Konekt loses a customer worth 14pc of its revenue – and it’s not their fault
Health & Biotech
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Workplace health monitor Konekt has lost a major customer — and it’s not even their fault.
On Monday, Medibank Private said the Department of Defence had rejected it as a preferred tenderer to renew its contract with them.
The ramifications of that loss include Konekt (ASX:KKT), which through Medibank has offered rehab services to the department for the last six years.
It’s going to cause a $12m hole in their forecast revenue for the 2020 financial year.
The Medibank/ADF contract made up 14 per cent of Konekt’s total revenue in 2018.
The contract ends in July next year.
Before signing on with Medibank, Konekt used to provide its services directly to the department and the Australian Defence Force (ADF).
Konekt has been contacted for comment.
The company’s stock has been declining since the middle of 2017. It dropped 8 per cent to 22c after the news of the contract loss.