SYDNEY – Centrepoint Alliance Ltd. (ASX: CAF) said Tuesday its first-half normalized earnings rose 17%, and it struck a deal to sell its lending aggregation business to Astute Financial Management Pty Ltd. in a transaction that will increase annual earnings starting next fiscal year.
The financial services firm reported unaudited normalized EBITDA of $6.2 million for the six months ended Dec. 31, up from the prior-year period. Based on the stronger-than-expected performance, the company raised its full-year normalized EBITDA guidance to a range of $11.75 million to $12.25 million, from a previous forecast of $11.5 million to $12 million.
Under the agreement with Astute, Centrepoint will divest its lending aggregation business but retain the back-book revenue and its Lending-as-a-Service operations, including its credit license and salaried brokers. Centrepoint will also retain 100% of the financial advice license margin generated by Astute-aligned advisers operating under Centrepoint’s Australian Financial Services License.
Astute will acquire the front-book aggregation capabilities and receive all new-business revenue from the divested operations.
The deal, structured as a nil-cash strategic agreement, is expected to deliver an EBITDA uplift of approximately $400,000 annually starting in fiscal 2027. Completion is targeted for March 31, subject to final documentation and regulatory approvals.
“This agreement represents a natural next step in Centrepoint’s transformation,” CEO John Shuttleworth said in a statement. “By divesting a non-core, sub-scale aggregation business and securing the full licence margin from Astute-aligned advisers under our AFSL, we strengthen our recurring revenue base and sharpen our focus on delivering high-quality advice services.”
Brad Wood, director of Astute, said the deal allows his company to “expand our aggregation platform, support more brokers nationally, and deliver greater value through scale and specialisation.”
Centrepoint said it is now the No. 2 licensee in Australia, supporting 588 licensed advisers as of Dec. 31, according to an analysis of the ASIC register.