Sopra Steria's profits have shrivelled by double digits for full-year 2018 after the French IT services firm racked up €30m in restructuring costs to aid the recovery of its ailing UK business.
Group revenues were up by 6.9 per cent to €4.1bn for the 12 months until 31 December 2018, but group operating profits tumbled by 14 per cent.
The Paris-based firm's homeland business grew its top line by 6.4 per cent during the year to €1.7bn, with operating profits up seven per cent to €131.8m.
But it was restructuring costs related to resuscitating its UK business which brought Sopra Steria to a year-on-year profit decline in 2018.
Operating profits in the UK fell by 52 per cent to just €18.7m for the year, while revenues contracted by one per cent to €783.1m.
The IT services firm shelled out almost €10m more in restructuring costs in 2018 than the previous year at €39.2m.
Sopra Steria launched a recovery plan for its UK business in 2017 which involved expanding its operations in the private sector as well as growing its consulting business and sales teams.
The firm's UK arm logged double-digit revenue declines that year, falling 13.6 per cent to €801.7m and profits by 38 per cent to €36.9m.
But the firm claims that the restructuring programme is starting to have a positive effect, taking solace in achieving organic revenue growth in the UK for the second half of the year.
"Some initial signs of encouragement were recorded as a result of the far-reaching transformation programme launched in the UK. Adjustments were made to human resources, and trends in revenue and operating profitability picked up in the second half," the firm claims.
Sopra Steria is aiming for organic revenue growth of between four and six per cent for full-year 2019 and a slight improvement in operating margins on business activity.
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