liabilities
5(c)
3,496
2,426
Total non-current liabilities
6,999
3,158
TOTAL LIABILITIES
25,675
16,942
NET ASSETS
33,336
31,171
EQUITY
Contributed equity
10(a)
47,768
47,652
Reserves
11
2,225
2,007
Accumulated losses
(16,657)
(18,606)
Equity attributable to shareholders
33,336
31,053
Non-controlling interests
7.1.6
-
118
TOTAL EQUITY
33,336
31,171
1 The 2023 Trade and other payables has been updated in the current financial year to separately categorise the unearned income in the
Statement of Financial Position.
The Consolidated Statement of Financial Position is to be read in conjunction with the attached Notes.
PAGE 27
ANNUAL REPORT 2024 | Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows
Note
2024
$'000
2023
$'000
Cash Flows from Operating Activities
Cash receipts from customers
289,592
270,717
Cash paid to suppliers and employees
(282,036)
(266,391)
Cash provided by operations
7,556
4,326
Claims and litigation settlements
16(a)
(323)
(197)
Net cash flows provided by operating activities
6(a)
7,233
4,129
Cash Flows from Investing Activities
Interest received
436
293
Proceeds from sale of investment management rights
207
1,500
Proceeds from convertible loan
140
160
Payment for intangible assets
(898)
(526)
Payment for property, plant and equipment
(403)
(53)
Payment for acquisition, net of cash acquired
12
(6,255)
(115)
Dividends received from investments
8
5
Net cash flows (used in)/provided by investing activities
(6,765)
1,264
Cash Flows from Financing Activities
Repayment of lease liabilities
(822)
(570)
Proceeds from borrowings (net of repayments)
7.1.9
3,200
-
Finance costs
(302)
(29)
Dividends paid
8(a)
(5,946)
(3,928)
Net cash flows used in financing activities
(3,870)
(4,527)
Net increase in cash and cash equivalents
(3,402)
866
Cash and cash equivalents at the beginning of the year
15,608
14,742
Cash and cash equivalents at the end of the year
7.1.1
12,206
15,608
The Consolidated Statement of Cash Flows is to be read in conjunction with the attached Notes.
PAGE 28
ANNUAL REPORT 2024 | Consolidated Statement of Changes in Equity
Consolidated Statement of Changes in Equity
Notes
Ordinary
shares
$'000
Dividend
reserve
$'000
Other
reserves
$'000
Accumulated
losses
$'000
Total
$'000
Non-controlling
interests
$'000
Total equity
$'000
Balance at 1 July 2023
47,652
58
1,949
(18,606)
31,053
118
31,171
Profit for the year
-
-
-
7,767
7,767
-
7,767
Total comprehensive income for the year
-
-
-
7,767
7,767
-
7,767
Transfer of vested performance rights to share capital
10(a) & 11(a)
116
-
(116)
-
-
-
-
Share-based payment
11(a) & 21(b)
-
-
344
-
344
-
344
Dividends paid
11(b)
-
(5,946)
-
-
(5,946)
-
(5,946)
Distribution of profits from dividend reserve
11(b)
-
5,936
-
(5,936)
-
-
-
Acquisition of Non-controlling interest
7.1.6
-
-
-
118
118
(118)
-
Balance at 30 June 2024
47,768
48
2,177
(16,657)
33,336
-
33,336
Balance at 1 July 2022
47,594
1,986
1,565
(22,945)
28,200
118
28,318
Profit for the year
-
-
-
6,339
6,339
-
6,339
Total comprehensive income for the year
-
-
-
6,339
6,339
-
6,339
Transfer of vested performance rights to share capital
10(a) & 11(a)
58
-
(58)
-
-
-
-
Share-based payment
11(a) & 21(b)
-
-
442
-
442
-
442
Dividends paid
11(b)
-
(3,928)
-
-
(3,928)
-
(3,928)
Distribution of profits from dividend reserve
11(b)
-
2,000
-
(2,000)
-
-
-
Balance at 30 June 2023
47,652
58
1,949
(18,606)
31,053
118
31,171
The consolidated Statement of Changes in Equity is to be read in conjunction with the attached Notes.
PAGE 29
ANNUAL REPORT 2024 | Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial
Statements
Basis of Preparation
1. Corporate information ................................................................................................................................................................. 30
2. Summary of material accounting policy information .................................................................................................................... 30
Financial performance
3. Segment information ................................................................................................................................................................... 32
4. Revenue and expenses .............................................................................................................................................................. 35
5. Income tax ................................................................................................................................................................................. 37
6. Notes to Statement of Cash Flows .............................................................................................................................................. 41
Working capital
7. Financial assets, liabilities and related financial risk management ............................................................................................. 42
Shareholder return
8. Dividends .................................................................................................................................................................................... 56
9. Earnings per share ...................................................................................................................................................................... 57
Capital and funding structure
10. Contributed Equity .................................................................................................................................................................... 58
11. Reserves ................................................................................................................................................................................... 58
12. Acquisition of subsidiaries ......................................................................................................................................................... 59
13. Property, plant and equipment .................................................................................................................................................. 61
14. Leases (Group as a lessee) ...................................................................................................................................................... 62
15. Intangible assets ....................................................................................................................................................................... 64
Risk management
16. Provisions ................................................................................................................................................................................. 69
17. Contingent liabilities .................................................................................................................................................................. 71
18. Remuneration of auditors .......................................................................................................................................................... 71
Other information
19. Information relating to Centrepoint Alliance Limited .................................................................................................................. 71
20. Related party disclosures .......................................................................................................................................................... 72
21. Share-based payment plans ..................................................................................................................................................... 73
22. Events subsequent to the balance sheet date .......................................................................................................................... 74
PAGE 30
ANNUAL REPORT 2024 | Notes to the Consolidated Financial Statements
Basis of Prepar ation
1. Corporate information
The consolidated financial statements of Centrepoint Alliance Limited (the Company or the Parent Entity) and its subsidiaries (the Group)
for the year ended 30 June 2024 were authorised for issue in accordance with a resolution of the Directors on 21 August 2024.
The nature of the operations and principal activities of the Group are described in the Directors’ Report. Information on the Group’s
structure and other related party disclosures is provided in Note 20.
2. Summary of material accounting policy information
Basis of preparation
The financial report is a general-purpose financial report, which has been prepared in accordance with the requirements of the
Corporations Act 2001, Australian Accounting Standards, Interpretations and other authoritative pronouncements of the Australian
Accounting Standards Board (AASB). The financial report has also been prepared on a historical cost basis, except for certain
financial assets that have been measured at fair value. Where necessary, comparative information has been updated to be
consistent with the current reporting year.
For the purposes of preparing the consolidated financial statements, the Group is a for-profit entity. The financial report has been
prepared on a going concern basis, which contemplates continuity of normal business activities and the realisation of assets and
settlement of liabilities in the ordinary course of business.
AASB 101 Presentation of Financial Statements requires management to assess the entity’s ability to continue as a going concern.
In making the assessment, the standard requires that all available information about the future 12 months from the reporting year
or date of issue of financial statements (whichever is later), needs to be taken into consideration. Any material uncertainties that
cast significant doubt on the capability to continue as a going concern such as scope of the impact on future costs and revenues,
need to be disclosed in the financial statements.
Sufficient cash reserves are projected over the next 14 months. Apart from the outflows relating to general operational spend and
potential future dividends to shareholders, inflows are projected to increase, factoring in organic business growth and inorganic
transactions.
Compliance with International Financial Reporting Standards
The financial report complies with International Financial Reporting Standards (IFRS) as issued by the International Accounting
Standards Board.
New and revised Standards
The Group has adopted all of the new or amended Accounting Standards and Interpretations issued by the AASB that are
mandatory for the current reporting year. Any new or amended Accounting Standards or Interpretations that are not yet mandatory
have not been early adopted.
Standards and interpretations issued but not yet effective
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted by the Group
for the annual reporting year ended 30 June 2024.
Basis of consolidation
The consolidated financial statements comprise the financial statements of the Company and its subsidiaries as at, and for the year
ended, 30 June 2024.
Subsidiaries are entities that are controlled by the Company. The financial results and financial position of the subsidiaries are
included in the consolidated financial statements from the date control commences until the date control ceases. A list of the
Company’s controlled entities (subsidiaries) is included in Note 20.
Business combinations
The Group applies the acquisition method in accounting for business combinations in accordance with AASB 3 Business
Combinations. The consideration transferred by the Group to obtain control of a subsidiary is calculated as the sum of the acquisition
date fair values of assets transferred, liabilities incurred and the equity interests issued by the Group, which includes the fair value
of any asset or liability arising from a contingent consideration arrangement. Acquisition costs are expensed as incurred.
PAGE 31
ANNUAL REPORT 2024 | Notes to the Consolidated Financial Statements
At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognised at their fair value, except that:
•
deferred tax assets or liabilities, and assets or liabilities related to employee benefit arrangements are recognised and
measured in accordance with AASB 112 Income Taxes and AASB 119 Employee Benefits respectively;
•
liabilities or equity instruments related to share-based payment arrangements of the acquiree or share-based payment
arrangements of the Group entered into to replace share-based payment arrangements of the acquiree are measured in
accordance with AASB 2 Share-based Payments at the acquisition date; and
•
assets (or disposal groups) that are classified as held for sale in accordance with AASB 5 Non-current Assets Held for
Sale and Discontinued Operations are measured in accordance with that Standard.
Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling interests in the
acquiree, and the fair value of the acquirer’s previously held equity interest in the acquiree (if any) over the net of the acquisition
date amounts of the identifiable assets acquired and the liabilities assumed. If, after reassessment, the net of the acquisition date
amounts of the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration transferred, the amount
of any non-controlling interests in the acquiree and the fair value of the acquirer’s previously held interest in the acquiree (if any),
the excess is recognised immediately in profit or loss as a bargain purchase gain.
With the exception of deferred tax assets and liabilities related to employee benefits, the Group recognised the assets acquired
and the liabilities assumed of Financial Advice Matters Group Pty Ltd (‘FAM’) at fair value on acquisition date of 1 December 2023.
The Group has recorded goodwill on acquisition as the consideration transferred is in excess of the net identifiable assets acquired.
The Group does not have any previously held equity interest in FAM. Deferred tax liability is recognised on intangible assets, except
goodwill, arising on a business combination based on the difference of the carrying value of the asset on initial recognition in the
consolidated accounts and the tax cost base. As the intangible asset is amortised or impaired, the temporary difference will
decrease. The reduction in the deferred tax liability is recognised in profit or loss as a deferred tax credit.
Changes in fair value of the contingent consideration that qualify as measurement period adjustments are adjusted retrospectively
in accordance with AASB 9 Financial Instruments, with corresponding adjustments against assets and liabilities. Measurement
period adjustments are adjustments that arise from additional information obtained during the ‘measurement period’ (which cannot
exceed one year from the acquisition date) about facts and circumstances that existed at the acquisition date.
If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs,
the Group reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted
during the measurement period, or additional assets or liabilities are recognised, to reflect new information obtained about facts
and circumstances that existed as of the acquisition date that, if known, would have affected the amounts recognised as of that
date. The measurement period ends on either the earlier of (i) 12 months from the date of the acquisition or (ii) when the acquirer
receives all the information possible to determine fair value. During the year, a business combination has been completed resulting
in a retrospective adjustment to the 31 December 2023 provisional goodwill balance and recognition of net identifiable intangible
assets acquired. Refer to Note 12.3.
Significant accounting judgements, estimates and assumptions
The key assumptions concerning the future and other key sources of estimation and uncertainty at the end of the financial year,
that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial
year, are described below. The Group based its assumptions and estimates on parameters available when the consolidated
financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change
due to market changes or circumstances arising beyond the control of the Group. Such changes are reflected in the assumptions
when they occur.
The Directors and management have assessed the impact in the current reporting period of the volatility from current economic
events including labour shortages, commodity prices, rising interest rates and general inflation. The Group does not have inflation-
linked financial instruments such as external borrowings, and therefore this did not have any financial impact on finance costs.
Further, the inflationary impact of increased costs has been largely recovered from the adviser network, and thereby has not affected
gross profits. The Group has considered the changes in inflation in its calculation of employee long service provisions and
impairment tests of non-current assets, and has determined minimal impact on employee provisions and that none of the non-
current assets are impaired.
Accounting estimates with significant areas of uncertainty and critical judgements have been applied to the following:
•
Intangible assets and goodwill – Note 15
•
Provision for client claims – Note 16
•
Recognition of deferred tax assets – Note 5
•
Adviser service fees – Note 17
•
Leases – Note 14
•
Acquisition of subsidiaries – Note 12
PAGE 32
ANNUAL REPORT 2024 | Notes to the Consolidated Financial Statements
Foreign currency
Both the functional and presentation currency of the Group is Australian dollars ($).
Transactions in foreign currencies are initially recorded by the Group’s entities at their respective functional currency spot rates at
the date the transaction first qualifies for recognition.
Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at
the reporting date.
Exchange differences relating to monetary items are included in the Statement of Profit or Loss and Other Comprehensive Income
as exchange gains or losses in the year when the exchange rates changed.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at
the date of the initial transaction.
Financi al performance
3. Segment information
Key accounting policies
Operating Segments
Under AASB 8 Operating Segments, the Group determines and presents operating segments based on the nature of the products
and services provided and the markets in which it operates. The senior executives of the Group are the chief operating decision
makers.
Board, corporate finance, company secretarial and other administration functions of the Group not allocated to the other reportable
segments are identified as Corporate and Unallocated.
The operating segments identified are below:
Business segment
Operations
Licensee and advice services
This segment represents the business that provides Australian Financial
Services Licensee services to financial advisers, mortgage broking services
and financial planning and advice services to end clients.
Fund management and administration
This segment provides investor directed portfolio services and investment
management services to financial advisers, accountants and their clients.
Consulting services
This segment represents the business that provides consulting to both self-
licensed advisers and licensees.
The Corporate and Unallocated balances represent corporate finance, company secretarial and other administration functions of
the Group that are not considered an operating segment.
The Group operated only in Australia during the financial year. The accounting policies of the reportable segments are the same as
the Group’s accounting policies.
