Amsterdam, 14 August 2018
Key points Q2 2018
Key points H1 2018
Jilko
Andringa, CEO of Brunel International N.V.:
"I'm excited to see our growth accelerate, and to
present a strong increase in profitability. I'm thrilled by the
underlying level of activities we see in our internal teams, in the
sales pipeline and in our communities of professionals. With strong
global collaboration, we are able to help our global clients with
our entrepreneurship and compliant delivery. The economic
conditions in our key markets remain healthy, whilst the segments
of the global Oil & Gas market we operate in are clearly
recovering. All Brunel colleagues keep demonstrating our unique
capabilities to attract and retain specialists to help our clients
continue to grow, while talent is scarce. I trust we will be able
to maintain this performance in the rest of the year, especially
considering that not all the initiatives we have started are fully
contributing yet."
Brunel International (unaudited) |
P&L
amounts in EUR million |
|
|
|
|
|
|
|
|
|
Q2 2018 |
Q2 2017 |
Change% |
|
|
H1 2018 |
H1 2017 |
Change% |
|
Revenue |
221.3 |
188.9 |
17% |
a |
|
435.1 |
385.3 |
13% |
b |
Gross Profit |
48.7 |
39.7 |
23% |
|
|
98.7 |
86.9 |
14% |
|
Gross margin |
22.0% |
21.0% |
|
|
|
22.7% |
22.6% |
|
|
Operating costs |
44.6 |
40.8 |
9% |
c |
|
87.4 |
82.4 |
6% |
d |
EBIT |
4.1 |
-1.2 |
n/a |
|
|
11.3 |
4.6 |
148% |
|
EBIT % |
1.8% |
-0.6% |
|
|
|
2.6% |
1.2% |
|
|
|
|
|
|
|
|
|
|
|
|
Average directs |
11,889 |
9,201 |
29% |
|
|
11,558 |
9,093 |
27% |
|
Average indirects |
1,539 |
1,496 |
3% |
|
|
1,533 |
1,478 |
4% |
|
Ratio direct /
Indirect |
7.7 |
6.2 |
|
|
|
7.5 |
6.2 |
|
|
|
|
|
|
|
|
|
|
|
|
a 16 %
like-for-like |
|
|
|
|
|
|
b 14 %
like-for-like |
|
|
|
|
|
|
c 10 %
like-for-like |
|
|
|
|
|
|
d 7 %
like-for-like
|
|
|
|
|
|
|
Like-for-like is
measured excluding the impact of currencies and
acquisitions |
|
|
|
|
|
|
H1 2018 results by
division
P&L amounts in EUR million
Summary:
Revenue |
Q2 2018 |
Q2 2017 |
Change% |
|
H1 2018 |
H1 2017 |
Change% |
|
|
|
|
|
|
|
|
DACH
region |
65.8 |
56.6 |
16% |
|
130.0 |
117.9 |
10% |
The
Netherlands |
54.1 |
46.6 |
16% |
|
110.3 |
94.5 |
17% |
Australasia |
28.2 |
21.5 |
31% |
|
56.0 |
45.4 |
23% |
Middle
East & India |
20.3 |
15.1 |
34% |
|
39.5 |
31.0 |
27% |
Rest
of world |
52.9 |
49.2 |
8% |
|
99.4 |
96.4 |
3% |
|
|
|
|
|
|
|
|
Total |
221.3 |
188.9 |
17% |
|
435.1 |
385.3 |
13% |
EBIT |
Q2 2018 |
Q2 2017 |
Change% |
|
H1 2018 |
H1 2017 |
Change% |
|
|
|
|
|
|
|
|
DACH
region |
4.7 |
2.7 |
70% |
|
10.4 |
10.1 |
2% |
The
Netherlands |
1.1 |
0.6 |
84% |
|
5.3 |
3.2 |
68% |
Australasia |
-0.5 |
-0.6 |
12% |
|
-0.5 |
-0.7 |
32% |
Middle
East & India |
1.7 |
0.3 |
557% |
|
3.4 |
0.7 |
404% |
Rest
of world |
-0.4 |
-1.9 |
77% |
|
-2.3 |
-3.9 |
41% |
Unallocated |
-2.4 |
-2.3 |
6% |
|
-5.0 |
-4.8 |
4% |
|
|
|
|
|
|
|
|
Total |
4.1 |
-1.2 |
-453% |
|
11.3 |
4.6 |
148% |
DACH region (unaudited) |
P&L
amounts in EUR million |
|
|
|
|
|
|
|
|
Q2 2018 |
Q2 2017 |
Change% |
|
|
H1 2018 |
H1 2017 |
Change% |
Revenue |
65.8 |
56.6 |
16% |
|
|
130.0 |
117.9 |
10% |
Gross Profit |
20.1 |
17.1 |
18% |
|
|
40.7 |
39.1 |
4% |
Gross margin |
30.6% |
30.2% |
|
|
|
31.3% |
33.2% |
|
Operating costs |
15.4 |
14.4 |
7% |
|
|
30.3 |
29.0 |
4% |
EBIT |
4.7 |
2.7 |
70% |
|
|
10.4 |
10.1 |
2% |
EBIT % |
7.1% |
4.8% |
|
|
|
8.0% |
8.6% |
|
|
|
|
|
|
|
|
|
|
Average directs |
2,606 |
2,401 |
9% |
|
|
2,565 |
2,389 |
7% |
Average indirects |
476 |
453 |
5% |
|
|
474 |
442 |
7% |
Ratio direct /
Indirect |
5.5 |
5.3 |
|
|
|
5.4 |
5.4 |
|
Revenue
After the investments in the sales
force during prior years, we now see growth in all businesses
within the DACH region.
