This morning Link Administration Holdings Ltd's (ASX: LNK) management team told investors to expect full year "operating EBITDA" between $350 million to $360 million and operating NPATA to be between $195 million to $205 million.
The Link share price is down nearly 20% to $6.23 in response to the news.
By way of comparison for the six months ending December 31 2018 Link posted an adjusted operating EBITDA of $185.4 million.
This result is below previous expectations with Link's management team identifying a couple of areas of lower-than-expected performance.
Its Link Asset Services business in the UK has suffered from the country's Brexit paralysis."The continued uncertainty is contributing to lower levels of business related activity, capital markets and share dealing revenues, conversion of new business wins and revenue growth. By way of example, our Link Market Services business in the UK has won a number of IPO mandates that have been subsequently postponed due to Brexit uncertainty," the company explained.
Its fund administration business in Australia is also seeing adverse impacts from regulatory change in the form of The Treasury Laws Amendment (Protecting Your Super Package) Act 2019. Generally the change has lead to higher costs for Link, with the principal impact of the legislation still to be felt in FY 2020.