PAGE 33
ANNUAL REPORT 2024 | Notes to the Consolidated Financial Statements
Year ended 30 June 2024
Licensee &
Advice
Services
$'000
Funds
Management &
Administration
$'000
Consulting
Services
$'000
Corporate &
Unallocated
$'000
Total
$'000
Segment revenue
Revenue from contracts with customers
Authorised representative fees
21,357
-
-
-
21,357
Advice revenue
259,268
-
-
-
259,268
Product revenue
1,266
1,816
-
-
3,082
Virtual services
2,555
-
-
29
2,584
Licensing and managed services1
-
-
1,188
(100)
1,088
Consulting services
-
-
58
-
58
Contractual payments to advisers
Advice revenue paid to advisers
(251,354)
-
-
-
(251,354)
Fees paid to advisers/fund managers
-
(463)
(102)
(6)
(571)
Gross profit from contracts with
customers
33,092
1,353
1,144
(77)
35,512
Interest income
392
102
2
52
548
Other income
553
67
-
(43)
577
Total segment gross profit
34,037
1,522
1,146
(68)
36,637
Other material expenses
Interest charges and interest on lease
liabilities
(94)
(8)
-
(312)
(414)
Client claims
(8)
-
-
-
(8)
Depreciation and amortisation
(375)
-
(132)
(2,042)
(2,549)
Expected credit reversal/(loss) expenses
73
-
(21)
-
52
Inter-segment expenses2
(16,393)
(622)
(908)
17,923
-
Total other material expenses
(16,797)
(630)
(1,061)
15,569
(2,919)
Segment profit/(loss) before tax
13,207
572
(108)
(8,066)
5,605
Income tax expense/(benefit)
65
-
(43)
(2,184)
(2,162)
Segment profit/(loss) after tax
13,142
572
(65)
(5,882)
7,767
Total comprehensive income/(loss) for the
year
13,142
572
(65)
(5,882)
7,767
Statement of Financial Position at 30 June
2024
Total assets
44,180
29,742
1,626
(16,537)
59,011
Total liabilities
(12,761)
(186)
(191)
(12,537)
(25,675)
Net assets
31,419
29,556
1,435
(29,074)
33,336
1 Licensing and managed services include an inter-segment allocation whereby revenue is recognised in consulting services and cost is incurred
in corporate & unallocated of $100,000.
2 Inter-segment expenses represent employee-related costs and other expenses paid centrally, which are allocated to the segments in which they
are incurred.
PAGE 34
ANNUAL REPORT 2024 | Notes to the Consolidated Financial Statements
Year ended 30 June 2023
Licensee
& Advice
Services
$'000
Funds
Management &
Administration
$'000
Consulting
Services
$'000
Corporate &
Unallocated
$'000
Total
$'000
Segment revenue
Revenue from contracts with customers
Authorised representative fees
19,692
-
-
-
19,692
Advice revenue
242,917
4
-
6
242,927
Product revenue
1,571
2,859
-
-
4,430
Virtual services
2,598
-
-
-
2,598
Licensing and managed services1 2
-
-
1,184
(100)
1,084
Consulting services
-
-
322
-
322
Contractual payments to advisers
Advice revenue paid to advisers
(238,372)
-
-
-
(238,372)
Fees paid to advisers/fund managers
-
(610)
(111)
-
(721)
Gross profit from contracts with customers
28,406
2,253
1,395
(94)
31,960
Interest income
315
63
-
22
400
Other income
459
1,715
-
220
2,394
Total segment gross profit
29,180
4,031
1,395
148
34,754
Other material expenses
Interest charges and interest on lease
liabilities
(50)
(15)
(6)
(66)
(137)
Client claims
(15)
-
-
-
(15)
Depreciation and amortisation
(789)
-
(168)
(1,134)
(2,091)
Expected credit reversal/(loss) expenses
26
-
(4)
-
22
Inter-segment expenses3
(14,788)
(433)
(193)
15,414
-
Total other material expenses
(15,616)
(448)
(371)
14,214
(2,221)
Segment profit/(loss) before tax
8,024
3,314
1,109
(5,833)
6,614
Income tax (benefit)/expense
(219)
-
(43)
537
275
Segment profit/(loss) after tax
8,243
3,314
1,152
(6,370)
6,339
Total comprehensive income/(loss) for the
year
8,243
3,314
1,152
(6,370)
6,339
Statement of Financial Position at 30 June
2023
Total assets
37,823
29,195
1,736
(20,641)
48,113
Total liabilities
(10,938)
(203)
(234)
(5,567)
(16,942)
Net assets
26,885
28,992
1,502
(26,208)
31,171
1 During the current financial year, the Group has reclassified the total Licensing and managed services revenue from ‘Licensee & Advice
Services’ segment to ‘Consulting Services’ to accurately reflect the segment allocation of revenue.
2 Licensing and managed services include an inter-segment allocation whereby revenue is recognised in consulting services and cost is incurred
in corporate & unallocated of $100,000.
3 Inter-segment expenses represent employee-related costs and other expenses paid centrally, which are allocated to the segments in which they
are incurred.
PAGE 35
ANNUAL REPORT 2024 | Notes to the Consolidated Financial Statements
4. Revenue and expenses
a. Revenue from contracts with customers (AASB 15 Revenue from contracts with customers)
Revenue is recognised at an amount that reflects the consideration to which the Group is expected to be entitled in exchange for
transferring goods or services to a customer. For each contract with a customer, the Group: identifies the contract with a customer;
identifies the performance obligations in the contract; determines the transaction price, which takes into account estimates of
variable consideration and the time value of money; allocates the transaction price to the separate performance obligations on the
basis of the relative stand-alone selling price of each distinct good or service to be delivered; and recognises revenue when or as
each performance obligation is satisfied in a manner that depicts the transfer to the customer of the goods or services promised.
The Group recognises the different types of revenue as follows:
Authorised representative fees: On a monthly basis, the financial advisers are billed for Australian Financial Services Licence
(AFSL) licensing fees in line with the contract between the Group and the adviser. The Group’s obligation under these contracts is
to provide support to advisers and access to one of the Group’s AFSLs to enable them to sell financial advice. The fees charged to
the adviser are based on a fixed fee structure outlined in the contract with the adviser. Revenue is recognised on a monthly basis
as services are provided to the advisers.
During the year, an additional $2.7m in new adviser contracts (with rebate arrangements offered), resulted in the recognition of
$1.3m in revenue ($2.9m since commencement of the rebate arrangement).
Advice revenue: Advice revenue can be in the form of a fee received from the product provider, or advice fees deducted from a
financial product or received directly from the customers. The Group receives the full amount of advice revenue from either the
product provider or the customers and then pays this in full to the adviser unless there is a specific arrangement with the adviser to
retain a proportion of the fee to satisfy their authorised representative fee or other debts to the Group. Based on the agreement
between the Group and the advisers, the advisers act as an authorised representative of the Group, and the Group has ultimate
responsibility with the end customers. The Group is therefore considered the principal in these arrangements. Where the advisers
are employed by the Group, advice revenue earned is retained within the Group.
Product revenue: The Group earns revenue through the provision of fund management and portfolio administration services to its
customers. Under these arrangements fees charged are calculated on a fixed percentage of Funds Under Management and
Administration (FUMA) as stated in the contract with the customer. Revenue is recognised as the service is provided. Also included
in product revenue is partner program revenue, received from the Group’s partners for their participation in the Group's education
programs including masterclasses, webinars and an annual conference.
Virtual services: The Group provides a menu of third-party services to its adviser network. Those services with the greatest take-
up are paraplanning and outsourced administration support. Other services include investment research and software. The Group
sources third party providers and continually assesses the performance of providers to ensure quality standards are maintained.
The Group derives margin from some services by negotiating competitive wholesale fees and sharing these benefits with its adviser
network. Revenue is recognised on a monthly basis as services are provided to the advisers.
Licensing and managed services: On a monthly basis, the Group charges fixed fees for admission to the customised platform
(licence fees) and technological support provided to the customer (managed services). Revenue is recognised on a monthly basis
as services are provided.
Consulting services: The Group earns revenue from the provision of XPLAN consulting, XPLAN tailoring and configuration and a
comprehensive suite of advice delivery services, to meet specific business needs. Enzumo leverages the knowledge of solution
specialists to design, develop and deploy customisations to XPLAN sites. Revenue is recognised on an ‘over time’ basis when the
performance obligations are met.
b. Interest income
Per AASB 9 Financial Instruments, interest income from a financial asset is accrued on a time basis, by reference to the principal
outstanding and at the effective interest rate applicable. This is the rate that exactly discounts estimated future cash receipts through
the expected life of the financial asset to that asset’s net carrying amount on initial recognition.
c. Other revenue
Other revenue represents other sundry income received or receivable by the Group.
PAGE 36
ANNUAL REPORT 2024 | Notes to the Consolidated Financial Statements
d. Gross profit
2024
$'000
2023
$'000
Revenue
Revenue from contracts with customers
4(a)
Authorised representative fees
21,357
19,692
Advice revenue
259,268
242,927
Product revenue
3,082
4,430
Virtual services
2,584
2,598
Licensing and managed services
1,088
1,084
Consulting services
58
322
Total revenue from contracts with customers
287,437
271,053
Contractual payments to advisers
Advice revenue paid to advisers
(251,354)
(238,372)
Fees paid to advisers/fund managers
(571)
(721)
Total contractual payments to advisers
(251,925)
(239,093)
Gross profit from contracts with customers
35,512
31,960
Interest income
4(b)
548
400
Other income
Cost recoveries from advisers
150
308
Income from sale of investment management rights
-
1,715
Other
427
371
Total other income
4(c)
577
2,394
Gross profit
4(d)
36,637
34,754
e. Employee-related expenses
Employee-related expenses represent employee costs payable by the Group.
2024
$'000
2023
$'000
Employee-related expenses
Wages and salaries
19,098
16,996
Employee transaction costs
-
112
Share-based compensation expense
344
442
Termination costs
488
90
Total employee-related expenses
19,930
17,640
PAGE 37
ANNUAL REPORT 2024 | Notes to the Consolidated Financial Statements
f. Finance costs
The table below summarises the finance costs for the Group:
2024
$'000
2023
$'000
Finance costs
Bank charges
112
74
Interest on lease liabilities
73
29
Interest on loans
229
33
Total finance costs
414
136
5. Income tax
a. Income tax (benefit)/expense
The major components of income tax (benefit)/expense for the years ended 30 June 2024 and 30 June 2023 are:
2024
$'000
2023
$'000
Current income tax expense
Current year
244
1,871
Adjustments in respect of current tax of prior period
409
(331)
Deferred income tax expense
Movements in deferred tax balances
(2,815)
(1,264)
Total Income tax (benefit)/expense
(2,162)
275
b. Reconciliation between aggregate tax (benefit)/expense recognised in the income statement and tax
expense calculated per the statutory income tax rate
The difference between income tax (benefit)/expense provided in the financial statements and the prima facie income tax
expense is reconciled as follows:
2024
$'000
2023
$'000
Profit before tax
5,605
6,614
At the Company's statutory income tax rate of 30% (2023: 30%)
1,682
1,984
Non-deductible expenses
479
402
Non-assessable income
(377)
(516)
Utilisation of tax losses
(1,540)
-
Other movements in deferred tax assets/liabilities
(2,815)
(1,264)
Adjustment in respect of current tax for prior period
409
(331)
Aggregate income tax (benefit)/expense
(2,162)
275
PAGE 38
ANNUAL REPORT 2024 | Notes to the Consolidated Financial Statements
c. Recognised deferred tax assets and liabilities
Deferred income tax relates to the following:
Statement of Financial Position
2024
$'000
2023
$'000
Deferred tax liabilities
Prepayments
(2)
(30)
Intangibles
(3,496)
(2,426)
Gross deferred tax liabilities
(3,498)
(2,456)
Deferred tax assets
Provisions for claims
148
291
Provisions for doubtful debts
506
545
Provision for impairment of loan receivables
535
741
Lease liabilities
54
27
General accruals and other costs
69
64
Employee benefits
1,168
980
Recognition from prior year losses
7,540
4,924
Applied revenue tax losses
(2,192)
(1,540)
Gross deferred tax assets
7,828
6,032
Net deferred tax asset offset
7,826
6,002
Deferred tax liability not offset
(3,496)
(2,426)
Following a significant improvement in trading conditions and Group profits over the last three years, and in combination with
expectations of Group profits for the foreseeable future, the Group’s previously unrecognised tax losses were reviewed. The Group
determined that it is now probable that taxable profits will be available against which historic tax losses can be utilised. As a
consequence, an additional deferred tax asset of $2.6m was recognised for these losses at 30 June 2024 bringing total deferred
tax assets to $7.8m (30 June 2023: $6.0m).
The Group has deferred tax liabilities of $3.5m as at 30 June 2024 (30 June 2023: $2.5m). The recognised deferred tax liabilities
on intangible assets arose from the Group’s acquisitions. These are not offset against the deferred tax assets as there is no legally
enforceable right to offset this with the other deferred tax balances.
d. Unrecognised tax losses
The Group has the following Australian tax losses for which no deferred tax assets are recognised at reporting date:
2024
$'000
2023
$'000
Revenue losses
14,548
28,100
Capital losses
38,252
37,192
Total unrecognised losses
52,800
65,292
The unrecognised revenue losses relate to losses transferred in, which are subject to fractioning under Australian taxation
legislation, effectively prescribing the rate at which such acquired tax losses may be offset against the Group’s taxable income.
Given that the available fraction of the transferred losses is based on the relative market value of the Group, the determination of
the available fraction is subject to some uncertainty. This will continue to be assessed in future reporting periods for potential
utilisation.
The above losses are available indefinitely for offset against future taxable income and capital gains subject to meeting relevant
statutory tests. Unrecognised tax losses decreased by $13.6m (30 June 2023: decrease of $3.4m). A net deferred tax asset of
$5.3m has been recognised on tax losses that could be utilised during the year (2023: $3.4m) per Note 5(c).
PAGE 39
ANNUAL REPORT 2024 | Notes to the Consolidated Financial Statements
e. Tax consolidation
Tax effect accounting by members of the tax consolidated group
a. Measurement method adopted under AASB Interpretation 1052 Tax Consolidation Accounting
The parent entity and the controlled entities in the tax consolidated group continue to account for their own current and deferred
tax amounts. The Group has applied the ‘separate taxpayer within group’ approach, whereby the Group measures its current and
deferred taxes as if it continued to be a separately taxable entity in its own right, with adjustments for its transactions that do not
give rise to a tax consequence for the Group, or that have a different tax consequence at the Group level. The current and deferred
tax amounts are measured with reference to the carrying amount of assets and liabilities in the Statement of Financial Position and
their tax bases applying under the tax consolidation, this approach being consistent with the broad principles in AASB 112 Income
Taxes. The nature of the tax funding agreement is discussed further below.
In addition to its own current and deferred tax amounts, the head entity also recognises current tax liabilities (or assets) and the
deferred tax assets arising from unused tax losses and unused tax credits assumed from controlled entities in the tax consolidated
group.
b. Nature of the tax funding agreement
Centrepoint Alliance Limited and its wholly owned Australian controlled entities formed a consolidated tax group which commenced
on 1 July 2007 under the Tax Act (1997).
The parent entity and the controlled entities in the tax consolidated group continue to account for their own current and deferred
tax amounts. The Group has applied the Group allocation approach in determining the appropriate amount of current taxes and
deferred taxes to allocate to members of the tax consolidated group.
Members of the tax consolidated group have entered into a tax funding agreement. Under the funding agreement, the funding of
tax within the Group is based on taxable profit. The tax funding agreement requires payments to/from the parent entity to be
recognised via an inter-entity receivable (payable), which is at call.
The amounts receivable or payable under the tax funding agreement are due upon receipt of the funding advice from the head
entity, which is issued as soon as practicable after the end of each financial year. The head entity may also require payment of
interim funding amounts to assist with its obligations to pay tax instalments. These amounts are payable at call.
Key accounting policies
Taxation
a. Income tax
The income tax expense for the year represents the tax payable on the pre-tax accounting profit adjusted for changes in the deferred
tax assets and liabilities attributable to temporary differences between the tax bases of assets and liabilities and their carrying
amounts in the financial statements, and unused tax losses.
