Amsterdam, 23 February 2018
Key points Q4 2017
-
Further improvement compared to Q3 2017
-
Topline stabilised
-
Gross profit up 7%
-
Growth in The Netherlands at 16%
-
All time high headcount in Europe
Key points FY 2017
Brunel International (unaudited) |
P&L
amounts in EUR million |
|
|
|
|
|
|
|
|
|
Q4 2017 |
Q4 2016 |
Change% |
|
|
FY 2017 |
FY 2016 |
Change% |
|
Revenue |
210.2 |
210.6 |
0% |
a |
|
790.1 |
884.9 |
-11% |
b |
Gross Profit |
49.4 |
46.2 |
7% |
|
|
182.7 |
187.1 |
-2% |
|
Gross margin |
23.5% |
21.9% |
|
|
|
23.1% |
21.1% |
|
|
Operating costs |
43.0 |
44.1 |
-2% |
c |
|
164.8 |
160.3 |
3% |
d |
EBIT |
6.4 |
2.1 |
221% |
|
|
17.9 |
26.8 |
-33% |
|
EBIT % |
3.0% |
1.0% |
|
|
|
2.3% |
3.0% |
|
|
|
|
|
|
|
|
|
|
|
|
Average directs |
10,505 |
9,078 |
16% |
|
|
9,589 |
9,315 |
3% |
|
Average indirects |
1,533 |
1,435 |
7% |
|
|
1,497 |
1,481 |
1% |
|
Ratio direct /
Indirect |
6.9 |
6.3 |
|
|
|
6.4 |
6.3 |
|
|
|
|
|
|
|
|
|
|
|
|
a -1 %
like-for-like |
|
|
|
|
|
|
b -11 %
like-for-like |
|
|
|
|
|
|
c -2 %
like-for-like |
|
|
|
|
|
|
d 3 %
like-for-like |
|
|
|
|
|
|
Like-for-like is
measured excluding the impact of currencies and
acquisitions |
|
Q4
2017 results
Revenue
In Q4, for the first time in three years, we have been able to
match prior year's revenue, despite fewer working days in Europe.
This is a strong confirmation of the recovery we have seen
accelerating throughout this year. The Netherlands was the biggest
driver, but also our other segments contributed.
Gross
Profit
The gross margin improved by 1.6ppt to 23.5%, as a result of the
change in business mix with higher margins in Europe compared to
Global Business, but also as a result of higher margins in Global
Business.
Operating Costs
Operating costs decreased compared to last year. Adjusted for one
off items, both in Q4 2017 and Q4 2016, operating cost increased by
5% due to continued investments in new initiatives, sales force and
technology.
EBIT
As a result of further growth EBIT increased by 200% to EUR 6
million, even despite fewer working days in Europe.
Q4
2017 results by division
Brunel Global Business (unaudited) |
P&L
amounts in EUR million |
|
|
|
|
|
|
|
|
|
Q4 2017 |
Q4 2016 |
Change% |
|
|
FY 2017 |
FY 2016 |
Change% |
|
Revenue |
92.1 |
100.4 |
-8% |
a |
|
338.0 |
447.1 |
-24% |
b |
Gross Profit |
13.0 |
11.4 |
14% |
|
|
41.2 |
49.2 |
-16% |
|
Gross margin |
14.1% |
11.4% |
|
|
|
12.2% |
11.0% |
|
|
Operating costs |
13.3 |
14.7 |
-10% |
c |
|
46.7 |
50.8 |
-8% |
d |
EBIT |
-0.3 |
-3.3 |
91% |
|
|
-5.5 |
-1.6 |
-239% |
|
EBIT % |
-0.3% |
-3.3% |
|
|
|
-1.6% |
-0.4% |
|
|
|
|
|
|
|
|
|
|
|
|
Average directs |
5,406 |
4,292 |
26% |
|
|
4,728 |
4,596 |
3% |
|
Average indirects |
551 |
516 |
7% |
|
|
520 |
571 |
-9% |
|
Ratio direct /
Indirect |
9.8 |
8.3 |
|
|
|
9.1 |
8.0 |
|
|
|
|
|
|
|
|
|
|
|
|
a -10 %
like-for-like |
|
|
|
|
|
|
b -26 %
like-for-like |
|
|
|
|
|
|
c -8 %
like-for-like |
|
|
|
|
|
|
d -8 %
like-for-like |
|
|
|
|
|
|
Like-for-like is
measured excluding the impact of currencies and
acquisitions |
|
|
|
|
|
|
Revenue
YoY revenue decreased by 8% (10% LFL), but increased compared to
Q3. All regions, except South East Asia, achieved growth from Q3 to
Q4, with Middle East and Australasia being the strongest drivers.
