Atos UK has delivered a strong set of half year results on the same day that the Olympic Games kick off in London, for which it is the key IT partner.
The appointment of new UK CEO, Ursula Morgenstern, at the beginning of the year seems to be helping the UK market buck the general trend of declining revenues in Europe.
Anthony Miller, managing partner at analyst firm TechMarketView, highlights that with 6.7 percent like-for-like growth, to £635 million, Atos UK has moved up the rankings to become Atos’ second fastest growing market behind North America, which was up 8.6 percent.
Miller said: “The UK business shined in almost every respect: operating margins expanded by nearly a point year-on-year to 6.9 percent, ahead of the group aggregate 5.7 percent margin; systems integration revenues remain ‘solid’ vs. a two percent decline at group level; HTTS (transaction process) revenues grew by 20 percent; and consulting revenues – previously a problem child for Atos UK – leapt 16 percent.”
Although, Miller also highlights that Atos Managed Services in the UK appears to be its ‘soft spot’, which only posted ‘slight growth’. However, the UK results are much stronger than many other parts of Europe, including France and Benelux, which are in decline.
A five-year extension of Atos’ long-standing contract with the Welsh Government is likely to have buoyed its UK results, where it will provide IT services up until 2019 as part of the £70 million deal.
However, it was also revealed earlier this month that more than 1,500 workers at Atos IT Services and Atos Healthcare, who are members of the Public and Commercial Services Union, were threatening to go on strike this summer over low pay.
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