France-based ICT group Atos has published preliminary 2021 financial figures saying that they are below the revised guidance published in mid-July, when the company lowered its annual objectives following a slower-than-expected recovery in the first half of the year. Rodolphe Belmer, who took the helm of Atos on 01 January, noted that most of the items underlying the "severe gap" with guidance were non-recurring in nature.
Based on the preliminary results, annual revenues fell 2.4 percent at constant currency to EUR 10.8 billion, compared with the company’s target of a "stable" performance, while the operating margin amounted to around 4 percent of revenue (lower than the 6% guidance). From a positive result in 2020 (EUR 513 million), Atos' free cash flow was a negative figure of EUR 420 million, partly impacted by working capital.
The group indicated that performance in the second half of the year was affected by several factors, including delays on expected contracts, project slippages, reduced level of hardware/software resale, and a major revision of a multi-year project for a large UK financial institution, which translated into a negative revenue impact in 2021.
Belmer said that he will present objectives for the current year on 28 February, when the company will release its full-year financial report. He will also announce a reorganised board of directors at the end of next month, and a turnaround strategy in the course of the second quarter.