Income taxes relating to items recognised directly in equity are recognised in equity and not in the Statement of Profit or Loss and
Other Comprehensive Income.
b. Current tax
Current tax assets and liabilities for the year are measured at the amount expected to be recovered from or paid to the taxation
authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the
reporting date in the countries where the Group operates and generates taxable income.
c. Deferred tax
Deferred tax assets and liabilities are recognised for all deductible and taxable temporary differences at the tax rates that are
expected to apply to the year when the asset is realised or liability is settled, based on tax rates (and tax laws) that have been
enacted or substantially enacted at the reporting date.
Deferred income tax liabilities are recognised on all taxable temporary differences except:
•
When the deferred income tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction
that is not a business combination and that, at the time of the transaction, affects neither the accounting profit nor taxable profit
or loss; or
•
In respect of taxable temporary differences associated with investments in subsidiaries, associates or interests in joint ventures,
when the timing of the reversal of the temporary difference can be controlled and it is probable that the temporary difference
will not reverse in the foreseeable future.
PAGE 40
ANNUAL REPORT 2024 | Notes to the Consolidated Financial Statements
Deferred tax assets are recognised for deductible temporary differences, carry forward tax credits and any unused tax losses.
Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which deductible
temporary differences, unused tax credits and unused tax losses can be utilised, except:
•
When a deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or
liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting
profit nor taxable profit or loss; or
•
In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint
ventures, deferred tax assets are recognised only to the extent that it is probable that the temporary differences will reverse in
the foreseeable future and taxable profit will be available against which the temporary differences can be utilised.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable
that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised. Unrecognised deferred
tax assets are reassessed at each reporting date and are recognised to the extent that it has become probable that future taxable
profit will allow a deferred tax asset to be recovered.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against
current tax liabilities, and deferred tax assets and liabilities relate to the same taxable entity and the same taxation authority.
The deferred tax balance will be written down if there are changes in circumstances and forecasts are not met.
Deferred tax liabilities from business combinations are recognised from the temporary difference equal to the carrying value of the
asset on initial recognition in the consolidated accounts. As the intangible asset and the related deferred tax arise on a business
combination, the goodwill value is increased in accordance with AASB 12 Disclosure of Interests in other Entities.
As the intangible asset is amortised, the temporary difference will decrease. The reduction in the deferred tax liability is recognised
in profit or loss. The recognition of this deferred tax credit to profit or loss reduces the impact of the amortisation of the intangible
asset on profits for the year.
d. Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST except:
•
When the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case the
GST is recognised as part of the cost of acquisition of the asset or as an expense item as applicable; and
•
When receivables and payables are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, a taxation authority is included as part of receivables or payables in the
Statement of Financial Position.
Cash flows are included in the Statement of Cash Flows on a gross basis and the GST component of cash flows arising from
investing and financing activities, which is recoverable from, or payable to, a taxation authority, are classified as part of operating
cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, a taxation authority.
PAGE 41
ANNUAL REPORT 2024 | Notes to the Consolidated Financial Statements
6. Notes to Statement of Cash Flows
a. Reconciliation of net profit after tax to net cash provided by operating activities
2024
$'000
2023
$'000
Net profit after income tax
7,767
6,339
Adjustments to reconcile profit before tax to net cash flows:
Depreciation and amortisation
2,549
2,091
Expected credit loss reversal
(52)
(22)
(Gain)/loss on disposal of non-current assets
(8)
53
Interest received
(436)
(293)
Finance costs
302
29
Share-based compensation expense
344
442
Dividend received from investments
(8)
(5)
Proceeds from convertible loan
(140)
(160)
Proceeds from sale of investment management rights
(207)
(1,500)
Lease modification
-
(54)
Working capital adjustments:
(Increase)/decrease in assets:
Trade and other receivables
(869)
(775)
Contract assets
(742)
(317)
Other assets
260
323
Deferred tax assets
(2,163)
275
(Decrease)/increase in liabilities:
Trade and other payables and unearned income
939
(1,154)
Provisions for employee benefits
77
(649)
Provision for client claims
(477)
(494)
Provision for property make good
78
-
Provision for income tax
19
-
Net cash from operating activities
7,233
4,129
PAGE 42
ANNUAL REPORT 2024 | Notes to the Consolidated Financial Statements
Working capital
7. Financial assets, liabilities and related financial risk management
7.1 Categories of financial instruments
2024
$'000
2023
$'000
Financial assets
Note
Classification
Cash and cash equivalents
7.1.1
Amortised Cost
12,206
15,608
Trade and other receivables
7.1.2
Amortised Cost
7,736
6,205
Loans
7.1.3
Amortised Cost
114
96
Contract asset
7.1.4
Amortised Cost
956
370
Investments in unlisted shares 7.1.5
FVTOCI – equity (designated)
116
116
Non-controlling interests
7.1.6
FVTOCI – equity (designated)
-
118
Total financial assets
21,128
22,513
Financial liabilities
Trade and other payables
7.1.7
Amortised Cost
10,500
9,357
Lease liabilities
7.1.8
Amortised Cost
2,163
803
Loan payable
7.1.9
Amortised Cost
3,200
-
Total financial liabilities
15,863
10,160
Key accounting policies
Financial instruments
Financial assets and financial liabilities are recognised in the Group’s statement of financial position when the Group becomes a
party to the contractual provisions of the instrument.
Recognised financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable
to the acquisition or issue of financial assets and financial liabilities other than financial assets and financial liabilities at fair value
through profit or loss (FVTPL) are added to, or deducted from, the fair value on recognition. Transaction costs directly attributable
to the acquisition of financial assets or financial liabilities at FVTPL are recognised immediately in profit or loss.
If the transaction price differs from fair value at initial recognition, the Group will account for such difference as follows:
•
If fair value is evidenced by a quoted price in an active market for an identical asset or liability or based on a valuation technique
that uses only data from observable markets, then the difference is recognised in profit or loss on initial recognition (that is,
day one profit or loss); and
•
In all other cases, the fair value will be adjusted to bring it in line with the transaction price (that is, day one profit or loss will be
deferred by including it in the initial carrying amount of the asset or liability).
After initial recognition, the deferred gain or loss will be released to profit or loss on a rational basis, only to the extent that it arises from
a change in a factor (including time) that market participants would take into account when pricing the asset or liability.
Financial assets
Financial assets are recognised on the trade date when the purchase is under a contract whose terms require delivery of the financial
asset within the timeframe established by the market concerned. Financial assets are initially measured at fair value, plus transaction
costs, except for those financial assets classified as at FVTPL. Transaction costs directly attributable to the acquisition of financial
assets classified as at FVTPL are recognised immediately in profit or loss.
All recognised financial assets that are within the scope of AASB 9 are required to be subsequently measured at amortised cost or
fair value on the basis of the entity’s business model for managing the financial assets and the contractual cash flow characteristics
of the financial assets.
Specifically:
•
Debt instruments that are held within a business model whose objective is to collect the contractual cash flows, and that have
contractual cash flows that are solely payments of principal and interest on the principal amount outstanding (SPPI), are
subsequently measured at amortised cost;
•
Debt instruments that are held within a business model whose objective is both to collect the contractual cash flows and to sell
the debt instruments, and that have contractual cash flows that are SPPI, are subsequently measured at fair value through
PAGE 43
ANNUAL REPORT 2024 | Notes to the Consolidated Financial Statements
other comprehensive income (FVTOCI); and
•
All other debt instruments (for example, debt instruments managed on a fair value basis or held for sale) and equity investments
are subsequently measured at FVTPL.
However, the Group may make the following irrevocable elections/designations at initial recognition of a financial asset on an asset-
by-asset basis:
•
The Group may irrevocably elect to present subsequent changes in fair value of an equity investment that is neither held for
trading nor contingent consideration recognised by an acquirer in a business combination to which AASB 3 Business
Combinations applies, in Other Comprehensive Income (OCI); and
•
The Group may irrevocably designate a debt instrument that meets the amortised cost or FVTOCI criteria as measured at
FVTPL if doing so eliminates or significantly reduces an accounting mismatch (referred to as the fair value option).
Financial liabilities
A financial liability is a contractual obligation to deliver cash or another financial asset or to exchange financial assets or financial
liabilities with another entity under conditions that are potentially unfavourable to the Group, or a contract that will or may be settled
in the Group’s own equity instruments and is a non-derivative contract for which the Group is, or may be, obliged to deliver a
variable number of its own equity instruments, or a derivative contract over own equity that will or may be settled other than by the
exchange of a fixed amount of cash (or another financial asset) for a fixed number of the Group’s own equity instruments.
Financial liabilities are classified as either financial liabilities at FVTPL or other financial liabilities. The Group does not have any
financial liabilities which are classified at FVTPL.
Other financial liabilities, including trade and other payables, are initially measured at fair value, net of transaction costs. Other
financial liabilities are subsequently measured at amortised cost using the effective interest method.
7.1.1 Cash and cash equivalents
2024
$'000
2023
$'000
Cash and cash equivalents
12,206
15,608
Total cash and cash equivalents
12,206
15,608
7.1.2 Trade and other receivables
2024
$'000
2023
$'000
Advice fees receivable
4,752
4,781
Trade receivables
2,984
1,424
Total trade and other receivables
7,736
6,205
The Group applies the general approach for assessing impairment, which requires the recognition of lifetime expected credit losses.
Under this approach, the Group considers forward-looking assumptions and information regarding expected future conditions
affecting historical customer default rates. The trade receivables have been grouped into various customer segments with similar
loss patterns.
Trade receivables generally have 30-90 day terms and no interest is charged on outstanding debts. The Group measures the loss
allowance for trade receivables at an amount equal to lifetime expected credit loss. Collectability of trade receivables is reviewed
on an ongoing basis. Debts that are known to be uncollectible are written off when identified. A loss allowance for trade receivables
is raised using a provision matrix to analyse past default activity and a review of each debtor’s current financial position adjusted for
factors that are specific to the debtor, and an assessment of both the current as well as the forecast direction of conditions at the
reporting date.
The Group has recognised a loss allowance of 100% against all receivables over 90 days past due with the exception of legal
agreements for recoverability.
The amount of the expected credit loss is recognised in the profit or loss within ‘Other expenses’. When a trade receivable for which
an expected credit loss allowance has been recognised becomes uncollectible in a subsequent year, it is written off against the
allowance account. Subsequent recoveries of amounts previously written off are credited against ‘Other expenses’ in profit or loss.
PAGE 44
ANNUAL REPORT 2024 | Notes to the Consolidated Financial Statements
7.1.3 Loans
2024
$'000
2023
$'000
Current
Loan receivables – financial advisers
29
17
Total current loans
29
17
Non-current
Loan receivables – financial advisers
872
883
Expected credit losses
(787)
(804)
Total non-current loans
85
79
Total loans
114
96
Loans due from financial advisers have terms ranging from one to five years, and varying interest terms at or above commercial rates.
The majority of these loans are secured through charges over assets, by guarantees, or by retention of financial advice fees.
Expected Credit Losses
2024
$'000
2023
$'000
Allowance for expected credit losses
Opening balance
804
786
Movement in the allowance for expected credit losses
(17)
18
Closing balance
787
804
Expected credit loss expense
Expected credit loss (reversal)/expense
(17)
18
Bad debts reversed
(35)
(40)
Total expected credit loss reversal
(52)
(22)
For details of expected credit losses against loans see Note 7.2.3.1.
PAGE 45
ANNUAL REPORT 2024 | Notes to the Consolidated Financial Statements
7.1.4 Contract assets
2024
$'000
2023
$'000
Contract assets
977
385
Expected credit losses
(21)
(15)
Total contract assets
956
370
Contract assets are recognised for revenue earned from expected benefits that advisers are able to provide to the Group over the term
of the adviser tenure.
Contract assets are subject to expected credit loss impairment assessment based on the expected term of the adviser contract.
7.1.5 Investments in unlisted shares
FVTOCI comprise equity securities that are not held for trading, and which the Group has irrevocably elected at initial recognition
to recognise in this category. These are strategic investments, and the Group considers this classification to be more relevant.
2024
$'000
2023
$'000
Investments
116
116
Total investments
116
116
In September 2016, $0.1m was invested in Ginger Group, which increased the Group’s equity interest from 37.5% to 50%. Ginger
Group has a 37.5% shareholding in Kepa Financial Services Limited (Kepa). The Group has assessed that it does not have control
over the investment. During the 2021 financial year, the Board of Ginger Group approved the liquidation of Kepa. Liquidation
occurred on 31 July 2022. Final proceeds and accounting for wind-up is in progress with no material appropriation expected to the
Group from the liquidation process.
7.1.6 Acquisition of non-controlling interest (NCI)
In January 2024, the Group acquired an additional 44% interest in De Run Securities Pty Ltd, increasing its ownership from 56%
to 100%. The minority shareholder was a deregistered company, and accordingly the shares were vested in ASIC. In accordance
with Rule 35 of the Constitution of the Company the Board effected a compulsory transfer of the shares for nil consideration.
The carrying amount of De Run Securities Pty Ltd’s net assets in the Group’s consolidated financial statements on the date of the
acquisition was $276k.
2024
$'000
Carrying amount of NCI acquired
118
Consideration paid to NCI
-
An increase in equity attributable to owners of the Group
118
The equity attributable to owners of the Group has increased due to retained earnings of $118k. On 19 June 2024, De Run
Securities Pty Ltd was formally deregistered and the balance sheet subsequently cleared.
7.1.7 Trade and other payables
2024
$'000
2023
$'000
Amounts payable to financial advisers
6,704
6,670
Trade payables
1,286
765
Other creditors and accrued expenses1
2,510
1,836
Total trade and other payables
10,500
9,271
1 Trade and other payables has been updated in the current financial year to exclude unearned income, which has been separately disclosed in
the Statement of Financial Position.
PAGE 46
ANNUAL REPORT 2024 | Notes to the Consolidated Financial Statements
7.1.8 Lease liabilities
2024
$'000
2023
$'000
Current
Lease liabilities
806
488
Non-Current
Lease liabilities
1,357
315
Total lease liabilities
2,163
803
7.1.9 Loan Payable
2024
$'000
2023
$'000
Current
Loan payable
1,600
-
Non-Current
Loan payable
1,600
-
Total loans
3,200
-
Financing agreement: Unrestricted access was available at reporting date to the following lines of credit:
2024
$'000
2023
$'000
Total facilities
Bank loan
8,000
-
Total facilities
8,000
-
Used at the reporting date
Bank loan
4,000
-
Total used at the reporting date
4,000
-
Unused at the reporting date
-
Bank loan
4,000
Total unused at the reporting date
4,000
-
The Group obtained a $10.0m facility from National Bank of Australia (‘NAB’) with $8.0m approved for the FAM acquisition for a
term of three years. On 1 December 2023, $4.0m was drawn down for the FAM acquisition. Interest and principal repayments are
made on a quarterly basis and commenced in March 2024 ($0.8m of the $4.0m loan facility has been repaid up to reporting date).
The Group continues to be compliant with the debt covenants (Operating Leverage Ratio being 0.35x (max: 2.0x) and Debt Service
Coverage Ratio, 8.69x (Min: 2.0x).
