Super M&A activity weighs on Link revenue
Industry merger activity has led to revenue for Link’s retirement and superannuation solutions (RSS) business declining 2.3%.
In its results for the six months to 31 December, 2021, the firm said RSS revenue declined 2.3% to $252.2 million while recurring revenue was down 1.3%.
Increased member numbers and service contracts were offset by client exits due to industry merger activity. However, 340,000 new members were expected to be added in Q4 FY22.
In its fund solutions business, revenue was $93.6 million thanks to the completion of an acquisition and favourable equity markets.
Chris Addenbrooke would be retiring as chief executive of the funds solution business and would be replaced by Karl Midl, who joined the firm in 1995.
The group’s statutory net loss after tax was $81.7 million, compared to a loss of $163 million at the end of June 2021, and was due to a non-cash impairment charge of $81.6 million.
Net operating cashflow was down 35% from $192.3 million to $125.7 million while revenue was down 0.6% from $597 million to $593.6 million.
The company declared a final fully-franked dividend of three cents per share.
Vivek Bhatia, chief executive and managing director, said: “Link Group continues to deliver in a challenging operating environment.
“We are on track to deliver on our transformation program commitments by financial year end and continue to see benefits from our global hub strategy in the form of increased efficiencies and automation.”
AUTHOR
Laura Dew
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