Amsterdam, 24 February 2017
Key points Q4 2016
-
Revenue down by 27% to EUR 211 million
-
Gross margin up to 21.9% from 20.1%
-
Operating costs up by 10% to EUR 44
million
-
Operating costs include EUR 3.5 million for
restructuring in Energy
-
EBIT down from EUR 18 million to EUR 2
million
Key points FY 2016
-
Revenue down by 28% at EUR 885 million
-
Gross margin at 21.1% from 18.7%
-
Operating costs down by 8% to EUR 160
million
-
EBIT down by 52% to EUR 27 million
-
Net profit at EUR 11 million
-
Proposed dividend EUR 0.40 per share
Brunel International (unaudited) |
|
|
|
|
|
P&L amounts in EUR million |
|
|
|
|
|
|
Q4 2016 |
Q4 2015 |
Change % |
FY 2016 |
FY 2015 |
Change % |
Revenue |
210.6 |
287.2 |
-27% a |
884.9 |
1,228.9 |
-28% b |
Gross
Profit |
46.2 |
57.6 |
-20% |
187.1 |
230.0 |
-19% |
Gross
Margin |
21.9% |
20.1% |
|
21.1% |
18.7% |
|
Operating costs |
44.1 |
40.0 |
10% c |
160.3 |
173.9 |
-8% d |
EBIT |
2.1 |
17.6 |
-88% |
26.8 |
56.1 |
-52% |
EBIT
% |
1.0% |
6.1% |
|
3.0% |
4.6% |
|
|
|
|
|
|
|
|
Average directs |
9,078 |
10,604 |
-14% |
9,315 |
10,894 |
-14% |
Average indirects |
1,435 |
1,539 |
-7% |
1,481 |
1,601 |
-7% |
Ratio
direct/indirect |
6.3 |
6.9 |
|
6.3 |
6.8 |
|
a -27% at
constant currencies
b -27% at
constant currencies
c -9% at
constant currencies
d -7% at
constant currencies
Q4
2016 results
Revenue
Revenue development in Q4 in Europe appears flat year on year.
However, this is composed of growth in Germany and other Europe,
offset by a decrease in The Netherlands. Energy managed to achieve
a slight increase compared to Q3 due to some short term projects,
but still a strong decline compared to last year.
Gross
Profit
As a result of the change in business mix with higher margins in
Europe compared to Energy, the gross margin improved by 1.8ppt to
21.9%.
Operating
Costs
Operating costs are impacted significantly in Q4 by one off
restructuring and redundancy cost. Adjusted for these costs
operating costs are at the same level as last year. The decrease in
Energy is offset by an increase in Europe.
EBIT
EBIT in Europe dropped compared to a very strong Q4 in 2015, and
also the decrease in Energy was significant. Overall EBIT decreased
by 88% to EUR 2 million in the fourth quarter.
Q4
2016 results by division
Brunel Energy (unaudited) |
|
|
|
|
|
P&L amounts in EUR million |
|
|
|
|
|
|
Q4 2016 |
Q4 2015 |
Change % |
FY 2016 |
FY 2015 |
Change % |
Revenue |
100.4 |
174.3 |
-42% a |
447.1 |
813.7 |
-45% b |
Gross
Profit |
11.4 |
20.2 |
-43% |
49.2 |
96.3 |
-49% |
Gross
Margin |
11.4% |
11.6% |
|
11.0% |
11.8% |
|
Operating costs |
14.7 |
15.1 |
-2% c |
50.8 |
67.3 |
-24% d |
EBIT |
-3.3 |
5.0 |
-166% |
-1.6 |
29.0 |
-106% |
EBIT
% |
-3.3% |
2.9% |
|
-0.4% |
3.6% |
|
|
|
|
|
|
|
|
Average directs |
4,292 |
5,808 |
-26% |
4,596 |
6,333 |
-27% |
Average indirects |
516 |
649 |
-21% |
571 |
707 |
-19% |
Ratio
direct/indirect |
8.3 |
9.0 |
|
8.0 |
9.0 |
|
a -44% at
constant currencies
b -44% at
constant currencies
c -6% at
constant currencies
d -23% at
constant currencies
Revenue
Revenue increased slightly compared to Q3 due to some short term
projects. Year on year revenue for Q4 reduced by 42% and the
decrease was felt in all regions. Australasia and Thailand were
impacted mostly as a result of finished work for offshore projects.
