Premium funder Centrepoint Alliance ended a rocky 2009/10 year with a $559,000 after-tax profit and a new structure.

The company’s annual report says the profit compares to a $30.5 million loss in 2008/09, which resulted in the company selling businesses and raising further funding to reduce its debt levels.

Centrepoint MD Tony Robinson says the company spent all of the 2009/10 year restructuring and consolidating its core insurance premium funding business.

“As a consequence of the scaledown of the insurance premium business, there were significant reductions in both loan receivables and debt during the period,” he said.

“The year also saw a successful capital-raising and the commencement of a new direction with the signing of a heads of agreement to merge with the Professional Investment Holdings Group, a major dealer group for financial advisers and accountants.”

The share placement in November last year raised $7.5 million and interest-bearing debt in the company fell by 63% to $50 million.

The 2009/10 year also saw Centrepoint Alliance’s premium funding arrangements with the OAMPS group end, leading to the value of new loans written by the company falling 56% to $245 million. This resulted in repayment of a $6 million loan to Wesfarmers.

Total revenue for the year was $15 million compared to $29.4 million in 2009.

Mr Robinson says the business has survived the dramatic changes and is now poised to grow again.

“The insurance premium funding business has been significantly scaled back, but it has not only survived these changes, it has consolidated in its core areas,” he said. “It has worked hard to restore its market image and has successfully started the process of re-growing its business volumes.”