The Link Administration Holdings Ltd (ASX: LNK) share price is having a tough finish to the week.
In morning trade, the ASX 200 share is down over 8% to a 52-week low of $1.78.
This means that Link's shares are now on course to lose over 50% of their value in the current financial year. This can be seen on the chart below.
Though, it is worth remembering that some of that decline relates to an in-specie distribution of PEXA Group Ltd (ASX: PXA) shares.
Why is this ASX 200 share sinking today?
Investors have been hitting the sell button on Friday after the company was dealt a blow by one of its largest customers.
According to the release, the company's contract for the provision of fund administration services to industry superannuation fund HESTA will not be renewed when it expires.
This is a big disappointment given that the current deal is expected to represent approximately 4% of Link's group revenue in FY 2023.
HESTA is planning to transition out of Link by the second quarter of FY 2025. The super fund revealed that it is moving to Grow Inc. for its outsourced administration services. HESTA CEO Debby Blakey said:
Partnering with Grow Inc. represents an opportunity for us to respond to the fast-changing needs of HESTA members in real time, enabling our services and experiences to support them whenever and wherever they need us.
The Grow Inc. platform is expected to help us improve member experiences, data management and provide us the flexibility to innovate at greater pace and more efficiently. That's going to help our members face the future with confidence and support a seamless super experience for our partners.
Earnings update
This news has overshadowed a positive finish to FY 2023 by the ASX 200 share.
The company revealed that it is on track to ever so slightly outperform its earnings guidance in FY 2023.
It advised that it now expects FY 2023 operating earnings before interest and tax (EBIT) growth to be slightly above the upper end of the 10% to 12% guidance range it provided with its first-half results.
All other guidance for FY 2023 has been reaffirmed by Link's CEO and managing director, Vivek Bhatia.
