Shares in fintech group TruFin PLC (AIM:TRU) tumbled 32% in the first hour of trading after it emerged that its Satago Financial Solutions business had seen the early termination of an agreement with Lloyds Banking Group PLC (LSE:LLOY).
Satago was providing the high street lender single invoice finance and whole-of-book invoice factoring services. TruFin said that Lloyds' decision does not reflect the quality or robustness of Satago's platform.
In a bid to cushion the blow, TruFin said the strong performance of its Playstack operation meant the group was trading in line with market expectations and on course to deliver underlying (EBITDA) profitability this year.
The stock was marked down 24.4p to 51.6p.
Broker Panmure Liberum said: "The loss of Lloyds will reduce Satago revenues significantly, but cost savings combined with the fact Playstack is trading significantly ahead means we leave headline numbers unchanged."
That said, it cut its price target by 31p to 101p " due to mix changes in our sum of the parts". Still, it remains a 'buyer'.