The growth is the result if all the diversification initiatives,
helped by the first signs of recovery in our Oil & Gas market.
As expected, the contribution of our new shutdown and maintenance
activities in the USA was still limited in Q4, but the pipeline of
projects remains promising.
Gross
Profit
The gross margin continued to increase as a result of the
diversification, a change in the (geographical) mix, increased perm
fees and the year end reconciliation of employee related
liabilities. However, the margin pressure in our traditional Oil
& Gas market remains.
Operating Costs
Operating cost increased, also adjusted for the impact of the
acquisition of SES, mainly due to investments in sales staff for
our new investments and an additional EUR 1 million of one off
items (bad debt, severance and employee claims).
EBIT
The growth resulted in an almost break even EBIT for Q4. SES
already contributed to EBIT in Q4.
Brunel Europe (unaudited) |
P&L
amounts in EUR million |
|
|
|
|
|
|
|
|
Q4 2017 |
Q4 2016 |
Change% |
|
|
FY 2017 |
FY 2016 |
Change% |
Revenue |
118.2 |
110.1 |
7% |
|
|
452.1 |
437.8 |
3% |
Gross Profit |
36.4 |
33.9 |
7% |
|
|
141.5 |
137.9 |
3% |
Gross margin |
30.8% |
30.8% |
|
|
|
31.3% |
31.5% |
|
Operating costs |
27.6 |
25.8 |
7% |
|
|
108.3 |
100.1 |
8% |
EBIT |
8.8 |
8.1 |
8% |
|
|
33.2 |
37.8 |
-12% |
EBIT % |
7.4% |
7.4% |
|
|
|
7.3% |
8.6% |
|
|
|
|
|
|
|
|
|
|
Average directs |
5,099 |
4,785 |
7% |
|
|
4,861 |
4,719 |
3% |
Average indirects |
929 |
874 |
6% |
|
|
925 |
868 |
7% |
Ratio direct /
Indirect |
5.5 |
5.5 |
|
|
|
5.3 |
5.4 |
|
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 2017 |
Q4 2016 |
Change% |
|
|
FY 2017 |
FY 2016 |
Change% |
Revenue |
54.7 |
53.6 |
2% |
|
|
219.5 |
210.5 |
4% |
Gross Profit |
17.6 |
18.9 |
-6% |
|
|
75.9 |
75.2 |
1% |
Gross margin |
32.2% |
35.2% |
|
|
|
34.6% |
35.7% |
|
Operating costs |
14.0 |
13.4 |
4% |
|
|
53.9 |
50.5 |
7% |
EBIT |
3.6 |
5.5 |
-34% |
|
|
22.0 |
24.7 |
-11% |
EBIT % |
6.6% |
10.2% |
|
|
|
10.0% |
11.7% |
|
|
|
|
|
|
|
|
|
|
Average directs |
2,384 |
2,272 |
5% |
|
|
2,311 |
2,209 |
5% |
Average indirects |
422 |
377 |
12% |
|
|
418 |
402 |
4% |
Ratio direct /
Indirect |
5.6 |
6.0 |
|
|
|
5.5 |
5.5 |
|
Revenue
Germany's revenue has increased compared to the same period last
year, despite two less working days in Q4. Revenue per working day
increased by 4.6%.
FY 2017 revenue development is
also impacted by three less working days compared to 2016. Revenue
per working day increased by 4.4% in 2017.
The gross margin adjusted for working days for Q4 is 34.2% (2016:
35.2%). For FY 2017 the gross margin adjusted for working days is
35.3% (2016: 35.7%).
Operating
Costs
During the fourth quarter operating costs have increased compared
to 2016. This is mainly a result of increased staff
costs.
EBIT
EBIT for the quarter decreased by 34% to EUR 3.6 million, mainly
due to the impact of the working days and increased overhead
expenses. The EBIT adjusted for working days in the quarter is
9.4%, for FY 2017 the EBIT adjusted for working days is 11.0%.
