Atos' new Chief Executive Rodolphe Belmer pledged on Thursday to start over with a clean slate after the French IT consulting group took total writedowns of2.4 billion euros ($2.7 billion) in the alternate- half of 2021, driving the company's shares down 5.
The company exited France's CAC 40 standard stock indicator and lost half of its request value last time after some account crimes and a failed attempt to acquire aU.S. group rained a loss in investor confidence, leading to the departure of Belmer's precursor, Elie Girard.
Belmer, who formally took over as CEO onJan. 20, a many days after Atos issued a profit warning for 2021 results, said the group would reorganise itself around three business units and revamp its 21- member superintendent commission. read further
"We've done the work exhaustively, completely and we've done it formerly and for all,"Belmer told judges on a call, pertaining to the impairment charges.
"We can now turn the runner and look forward to a whole new chapter for Atos,"he added.
The impairment charges were divided up between a write-down of about1.9 billion euros of its goodwill tied to a former structure accession and means like data centres and IT outfit plats.
This comes on top of an impairment charge of about 500 million euros of contract asset, reserves for bad debts and provision for unborn losses, stemming in good part from a contract with a fiscal institution in Britain, Atos said.
Belmer said he'd simplify the governance of the group, whose operation commission comprises 21 directors- including him-which he said was exorbitantly complex and hindered performance by decelerating down decision timber. Details of the revamp will given after request near, a prophet said.
He verified that the group's BDS cybersecurity was not for trade. Sources told Reuters last week that defence company Thales was working on a plan to buy Atos. read further
Atos, formed incompletely by a string of accessions under former CEO Thierry Breton, now EU assiduity chief, has deep links to France's security assiduity in which the state has the ultimate say-so over tie-ups.
It also revised down its guidance for 2021, saying its operating periphery in 2021 will be around3.5 in 2021. OnJan. 10, it said this periphery would be around 4.
It now read a drop of 2021 profit of about2.6 to10.8 billion euros, compared with a former cast of a drop of2.4.
Atos will present its reversal plan and modernize itsmid-term targets in the alternate quarter and report full- time earnings onFeb. 28.