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.”
The proposed reforms have been described as a key step towards delivering better products and retirement experiences for members, with many noting financial advice remains the “urgent missing piece” of the puzzle.
Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Coalition, which has pledged to reverse any changes if it wins next year’s election.
In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges.
Chant West analysis suggests super could be well placed to deliver a double-digit result by the end of the calendar year.