Link Group happy with Superpartners progress
Friday, 26 February 2016 1:07pm

Link Group has reported a $4 million loss for the half-year to 31 December as a result of IPO costs but says it is seeing growth in all its revenue streams and is on track to meet its full year forecasts.

The $4 million loss includes costs of $26.9 million from its 2015 initial public offering as well as other significant items which include costs relating to business combinations, integration, client migrations and IT business transformation.

Revenue of $392.4 million is up 73% on the prior corresponding period.

"Link Group is enjoying strong momentum. The integration of Superpartners clients onto a single platform is proceeding smoothly, each of our revenue streams is recording pleasing organic growth and we continue to focus on each of our five strategic growth initiatives," Link Group managing director John McMurtrie said.

"This is a good result, in line with our prospectus forecasts and with significant year on year increases in revenue and Operating EBITDA. This performance, combined with the high level of Recurring Revenue and good quality earnings visibility, affirms that we are on track to meet the financial forecasts and dividend targets for the full year as set out in our prospectus."

The company's fund administration division saw half-year revenue rise from $133.7 million to  $285.4 million, driven by the increased contribution from the 2014 acquisition of Superpartners, the initial benefits from the Superpartners integration synergies and stronger fee for service activity.

McMutrie said: "The Superpartners integration program is well underway with MTAA Super and HESTA already fully migrated, Cbus and Hostplus to be migrated by 30 June 2016 and AustralianSuper migration to be completed by 31 December 2016."

Link Group also completed the acquisition of the AON administration business in the New Zealand market, the first opportunity to take the Fund Administration business outside of Australia.

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