Centrepoint Alliance has reported a net after-tax loss of $6.3 million for the year to June 30, down from a $6.5 million profit the previous year.

CEO Angus Benbow says the loss is attributed to legacy claims, restructure costs, impacts from the royal commission and a change to the deferred tax asset.

“The financial advice industry is facing an increasingly complex and rapidly changing environment, which is impacting the whole industry,” he said. “It is imperative our business adapts to the challenges and opportunities this presents.”

Revenue from advice and financial products fell to $121.7 million from $126.6 million.

Advice and product fees paid for distribution totalled $90 million, compared with $97 million the previous year. Expenses grew to $35.6 million from $32 million.

Claims and ligation settlements grew to $5.3 million from $4.2 million, and dealing with the financial services royal commission cost Centrepoint $77,000.

Mr Benbow has introduced a new business strategy to strengthen the medium to long-term future. This has involved a comprehensive review of the business portfolio and a new organisational structure to better align with market opportunities, he says.

“Centrepoint will focus on transitioning to an advice and business services organisation where the advisers’ needs are at the heart of everything we do,” Mr Benbow said.

“We have a strong community of like-minded advisers that enables us to take a leadership position in the industry as it moves to a more transparent environment.”