Auditors have warned that the British arm of Atos – the French technology firm which is a key supplier to the NHS and UK Government departments – faces “material uncertainty” about its ability continue as a running concern.
Grant Thornton’s audit firm said that financial difficulties facing the parent company in France may limit the UK’s ability access cash or continue as a business.
Atos UK revealed its total debt was nearly €5bn in April. The company is looking into financial restructuring options to stabilize its finances.
The Times reported the findings of the auditors, which warned that the UK branch could be unable to pay its own debts if it failed to successfully meet, renegotiate or sell loans.
Atos is among the 40 strategic suppliers of the UK Government, a grouping of contractors who hold contracts worth billions of pounds with government departments.
Researchers at data firm Tussell estimate that Atos’ revenue is almost 1bn PS from 43 contracts. These include IT systems for the NHS and the Ministry of Defence.
The government is monitoring Atos’s financial troubles. According to the i, the government has prepared contingency plans for maintaining public services in the event that Atos cannot meet the requirements. The plans reportedly include finding other IT providers to take over these services if Atos cannot.
French IT company struggling to pay off its debts has had a turbulent couple of years. The company’s shares have fallen 97% since then, and it has had four CEOs in just two years.
In its fundraising plan, it tried to sell some of its business. The French government offered €700m this month to buy important assets in its security and data divisions.
The company also attempts to reach a rescue agreement that would restructure their debt.
After talks with a group of investors led by David Layani’s Onepoint fell through, the company announced on Wednesday that it had received a new restructured deal from a bondholders committee.
Grant Thornton stated in the 2022 accounts that the uncertainty and wider problems surrounding the restructuring of the company could have a significant impact on its UK branch.
Atos spokesperson said: “Atos currently undergoes a financial restructuring which will create a secure financial future in the UK and globally.”
“The provisioning of services to our clients has not been affected and we will continue to provide high-quality service to the UK private and public sectors as we have done for more than 30 years.”
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