Atos Origin's UK arm is a drag on the firm’s recovery, interim results released today show.

The French service outfit said revenues in the first half were up 7.2 per cent to €2.9bn. Operating income was &€108m, up on last year's €59m, with an operating margin of 4.1 per cent, with net profit coming in at €57m.up from €10m last year.

Atos’ consulting revenues were down 6.5 per cent, with the UK taking the blame. Systems integration revenues were up 3.9 per cent overall, but decreased in the UK and Italy, following restructuring begun in 2006. In managed operations, all the large territories were “progressing” – except the UK.

Just to add to its unease in the UK, the firm confirmed that on July 25, the UK Department of Health terminated its diagnostics services contract.

Still, perfidious Albion apart, the firm said it was sticking to its target of 8.5 per cent revenue growth for the year, and expects full year operating margins to be around 4.6 per cent.®