Atos - comment

Atos released very weak revenue figures. However, as the Company does not disclose EBITDA figures, we are unable to verify management’s claims that the revenue decline was partly due to the loss of lower-margin business. The weakness was evident across all regions, with organic revenue down 10 per cent, which is worse than even our most pessimistic expectations.

The Company has reduced its guidance for FY25 but maintained guidance for FY26, which we find difficult to believe. On the positive side, the Company has maintained its liquidity levels. Nevertheless, the overall narrative remains a turnaround equity story.