Atos UK continued to shine as the key European growth market for the Paris-based player. Half-time revenues (to 30th June) for the UK unit grew by 6.0% (constant scope & currency) to €833m, whereas much of the rest of Europe was in decline, including Atos’ home market where revenues fell by nearly 10% to €514m. Only Atos’ North America unit outpaced the UK, showing nearly 15% growth to €312m. UK operating margins improved by 80bps to 7.7%.
Much of the UK growth was the result of some stonking deals last year, with the momentum continuing in 2013 with the win at the MoD (see here) and the welcome renewal of the erstwhile Siemens contract at NS&I (see here). Perhaps the only sign of cloud on the UK horizon is the Government’s plan to open up Atos’ flagship medical benefits assessment contract with the DWP to other suppliers (see here).
Worldwide, Atos group revenues declined by 0.6% to €4.29bn, but group operating margins expanded by nearly a point to 6.5%. Management held to prior FY guidance of ‘slight’ revenue growth in 2013 and operating margin boost from 6.6% to ‘around’ 7.5%, implying a return to growth and greater profitability in H2.