Working days Germany
|
Q1 |
Q2 |
Q3 |
Q4 |
FY |
2018 |
63 |
60 |
65 |
62 |
250 |
2017 |
65 |
59 |
65 |
60 |
249 |
2016 |
62 |
62 |
66 |
62 |
252 |
Brunel Netherlands (unaudited) |
P&L
amounts in EUR million |
|
|
|
|
|
|
|
|
Q4 2017 |
Q4 2016 |
Change% |
|
|
FY 2017 |
FY 2016 |
Change% |
Revenue |
53.9 |
46.3 |
16% |
|
|
195.3 |
191.4 |
2% |
Gross Profit |
16.7 |
13.1 |
28% |
|
|
57.3 |
54.5 |
5% |
Gross margin |
31.0% |
28.3% |
|
|
|
29.3% |
28.5% |
|
Operating costs |
11.4 |
10.4 |
10% |
|
|
46.0 |
41.6 |
11% |
EBIT |
5.3 |
2.7 |
97% |
|
|
11.3 |
12.9 |
-12% |
EBIT % |
9.8% |
5.8% |
|
|
|
5.8% |
6.8% |
|
|
|
|
|
|
|
|
|
|
Average directs |
2,368 |
2,184 |
8% |
|
|
2,220 |
2,178 |
2% |
Average indirects |
430 |
423 |
2% |
|
|
435 |
395 |
10% |
Ratio direct /
Indirect |
5.5 |
5.2 |
|
|
|
5.1 |
5.5 |
|
Revenue
Revenue in The Netherlands increased by 16% compared to the fourth
quarter of 2017, mainly driven by the business lines Engineering
and IT. Revenue per working day increased by 17.7%. As a result of
the strong performance in Q4, the FY 2017 revenue exceeds last
year's revenue by 2%.
Gross
Profit
The gross margin adjusted for working days is 31.8% (2016: 28.3%).
The increase in gross margin is the combined effect of an increase
in average rates and a higher productivity.
Operating
cost
Operating cost increased due to further investments in our sales
force, further development of recruitment and matching technologies
and the start of our data analytics activities in Pretty Good
Knowledge.
EBIT
The leverage resulting from the strong growth at higher margins in
Q4 more than offset the increased operating cost, resulting in a
strong increase in EBIT, even despite one less working day.
Working days The Netherlands
|
Q1 |
Q2 |
Q3 |
Q4 |
FY |
2018 |
64 |
61 |
65 |
64 |
254 |
2017 |
65 |
61 |
65 |
63 |
254 |
2016 |
63 |
62 |
66 |
64 |
255 |
Effective tax
rate
In 2017 the effective tax rate decreased from 56.2% to 44.7%, but
was still impacted significantly by impairment of deferred tax
assets of EUR 1.5 million. Due to the lower EBIT level, this
impairment has a significant impact (10%) on our effective tax rate
for 2017.
Cash
position
The December 2017 cash balance amounted to EUR 126 million and
decreased by EUR 23 million YoY.
Dividend
We propose a dividend of EUR 0.15 per share.
Outlook
Both in The Netherlands and in Germany we ended 2017 at a higher
headcount than previous year. The resulting higher starting
headcount for 2018, in combination with further growth will also
result in growth in revenue and improved profitability.
For Global Business we expect to
return to year on year growth from Q1 onwards, mainly driven by all
our new initiatives, but possibly with some tailwind from a
recovery in the Oil & Gas market. But more importantly, Global
Business will also return to profitability in 2018.
Jilko Andringa, CEO of Brunel
International N.V.: "I'm very pleased that just
after I've joined Brunel I'm able to present for the first time in
three years quarterly results of Brunel without a decline in
revenue, and a strong improvement in EBIT. In my first three months
I have visited many Brunel offices across the globe. I enjoyed all
the open and inspiring interactions with colleagues and clients,
learned a lot about the many exiting projects that we have in the
pipeline, and those new ones we are managing already. So this is
just the start of another period of strong growth for Brunel. For
now, I want to thank all Brunellers and our clients, and of course
especially Jan Arie van Barneveld, for the turning point that was
reached in 2017 and for all the hard work that has been put into
this. "
Brunel Q4 and FY 2017 results
Brunel Q4 and FY 2017 Q4 appendix
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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