For the year ending December 2004, Atos Origin posted a net profit of 11m euros ($14.7m), compared to a net loss of 169m euros ($227m) in 2003. The swing into profit was helped by the Sema acquisition that was completed at the beginning of 2004, and a pick-up in technology spending. Sales meanwhile were inflated 75% from 3.03bn euros ($4.07bn) in 2003, to 5.30bn euros ($7.11bn) in 2004.
Acquisitions in the IT services sector are notoriously difficult to integrate, but the company has built a strong reputation for smoothly executing mergers and acquisitions, and is now predicting that it will achieve underlying revenue growth of at least 5% and an operating margin of 7.5% to 8.0% in 2005.
It is basing this outlook on a clear recovery in the market, on the steady flow of new orders announced since the beginning of the second half of 2004, and an increase in our pipeline of order opportunities, the company said in a statement.
Given the improved level of profitability and a reduction in the cash cost of restructuring, the company also said it expects net debt to fall to 350m euros ($470m) by the end of 2005, excluding any further proceeds from business disposals.
Meanwhile, further good news was revealed after the company revealed that it has just won a massive UK government contract worth GBP500m ($960m) over seven years.
