Atos Origin's 2006 results have been severely dented by its performance in the UK, which has led to restructuring.

The consulting group's revenues were 5.4bn euros, compared with 5.45bn euros in 2005. Operating profit fell to 270m euros, from 413m euros a year earlier, blaming delays in business deals in the UK and a tough environment in Italy.

'The year has been severely affected by a 12.6% decline in revenues in the UK resulting from four major contract ramp-downs (one in consulting and three in managed operations), which were not compensated for by new business. Excluding the UK, group revenues were up 5.4%,' Atos stated.

However, the group expects the figures to pick up after order entries grew towards the end of the year.

A major restructuring programme is underway in the UK in a bid to create future profitability.

UK operating margins declined by 91m euros, which included 47m euros of extra costs for completing several difficult projects and lower utilisation rates in consulting.

A three-year plan of cost-cutting and integration across back office functions has already begun across Europe.

New managers have also been appointed in the UK, Netherlands, Italy, Belgium, France, group sales and finance.

KPMG recently nabbed Atos' head of consulting Bernard Brown, in what was considered another step further back into consulting for the accounting giant.

Further reading:

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