The impact of Fx differences is limited when comparing Q4 2015 to
Q4 2016.
Gross
Profit
The gross margin appears to remain stable compared to last year.
However, this is impacted by a change in the mix. On average the
decrease in headcount has been less in areas with an average higher
margin. The industry is still facing margin pressure.
Operating Costs
In Q4, we have been able to finalize most of our restructuring and
cost saving initiatives. This has caused EUR 3.5 million of one off
expenses. We have closed or paused some of our activities in Africa
and Asia.
Adjusted for the one off costs operating costs in Q4 were reduced
by 26% compared to Q4 2015.
EBIT
EBIT dropped to EUR -3 million due to lower revenue and the
restructuring costs.
Brunel Europe (unaudited) |
|
|
|
|
|
P&L amounts in EUR million |
|
|
|
|
|
|
Q4 2016 |
Q4 2015 |
Change % |
FY 2016 |
FY 2015 |
Change % |
Revenue |
110.1 |
112.9 |
-2% |
437.8 |
415.3 |
5% |
Gross
Profit |
33.9 |
37.1 |
-9% |
137.9 |
133.4 |
3% |
Gross
Margin |
30.8% |
32.9% |
|
31.5% |
32.1% |
|
Operating costs |
25.8 |
23.8 |
8% |
100.0 |
99.0 |
1% |
EBIT |
8.1 |
13.4 |
-39% |
37.8 |
34.4 |
10% |
EBIT
% |
7.4% |
11.8% |
|
8.6% |
8.3% |
|
|
|
|
|
|
|
|
Average directs |
4,785 |
4,796 |
0% |
4,719 |
4,561 |
3% |
Average indirects |
874 |
890 |
-2% |
910 |
894 |
-3% |
Ratio
direct/indirect |
5.5 |
5.4 |
|
5.4 |
5.1 |
|
Brunel Europe consists of Brunel Germany,
Brunel Netherlands, Brunel Belgium, Brunel Czech Republic, Brunel
Switzerland and Brunel Austria
Brunel Germany (unaudited) |
|
|
|
|
|
P&L amounts in EUR million |
|
|
|
|
|
|
Q4 2016 |
Q4 2015 |
Change % |
FY 2016 |
FY 2015 |
Change % |
Revenue |
53.6 |
50.8 |
6% |
210.5 |
196.4 |
7% |
Gross
Profit |
18.9 |
18.4 |
3% |
75.2 |
70.1 |
7% |
Gross
Margin |
35.2% |
36.2% |
|
35.7% |
35.7% |
|
Operating costs |
13.4 |
11.9 |
12% |
50.5 |
50.7 |
0% |
EBIT |
5.5 |
6.5 |
-16% |
24.7 |
19.4 |
27% |
EBIT
% |
10.2% |
12.8% |
|
11.7% |
9.9% |
|
|
|
|
|
|
|
|
Average directs |
2,272 |
2,139 |
6% |
2,209 |
2,074 |
7% |
Average indirects |
377 |
426 |
-11% |
402 |
439 |
-9% |
Ratio
direct/indirect |
6.0 |
5.0 |
|
5.5 |
4.7 |
|
Revenue
Germany's revenue has increased compared to the same period last
year, despite three less working days in Q4. Revenue per working
day increased by 11%.
Gross Profit
The decrease in gross margin of 1ppt compared to the same quarter
last year is caused by three less working days, largely offset by a
higher productivity.
Operating
Costs
During the fourth quarter operating costs have increased compared
to 2015. This is mainly a result of increased staff costs.
EBIT
EBIT for the quarter decreased by 15% to EUR 5.5 million, mainly
due to the impact of the working days and increased overhead
expenses.