PAGE 47
ANNUAL REPORT 2024 | Notes to the Consolidated Financial Statements
7.2 Financial risk management
7.2.1 Risk exposures and responses
The Group’s principal financial instruments comprise cash and cash equivalents, trade receivables and payables, loans, contract
assets, investments in unlisted shares and lease liabilities.
The Group manages its exposure to key financial risks in accordance with the Group's financial risk management policy. The
objective of the policy is to support the delivery of the Group's financial targets whilst protecting future financial security.
The main risks arising from the Group’s financial instruments are credit risk, interest rate risk, and liquidity risk. The Group uses
different methods to measure and manage the different types of risks to which it is exposed. These include monitoring levels of
exposure to interest rates, and assessments of market forecasts for interest rates. Ageing analyses and monitoring of expected
credit loss allowances are undertaken to manage credit risk, and liquidity risk is monitored through the development of regular short-
and long-term cash flow forecasts.
7.2.2 Credit Risk
Credit risk arises from the financial assets of the Group, which comprise cash and cash equivalents, loans, trade and other
receivables and contract assets. The Group's exposure to credit risk arises from potential default of counterparties, with a maximum
exposure equal to the carrying amount of these assets (as outlined in each applicable Note).
The Group’s maximum exposure to credit risk for loans and trade receivables at the reporting date is limited to Australia.
The Group trades only with recognised, creditworthy third parties and the majority of the Group’s cash balances are held with National
Australia Bank Limited (credit rating: AA-) and Westpac Banking Corporation (credit rating: AA-).
It is the Group's policy that all customers who wish to trade on credit terms are subject to credit verification procedures. In addition,
all receivable balances are monitored on an ongoing basis with the result that the Group's exposure to bad debts is immaterial.
7.2.3 Sources of credit risk
Key sources of credit risk for the Group predominantly emanate from its business activities including loans and trade and other
receivables. The Group monitors and manages credit risk by class of financial instrument. The table below outlines such classes
of financial instruments identified, their relevant financial statement line item, maximum exposure to credit risk at the reporting date
and expected credit loss (ECL) recognised:
Maximum exposure
to credit risk
$'000
Expected
credit loss
$'000
Class of financial instrument
Note
Financial statement line
Cash and cash equivalents
7.1.1
Cash and cash equivalents
12,206
-
Trade and other receivables
7.1.2
Trade and other receivables
9,423
1,687
Loans
7.1.3
Loans
901
787
Contract assets
7.1.4
Contract assets
977
21
Total
23,507
2,495
Key accounting policies
Impairment of financial assets
The Group recognises loss allowances for ECL on loans and trade and other receivables that are not measured at FVTPL.
ECLs are required to be measured through a loss allowance at an amount equal to:
•
12-month ECL, that is, lifetime ECL that results from those default events on the financial instrument that are possible within
12 months after the reporting date, (referred to as stage 1); or
•
Full lifetime ECL, that is, lifetime ECL that results from all possible default events over the life of the financial instrument
(referred to as stage 2 and stage 3).
A loss allowance for full lifetime ECL is required for a financial instrument if the credit risk on that financial instrument has
increased significantly since initial recognition. For all other financial instruments, ECLs are measured at an amount equal to
the 12-month ECL.
PAGE 48
ANNUAL REPORT 2024 | Notes to the Consolidated Financial Statements
For trade receivables, the Group has applied the general approach in AASB 9 to measure the loss allowance at lifetime ECL. The
Group determines the expected credit losses on these items by using a provision matrix, estimated based on historical credit loss
experience based on the past due status of the debtors, adjusted as appropriate to reflect current economic conditions and
estimates of future economic conditions. Accordingly, the credit risk profile of these assets is presented based on their past due
status in terms of the provision matrix.
Definition of default
The Group considers the following as constituting an event of default:
•
The borrower is past due more than 90 days on any material credit obligation to the Group; or
•
The borrower is unlikely to pay its credit obligations to the Group in full.
The definition of default is appropriately tailored to reflect different characteristics of different types of assets. When assessing if
the borrower is unlikely to pay its credit obligation, the Group takes into account both qualitative and quantitative indicators. The
information assessed depends on the type of the asset, for example, in corporate lending a qualitative indicator used is the breach
of covenants, which is not relevant for retail lending. Quantitative indicators, such as overdue status and non-payment on another
obligation of the same counterparty, are key inputs in this analysis.
Write off
Loans, receivables and debt securities are written off when the Group has no reasonable expectation of recovering the financial
asset (either in its entirety or a portion of it). This is the case when the Group determines that the borrower does not have assets
or sources of income that could generate sufficient cash flows to repay the amounts subject to the write off. A write off constitutes
a derecognition event. The Group may apply enforcement activities to financial assets written off. Recoveries resulting from the
Group’s enforcement activities will result in impairment gains.
Key estimates and judgements
Significant increase in credit risk
ECL are measured as an allowance equal to 12-month ECL for stage 1 assets, or lifetime ECL assets for stage 2 or stage 3 assets.
An asset moves to stage 2 when its credit risk has increased significantly since initial recognition. AASB 9 does not define what
constitutes a significant increase in credit risk. In assessing whether the credit risk of an asset has significantly increased, the Group
takes into account qualitative and quantitative reasonable and supportable forward-looking information.
Models and assumptions used
The Group uses models and assumptions in measuring fair value of financial assets as well as in estimating ECL. Judgement is
applied in identifying the most appropriate model for each type of asset, as well as for determining the assumptions used in these
models, including assumptions that relate to key drivers of credit risk.
The Group measures ECL considering the risk of default over the maximum contractual period (including extension options), over
which the entity is exposed to credit risk and not a longer period. The risk of default is assessed by considering historical data as
well as forward-looking information through a macroeconomic overlay and management judgement.
The Group’s risk function constantly monitors the ongoing appropriateness of the ECL model and related criteria, where any
proposed amendments will be reviewed and approved by the Group’s management committees.
Incorporation of forward-looking information
The Group uses forward-looking information that is available without undue cost or effort in its assessment of significant increase
of credit risk as well as in its measurement of ECL. The Group uses this information to generate a ‘base case’ scenario of future
forecast of relevant economic variables along with a representative range of other possible forecast scenarios.
The Group applies probabilities to the forecast scenarios identified. The base case scenario is the single most likely outcome and
consists of information used by the Group for strategic planning and budgeting.
The Group has identified and documented key drivers of credit risk and credit losses for each loan’s historical data and has
estimated relationships between macroeconomic variables, credit risk and credit losses.
The principal macroeconomic indicators included in the economic scenarios used at 1 July 2023 and 30 June 2024 are GDP, GDP
index, GDP index change and unemployment. Management have derived that GDP has economic correlations to inflation and
unemployment, which generally have a corresponding impact on loan performance.
PAGE 49
ANNUAL REPORT 2024 | Notes to the Consolidated Financial Statements
The base case scenario is derived from forecasted changes to GDP, CPI and unemployment rates, using management’s
judgement. Adjustments to these forecasts are made to develop a further two scenarios for less likely but plausible economic
expectations. A weighting is applied to each scenario, based on management’s judgement as to the probability of each scenario
occurring. These economic forecasts are then applied to a statistical model to determine the macroeconomic effects on the
expected loss allowance on the lending portfolios.
The incorporation of forward-looking information on the assessment of ECL on other assets required to be assessed for
impairment is a qualitative approach. A range of economic outlooks, from an economist, the RBA and OECD, have been
considered in making an assessment of whether there are economic forecasts that would indicate a potential impairment on
the assets being assessed.
Significant increase in credit risk
The Group monitors all financial assets that are subject to impairment requirements to assess whether there has been a significant
increase in credit risk since initial recognition. If there has been a significant increase in credit risk, the Group will measure the
expected loss allowance based on lifetime rather than 12-month ECL.
The Group has used the assumption that 30 days past due represents significant increase in credit risk. The Group considers 90
days past due as representative of a default having occurred and a loan being credit impaired.
The Group has identified the following three stages in which financial instruments have been classified in regard to credit risk:
•
Stage 1 – Performing exposure on which loss allowance is recognised as 12-month expected credit loss
•
Stage 2 – Where credit risk has increased significantly and impairment loss is recognised as lifetime expected credit loss, and
•
Stage 3 – Assets are credit impaired and impairment loss is recognised as lifetime expected credit loss. Interest is accrued on a
net basis, on the amortised cost of the loans after the ECL is deducted.
The table below shows analysis of each class of financial asset subject to impairment requirements by stage at the reporting date:
2024
Class of financial
instrument
Maximum exposure to credit risk
Expected credit loss
Stage 1
$'000
Stage 2
$'000
Stage 3
$'000
Total
$'000
Stage 1
$'000
Stage 2
$'000
Stage 3
$'000
Total
$'000
Cash and cash
equivalents
12,206
-
-
12,206
-
-
-
-
Trade and other
receivables1
-
9,423
-
9,423
-
1,687
-
1,687
Loans
-
-
901
901
-
-
787
787
Contract assets
-
977
-
977
-
21
-
21
Total
12,206
10,400
901
23,507
-
1,708
787
2,495
1There are no trade receivables at Stage 1 because the Group’s accounting policy is to apply the general approach to measure lifetime credit
losses on trade receivables.
2023
Class of financial
instrument
Maximum exposure to credit risk
Expected credit loss
Stage 1
$'000
Stage 2
$'000
Stage 3
$'000
Total
$'000
Stage 1
$'000
Stage 2
$'000
Stage 3
$'000
Total
$'000
Cash and cash
equivalents
15,608
-
-
15,608
-
-
-
-
Trade and other
receivables
-
8,021
-
8,021
-
1,816
-
1,816
Loans
-
-
900
900
-
-
804
804
Contract assets
-
385
-
385
-
15
-
15
Total
15,608
8,406
900
24,914
-
1,831
804
2,635
PAGE 50
ANNUAL REPORT 2024 | Notes to the Consolidated Financial Statements
Summary of movements in expected credit loss by financial instrument
The following table summarises the movement in expected credit loss by financial instruments for the financial year:
2024
Loans
Trade and other
receivables
Contract
Assets
Total
$'000
$'000
$’000
$'000
Expected credit loss
Loss allowance as at 1 July 2023
804
1,816
15
2,635
Loss allowance (reversed)/recognised during the
year
(17)
(129)
6
(140)
Loss allowance at 30 June 2024
787
1,687
21
2,495
2023
Loans
Trade and other
receivables
Contract
Assets
Total
$'000
$'000
$’000
$'000
Expected credit loss
Loss allowance as at 1 July 2022
786
1,746
-
2,532
Loss allowance recognised during the year
18
70
15
103
Loss allowance at 30 June 2023
804
1,816
15
2,635
Credit risk concentrations are diversified across a large number of advisers and are geographically based within Australia. They are
mainly derived from the financial services industry and the main business segments providing support to financial advisers.
The majority (89%) of expected credit loss arising from trade and other receivables is due to historical legacy adviser contributions
from departed advisers (2023: 80%).
Equity instruments classified at FVTOCI
The maximum exposure to credit risk of the equity instrument designated at FVTOCI is their carrying amount.
PAGE 51
ANNUAL REPORT 2024 | Notes to the Consolidated Financial Statements
7.2.3.1 Analysis of financial instrument by days past due status
Ageing Analysis
2024
Total
Not
Due
0-30
Days
31-60
Days
61-90
Days
PDN
61-90
Days
CI
+91
Days
PDNI
+91
Days
CI
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
Total receivables and contract assets
8,692
1,026
7,380
41
25
-
220
-
Loans receivable
901
-
16
1
1
-
96
787
2023
Total
Not
Due
0-30
Days
31-60
Days
61-90
Days
PDN
61-90
Days
CI
+91
Days
PDNI
+91
Days
CI
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
Total receivables and contract assets
6,575
585
5,516
72
70
-
332
-
Loans receivable – advisers
900
-
2
1
1
-
91
804
* Past due not impaired (PDNI) and currently impaired (CI)
7.2.4 Market risk
7.2.4.1 Interest rate risk
Interest rate risk is the potential for loss of earnings to the Group due to adverse movements in interest rates. The Group’s exposure
to the risk of changes in market interest rates relates primarily to the Group’s debt obligations as disclosed below. The Group adopts
a policy to minimise exposure to interest rate risk by depositing excess funds in interest-bearing accounts at a variable rate or with
short date maturities. A sensitivity analysis has been performed and the Group has determined that a 2% increase/(decrease) in
Bank Bill Swap Bid Rate (BBSY) on the Group’s borrowings would (decrease)/increase profit and loss by $52k.
The Group’s objective is to minimise exposure to adverse risk, and therefore it continuously analyses its interest rate exposure. Within
this analysis, consideration is given to potential renewals of existing positions, alternative financing, alternative hedging positions
and the mix of fixed and variable interest rates.
PAGE 52
ANNUAL REPORT 2024 | Notes to the Consolidated Financial Statements
The Group's exposure to interest rate risk and the effective interest rates of financial assets and financial liabilities, both recognised
and unrecognised at the balance date, are as follows:
2024
Weighted
average
effective
interest rate
Fixed
≤ 6
Months
Fixed
> 6
Months
Variable
Non-
interest-
bearing
Total carrying
amount per
balance sheet
%
$'000
$'000
$'000
$'000
$'000
Financial Assets
Cash and cash equivalents
3.55
-
-
12,206
-
12,206
Trade and other receivables
-
-
-
7,736
7,736
Loans
13
888
(787)
-
114
Contract assets
-
-
(21)
977
956
Investments in unlisted shares
-
-
-
116
116
Total financial assets
13
888
11,398
8,829
21,128
Financial Liabilities
Trade and other payables
-
-
-
10,500
10,500
Lease liabilities
4.43
475
1,688
-
-
2,163
Loans payable
4.46
800
2,400
-
-
3,200
Total financial liabilities
1,275
4,088
-
10,500
15,863
Net Exposure
(1,262)
(3,200)
11,398
(1,671)
5,265
2023
Weighted
average
effective
interest rate
Fixed
≤ 6
Months
Fixed
> 6
Months
Variable
Non-
interest-
bearing
Total carrying
amount per
balance sheet
%
$'000
$'000
$'000
$'000
$'000
Financial Assets
Cash and cash equivalents
1.55
-
-
15,608
-
15,608
Trade and other receivables
-
-
-
6,205
6,205
Loans
10
890
(804)
-
96
Contract assets
-
-
(15)
385
370
Investments in unlisted shares
-
-
-
116
116
Total financial assets
10
890
14,789
6,706
22,395
Financial Liabilities
Trade and other payables
-
-
-
9,271
9,271
Lease liabilities
3.51
81
722
-
-
803
Total financial liabilities
81
722
-
9,271
10,074
Net Exposure
(71)
168
14,789
(2,565)
12,321
1 Trade and other payables has been updated in the current financial year to exclude unearned income which has been separately disclosed in
the Statement of Financial Position.
PAGE 53
ANNUAL REPORT 2024 | Notes to the Consolidated Financial Statements
7.2.4.2 Price risk
The Group has a negligible exposure to commodity and equity securities price risk due to the high proportion of the Group’s revenue
relating to fee for service revenue in comparison to net advice and investment product revenue. The latter is impacted by the market
price of funds under management or under advice. With approximately $272 million in funds under management, a negative market
movement of 5-20% would reduce the net advice and investment product revenue by between $64,000 and $258,000.