This region includes Germany with both its secondment and projects
business, Switzerland, Austria and Czech Republic. Revenue per
working day increased by 15% in Q2. Headcount at 30 June 2018 is 9%
above last year's headcount.
Working days
|
Q1 |
Q2 |
Q3 |
Q4 |
FY |
2018 |
63 |
60 |
65 |
62 |
250 |
2017 |
65 |
59 |
65 |
60 |
249 |
Gross
Profit
Q2 2018 had 1 additional working
day compared to 2017. The gross margin adjusted for working
days in Q2 is 29.6% (2017: 30.2%). The impact of the new
legislation on our gross margin has weakened compared to Q1 and the
productivity in our automotive competence center has
improved.
H1 2018 had 1 less working day compared to 2017. The gross
margin adjusted for working days in H1 is 31.8% (2017: 33.2%)
Operating
costs
Operating costs in H1 increased
with 4% mainly driven by continued investments in our commercial
organization.
Brunel Netherlands (unaudited) |
P&L
amounts in EUR million |
|
|
|
|
|
|
|
|
Q2 2018 |
Q2 2017 |
Change% |
|
|
H1 2018 |
H1 2017 |
Change% |
Revenue |
54.1 |
46.6 |
16% |
|
|
110.3 |
94.5 |
17% |
Gross Profit |
14.2 |
12.3 |
16% |
|
|
31.2 |
26.6 |
17% |
Gross margin |
26.3% |
26.3% |
|
|
|
28.2% |
28.2% |
|
Operating costs |
13.1 |
11.7 |
12% |
|
|
25.9 |
23.4 |
11% |
EBIT |
1.1 |
0.6 |
84% |
|
|
5.3 |
3.2 |
68% |
EBIT % |
2.1% |
1.3% |
|
|
|
4.8% |
3.3% |
|
|
|
|
|
|
|
|
|
|
Average directs |
2,455 |
2,181 |
13% |
|
|
2,437 |
2,153 |
13% |
Average indirects |
434 |
437 |
-1% |
|
|
428 |
437 |
-2% |
Ratio direct /
Indirect |
5.7 |
5.0 |
|
|
|
5.7 |
4.9 |
|
Revenue
All business lines, except
Insurance & Banking, contribute to the growth. The moderate
growth in headcount since the beginning of this year is in line
with our normal seasonality with moderate growth in H1 and stronger
growth in H2. The outlook for H2 confirms that the development in
H2 will be in line with our normal seasonality.
Working days
|
Q1 |
Q2 |
Q3 |
Q4 |
FY |
2018 |
64 |
61 |
65 |
64 |
254 |
2017 |
65 |
61 |
65 |
63 |
254 |
Gross
Profit
The gross margin remained stable
in Q2. H1 2018 had 1 less working day compared to 2017. The
gross margin adjusted for working days in H1 is 28.7% (2017:
28.2%)
Operating costs
The operating costs increased due
to continuous investment in technology and the costs for the finish
of the Volvo Ocean Race in The Hague. Our investments in technology
include our new data analytics activity and job platform.
Australasia (unaudited) |
P&L
amounts in EUR million |
|
|
|
|
|
|
|
|
|
Q2 2018 |
Q2 2017 |
Change% |
|
|
H1 2018 |
H1 2017 |
Change% |
|
Revenue |
28.2 |
21.5 |
31% |
a |
|
56.0 |
45.4 |
23% |
b |
Gross Profit |
2.2 |
1.5 |
47% |
|
|
4.6 |
3.3 |
38% |
|
Gross margin |
7.8% |
7.0% |
|
|
|
8.2% |
7.3% |
|
|
Operating costs |
2.7 |
2.1 |
29% |
c |
|
5.1 |
4.0 |
28% |
d |
EBIT |
-0.5 |
-0.6 |
12% |
|
|
-0.5 |
-0.7 |
32% |
|
EBIT % |
-1.8% |
-2.7% |
|
|
|
-0.9% |
-1.6% |
|
|
|
|
|
|
|
|
|
|
|
|
Average directs |
932 |
482 |
93% |
|
|
928 |
462 |
101% |
|
Average indirects |
75 |
69 |
8% |
|
|
76 |
72 |
5% |
|
Ratio direct /
Indirect |
12.5 |
6.9 |
|
|
|
12.2 |
6.4 |
|
|
|
|
|
|
|
|
|
|
|
|
a 3 %
like-for-like |
|
|
|
|
|
|
b 2 %
like-for-like |
|
|
|
|
|
|
c 17 %
like-for-like |
|
|
|
|
|
|
d 15 %
like-for-like |
|
|
|
|
|
|
Revenue
Australasia includes Australia and
Papua New Guinea. The mining activities of SES Labour Solutions we
acquired last year are growing and contributing. In Australia, we
continue to work on the finalisation and commissioning of large
projects in Oil & Gas that started years ago.
