Amsterdam, 4 May 2018
Key points Q1 2018
- Growth in revenue and EBIT
- Revenue up by 9% to EUR 214 million
- EBIT up by 26% to EUR 7.2 million
- Strategy update
- Change in segment reporting
Brunel International (unaudited) |
|
P&L amounts in EUR million |
|
|
|
|
Q1 2018 |
Q1 2017 |
Change % |
|
Revenue |
213.8 |
196.4 |
9% |
a |
Gross Profit |
50.0 |
47.2 |
6% |
|
Gross margin |
23.4% |
24.0% |
|
|
Operating costs |
42.8 |
41.5 |
3% |
b |
EBIT |
7.2 |
5.7 |
26% |
|
EBIT % |
3.4% |
2.9% |
|
|
|
|
|
|
|
Average directs |
11,228 |
8,984 |
25% |
|
Average indirects |
1,527 |
1,460 |
5% |
|
Ratio direct / Indirect |
7.4 |
6.2 |
|
|
|
|
|
|
|
a 11 %
like-for-like |
|
b 5 %
like-for-like |
|
Like-for-like
is measured excluding the impact of currencies and
acquisitions |
|
Change in segment
reporting
In accordance with Brunel's regional approach we have adjusted our
management structure. The main regions are: DACH (Germany, Austria,
Switzerland and Czech Republic), The Netherlands, Americas,
Australasia, Europe & Africa, Middle East & India, Russia
& Caspian area and South East Asia. This is the basis on which
internal reports are provided to the Chief Executive Officer for
assessing performance and determining the allocation of resources
within the Group.
From Q1 2018 onwards, all regions
exceeding 10% of total revenue or EBIT are reported separately. The
remaining regions are combined in Rest of World. Main changes in
our segment reporting are:
-
Austria, Switzerland and Czech Republic are now
included in DACH and were previously reported under Other
Europe.
-
Australasia and Middle East & India were
previously reported under Global Business.
-
The other regions within Global Business, and
Belgium, are now reported under Rest of World.
The change in segment reporting
has no impact on the net profit or loss of the Group. To enable
comparisons with prior period performance, the 2017 Q1 segment
information is updated accordingly.
Q1 2018
results
Revenue |
Q1 2018 |
Q1 2017 |
Change % |
LFL % |
|
|
|
|
|
DACH region |
64.1 |
61.3 |
5% |
5% |
The Netherlands |
56.2 |
47.9 |
17% |
17% |
Australasia |
27.7 |
24.0 |
15% |
1% |
Middle East & India |
19.2 |
16.0 |
20% |
38% |
Rest of world |
46.6 |
47.2 |
-1% |
8% |
|
|
|
|
|
Total |
213.8 |
196.4 |
9% |
11% |
|
|
|
|
|
Like-for-like
is measured excluding the impact of currencies and
acquisitions |
Revenue per working day in
The Netherlands increased by 19%. Gross margin
adjusted for working days is 31.1% in Q1 2018 (Q1 2017: 30.0%).
Headcount as of 31 March was 2,424 (2017: 2,129).
Working days The Netherlands:
|
Q1 |
Q2 |
Q3 |
Q4 |
FY |
2018 |
64 |
61 |
65 |
64 |
254 |
2017 |
65 |
61 |
65 |
63 |
254 |
Revenue per working day in the
DACH region increased by 8%. The gross margin
adjusted for working days is 34.0% (2017: 35.9%). The decrease in
margin is the result of the impact of new legislation and a lower
productivity in our automotive competence center. Headcount as of
31 March was 2,546 (2017: 2,381).
Working days Germany:
|
Q1 |
Q2 |
Q3 |
Q4 |
FY |
2018 |
63 |
60 |
65 |
62 |
250 |
2017 |
65 |
59 |
65 |
60 |
249 |
In the region Middle East &
India we continue to see the results of our diversification
efforts, especially in Kuwait and Qatar.
Australasia
includes the impact of the acquisition of SES Labour Solutions in
Q3 2017.
All regions included in Rest of World, except for South East Asia, have
achieved growth in Q1. In South East Asia we have not yet been able
to compensate for the significant projects that were completed in
the first half of 2017.
Our operating costs increased, however the cost
base for our existing business has decreased. The increase is the
result of investments in digital solutions, acquisitions made in
2017 and the start-up of our construction and maintenance
activities in the USA.
EBIT |
Q1 2018 |
Q1 2017 |
Change % |
LFL % |
|
|
|
|
|
DACH region |
5.7 |
7.4 |
-23% |
-23% |
The Netherlands |
4.2 |
2.5 |
68% |
68% |
Australasia |
0 |
-0.2 |
-100% |
-103% |
Middle East & India |
1.7 |
0.4 |
325% |
377% |
Rest of world |
-1.9 |
-1.9 |
0% |
-3% |
Unallocated |
-2.5 |
-2.5 |
0% |
0% |
|
|
|
|
|
Total |
7.2 |
5.7 |
26% |
24% |
|
|
|
|
|
Like-for-like
is measured excluding the impact of currencies and
acquisitions |
EBIT increased by 26% despite an
adverse working day effect in The Netherlands and the DACH
region.
