Atos says it has secured financing for its transformation plan, shares jump – 07/27/2022 at 11:19

(Updated with inventory market reactions,)

PARIS, July 27 (Reuters) – Atos ATOS.PA mentioned on Wednesday it had “efficiently secured” funding for its transformation plan and expects second-half income progress to speed up, boosting its headline on the Paris inventory change.

The group has been going by way of a interval of turmoil and has struggled to reassure buyers in current months, marked by two main modifications and the downgrading of its credit standing to BB by scores company S&P in mid-July.

Atos headlines have been up greater than 6% by mid-morning, outperforming the Parisian market up 0.4% at the identical time, however nonetheless down almost 70% because the begin of the yr.

The IT and cyber safety group reported in its press launch on the primary-half outcomes of “a pointy enchancment in industrial dynamics”, significantly illustrated by a robust improve within the ratio of orders to gross sales to 101% within the second quarter, in comparison with 72% within the first quarter.

“This ramp-up in industrial momentum (…) demonstrates sturdy help for the deliberate transformation plan from Atos clients, with greater than 0.6 billion euros in new orders signed after its announcement”, it was famous within the press launch.

Atos nearly concurrently introduced a plan final month to separate up its operations forward of a possible settlement and the departure of its CEO, Rodolphe Bellmer, resulting in a contemporary motion of mistrust within the inventory market.

➦ Atos cut up plan and CEO exit scare buyers

Atos additionally stories adverse free money stream within the first half, -555 million euros, and expects it to stay within the purple for the complete yr, “excluding the extra influence of deliberate transformation plans within the vary of -150 million euros to 200 million euros, which is “roughly -250 million Euros, together with financing prices”.

If the group subsequently plans to burn about half a billion in money in 2022, “free money stream, excluding further prices related to the transformation plan, ought to enhance very considerably”, with a big restoration of working margins anticipated within the second half .

Atos maintained its income progress goal for 2022, concentrating on between -0.5% and +1.5% at fixed change charges and an working margin for the yr within the beforehand outlined “low vary of three% to five%”.

The group additionally underlined in its press launch that the financing of its transformation plan has been “efficiently secured”.

“The transition interval is now absolutely funded, and the group’s liquidity has strengthened considerably,” it mentioned.

The group obtained a dedication of 1.5 billion euros in time period loans and a revolving credit score facility of 900 million euros and famous that “the ultimate documentation needs to be signed within the coming days”.

In saying its transformation plan in June, Atos introduced the disposal of non-strategic belongings value round 700 million euros, of which 480 million have but to discover a purchaser.

The group has already offered its 2.5% stake in funds firm Worldline WLN.PA as a part of this settlement plan, enabling it to boost 219 million euros.

(Written by Merriam Rivet, edited by Nicholas Delam and Kate Entinger)


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