Atos announces CEO departure, warns on cash flow

(Sharecast News) - Atos tumbled on Monday as it announced the departure of its chief executive and warned on cash flow. The French technology company said that Paul Saleh has been appointed CEO with immediate effect, taking over from Yves Bernaert, who leaves the group "after an intense period of transformation".

Chairman Jean-Pierre Mustier said: "Paul is a seasoned senior executive, with extensive experience in corporate finance, corporate turnarounds and restructuring - including within the technology industry. He is the right person to lead Atos during this period of transformation as we take decisive and disciplined action to secure the long-term sustainability of our business to the benefit of our 105,000 employees, our clients and our investors."

The group also said that Jacques-Francois de Prest has been appointed chief financial officer with effect from 29 January.

Atos confirmed it will meet its profit and revenue guidance for the year but cautioned that free cash flow is expected to be "slightly below" its target by around €100m.

"As per the market update issued on January 3, 2024, Atos's strategy has been adjusted in light of financial constraints to ensure the repayment and refinancing of its financial debts while maintaining an attractive business mix," it said.

At 0950 GMT, the shares were down 11.5% at €4.31.