7.2.4.3 Liquidity risk
The Group’s policy is to match debt with the nature and term of the underlying assets. At reporting date, over 99% (30 June 2023:
92%) of the Group’s financial assets mature in less than 12 months. The table below reflects all contractually fixed pay-offs and
receivables for settlement, repayments and interest resulting from recognised financial liabilities. The respective undiscounted cash
flows for the respective upcoming fiscal years are presented. Cash flows for financial liabilities without fixed amount or timing are
based on the conditions existing as at reporting date.
Maturity analysis of financial assets and liabilities is based on management’s expectations.
The risk implied from the values shown in the table below, reflects a balanced view of cash inflows and outflows. Leasing obligations,
trade payables and other financial liabilities mainly originate from the financing of assets used in ongoing operations such as
property, plant, equipment and investments in working capital, for example, trade receivables. These assets are considered in the
Group’s overall liquidity risk.
To monitor existing financial assets and liabilities as well as to enable an effective controlling of future risks, the Group has
established reporting requirements that monitor maturity profiles and anticipated cash flows from Group assets and liabilities.
The tables below are based on the carrying values at reporting date and include expected future cash flows.
≤ 6 Months
6-12 Months
1-5 Years
Total
$'000
$'000
$'000
$'000
Financial assets
Cash and cash equivalents
12,206
-
-
12,206
Trade and other receivables
7,640
96
-
7,736
Loans
13
16
85
114
Contract assets
956
-
-
956
Investments in unlisted shares
-
-
116
116
Total financial assets
20,815
112
201
21,128
Financial liabilities
Trade and other payables
10,500
-
-
10,500
Lease liabilities
475
339
1,349
2,163
Loan payable
800
800
1,600
3,200
Total financial liabilities
11,775
1,139
2,949
15,863
Net Maturity
9,040
(1,027)
(2,748)
5,265
PAGE 54
ANNUAL REPORT 2024 | Notes to the Consolidated Financial Statements
2023
≤ 6 Months
6-12 Months
1-5 Years
Total
Financial assets
$'000
$'000
$'000
$'000
Cash and cash equivalents
15,608
-
-
15,608
Trade and other receivables
4,421
217
1,567
6,205
Loans
10
8
78
96
Contract assets
370
-
-
370
Investments in unlisted shares
-
-
116
116
Total financial assets
20,409
225
1,761
22,395
Financial liabilities
Trade and other payables1
9,271
-
-
9,271
Lease liabilities
266
222
315
803
Total financial liabilities
9,537
222
315
10,074
Net Maturity
10,872
3
1,446
12,321
1 Trade and other payables has been updated in the current financial year to exclude unearned income, which is separately disclosed in the
Statement of Financial Position.
7.2.4.4 Foreign currency risk
The Group pays some costs denominated in foreign currencies (USD), mainly IT subscriptions. Consequently, there is exposure to
exchange rate fluctuations – albeit limited. The total cost in FY2024 was $US 57K, therefore exchange risk is low.
7.3 Fair value measurements
Some of the Group's financial assets and financial liabilities are measured at fair value at the end of each financial year.
The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value,
grouped by fair value hierarchy level.
7.3.1 Financial instruments measured at fair value on recurring basis
Level 1
$'000
Level 2
$'000
Level 3
$'000
Total
$'000
30 June 2024
Equity instruments designated at FVTOCI
Unlisted shares
-
-
116
116
Total assets
-
-
116
116
Level 1
$'000
Level 2
$'000
Level 3
$'000
Total
$'000
30 June 2023
Equity instruments designated at FVTOCI
Unlisted shares
-
-
116
116
Total assets
-
-
116
116
There are no financial liabilities that are measured at fair value.
There have been no transfers between Level 1 and Level 2 categories of financial instruments during the current financial year.
PAGE 55
ANNUAL REPORT 2024 | Notes to the Consolidated Financial Statements
7.3.2 Reconciliation of Level 3 fair value measurements of financial assets
FVTOCI Unlisted shares
$'000
30 June 2024
Balance at beginning of year
116
Total gains or losses:
In profit or loss
-
Balance at end of year
116
FVTOCI Unlisted shares
$'000
30 June 2023
Balance at beginning of year
116
Total gains or losses:
In profit or loss
-
Balance at end of year
116
Fair value measurements
The Group measures some of its assets and liabilities at fair value on either a recurring or non-recurring basis, depending on the
requirements of the relevant Accounting Standard.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly (this is, unforced) transaction
between independent, knowledgeable and willing market participants at the measurement date.
As fair value is a market-based measure, the closest equivalent observable market pricing information is used to determine fair
value. Adjustments to market values may be made having regard to the characteristics of the specific asset or liability. The fair
values of assets and liabilities that are not traded in an active market are determined using one or more valuation techniques. These
valuation techniques maximise, to the extent possible, the use of observable market data.
To the extent possible, market information is extracted from either the principal market for the asset or liability (that is, the market
with greatest volume and level of activity for the asset or liability) or, in the absence of such a market, the most advantageous
market available to the entity at the end of the financial year (that is, the market that maximises the receipts from the sale of the
asset, or minimises the payments made to transfer the liability, after taking into account transaction costs and transport costs).
For non-financial assets, the fair value measurement also takes into account a market participant's ability to use the asset in its highest
and best use or to sell it to another market participant that would use the asset in its highest and best use. In measuring fair value, the
Group uses valuation techniques that maximise the use of observable inputs and minimise the use of unobservable inputs.
Assets and liabilities measured at fair value are classified into three levels, using a fair value hierarchy that reflects the significance
of the inputs used in making the measurements. Classifications are received at each reporting date, and transfers between levels
are determined based on a reassessment of the lowest level input that is significant to the fair value measurement. The categories
are as follows:
•
Level 1 – measurements based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity
can access at the measurement date;
•
Level 2 – measurements based on inputs other than quoted prices included in Level 1 that are observable for the asset or
liability, either directly or indirectly; and
•
Level 3 – measurement based on unobservable inputs for the asset or liability.
The fair values of assets and liabilities that are not traded in an active market are determined using one or more valuation techniques.
These valuation techniques maximise, to the extent possible, the use of observable market data. If all significant inputs required to
measure fair value are observable, the asset or liability is included in Level 2. If one or more significant inputs are not based on
observable market data, the asset or liability is included in Level 3.
The Group financial assets and liabilities are measured at fair value that approximates the carrying amount.
PAGE 56
ANNUAL REPORT 2024 | Notes to the Consolidated Financial Statements
7.3.3 Summary of valuation methodologies applied in determining fair value of financial instruments
Each valuation technique requires inputs that reflect the assumptions that buyers and sellers would use when pricing the asset or
liability, including assumptions about risks. When selecting a valuation technique, the Group gives priorities to those techniques
that maximise the use of observable inputs and minimise the use of unobservable inputs. Inputs that are developed using market
data (such as publicly available information on actual transactions), and which reflect the assumptions that buyers and sellers would
generally use when pricing the asset or liability are considered observable. Inputs for which market data is not available, and that
are developed using the best information available about such assumptions that market participants would use when pricing the
asset or liability, are considered unobservable.
The fair value of liabilities and the entity's own equity instruments (excluding those relating to share-based payment arrangements)
may be valued with reference to observable market information if there is no observable market price in relation to the transfer of
such financial instruments. Where this information is not available, other valuation techniques are adopted and where significant, are
detailed in the respective note to the financial statements.
The Group selects a valuation technique that is appropriate in the circumstances, and for which sufficient data is available to
measure fair value. The availability of sufficient and relevant data primarily depends on the specific characteristics of the asset or
liability being measured. The valuation techniques selected by the economic entity are consistent with one or more of the following
valuation approaches:
•
Market approach – valuation techniques that use prices and other relevant information generated by market transactions for
identical or similar assets or liabilities; and/or
•
Income approach – valuation techniques that convert estimated future cash flows or income and expenses into a single
discounted present value; and/or
•
Cost approach – valuation techniques that reflect the current replacement cost of an asset at its current service capacity.
The investment in unlisted shares is classified within Level 3. The shares are infrequently traded, and therefore have significant
unobservable inputs. The fair value is measured based on the discounted expected cash flow from the investment as this investment
is due for liquidation, as described in Note 7.1.5.
Shareholder return
8. Dividends
On 22 August 2023, the Directors of Centrepoint Alliance Limited declared a fully franked ordinary dividend of 2.0 cents per share
in respect of the results for the year ended 30 June 2023. Total dividend declared was $3,957,637.78 with 15 September 2023 as
the record date and 29 September 2023 as the payment date.
On 23 February 2024, the Directors of Centrepoint Alliance Limited declared an interim fully franked ordinary dividend of 1.0 cent
per share in respect of the results for the half-year ended 31 December 2023. The total dividend declared was $1,988,818.89 with
4 March 2024 as the record date and 18 March 2024 as the payment date.
On 21 August 2024, the Company declared a fully franked ordinary dividend of 1.75 cents per share in respect of the results for the
year ended 30 June 2024. Total dividend declared was $3,480,433.06 with 20 September 2024 as the record date and 3 October
2024 as the payment date.
2024
$'000
2023
$'000
a. Dividends paid or payable
The following fully franked dividends were provided for or paid during the year:
Dividends paid on ordinary shares
5,946
2,943
Special dividends paid on ordinary shares
-
985
Total dividends
5,946
3,928
2024
$'000
2023
$'000
b. Franking credit balance
Franking account balance as at the end of the financial year
9,115
11,664
Dividends paid were fully franked at a tax rate of 30%. Franking credits are reported on a tax paid basis.
PAGE 57
ANNUAL REPORT 2024 | Notes to the Consolidated Financial Statements
9. Earnings per share
Key accounting policies
Earnings per share (EPS)
Basic EPS is calculated as net profit attributable to shareholders of the Company, adjusted to exclude any costs of servicing equity
(other than dividends), divided by the weighted average number of ordinary shares, adjusted for any bonus element.
Diluted EPS is calculated as net profit attributable to shareholders of the Company, adjusted for:
•
Costs of servicing equity (other than dividends);
•
The after-tax effect of dividends and interest associated with dilutive potential ordinary shares that have been recognised as
expenses; and
•
Other non-discretionary changes in revenues or expenses during the year that would result from the dilution of potential
dividends by ordinary shares.
The following reflects the income used in the basic and diluted earnings per share computations:
2024
$'000
2023
$'000
a. Profit used in calculating profit per share
Net profit attributable to ordinary equity holders of the Company
7,767
6,339
b. Weighted average number of shares
No. of shares
No. of shares
Weighted average number of ordinary shares
198,105,933
196,232,574
Effect of dilution:
Performance rights and LTI shares
23,296,801
21,121,618
Weighted average number of ordinary shares (excluding reserved shares)
adjusted for the effect of dilution
221,402,734
217,354,192
Basic earnings per share (cents)
3.92
3.23
Diluted earnings per share (cents)
3.51
2.92
There have been no other transactions involving ordinary shares or potential ordinary shares that would significantly change the
number of ordinary shares or potential ordinary shares outstanding between the reporting date and the date of completion of these
financial statements.
PAGE 58
ANNUAL REPORT 2024 | Notes to the Consolidated Financial Statements
Capital and funding structur e
10. Contributed Equity
Key accounting policies
Ordinary shares are classified as equity and recognised at the fair value of the consideration received by the Group. Any transaction
costs arising on the issue of ordinary shares are recognised, net of tax, directly in equity as a reduction of the share proceeds.
2024
$'000
2023
$'000
a. Paid up capital
Ordinary shares
47,768
47,652
47,768
47,652
2024
2024
2023
2023
Number of shares
$'000
Number of shares
$'000
Ordinary shares (issued and fully paid)
Balance at start of year
196,881,889
47,652
195,881,889
47,594
Movements during the year:
Issue of shares
2,000,0001
116
1,000,000
58
On issue at end of year
198,881,889
47,768
196,881,889
47,652
Total contributed equity
198,881,889
47,768
196,881,889
47,652
1 During the year, 2m performance rights were exercised and converted to ordinary shares.
b. Capital management
The Company’s capital is currently comprised only of shareholder funds. When managing capital, management's objective is to
ensure the entity continues as a going concern, as well as to maintain optimal returns to shareholders, and benefits for other
stakeholders. Management also aims to maintain a capital structure that ensures the lowest cost of capital available to the entity.
Subsequent to balance date, the Directors resolved to declare an ordinary dividend having referred to the dividend policy and
strategic direction of the business.
11. Reserves
2024
$'000
2023
$'000
Employee equity benefits reserve
2,177
1,949
Dividend reserve
48
58
Total reserves
2,225
2,007
2024
$'000
2023
$'000
a. Employee equity benefits reserve
Balance at start of year
1,949
1,565
Value of share-based payments provided or which vested during the year
344
442
Transfer of vested performance rights to share capital
(116)
(58)
Balance at end of year
2,177
1,949
The employee equity benefits reserve is used to record the value of share-based payments provided to employees, including
Executive KMP, as part of their remuneration.
PAGE 59
ANNUAL REPORT 2024 | Notes to the Consolidated Financial Statements
2024
$'000
2023
$'000
b. Dividend reserve
Balance at start of year
58
1,986
Dividends paid
(5,946)
(3,928)
Distribution of profits to dividend reserve
5,936
2,000
Balance at end of year
48
58
12. Acquisition of subsidiaries
On 1 December 2023, the Group paid $8.0m ($7.6m in cash and $6.3m net of cash acquired), with a deferred cash payment
obligation of up to $2m payable to the seller by 31 December 2024, to acquire 100% of Financial Advice Matters Group Pty Ltd
(‘FAM’). The contingent consideration payment on a sliding scale is subject to achieving Earnings before interest and tax (‘EBIT’)
hurdles ranging from $1.265m to $1.5m for the first 12 months following completion of the acquisition.
The contingent consideration recognised on date of acquisition oft 1 December 2023 was calculated to be the net present value of
$1.64m following the finalisation of the independent purchase price accounting advice completed in May 2024. At the half-year, an
amount of $757k was recognised based on the Group’s provisional accounting assessment for the acquisition. This has been
probability-weighted based on the likelihood of achievement and calculated based on the 12-month post-acquisition EBIT.
EBIT forecasts have been revised based on inclusion of realisable synergies and revision of customer attrition rate reflective of
business operations based on new information obtained about facts and circumstances that existed as of the acquisition date. The
first 12 months of EBIT following completion of the acquisition (based on seven months of actual results) is estimated to be
approximately $1.3m. As a result, the probability weighting of 12 month post-acquisition EBIT forecasts is closer to $1.3m than the
previously assessed $0.9m. This is a more realistic representation of the expected EBIT than the original assessment in December
2023 (which only had one month of actual earnings over the holiday shut-down period).
FAM was established in 2015 and is now one of the largest corporatised financial planning groups in Queensland. The business
was acquired to improve scale and grow the salaried financial planning channel. FAM offers a full range of financial planning and
advice services to approximately 1,550 client households and has Funds Under Advice (FUA) in excess of $1 billion. FAM operates
eight offices throughout Queensland, and in FY23 generated revenue of $6.1m. With the acquisition, the Group’s salaried financial
advisers have increased from four to 19. The scale of the financial advice group provides opportunities to further expand in other
locations, and partner with industry and superannuation funds to provide advice.
