Atos Origin Q2 net income dives; wins NFU Mutual IT outsourcing contract

Source: Atos Origin

Atos Origin, a leading international information technology services provider, today announced that for the six months ended 30 June 2006 organic revenue growth was +2.9%, generating an operating margin of 5.1% and a normalised net income of EUR 86 million.

Bernard Bourigeaud, CEO, declares: "Since our July announcement, we have been active. In the UK, a new organisation has been launched, 3 new consulting partners have been recruited and we are progressing rapidly towards signing some large contracts – we have currently preferred bidder status on EUR 900 million total contract value.

In Italy, given that the outlook is really tough, we took the decision to undertake a restructuring of our Italian operations to ensure that the future profitability improves, despite the market environment. We are now ready to launch the programme after discussions with the worker councils this summer. A new simplified organisation is already in place. In addition, we have made an impairment of our goodwill.

We are preparing for a rebound in growth and profitability in 2007."

The company also announced that NFU Mutual has selected of Atos Origin as the preferred external provider of IT technical services and some of its IT customer services.

Atos Origin was selected after a detailed evaluation process and was chosen from amongst the leading providers of IT outsourcing services. Negotiations are continuing, however contracts confirming the arrangements are due to be signed shortly.

"We are delighted to have been chosen as preferred bidder and look forward to the potential opportunity to work closely with NFU Mutual to manage a successful outsourcing transition programme and to effectively deliver meaningful IT solutions to the business," said Joe Edwards, Vice President - Financial Services for Atos Origin. "The team has considerable experience of working with financial institutions and relishes the chance to share that knowledge and expertise across NFU Mutual."

As a result of this around 80 of NFU Mutual's IT staff, mostly based in Stratford upon Avon, will be transferred to Atos Origin later this year. The bulk of the company's IT functions will however continue to be provided in-house.

William Schouten, NFU Mutual Corporate Services Director, said: "Outsourcing these parts of the company's IT operations will bring greater flexibility and deliver cost savings whilst providing service levels to meet changing business needs.

"The choice of supplier focused not only on their ability to provide the required expertise and levels of service, but also their fit with our culture and their commitment towards the welfare and development of employees.

"We are convinced that Atos Origin will deliver in all of these areas and look forward to a successful partnership."

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