IT services provider Atos Origin has posted losses of €264m (£178m) in its full-year results for 2006, blaming problems with its UK and Italian businesses.
The losses compare with profits of €235m (£158m) declared in 2005. The company was forced to take a €378m (£255m) hit in impairment charges on its UK and Italian businesses, where reorganisations are under way.
The UK shake-up was sparked by “delays in new business”, while there was a “difficult market environment” in Italy, Atos Origin said in a statement issued with the results.
The IT services group’s revenues for the year were €5.4bn (£3.6bn) overall.
The company said that major UK contracts signed by the end of 2006 would start “contributing progressively” to revenues and profits in 2007. Key Atos contracts include those with the Department of Constitutional Affairs, NHS Scotland and the Government Gateway web portal.
The company is engaged in a major business transformation plan that has led to the creation of a new executive board. As part of the plan, Atos is seeking to standardise processes and tools through systems integration.
Atos Origin chief executive Bernard Bourigeaud said the focus of 2007 would be “to strengthen the management team, restore the profitability in the UK and Italy and execute the transformation plan”.