Centrepoint announces small FY10 profit

West Perth-based Centrepoint Alliance has recorded a $559,000 net profit after tax for the 2010 financial year.

The result compared to a $30.5 million loss for the same corresponding period.

"This result is after incurring in excess of $400k (after tax) of transaction costs associated with the proposed merger with PIH, over $300k (after tax) of costs resulting from the enforced revisions to its banking facilities and also significant costs associated with the restructure and reduction of its cost base," Centrepoint said in a statement to the Australian Securities Exchange.

Centrepoint's core IPF business continued to trade profitably but the value of new loans written fell by 56 per cent from $552 million in 2009 to $245 million in 2010.

This was because of the interruptions and difficulties experienced in late 2009 and the terminations of the preferred premium the company said.

"CAF has made a series of positive steps during FY2010 aimed at positioning the Group for growth and success in the future," the statement said.

"The IPF business has been significantly scaled back, but has not only survived these changes, it has consolidated its core areas and has worked hard to restore its market image and has successfully started the process of re-growing its business volumes," the statement said.