(AOF) – Two weeks after the presentation of its 2024-2027 business plan, Atos warned that it would be revised, leading to an increase in the need for new liquidity and potentially a reduction in additional debt. On the stock market, the shares of the IT group in difficulty lost 3.84% to 1.9134 euros. The group did not provide further details, but a communication to the market will be made in the coming days. The new plan will take into account “current market conditions and business performance in the first quarter of the year.”
At the beginning of April, the struggling IT group estimated its refinancing needs at 1.2 billion euros. Atos then specified that 600 million euros of liquidity are necessary to finance the activity over the period 2024-2025.
According to its 2024-2027 business plan, Atos is expected to burn through 593 million in cash between 2024 and 2025 before returning to positive free cash flow. It also needs 300 million euros in new revolving credit lines and 300 million euros in additional bank guarantee lines.
He logically announced the extension of the deadline for refinancing proposals to May 3. Atos still aims to reach a refinancing solution with financial creditors by July 2024.
Atos had net debt of 3.9 billion euros at the end of March, “reflecting a decrease in specific working capital actions of 1.3 billion euros compared to December 2023”. Its cash position amounts to 1 billion euros.
In the first quarter of 2024, the group’s operating margin amounted to 48 million euros, or 1.9% of turnover compared to 3.3% the previous year. Turnover came to 2.48 billion euros, an organic decrease of 2.6%. Eviden recorded a decrease of 3.9% on a comparable basis, “reflecting the weakness of the markets in the Americas and the United Kingdom”. Tech Foundations experienced an organic decline of 1.5%, “reflecting reductions in contractual scope for certain clients in the Americas and Central Europe”.
On the commercial front, the group announces order intake of 1.6 billion for an order intake to turnover ratio of 64% compared to 73% last year.
“In general, management specifies that the group was impacted by postponements in the award of new contracts and additional work, with clients awaiting the finalization of the refinancing plan,” reports Invest Securities.
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