Brunel Netherlands (unaudited) |
|
|
|
|
|
P&L amounts in EUR million |
|
|
|
|
|
|
Q4 2016 |
Q4 2015 |
Change % |
FY 2016 |
FY 2015 |
Change % |
Revenue |
46.3 |
54.2 |
-14% |
191.4 |
188.4 |
2% |
Gross
Profit |
13.1 |
16.9 |
-22% |
54.5 |
55.7 |
-2% |
Gross
Margin |
28.3% |
31.1% |
|
28.5% |
29.6% |
|
Operating costs |
10.4 |
9.9 |
5% |
41.6 |
40.3 |
3% |
EBIT |
2.7 |
6.9 |
-61% |
12.9 |
15.4 |
-16% |
EBIT
% |
5.8% |
12.8% |
|
6.8% |
8.2% |
|
|
|
|
|
|
|
|
Average directs |
2,184 |
2,317 |
-6% |
2,178 |
2,143 |
2% |
Average indirects |
423 |
378 |
12% |
395 |
370 |
7% |
Ratio
direct/indirect |
5.2 |
6.1 |
|
5.5 |
5.8 |
|
Revenue
Revenue for The Netherlands was still impacted by the drop in
headcount earlier this year due to the new law DBA, but also less
growth in the second half of the year compared to last year and one
less working day in Q4. Revenue per working day decreased by
13%.
Gross
Profit
The downward trend of the gross margin due to price pressure and
lower productivity continued in Q4. This quarter also had one less
working day. The lower productivity is the result of continued
training initiatives and pro active hiring.
Operating
Costs
Operating costs are slightly higher than 2015 as a result of
investments in our sales force and recruitment initiatives.
EBIT
Lower revenue at lower margins resulted in a decrease in EBIT of
61%.
Effective tax
rate
In 2016 the effective tax rate increased from 33.6% to 56.2%,
mainly as a result of an impairment of deferred tax assets of EUR
3.7 million. Due to the lower EBIT level, this impairment has a
significant impact on our effective tax rate for 2016.
Cash
position
The December 2016 cash balance amounted to EUR 149 million. Working
capital as at 31 December is slightly higher than anticipated due
to some short term projects in Energy towards the end of the
year.
Dividend
We propose a dividend of EUR 0.40 per share.
Outlook
For The Netherlands we expect that the headcount growth we have
resumed from July 2016 onwards will continue. This will result in
revenue growth, despite the fact that we have started 2017 at a
lower level than 2016. In Germany a new law will come in to effect
in 2017. We expect that we have taken the appropriate measures and
expect to see the growth continuing in 2017. Profitability in
Germany will be impacted in 2017 by three less working days. For
Energy we will see the full year impact of the decline in
revenue in 2016, in combination with a further decline in headcount
especially in the first half of 2017. As a result of our efforts
towards new activities we expect that the revenue will be
stabilizing in the second half of 2017 and we could even be
returning to growth.
Jan Arie van Barneveld, CEO of
Brunel International N.V.: "The ongoing crisis in
the Oil & Gas sector made 2016 an exceptionally challenging
year for us at Brunel. We're now working hard to adapt the
organization to these changing market conditions. First and
foremost, by making ourselves more efficient, leaner and smarter in
existing markets. At the same time, however, we do see new
opportunities emerging for this part of the company. Both in terms
of expanding our services, but also by entering markets outside Oil
& Gas. However, it'll be a while before we see these
initiatives and developments reflected in our results. And although
recovery of the market for Oil & Gas projects is inevitable,
making any more specific predictions at this time is difficult.
Except for one: as always, we're confident about the resilience and
entrepreneurial qualities of our people. And as a result,
optimistic about the medium-to-long term developments and
opportunities for this part of the business.
In Europe,
overall growth and profit development in the region have been
positive, but we have also seen considerable underlying differences
in 2016. The Netherlands started the year very strongly, but then
saw growth completely evaporate with the introduction of new
legislation for engaging freelancers. The negative effects of which
were luckily a one-off phenomenon. Meanwhile Germany managed in
2016 to accelerate even the impressive growth path achieved in
2015. But though the differences between countries are significant,
the underlying results of all our European organizations in 2016
have once more been stronger across the region.
The robust
organizations we have in Europe will form the basis for a return to
growth. And, partly as a result of changes forced by the crisis,
Energy will also soon be contributing to those growth figures. We
live in times that are challenging, but also changing. And for
strong organizations like Brunel, change always brings with it
opportunities."
Press Release FY 2016
Appendix Press Release FY 2016
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Brunel International NV via Globenewswire
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