Atos Origin, one of the Europe's leading IT services company, today announced full results for the year ended 31 December 2007.
- Group revenue up +8.5% year-on-year, revenue organic growth at +4.3%
- Strong improvement of the operating margin at EUR 272 million (4.6% of revenue) including EUR 44 million of operating costs for the 3o3 plan
- Adjusted net income of EUR 140 million, representing EUR 2.03 per share
- Strong commercial momentum with numerous contract wins and a book to bill ratio of 106%
- Net debt reduction to EUR 338 million
- First proposed dividend ever at EUR 0.40 per share
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As communicated on 31 January 2008, full-year 2007 Group revenue reached EUR 5 855 million at +8.5% year-on-year growth and +4.3% revenue growth at constant scope and exchange rates above the Company's objective of +4.0%. This performance was achieved with an acceleration of the organic growth from +2.7% in the first semester to +5.9% in the second semester 2007 reflecting the full effect of the large contracts ramp-up in the United Kingdom for Managed Operations and an acceleration in most countries for Systems Integration.
The Group had an operating margin of EUR 272 million in 2007 representing 4.6% of total revenue above the EUR 247 million achieved last year. Excluding operating transformation costs for the 3o3 plan, the operating margin was EUR 316 million representing 5.4% of revenue compared to 4.6% in 2006.
The performance was led by Managed Operations with an operating margin at EUR 274 million at 8.7% of revenue in 2007 compared to EUR 234 million in 2006 at 8.5% of revenue. This improvement was achieved thanks to the full effect in the second half of 2007 of new contracts signed in the United Kingdom last year and from the business mix change with higher contribution of the Atos Worldline activities, including Banksys. Significant operational transformation has been engaged in Managed Services in 2007 through the Global Factory initiative in areas such as mainframe and data centres consolidation, desktop services and server management optimization. In Systems Integration, the operating margin reached EUR 96 million at 4.1% of revenue compared to EUR 69 million representing 3.1% of revenue in 2006. This improvement derived from a tightened risk management control on projects, from volume increase, and from a lower loss in Italy. The Group invested in Industrialization and Offshoring 3o3 initiatives for EUR 16 million in 2007. The operating margin decreased in Consulting to EUR 18 million in 2007 compared to EUR 37 million in 2006: circa half of the decrease came from lower revenue due to ramp-downs of contracts in the United Kingdom and in France. The other half came from a lower utilization rate. Actions have been engaged during the second half to develop synergies with Systems Integration and Managed Operations on sales and delivery in order to restore both revenue growth and productivity. Corporate costs remained stable at EUR 92 million excluding 3o3 operating costs. The 3o3 operating expenses in Corporate amounted to EUR 24 million corresponding to the 3o3 plan build up for the support functions including sales. This will benefit in the future to the countries operations and the Global Service Lines.
The operating income reached EUR 137 million in 2007. The total net other operating expenses were EUR 135 million in 2007. The restructuring and rationalization costs were EUR 98 million. The other exceptional charges amounted to EUR 57 million related to the termination of the NHS Diagnostics contract and the disposal of Italy. Full-year 2007 net income was EUR 48 million compared to a net loss of EUR 264 million in 2006. The adjusted net income reached EUR 140 million increasing by +27% compared with last year and representing an adjusted earning per share of EUR 2.03.
The net debt was reduced to EUR 338 million at the end of December 2007 compared to EUR 509 million at the end of June 2007 and EUR 360 million at the end of December 2006. This reduction was achieved thanks to a strong operating cash flow and a significant seasonal inflow of working capital in the second semester. This performance contributed to the financing of restructuring and rationalization for EUR 104 million and net capital expenditures at 5% of Group revenue.
The Supervisory Board decided to propose, for the first time, the payment of a dividend of EUR 0.40 per share at the forthcoming Annual General Meeting of Shareholders. This is a clear sign of confidence of the Group on its future. Atos Origin is determined to share value with its shareholders and to place them at the centre of its priorities.
In 2008, the Group will continue to invest in Sales, Industrialization and Global Delivery through the 3o3 transformation plan and will accelerate the offshoring strategy. Investments will be done in distinctive offers in order to accelerate the organic growth.
The Group has set the following objectives for 2008 on the new scope excluding Italy sold at 31 January 2008 and the future sale of Exchange operations from Atos Euronext Market Solutions which are expected to be transferred to NYSE Euronext during the third quarter of 2008:
- Achieve a revenue organic growth of +4%
- From the 4.6% reached in 2007, to continue the improvement of the operating margin rate by +100 basis points
- Net debt reduction of EUR 100 million after dividends payment, cash out for the pensions in the UK and proceeds from disposals Italy and Exchange AEMS.
Philippe Germond ? CEO of Atos Origin said: "2008 will be a turning point for Atos Origin with the acceleration and the strengthening of the Transformation plan. We have now established the foundations that will allow us to improve competitiveness, and to increase substantially our profitability. More than ever, I am determined to develop the Group's full potential and accelerate value creation". A webcast in English will be held today 15 February 2008 at 10:30 am, CET time. The operational and financial reviews as part of the 2007 annual report in English will be available today on the Company's website
|30 April 2008 |
22 May 2008
|First quarter 2008 revenue |
2007 Annual Shareholders Meeting
The document contains further forward-looking statements that involve risks and uncertainties concerning the Group's expected growth and profitability in the future. Actual events or results may differ from those described in this document due to a number of risks and uncertainties that are described within the 2006 annual report filed with the Autorités des Marchés Financiers (AMF) on 6 April 2007 as a Document de Référence under the registration number: D07-302. About Atos Origin Atos Origin is an international information technology services company. Its business is turning client vision into results through the application of Consulting, Systems Integration and Managed Operations. The Company's annual revenue is EUR 5.8 billion and it employs 50,000 professionals in 40 countries. Atos Origin is the Worldwide Information Technology Partner for the Olympic Games and has a client base of international blue-chip companies across all sectors. Atos Origin is quoted on the Paris Eurolist Market and trades as Atos Origin, Atos Worldline and Atos Consulting.