Centrepoint Alliance says earnings will be hit by an increased provision for client claims against its advisory business Professional Investment Services (PIS).

Reported profit and net assets are likely to be down by $3-5 million as of June 30, once an actuarial report is finalised and audited.

Centrepoint, which has received a draft of the report, will delay a meeting about its offer to acquire remaining shares in Associated Advisory Practices, to allow updated information to be provided.

The group’s recent financial performance has been dogged by claims against advisers at PIS, which it acquired in December 2010.

In 2011/12 Centrepoint paid $11 million in claims against advisers and incurred $1.9 million in external professional fees resolving the cases.

Centrepoint will announce its financial results for the past financial year on August 30.