POWERED BY MOMENTUM MEDIA
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
Laura Dew is editor at Super Review. Prior to joining SR, she spent five years working at Investment Week in the UK covering asset and wealth management.
Recommended for you
The Future Fund’s CIO Ben Samild has announced his resignation, with his deputy to assume the role of interim CIO.
The fund has unveiled reforms to streamline death benefit payments, cut processing times, and reduce complexity.
A ratings firm has placed more prominence on governance in its fund ratings, highlighting that it’s not just about how much money a fund makes today, but whether the people running it are trustworthy, disciplined, and able to deliver for members in the future.
AMP has reached an agreement in principle to settle a landmark class action over fees charged to members of its superannuation funds, with $120 million earmarked for affected members.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
76.97 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
76.46 3 y p.a(%)
3
UBS Solactive Global Pure Gold Miners UCITS ETF Dis USD
51.13 3 y p.a(%)
4
Global X GlobalX FANG+ ETF
45.15 3 y p.a(%)
5
Select Baker steel Gold Institutional
43.78 3 y p.a(%)
