Shares in outsourcing giant Capita (LON:CPI) jumped in early trading on Monday, after the company announced it had sold its fund administration business for £888 million.

Capita sold the division, which administers around £50 billion of fund assets, to Australian firm Link Administration Holdings. The asset management had presented problems for the company, showing stable growth but becoming costly after it provided administration services for the failed Arch Cru and Connaught funds.

“Capita has secured an excellent price for the disposal of Capita Asset Services,’ said Julian Cater, analyst at Numis, told Citywire.

“This will significantly de-gear the balance sheet”.

Shares in Capita rose on the announcement, currently trading up 2.68 percent at 710.00 (1255GMT). However, its shares have fallen nearly 30 percent over the past year, dropping out of the FTSE 100 in March after a spate of profit warnings.