12.1 Impact of acquisition on the results of the Group
From the acquisition date to 30 June 2024, FAM contributed revenue of $3.6m and net profit before tax of $443k (including $0.3m
in one-off redundancy payments) to the Group’s results.
If the acquisition date of the business combination had been at the beginning of the annual reporting period, the estimated gross
profit would be of $39.2m.
12.2 Acquisition related costs
The Group has incurred legal and due diligence costs relating to the FAM acquisition. These costs have been expensed.
Cost ($)
Legal and advisory costs
13,050
Valuation
16,500
Total acquisition cost
29,550
PAGE 60
ANNUAL REPORT 2024 | Notes to the Consolidated Financial Statements
12.3 Assets acquired and liabilities assumed at the date of acquisition
The following table summarises the recognised amount of assets acquired and liabilities assumed at the date of acquisition;
FAM
$'000
Group Total
$'000
Current Assets
Cash and cash equivalents
1,389
1,389
Trade receivables
511
511
Other assets
86
86
Non-Current Assets
Property, plant and equipment
76
76
Right-of-use-assets
1,417
1,417
Other assets
288
288
Current Liabilities
Trade and other payables
427
427
Lease liabilities
263
263
Provisions
339
339
Non-Current Liabilities
Lease liabilities
1,154
1,154
Provisions
80
80
Net identifiable assets acquired
1,504
1,504
Net identifiable intangible asset acquired
-
4,697
Goodwill arising on acquisition1
-
4,848
Deferred tax liability
-
(1,409)
Net assets acquired
1,504
9,640
1 For year-end, the Group has obtained independent purchase price accounting advice, which calculates a probability analysis of EBIT targets being
achieved resulting in a $1.6m net present value of the contingent consideration (31 December 2023: $0.9m). This is included in the goodwill arising
on acquisition.
The fair value of the trade and other receivables and liabilities acquired as part of the business combination amounted to $1.5m.
The right-of-use assets and lease liabilities were included in the balance sheet upon acquisition, whereby the net carrying value
remains at nil.
The Goodwill recognised in the 31 December 2023 financial statements of the Group was a provisionally determined value of $7.3m
in respect of the net assets acquired of $8.8m. As at 30 June 2024, the Group finalised its purchase price accounting and has
determined the value of Goodwill to be $4.8m. Identified intangibles acquired are $4.7m, with deferred tax liability of $1.4m.
12.4 Goodwill arising on acquisition
Goodwill of $4.8m arising from the acquisition is principally associated with projected future profitability, growth prospects and the
competencies of the FAM business operations. None of the goodwill arising on this acquisition is expected to be deductible for tax
purposes.
PAGE 61
ANNUAL REPORT 2024 | Notes to the Consolidated Financial Statements
13. Property, plant and equipment
Key accounting policies
At each reporting date, the Group assesses whether there is any indication that an asset may be impaired. Plant and equipment
are carried at cost, net of accumulated depreciation and any accumulated impairment losses. The carrying values of plant and
equipment are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be
recoverable.
Where an indicator of impairment exists, the Group makes a formal estimate of the recoverable amount. Where the carrying amount
of an asset exceeds its recoverable amount, an impairment loss is recognised and the asset is written down to its recoverable
amount. The recoverable amount of plant and equipment is the greater of fair value less costs to sell and value in use.
In assessing value in use, estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects
current market assessments of the time value of money and the risks specific to the asset. For an asset that does not generate largely
independent cash inflows, the recoverable amount is determined by reference to the cash-generating unit to which the asset
belongs.
Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets as follows:
Asset
Useful Life
Plant and equipment
2-7 years
Leasehold improvements
Lease term
Derecognition: An item of plant and equipment is derecognised upon disposal or when no future economic benefits are expected
to arise from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the
net disposal proceeds and the carrying amount of the item) is included in the Statement of Profit or Loss and Other Comprehensive
Income when the asset is derecognised.
Residual values, useful lives and methods of depreciation of plant and equipment are reviewed at each financial year end and
adjusted prospectively, if appropriate.
Leasehold
Improvements
$'000
Plant and
Equipment
$'000
Total
$'000
Cost
At 1 July 2022
1,390
3,104
4,494
Additions
12
41
53
Write-offs
(1,014)
(2,170)
(3,184)
At 30 June 2023
388
975
1,363
Additions
122
178
300
Additions through acquisition
-
76
76
Write-offs
-
(14)
(14)
At 30 June 2024
510
1,215
1,725
Depreciation and impairment
At 1 July 2022
1,196
2,815
4,011
Depreciation charge for the year
90
155
245
Disposals and write-offs
(1,014)
(2,117)
(3,131)
At 30 June 2023
272
853
1,125
Depreciation charge for the year
74
113
187
Disposals and write-offs
-
-
-
At 30 June 2024
346
966
1,312
Net carrying value
At 30 June 2024
164
249
413
At 30 June 2023
116
122
238
PAGE 62
ANNUAL REPORT 2024 | Notes to the Consolidated Financial Statements
14. Leases (Group as a lessee)
a. Amounts recognised in Statement of Profit or Loss and Other Comprehensive Income
The Group has elected not to recognise lease liabilities for short-term leases (leases with a term of 12 months or less) and leases
of low value assets. Payments made for such leases are expensed on a straight-line basis. The variable payments associated with
the Group’s building and equipment leases are recognised as an expense as they are incurred.
The table below summarises the amounts recognised in the Statement of Profit or Loss and Other Comprehensive Income for
the year:
2024
$'000
2023
$'000
Depreciation expense on right-of-use assets
788
597
Interest expense on lease liabilities
58
26
Lease term modification adjustment
3
(54)
Expenses relating to short-term leases
140
105
Expenses relating to low value assets
143
135
Expenses relating to variable lease payments not included in the
measurement of the lease liabilities
262
176
1,394
985
b. Right-of-use assets
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost, which
comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the
commencement date net of any lease incentives received, any initial direct costs incurred, and, except where included in the cost
of inventories, an estimate of costs expected to be incurred for dismantling and removing the underlying asset, and restoring the
site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful life of
the asset, whichever is the shorter. Where the Group expects to obtain ownership of the leased asset at the end of the lease term,
depreciation is calculated over its estimated useful life. Right-of use assets are subject to impairment or adjusted for any
remeasurement of lease liabilities.
The Group has elected not to recognise a right-of-use asset and corresponding lease liability for short-term leases with terms of 12
months or less and leases of low-value assets. Lease payments on these assets are expensed to profit or loss as incurred.
PAGE 63
ANNUAL REPORT 2024 | Notes to the Consolidated Financial Statements
The table below summarises the carrying amount of the right-of-use assets for the Group’s building and equipment leases:
Building
$'000
Equipment
$'000
Total
$'000
Cost
1 July 2023
1,534
33
1,567
Additions
2,215
-
2,215
Additions through acquisition
-
-
-
Terminations
-
(8)
(8)
At 30 June 2024
3,749
25
3,774
Accumulated depreciation
At 1 July 2023
783
9
792
Depreciation charge for the year
803
11
814
Terminations
-
(5)
(5)
At 30 June 2024
1,586
15
1,601
Carrying amount
At 30 June 2024
2,163
10
2,173
At 30 June 2023
751
24
775
The Group’s leases include buildings and equipment, and the average lease term is three years (30 June 2023: three years). No
lease contract expired in the current financial year (30 June 2023: 40%) and the Group acquired 10 new leases (mainly due to the
FAM acquisition), in the current financial year. The Group recognised right-of-use assets carrying amount of $2.2m (30 June 2023:
$775k).
c. Maturity analysis of lease liabilities
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present value of
the lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or, if that rate
cannot be readily determined, the Group’s incremental borrowing rate. Lease payments comprise fixed payments less any lease
incentives receivable, variable lease payments that depend on an index or a rate, amounts expected to be paid under residual
value guarantees, exercise price of a purchase option when the exercise of the option is reasonably certain to occur, and any
anticipated termination penalties. The variable lease payments that do not depend on an index or a rate are expensed in the year
in which they are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remeasured if there
is a change in the following: future lease payments arising from a change in an index or a discount rate used; residual guarantee;
lease term; certainty of a purchase option and termination penalties. When a lease liability is remeasured, an adjustment is made
to the corresponding right-of use asset, or to profit or loss if the carrying amount of the right-of-use asset is fully written down.
The table below summarises maturity analysis of undiscounted lease liabilities for the Group:
2024
$'000
2023
$'000
Year 1
887
512
Year 2
576
318
Year 3
376
2
More than 3 years
493
-
Total
2,332
832
PAGE 64
ANNUAL REPORT 2024 | Notes to the Consolidated Financial Statements
15. Intangible assets
Key accounting policies
Goodwill
Goodwill acquired in a business combination is initially measured at cost, being the excess of the cost of the business combination
over the Group's interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised at the date of
the acquisition. Goodwill is subsequently measured at cost less any accumulated impairment losses.
Impairment of assets
For the purpose of impairment testing, goodwill is allocated to each of the Group's cash-generating units (or groups of cash-
generating units) that are expected to benefit from the synergies of the business combination.
Goodwill and intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for
impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other assets are tested
for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An
impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The
recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. If the recoverable amount of the
cash-generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any
goodwill allocated to the unit, and then to the other assets of the unit pro rata based on the carrying amount of each asset in the
unit. Any impairment loss on goodwill or other identifiable intangibles is recognised directly in profit or loss. An impairment loss
recognised for goodwill is not reversed in subsequent years.
On disposal of the relevant cash-generating unit, the attributable amount of goodwill or other identifiable intangible is included in
the determination of the profit or loss on disposal.
Intangible assets acquired in a business combination
Intangible assets acquired in a business combination and recognised separately from goodwill are recognised initially at their fair
value at the acquisition date (which is regarded as their cost). Subsequent to initial recognition, intangible assets acquired in a
business combination are reported at cost less accumulated amortisation and accumulated impairment losses, on the same basis
as intangible assets that are acquired separately.
Key judgements
The cash-generating units determined by management are:
•
Licensee Services
•
Ventura Investment Management Limited (Ventura)
•
xseedwealth Pty Ltd
•
Financial Advice Matters Group Pty Ltd
•
Centrepoint Alliance Lending Services Pty Ltd (Centrepoint Lending Services)
•
Investment Diversity Pty Ltd (Investment Diversity)
•
Enzumo Corporation Pty Ltd
PAGE 65
ANNUAL REPORT 2024 | Notes to the Consolidated Financial Statements
Key estimates
Impairment testing of goodwill was carried out by comparing the net present value of cash flows from the cash-generating unit
(CGU) to the carrying value of the CGU. The cash flows were based on projections of future earnings after adjusting for taxation,
depreciation and amortisation and working capital changes.
The cash flows have been projected over a period of five years. The terminal value of the Group beyond year five has been
determined using a constant growth perpetuity.
The key assumptions used in carrying out the impairment testing were as follows:
•
Budgeted operating cash flows for the financial years ending 30 June 2024-2028 represent the Group’s estimate of future cash
flows based on the forecast approved by the Board of Directors. The business has moved to a fee-based model, which primarily
impacts the Licensee Services CGU, and given some uncertainty around this, change sensitivities have been disclosed below.
•
Terminal growth rate 1.0%-2.0% (30 June 2023: 1.0%) represents the terminal growth rate (beyond five years).
•
Discount rate used is 13.1%-17.0% (30 June 2023: 13.10%-16.4%) in the impairment testing for the CGU’s as at 30 June
2024.
The goodwill and other identifiable intangibles disclosed in the Statement of Financial Position at 30 June 2024 were supported by
the impairment testing, and no impairment adjustment was required.
The CGUs where a ‘reasonably possible’ change in estimates could lead to the carrying amount exceeding the value in use, are
Centrepoint Lending Services and Licensee Services. The reasonably possible trigger points at which the carrying value of the
CGU would exceed its recoverable amount, while holding all other variables constant, are as follows:
•
Licensee Services – the primary sensitivity for Licensee Services relates to fee income earned under the new fee structure.
Forecast fees would need to decrease by 30% in financial year 2025 and remain flat from financial year 2026 through to
2029 with a 20% increase in the employment cost base from financial year 2025 to 2029, before the carrying amount would
exceed recoverable amount. The Group believes this is an unlikely scenario.
•
Centrepoint Lending Services – the primary sensitivity for Centrepoint Lending Services is the discount rate used in the
calculation of value in use. The discount rate would need to increase to 64% before carrying amount would exceed recoverable
amount. The Group believes the risks associated with the cash flows in this CGU are lower than average in the Group and the
discount rate used is appropriate.
In determining the recoverable value of non-financial assets, the Group considered the following factors:
•
Property, plant and equipment and intangible assets
–
decrease in market interest rates causes a decrease in the asset’s value in use;
–
significant changes in the extent or way in which the asset is used or is expected to be used;
–
a decline or termination of the need for the services provided by the asset; and
–
significant changes in the legal aspects or business climate that could affect the worth of the asset.
•
Goodwill
–
tested for impairment annually
–
the testing for write-down or impairment of a substantial asset group
–
a loss of key personnel that is other than temporary (such as death)
–
a significant decline in the entity’s share price, which could result in the carrying amount of the entity’s net assets exceeding
its market capitalisation
–
a significant adverse modification in legal aspects or in the business climate
–
a decline in earnings and cash flow; and
–
a decline in market value.
The impairment assessment performed by the Group concluded that the underlying future cash flows continue to be at a level not
to be impaired.
PAGE 66
ANNUAL REPORT 2024 | Notes to the Consolidated Financial Statements
Intangible asset
Description of the Group’s
intangible assets
Impairment Test
Key Accounting Policies
Goodwill
Goodwill was created during
2012 on the acquisitions of the
externally owned interests in
Ventura Investment
Management Limited of $93k,
and in Centrepoint Alliance
Lending Pty Ltd (previously
Centrepoint Lending Solutions
Pty Ltd) of $0.9m.
Goodwill was created on the
acquisition of:
(a) Enzumo on 17 June 2020 of
$0.5m;
(b) ClearView Advice on 1
November 2021 of $6.7m;
(c) Financial Advice Matters
Group Pty Ltd on 1 December
2023 of $4.8m.
The 30 June 2024 carrying value
of goodwill is $12.9m
Goodwill is tested annually for
impairment by calculation of value
in use at the CGU level.
Management is of the view that core
assumptions such as cost of capital
and terminal growth rate are the
same across all CGUs.
Value in use is calculated using
discounted cash flow projections for
five years and terminal values
prepared from current forecasts
using the following assumptions:
Terminal growth rate: 1.0% - 2.0%
(30 June 2023: 1.0%).
Cost of capital: 13.1% - 17.0% (30
June 2023: 13.1% - 16.4%).
The testing resulted in no
impairment being required.
Goodwill acquired in a
business combination is
initially measured at cost,
being the excess of the cost of
the business combination over
the Group’s interest in the net
fair value of the identifiable
assets, liabilities and
contingent liabilities.
