Auditors have issued a warning about the financial stability of key government technology supplier Atos due to a significant debt revelation of $5bn. Grant Thornton auditors highlighted in the latest accounts of Atos UK that the parent company’s financial troubles could impact its ability to access cash and continue trading if refinancing efforts are unsuccessful.
Atos is a strategic supplier for the UK government, providing IT systems to various departments and public bodies such as the Home Office, the Department for Work and Pensions, and the NHS. With 43 active government contracts totaling almost £1bn in revenue, Atos handles tasks such as disability benefit assessments, managing NHS appointments, file sharing systems, and software testing.
The wider Atos Group has been working on business transformation efforts since June 2022, aiming to divest non-core business units. However, the revelation of nearly $5bn in total debt led to the announcement of financial restructuring plans in April 2024. The auditors cautioned that the outcome of these discussions could potentially be unsuccessful, raising doubts about the firm’s future.
Despite a failed rescue bid led by Onepoint, Atos is in talks with Czech billionaire Daniel Křetínsky and bondholders for potential restructuring solutions. The company assured that it is undergoing financial restructuring to secure a stable future globally and in the UK while continuing to provide high-quality services to its customers.
The Cabinet Office is said to be developing contingency plans in case Atos faces further financial challenges, including the possibility of bringing in alternative IT suppliers. Specialist IT outsourcing lawyer Mark Lewis emphasized the importance of effective execution of contingency plans, recognizing the complexity of managing such a transition smoothly.