In an ASX listing on Thursday, Link Group confirmed revenue of $593.6 million for the six months to 31 December, down 0.6 per cent on the corresponding prior year period.
The group's statutory loss after tax of $81.7 million was a result of a non-cash impairment charge of $81.6 million related to the banking and credit management business and rationalisation of group premises footprint.
Link's less-than-impressive performance was partly due to client exits in its Retirement & Superannuation Solutions (RSS) sector, the sale of the Link Market Services business in South Africa and normalisation of activity linked to regulatory changes and COVID-19.
“Link Group continues to deliver in a challenging operating environment," said CEO and managing director, Vivek Bhatia.
"Our strong balance sheet and cash flow conversion has allowed us to invest further in technology and our people to cement our leadership positions in RSS and CM [corporate markets], and drive revenue and profit growth in FY23 and beyond."
RSS revenue for the 1H FY22 decreased by 2.3 per cent to $252.2 million, representing 42 per cent of group revenue, largely on account of lower one-off non-recurring revenue.
Increased member numbers and service contract wins were slightly offset by client exits due to industry merger activity last year. However, 340,000 new members are expected to be onboarded in 4Q FY22.
Link’s Corporate Markets business generated revenue of $189.6 million, up a slim 0.3 per cent, while the fund solutions business posted gains of $93.6 million on the back of an acquisition and favourable equity markets.
The company confirmed that after more than 34 years in the business, Chris Addenbrooke, CEO of FS, would be retiring, with Karl Midl due to step in.
Link declared a fully franked dividend of three cents per share.
Maja Garaca Djurdjevic
Maja's career in journalism spans well over a decade across finance, business and politics. Now an experienced editor and reporter across all elements of the financial services sector, prior to joining Momentum Media, Maja reported for several established news outlets in Southeast Europe, scrutinising key processes in post-conflict societies.