Outlook
We expect growth to accelerate in the course of this year, and
profitability to improve.
Jilko Andringa, CEO of Brunel
International N.V. on Q1 2018 results: "The strong
growth we expected is starting to show in most regions. I am very
happy to report growth and improved profitability. Especially the
performance in The Netherlands and Middle East stands out. This is
the result of the initiatives we have started, both in entering new
markets as well as in investments in digital tools and solutions. I
am confident the initiatives will contribute to continued and
accelerated growth, also in other regions. This growth is helped by
the healthy economic conditions in our main markets."
Strategy
update
Jilko Andringa, CEO of Brunel
International N.V. on Strategy Update: "Over the
last 5 months I have had the opportunity to be introduced and
connected to the special elements of the Brunel brand, culture and
our internal and external teams. I recognise the values
Entrepreneurship, Integrity, Result-Driven and Passion for People
in our day to day strive to connect specialists to clients.
Together with our CFO Peter de Laat and the leadership team, we
updated the strategy based on external trends, internal
capabilities and our combined experiences. I look forward to get
the updated elements of the strategy in place and
operational."
Brunel's brand is a clear
differentiator. Clients and employees recognise Brunel as an
entrepreneurial partner, with high ethical standards, created and
operated by creative and result-driven colleagues who have a
'passion for people'. To serve our local and multinational clients
with their global/local needs, Brunel created a global footprint,
with a regional structure for local relevance and entrepreneurship.
Through the cycle this footprint has been kept in place for the
biggest part and is now an important pillar for future growth.
It is our ambition to create high
satisfaction among our direct and indirect employees and at our
clients. This stakeholder satisfaction should lead to record
revenue and profit levels. To reach these goals we will follow the
line of the existing Brunel strategy and approach, with some clear
new accents:
Diversification: Leading specialist in chosen
global specialisms
We diversified our business utilising our capabilities and
infrastructure to find new growth opportunities and to decrease our
dependency on the oil & gas market. This resulted in promising
positions in specific specialisms, such as mining, infrastructure,
construction & maintenance and renewable energy. We will use
these local capabilities to create a network of global specialisms.
We will invest in growing our differentiators and in bringing local
expertise from one region to other regions. This could be
accelerated through add-on acquisitions like the one we did last
year with SES (mining) in Australia.
Brunel professional communities
To attract the best talent for our clients we will invest in
specialised communities where our (future) employees can find their
next exciting job, where they can up-skill themselves to grow their
employability in the fast changing world of work and where they can
connect with peers. The Brunel Academy is an important initiative
in this focus area.
Quality, speed and productivity, e.g., lean
approach for higher quality to client and lower cost for delivery,
digital process tools, etc.
Quality and speed of our activities remain an important
differentiator in our markets. We have a strong IT infrastructure.
This infrastructure, combined with digital process tools and
artificial intelligence will enable us to improve the speed and
quality of our services, whilst increasing efficiency we will
update the quality and efficiency of our processes and solutions
through 'lean' methodology.
Digital roadmap to offer higher quality to clients
& professionals
Brunel in The Netherlands has invested significantly in creating
and fine tuning digital capabilities. These capabilities vary from
advanced sourcing solutions to online platforms to bring clients
and candidates together. We are now at a stage that these solutions
can gradually be implemented globally and developed further.
Client Management to serve new and existing
clients in more regions
Brunel offers a diverse portfolio of services globally. Many of our
multinational clients we serve in a limited number of countries or
in specific specialties. We will use these strong local
relationships to expand our service delivery to more regions and
verticals.
Sustainability Agenda
Together with our specialists we are generally in a privileged
position. To give back to society, we will use our capabilities and
expertise to help people with a bigger challenge on the labour
market.
Talent and Management Development
To attract and develop the best internal talent we will create a
human resources agenda that drives a broad portfolio of internal
initiatives like talent development, management development
programs, diversity agenda, succession planning and employee
engagement.
Global and Regional Steering
The global leadership team built and will execute the above
strategy. This team consists of the regional directors of the
largest regions complemented with the client management, vertical,
human resources, marketing, IT, finance and legal leaders. These
leaders report directly to the board that consists of the CEO and
CFO. In our management reporting, we will follow this regional
steering model. This means that we will stop reporting 'Global
Business' and start with reporting our largest regions separate
(DACH, The Netherlands, Middle East & India, Australasia, and
Rest of the World).
Brunel Q1 2018 appendix
Brunel Q1 2018 results
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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