Why Did Centrepoint Alliance’s Net Profit Fall Despite Revenue Growth?

Financial Performance Overview

Centrepoint Alliance Limited has released its financial results for the year ended 30 June 2025, showing a mixed performance. The company achieved a solid 13.5% increase in revenue, reaching $325.6 million, alongside a notable 30.6% rise in profit before tax to $7.3 million. These figures suggest that the company’s core operations have strengthened over the past year.

Profitability Puzzle – Net Profit Decline

Despite the encouraging top-line growth and improved pre-tax profitability, Centrepoint’s net profit after tax attributable to members fell by 33.7% to $5.1 million. This divergence raises questions about underlying costs, tax impacts, or one-off items that may have weighed on the bottom line. The announcement does not provide detailed explanations, leaving investors eager for further clarity from management.

Dividend and Shareholder Returns

In line with its steady approach, Centrepoint declared a final dividend of 1.75 cents per share, fully franked and unchanged from the previous year. The dividend record date is set for 19 September 2025, with payments scheduled for 2 October 2025. Notably, the company’s Dividend Reinvestment Plan remains inactive, signaling a preference for cash returns over share issuance at this time.

Balance Sheet and Asset Position

Net tangible assets per share declined from 1.42 cents to 1.25 cents, reflecting a modest erosion in the company’s tangible asset base. While this is not uncommon in financial services firms, it may warrant attention if the trend continues, especially given the profit contraction.

Looking Ahead

Centrepoint Alliance’s results paint a picture of operational growth tempered by challenges to net profitability. Investors will be watching closely for management commentary to understand the factors behind the profit drop and to gauge the company’s strategy for sustaining growth and shareholder returns in the coming year.