Following initial recognition,
goodwill is measured at cost
less any accumulated
impairment losses.
As at acquisition date, any
goodwill acquired is allocated
to each of the CGUs, which
are expected to benefit from
the acquisition.
Where the recoverable
amount of the CGU is less
than the carrying amount, an
impairment loss is recognised.
Where goodwill forms part of a
CGU and part of the operation
within that unit is disposed of,
the goodwill associated with
the disposed operation is
included in the carrying
amount of the operation when
determining the gain or loss
on disposal. Goodwill
disposed in these
circumstances is measured
based on the relative values of
the disposed operation and
the portion of the CGU
retained.
Software
The Group has developed or
acquired software, which is
being amortised over expected
useful lives.
The 30 June 2024 carrying value
of software is $1.4m
The value of the developed or
acquired software of the Group is
amortised on a straight-line basis
over a 5-year period, which the
Directors assess as the intangible
asset’s useful life.
There were no events or changes in
circumstances that indicate that the
carrying amount of the software
may not be recoverable and
therefore is not impaired.
As per Accounting Standards,
software was capitalised as an
asset on the basis that the
costs result in a future
economic benefit to the entity
and they can be measured
reliably.
Value of software assets
recorded by the entity in the
financial statements continue
to reflect the expected
benefits to be obtained from
their use. The Group
determines the useful life of
software assets and amortises
the cost over the useful life of
the assets.
At each reporting date, the
entity assesses whether there
is any indication that an asset
PAGE 67
ANNUAL REPORT 2024 | Notes to the Consolidated Financial Statements
Intangible asset
Description of the Group’s
intangible assets
Impairment Test
Key Accounting Policies
is recorded at greater than its
recoverable amount, and if
applicable, an impairment loss
is recognised.
Client contracts
(Customer
relationships)
The Group has acquired client
contracts as part of the Enzumo,
ClearView Advice and Financial
Advice Matters Group Pty Ltd
acquisitions at fair value on
acquisition date as determined
by an independent valuer.
The 30 June 2024 carrying value
of customer relationships is
$11.1m (30 June 2023: $7.5m).
The value of the acquired client
contracts is amortised on a straight-
line basis over the years in which
future economic benefits are
expected to be derived, being a
period of eight years for Enzumo,
11 years for ClearView Advice and
14 years for Financial Advice
Matters Group Pty Ltd.
There were no events or changes in
circumstances that indicate that the
carrying amount of the client
contracts may not be recoverable,
and therefore it is not impaired.
The client contracts are
acquired in a business
combination as fair value as at
the date of acquisition.
Following initial recognition,
the intangible asset – client
contracts, is carried at cost
less any accumulated
amortisation and any
accumulated impairment
losses.
Brands and
trademarks
The Group has acquired the
Enzumo, Matrix Planning
Solutions Pty Ltd and Lavista
Licensee Solutions Pty Ltd
brands and trademarks as part
of the respective acquisitions at
fair value on acquisition date as
determined by an independent
valuer.
The 30 June 2024 carrying value
of trade names is $0.7m (30
June 2023: $0.7m), split
between ClearView Advice
$0.6m and Enzumo $0.1m.
The value of the acquired Enzumo,
Matrix Planning Solutions Pty Ltd
and Lavista Licensee Solutions Pty
Ltd brands is not amortised as they
are seen to have indefinite useful
lives, which have been impairment
tested on an annual basis. To date,
the brands and trademarks are not
considered to be impaired.
The Enzumo, Matrix Planning
Solutions Pty Ltd and Lavista
Licensee Solutions Pty Ltd
brands and trademarks are
acquired in a business
combination at fair value as at
the dates of acquisition. They
have indefinite useful lives
and following initial
recognition, the brands are
carried at cost less any
impairment losses.
The estimated useful lives in the current and comparative years are as follows:
Software
5 years
Client contracts
8-14 years
PAGE 68
ANNUAL REPORT 2024 | Notes to the Consolidated Financial Statements
15.1.1 Reconciliation of carrying amounts at the beginning and end of the financial year
Goodwill
$'000
Software
$'000
Client
Contracts
$'000
Brand &
Trademarks
$'000
Total
$'000
Financial year ending 30 June 2024
At 1 July 2023 net accumulated amortisation and
impairment
8,092
1,209
7,491
743
17,535
Additions
-
519
-
-
519
Additions through acquisition
4,848
-
4,697
-
9,545
Amortisation
-
(346)
(1,063)
-
(1,409)
At 30 June 2024 net accumulated amortisation
12,940
1,382
11,125
743
26,190
At 30 June 2024
Cost
12,940
4,895
19,940
743
38,518
Accumulated amortisation and impairment
-
(3,513)
(8,815)
-
(12,328)
Net carrying value
12,940
1,382
11,125
743
26,190
Goodwill
$'000
Software
$'000
Client
Contracts
$'000
Brand &
Trademarks
$'000
Total
$'000
Financial year ending 30 June 2023
At 1 July 2022 net accumulated amortisation and
impairment
8,092
658
8,349
743
17,842
Additions
-
879
-
-
879
Amortisation
-
(328)
(858)
-
(1,186)
At 30 June 2023 net accumulated amortisation
8,092
1,209
7,491
743
17,535
At 30 June 2023
Cost
8,345
6,174
19,619
743
34,881
Accumulated amortisation and impairment
(253)
(4,965)
(12,128)
-
(17,346)
Net carrying value
8,092
1,209
7,491
743
17,535
PAGE 69
ANNUAL REPORT 2024 | Notes to the Consolidated Financial Statements
Risk manag ement
16. Provisions
Key accounting policies
Claims and other
provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a
result of a past event. It is probable that an outflow of resources embodying economic benefits will
be required to settle the obligation, and a reliable estimate can be made of the amount of the
obligation.
Provisions are measured at the present value of management’s best estimate of the expenditure
required to settle the present obligation at the reporting date. If the effect of the time value of
money is material, provisions are determined by discounting the expected future cash flows at a
pre-tax rate that reflects current market assessments of the time value of money and, where
appropriate, the risks specific to the liability.
A provision for claims is recognised when the Group is notified of client claims received by
advisers, or if the Group expects to incur liabilities in the future as a result of past advice given.
The liability is measured at the present value of the future costs that the Group expects to incur to
settle the claims.
Employee benefits
Provision is made for employee benefits accumulated as a result of employees rendering services
up to the reporting date. These benefits include wages and salaries, annual leave and long service
leave.
Liabilities for wages and salaries, including non-monetary benefits, annual leave, and other
benefits, expected to be settled wholly within 12 months of the reporting date are measured at the
amounts due to be paid when the liability is settled.
The liability for long service leave is recognised and measured as the present value of expected
future payments to be made in respect of services provided by employees up to the reporting date
using the projected unit credit method. Consideration is given to the expected future wage and
salary levels, experience of employee departures, and years of service. Expected future payments
are discounted using market yields at the reporting date on national government bonds with terms
to maturity and currencies that match, as closely as possible, the estimated future cash outflows.
Make good costs for
leased property
A provision for make good costs for leased property is recognised when a make good obligation
exists in the lease contracts. The provision is the best estimate of the present value of the
expenditure required to settle the make good obligation at the reporting date.
PAGE 70
ANNUAL REPORT 2024 | Notes to the Consolidated Financial Statements
2024
$'000
2023
$'000
Current
Provision for claims
494
971
Provision for employee benefits
3,393
2,909
Property make good
20
59
Provision for contingent consideration
1,337
-
Total
5,244
3,939
Non-current
Provision for employee benefits
409
397
Property make good
137
20
Total provisions
546
417
2024
$'000
2023
$'000
a. Movement in provision for claims
Opening balance
971
1,465
Movement in the provision is as follows:
Claims provision acquired on FAM acquisition
59
Claims provision reclassification
(213)
(297)
Claims settlements and fees paid
(323)
(197)
Closing balance
494
971
2024
$'000
2023
$'000
b. Movement in provision for employee benefits
Opening balance
3,306
4,070
Movement in the provision is as follows:
Provision expense for the year
2,918
2,658
Provision for employee benefits acquired on FAM acquisition
421
-
Leave and other employee benefits paid
(2,843)
(3,422)
Closing balance
3,802
3,306
2024
$'000
2023
$'000
c. Movement in provision for property make good
Opening balance
79
79
Movement in the provision is as follows:
Provision expense for the year
103
Provision released for the year
(25)
-
Closing balance
157
79
PAGE 71
ANNUAL REPORT 2024 | Notes to the Consolidated Financial Statements
2024
$'000
2023
$'000
d. Movement in provision for contingent consideration
Opening balance
-
-
Movement in the provision is as follows:
Provision for contingent consideration on FAM acquisition
1,337
-
Closing balance
1,337
-
17. Contingent liabilities
Client claims
The nature of the financial advice business is such that advice given by the Group or its authorised representatives may generate
client compensation claims. As a result contingent liabilities may arise from time to time. As at 30 June 2024 there were no
contingent liabilities (30 June 2023: nil)
18. Remuneration of auditors
The auditor of the Group is BDO Audit Pty Ltd.
2024
$
2023
$
Amounts received or due and receivable by BDO Audit Pty Ltd
Fees to the group auditor for the audit or review of the statutory financial reports of
the Group, subsidiaries and joint operations
343,750
338,900
Fees for statutory assurance services that are required by legislation to be
provided by the auditor
73,650
65,800
Amounts received or due and receivable by BDO Services Pty Ltd
Fees for other services (predominantly taxation)
18,180
28,880
435,580
433,580
Other i nformati on
19. Information relating to Centrepoint Alliance Limited
The Financial Statements of the Parent are:
2024
$'000
2023
$'000
Current assets
40,141
36,384
Non-current assets
34,591
21,713
Current liabilities
(76,721)
(54,947)
Non-current liabilities
(3,325)
(5)
Net Assets
(5,314)
3,145
Issued capital
46,280
46,107
Dividend reserve
(1,106)
(1,096)
Accumulated loss
(50,488)
(41,866)
Total Shareholder Equity
(5,314)
3,145
Net loss after tax of the parent entity
(6,904)
(9,067)
Total comprehensive loss of the parent entity
(6,904)
(9,067)
At reporting date, the Parent has given nil guarantees to external parties (30 June 2023: nil).
PAGE 72
ANNUAL REPORT 2024 | Notes to the Consolidated Financial Statements
20. Related party disclosures
a. Information relating to investments
Name
Country of
Incorporation
Ownership
Interest
Principal Activity
2024
2023
Licensee and Advice Services
Centrepoint Alliance Lending Pty Ltd
Australia
100%
100%
Mortgage broker/aggregator
Alliance Wealth Pty Ltd
Australia
100%
100%
Financial advice
Professional Investment Services Pty Ltd
Australia
100%
100%
Financial advice
Associated Advisory Practices Pty Ltd
Australia
100%
100%
Support services AFSL licensee
xseedwealth Pty Ltd
Australia
100%
100%
Salaried advice
A.C.N. 133 593 012 Pty Ltd
Australia
100%
100%
Financial advice
Matrix Planning Solutions Ltd
Australia
100%
100%
Financial advice
LaVista Licensee Solutions Pty Ltd
Australia
100%
100%
Financial advice
Enzumo Corporation Pty Ltd
Australia
100%
100%
Service company
Enzumo Consulting Pty Ltd
Australia
100%
100%
Consulting services
Financial Advice Matters Group Pty Ltd
Australia
100%
100%
Salaried advice
Financial Wellness Matters Group Pty Ltd1
Australia
100%
100%
Salaried advice
Funds Management and Administration
Investment Diversity Pty Ltd
Australia
100%
100%
Packages investment platforms
Ventura Investment Management Limited
Australia
100%
100%
Packages managed funds
Corporate
Centrepoint Alliance Services Pty Ltd
Australia
100%
100%
Trustee – employee share plan
Centrepoint Services Pty Ltd
Australia
100%
100%
Service company
Centrepoint Wealth Pty Ltd
Australia
100%
100%
Holding company
De Run Securities Pty Ltd1
Australia
100%
56%
Financial services
Professional Accountants Pty Ltd
Australia
100%
100%
Loans to advisers
Ginger Group Financial Services Limited2
New Zealand
50%
50%
Financial advice
R Financial Educators Pty Ltd
Australia
15%
15%
Financial advice
1 Financial Wellness Matters Group Pty Ltd and De Run Securities Pty Ltd has been deregistered in current financial year
2 Ginger Group Financial Services Limited is intended to be liquidated. Refer to Note 7.1.5 Investment in unlisted shares
b. Ultimate parent
The ultimate holding company is Centrepoint Alliance Limited, a company incorporated and domiciled in Australia.
c. Terms and conditions of transactions with related parties other than KMP
Sales to, and purchases from, related parties within the Group are made on terms equivalent to those that prevail in arm’s length
transactions. Outstanding balances at financial year end are unsecured and interest-free and settlement occurs in cash. There
have been no guarantees provided or received for any related party receivables or payables. For the year ended 30 June 2024,
the Group has not recorded any impairment of receivables relating to amounts owed by related parties (30 June 2023: nil). An
impairment assessment is undertaken each financial year through examination of the financial position of related parties and the
market in which a related party operates. There are no other transactions with related parties other than those disclosed in this
Note.
PAGE 73
ANNUAL REPORT 2024 | Notes to the Consolidated Financial Statements
d. Transactions with Key Management Personnel
The aggregate compensation paid to Directors and Executive KMP of the Company and the Group is set out below:
2024
$
2023
$
Short-term employee benefits
1,450,483
1,444,428
Post-employment benefits
69,313
71,490
Share-based payment expense
250,605
354,072
Total compensation
1,770,401
1,869,990
21. Share-based payment plans
a. Share-based payment plans
Performance rights are rights that can be converted to fully paid ordinary shares in the Company for no monetary consideration
subject to specific performance criteria, as determined by the Board for each issue of rights, being achieved.
b. Recognised share-based payment expenses
2024
$
2023
$
Expense arising from performance rights
343,775
441,750
Total
343,775
441,750
Key accounting policies
i) Equity-settled transactions:
The Group provides benefits to its employees, including KMP, in the form of share-based payments, whereby employees render
services in exchange for rights over shares (equity-settled transactions).
In valuing equity-settled transactions, no account is taken of any vesting conditions, other than conditions linked to the price of the
shares of Centrepoint Alliance Limited (market conditions) if applicable.
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the period in which the
performance and/or service conditions become fully entitled to the award (vesting date).
At each subsequent reporting date until vesting, the cumulative charge to the Statement of Profit or Loss and Other Comprehensive
Income is the product of:
•
the grant date fair value of the award;
•
the current best estimate of the number of awards that will vest, taking into account such factors as the likelihood of non-market
performance conditions being met; and
•
the expired portion of the vesting period.
The charge to the profit or loss for the financial year is the cumulative amount as calculated above, less the amounts already
charged in previous years. There is a corresponding entry to equity.
Until an award has vested, any amounts recorded are contingent and will be adjusted if more or fewer awards vest than were
originally anticipated to do so. Any award subject to a market condition is considered to vest irrespective of whether or not that
market condition is fulfilled, provided that all other conditions are satisfied.
