By Alice Uribe
SYDNEY–Link Administration shares fell sharply early Friday after the company announced it had lost a pension fund client.
Shares in Australian record-keeping technology and information-solutions company fell 7.6% to 1.79 Australian dollars (US$1.18) in morning trade, making it the session’s worst performer on the ASX200 so far.
Link on Friday said that Australian pension fund Hesta would not be renewing its fund administration contract and planned to transition out by 2Q of FY 2025.
Hesta accounts for around 4% of Link’s FY 2023 estimated group revenue, it said.
Still, Link reaffirmed its FY 2023 guidance provided in February and said it now expected operating earnings before interest and taxes growth to be slightly above the upper end of the 10%-12% guidance range.
Link last month said it had entered into a contract with another Australian pension fund named Rest.
Link shares are down 9.2% so far this year.
Write to Alice Uribe at [email protected]
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