If the terms of an equity-settled award are modified, the minimum expense recognised is the expense had the terms not been
modified. An additional expense is recognised for any modification that increases the total fair value of the share-based payment
arrangement, or is otherwise beneficial to the employee, as measured at the date of the modification.
If an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any expense not yet recognised
for the award is recognised immediately. However, if a new award is substituted for the cancelled award and designated as a
replacement award on the date that it is granted, the cancelled and new award are treated as if they were a modification of the
original award, as described in the previous paragraph.
PAGE 74
ANNUAL REPORT 2024 | Notes to the Consolidated Financial Statements
The dilutive effect, if any, of outstanding options is reflected as additional share dilution in the computation of diluted earnings
per share.
Shares in the Company reacquired on market and held by the Employee Share Plan Trust are classified and disclosed as reserved
shares and deducted from equity.
ii) Reserved shares:
The Company’s own equity instruments, which are reacquired for later use in employee share-based payment arrangements
(reserved shares), are deducted from equity. No gain or loss is recognised in the profit or loss on the purchase, sale, issue, or
cancellation of the Company’s own equity instruments.
Movements during the year
There are 16,697,881 performance rights existing at 30 June 2024 issued in previous financial years. During the year, 2,000,000
FY20 performance rights were subsequently exercised and converted to ordinary shares.
Performance rights pricing model
The fair value of the performance rights issued are calculated as at the date of grant using the Monte Carlo Model. This model
takes into account the terms and conditions upon which they were granted and market-based inputs as at the grant date.
2024
2023
No
WAEP
No
WAEP1
Performance rights under the CESP
Outstanding at beginning of year
18,697,881
0.270
15,000,000
-
Granted during the financial year
-
-
4,697,881
0.270
Vested during the financial year
(2,000,000)
-
(1,000,000)
-
Lapsed during the financial year
-
-
-
-
Outstanding at end of the financial year
16,697,881
0.270
18,697,881
0.270
1WAEP is weighted average exercise price
22. Events subsequent to the balance sheet date
Other than the dividend declaration in Note 8, there are no other matters or events which have arisen since the end of the financial
year which have significantly affected or may significantly affect the operations of the Group, the results of those operations or the
state of affairs of the Group in subsequent financial years.
PAGE 75
ANNUAL REPORT 2024 | Directors’ Declaration
Directors’ Declaration
30 June 2024
In accordance with a resolution of the Directors of Centrepoint Alliance Limited, I state that:
1. In the opinion of the Directors:
(a) The consolidated financial statements and notes of Centrepoint Alliance Limited for the financial year ended 30 June
2024 are in accordance with the Corporations Act 2001, including:
i)
giving a true and fair view of its financial position as at 30 June 2024 and of its performance for the year ended on
that date;
ii)
the Consolidated entity disclosure statement as at 30 June 2024 set out on page 76 is true and correct; and
iii) complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the
Corporations Regulations 2001.
(b) The financial statements and notes also comply with International Financial Reporting Standards as disclosed in Note
2; and
(c) There are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due
and payable.
2. This declaration has been made after receiving the declarations required to be made to the Directors by the Chief Executive
Officer and Chief Financial Officer in accordance with section 295A of the Corporations Act 2001 for the financial year ended
30 June 2024.
On behalf of the Directors:
G. J. Chmiel
Chair
21 August 2024
PAGE 76
ANNUAL REPORT 2024 | Consolidated Entity Disclosure Statement
Consolidated Entity Disclosure Statement
Entity name
Entity type
Place of
incorporation
% Issued
share capital
held by CAF
Tax residency
Centrepoint Alliance Lending Pty Ltd
Body corporate
Australia
100%
Australian resident
Alliance Wealth Pty Ltd
Body corporate
Australia
100%
Australian resident
Professional Investment Services Pty Ltd
Body corporate
Australia
100%
Australian resident
Associated Advisory Practices Pty Ltd
Body corporate
Australia
100%
Australian resident
xseedwealth Pty Ltd
Body corporate
Australia
100%
Australian resident
A.C.N. 133 593 012 Pty Ltd
Body corporate
Australia
100%
Australian resident
Matrix Planning Solutions Ltd
Body corporate
Australia
100%
Australian resident
LaVista Licensee Solutions Pty Ltd
Body corporate
Australia
100%
Australian resident
Enzumo Corporation Pty Ltd
Body corporate
Australia
100%
Australian resident
Enzumo Consulting Pty Ltd
Body corporate
Australia
100%
Australian resident
Financial Advice Matters Group Pty Ltd
Body corporate
Australia
100%
Australian resident
Investment Diversity Pty Ltd
Body corporate
Australia
100%
Australian resident
Ventura Investment Management Limited
Body corporate
Australia
100%
Australian resident
Centrepoint Alliance Services Pty Ltd
Body corporate
Australia
100%
Australian resident
Centrepoint Services Pty Ltd
Body corporate
Australia
100%
Australian resident
Centrepoint Wealth Pty Ltd
Body corporate
Australia
100%
Australian resident
Professional Accountants Pty Ltd
Body corporate
Australia
100%
Australian resident
Tel: +61 2 9251 4100
Fax: +61 2 9240 9821
www.bdo.com.au
Level 11, 1 Margaret Street
Sydney NSW 2000
Australia
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of
BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member
firms. Liability limited by a scheme approved under Professional Standards Legislation.
INDEPENDENT AUDITOR'S REPORT
To the members of Centrepoint Alliance Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Centrepoint Alliance Limited (the ‘Company’) and its subsidiaries
(the ‘Group’), which comprises the consolidated statement of financial position as at 30 June 2024, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement of
changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the
financial report, including material accounting policy information and the directors’ declaration.
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations Act
2001, including:
(i)
Giving a true and fair view of the Group’s financial position as at 30 June 2024 and of its financial
performance for the year ended on that date; and
(ii)
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s responsibilities for the audit of the Financial Report
section of our report. We are independent of the Group in accordance with the Corporations Act 2001 and
the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of
Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our
audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in
accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the time
of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the financial report of the current period. These matters were addressed in the context of our
audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
Impairment assessment of intangible assets and goodwill
Key audit matter
How the matter was addressed in our audit
The Group’s disclosures in respect
to goodwill and intangible assets,
including their impairment
assessment, are included Note 15
of the consolidated financial
report. Impairment assessment of
intangible assets requires a
significant amount of judgment and
estimation by management in the
determination of cash generating
units (CGU), projected cash flows,
discount rates and growth rates.
The critical assumptions used by
Management are disclosed in Note
15.
The assumptions and complexity of
the calculations have made the
impairment assessment of
intangible assets and goodwill a
Key Audit Matter.
Our procedures included, among others:
-
Obtained an understanding of the key controls associated with the
preparation of the value in use models and critically evaluated
management’s methodologies and their documented basis for key
assumptions which are described in Note 15 of the financial report;
-
Challenged key assumptions including forecast growth rates by
comparing them to historical results, business trends, economic and
industry forecasts and comparable organisations; and discount rates by
analysing against the cost of capital for the Group and comparable
organisations through market data and industry research;
-
Working with our valuation specialists, obtained revenue multiples for
comparable companies to establish an independent range to compare
against those used in the discounted cash flow calculation;
-
Assessed whether the division of the Group into CGUs at a segment
level was consistent with our knowledge of the Group’s operations and
internal Group reporting;
-
Evaluated the methodology applied by the Group in allocating
corporate assets and costs across CGUs;
-
Performed tests over the mathematical accuracy of the model and
underlying calculations;
-
Applied sensitivity analyses to management’s key assumptions; and
-
Evaluated the useful life of definite-life intangible assets and checked
the amortisation expense for to ensure that the amortisation expense is
calculated consistently with the Group’s stated amortisation rates.
Provision for claims
Key audit matter
How the matter was addressed in our audit
The Group has recognised a
provision in respect to claims for a
total of $494k as disclosed in Note
16 of the consolidated financial
report.
Our procedures included, among others:
-
Reviewed claims and risk committee minutes and inquired management
directly to assess the basis for claims provision recognised;
-
Inspected evidence claimant and Australian Financial Complaints
Authority (AFCA) correspondences to support the accuracy and
completeness of the provision recognised;
Provision for claims (continued)
Key audit matter
How the matter was addressed in our audit
The claims provision is for financial
advice provided by authorised
representatives of the Group, along
with claims from external parties
that the Group has become aware of
and assess that payment is probable.
The complexity of the estimation of
the claims require management to
apply significant judgement to
determine the value of the liable
position.
-
Obtained solicitor representations and assessed these against open
claims provided for;
-
Obtained and assessed the impact to claims provision of any new
information up to date of signing of the financial report in relation to
developments in claims existing claims and any new claims; and
-
Assessed the appropriateness of the disclosure note in relation to the
claims provision.
Business combination
Key audit matter
How the matter was addressed in our audit
As disclosed in Note 12 of the
consolidated financial report, the
Group acquired a 100% equity
interest in Financial Advice Matters
Group Pty Ltd.
The audit of the accounting for this
acquisition is a key audit matter due
to the significant judgment and
complexity involved in assessing the
determination of the fair value of
net asset acquired, including the
identifiable intangible assets.
Our procedures included, among others:
-
Inspected the sale and purchase agreement to verify the costs of
acquisition and assess the accounting impact of any conditions
relating to the acquisition;
-
Reviewed the appropriateness of the accounting treatment for
acquisitions made in the period to ensure compliance with the
Australian Accounting Standards;
-
Compared the assets and liabilities recognised on acquisition against
the executed agreements and the historical financial information of
the acquired businesses;
-
Working with our valuation specialists, critically assessed the
Purchase Price Allocation computation, including assessing the inputs
and methodologies used in identifying and valuing any identifiable
intangible asset; and
-
Assessed the adequacy of the Group's disclosures of the acquisition.
Other information
The directors are responsible for the other information. The other information comprises the information in
the Group’s annual report for the year ended 30 June 2024, but does not include the financial report and
the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and,
in doing so, consider whether the other information is materially inconsistent with the financial report or
our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the Financial Report
The directors of the Company are responsible for the preparation of:
a) the financial report that gives a true and fair view in accordance with Australian Accounting Standards
and the Corporations Act 2001 and
b) the consolidated entity disclosure statement that is true and correct in accordance with the
Corporations Act 2001, and
for such internal control as the directors determine is necessary to enable the preparation of:
i)
the financial report that gives a true and fair view and is free from material misstatement, whether
due to fraud or error; and
ii)
the consolidated entity disclosure statement that is true and correct and is free of misstatement,
whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations,
or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with the Australian Auditing Standards will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in
the aggregate, they could reasonably be expected to influence the economic decisions of users taken on
the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing
and Assurance Standards Board website (http://www.auasb.gov.au/Home.aspx) at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
This description forms part of our auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in Pages 14 to 23 of the directors’ report for the year
ended 30 June 2024.
In our opinion, the Remuneration Report of Centrepoint Alliance Limited, for the year ended 30 June 2024,
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration
Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an
opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing
Standards.
BDO Audit Pty Ltd
Tim Aman
Partner
Sydney, 21 August 2024
PAGE 82
ANNUAL REPORT 2024 | ASX Additional Information
ASX Additional Information
Additional information required by the Australian Securities Exchange (ASX) and not shown elsewhere in this report is as follows.
The information is current as at 2 August 2024.
1. Class of securities and voting rights
a. Ordinary shares
Ordinary shares of the Company are listed (quoted) on the ASX. There are 1,607 holders of ordinary shares, holding 198,881,889
fully paid ordinary shares.
Holders of ordinary shares are entitled to one vote per share when a poll is called, otherwise each member present at a meeting
or by proxy has one vote on a show of hands.
b. Performance rights
A performance right is a right that can be converted to an ordinary fully paid share in the Company for no monetary consideration
subject to specific performance criteria being achieved. Details of performance rights are not quoted on the ASX and do not have
any voting rights.
2. Distribution of shareholders and performance rights
Size of holding
No. of ordinary
shareholders
No. of performance
right holders
1–1,000
292
-
1,001–5,000
438
-
5,001–10,000
215
-
10,001–100,000
516
-
100,001 and over
146
10
The number of shareholders with less than a marketable parcel is 425.
3. Substantial shareholders
The names of substantial holders in the Company, who have notified the Company in accordance with section 671B of the
Corporations Act 2001 are set out below:
Ordinary Shareholders
Fully paid
No. of Shares
Thorney Investment Group
51,987,171
COG Financial Services Limited
39,556,590
Sage Capital Group Pty Ltd
12,000,080
PAGE 83
ANNUAL REPORT 2024 | ASX Additional Information
4. 20 Largest holders of quoted equity securities
Ordinary Shareholders
Fully paid
No. of shares
% Held
1
UBS NOMINEES PTY LTD
54,418,564
27.36
2
COG FINANCIAL SERVICES LIMITED
39,556,590
19.89
3
SAGE CAPITAL GROUP PTY LTD
10,000,000
5.03
4
BONDIA INVESTMENTS PTY LTD
5,150,000
2.59
5
BNP PARIBAS NOMINEES PTY LTD
4,393,445
2.21
6
NATIONAL NOMINEES LIMITED
3,300,002
1.66
7
SUPERTCO PTY LTD
3,000,000
1.51
8
BNP PARIBAS NOMINEES PTY LTD
2,844,506
1.43
9
RICHARD JOHN NELSON + KAYE MARIE NELSON
2,729,660
1.37
10
H&G HIGH CONVICTION LIMITED
2,259,039
1.14
11
MR ALEXANDER BEARD + MRS PASCALE MARIE BEARD
2,008,019
1.01
12
BNP PARIBAS NOMS PTY LTD
1,519,386
0.76
13
WAYLEX PTY LTD
1,418,051
0.71
14
MS FIONA ROWENA WILLIAMS
1,327,140
0.67
15
H&H HIGH CONVICTION LIMITED
1,327,072
0.67
16
PROF ALAN JONATHAN BERRICK
1,290,100
0.65
17
MR JASON MAXWELL YU
1,200,000
0.60
18
HYGROVEST LIMITED
1,108,004
0.56
19
CATHAYS PTY LTD
1,100,000
0.55
20
FETTERPARK PTY LTD
1,017,603
0.51
140,967,181
70.88
PAGE 84
ANNUAL REPORT 2024 | Corporate Directory
Corporate Directory
Securities Exchange Listing
Centrepoint Alliance Limited’s shares are listed on the Australian Securities Exchange (ASX) and are traded under the ASX ticker
code CAF.
Share Registry
Computershare Investor Services Pty Limited
Level 3, 60 Carrington Street
Sydney NSW 2000 Australia
GPO Box 2975
Melbourne VIC 3001 Australia
Telephone:
(within Australia) 1300 763 925
(outside Australia) +61 3 9415 4870
Email:
web.queries@computershare.com.au
Website:
www.computershare.com.au
Auditor
BDO Audit Pty Ltd
ABN 33 134 022 870
Level 11, 1 Margaret St
Sydney NSW 2000
Registered Address
Centrepoint Alliance Limited Registered Address and Head Office:
Level 8, 309 George St
Sydney NSW 2000
Australia
Telephone:
(within Australia) 1300 557 598
(outside Australia) +61 2 8987 3000
Website:
www.centrepointalliance.com.au