Gross
Profit
The improved gross margin is
mainly the result of the acquisition of SES. The margins in the
existing business remain stable.
Operating
costs
Operating costs remained at the
same level as 2017 adjusted for SES Labour Solutions.
Middle East & India (unaudited) |
P&L
amounts in EUR million |
|
|
|
|
|
|
|
|
|
Q2 2018 |
Q2 2017 |
Change% |
|
|
H1 2018 |
H1 2017 |
Change% |
|
Revenue |
20.3 |
15.1 |
34% |
a |
|
39.5 |
31.0 |
27% |
b |
Gross Profit |
3.6 |
2.0 |
81% |
|
|
7.0 |
4.2 |
65% |
|
Gross margin |
17.8% |
13.2% |
|
|
|
17.6% |
13.6% |
|
|
Operating costs |
1.9 |
1.7 |
12% |
c |
|
3.6 |
3.5 |
3% |
d |
EBIT |
1.7 |
0.3 |
557% |
|
|
3.4 |
0.7 |
404% |
|
EBIT % |
8.2% |
1.7% |
|
|
|
8.7% |
2.2% |
|
|
|
|
|
|
|
|
|
|
|
|
Average directs |
3,105 |
993 |
213% |
|
|
2,748 |
1,039 |
164% |
|
Average indirects |
114 |
109 |
5% |
|
|
113 |
105 |
8% |
|
Ratio direct /
Indirect |
27.3 |
9.1 |
|
|
|
24.3 |
9.9 |
|
|
|
|
|
|
|
|
|
|
|
|
a 42 %
like-for-like |
|
|
|
|
|
|
b 40 %
like-for-like |
|
|
|
|
|
|
c 17 %
like-for-like |
|
|
|
|
|
|
d 9 %
like-for-like |
|
|
|
|
|
|
Revenue
The very strong growth is the
result of the footprint and capabilities we maintained in the
downturn in combination with successes in diversification.
Especially in Kuwait, Qatar and India we have won major projects,
mostly technical specialists.
Gross
Profit
The gross margin has increased as
a result of additional services we are delivering on our major
projects.
Operating
costs
Our existing organisation is able
to manage this strong growth without any significant increases in
operating cost.
Rest of world (unaudited) |
P&L
amounts in EUR million |
|
|
|
|
|
|
|
|
|
Q2 2018 |
Q2 2017 |
Change% |
|
|
H1 2018 |
H1 2017 |
Change% |
|
Revenue |
52.9 |
49.2 |
8% |
a |
|
99.4 |
96.4 |
3% |
b |
Gross Profit |
8.5 |
6.8 |
25% |
|
|
15.3 |
13.7 |
12% |
|
Gross margin |
16.1% |
13.9% |
|
|
|
15.4% |
14.2% |
|
|
Operating costs |
8.9 |
8.7 |
2% |
c |
|
17.6 |
17.6 |
0% |
d |
EBIT |
-0.4 |
-1.9 |
77% |
|
|
-2.3 |
-3.9 |
41% |
|
EBIT % |
-0.8% |
-3.8% |
|
|
|
-2.3% |
-4.0% |
|
|
|
|
|
|
|
|
|
|
|
|
Average directs |
2,791 |
3,145 |
-11% |
|
|
2,880 |
3,050 |
-6% |
|
Average indirects |
386 |
374 |
3% |
|
|
387 |
371 |
4% |
|
Ratio direct /
Indirect |
7.2 |
8.4 |
|
|
|
7.4 |
8.2 |
|
|
|
|
|
|
|
|
|
|
|
|
a 6 %
like-for-like |
|
|
|
|
|
|
b 3 %
like-for-like |
|
|
|
|
|
|
c 6 %
like-for-like |
|
|
|
|
|
|
d 5 %
like-for-like |
|
|
|
|
|
|
Revenue
Rest of World includes Americas,
Russia, Belgium and South East Asia. Americas and Russia are
achieving significant growth. South East Asia is also growing week
on week, but still has challenging comparatives due to significant
projects that ended in Q2 last year.
Gross
profit
The increased gross margin is due
to a change in the contribution of several regions.
Effective tax
rate
The effective tax rate in the
first half year of 2018 is 54.4% (2017 at 75.6%). As a greater part
of our businesses is profitable again, the impact of tax losses not
recognized as deferred tax asset on the effective tax rate has
reduced. Due to the seasonality in our Netherlands and DACH
business we expect the effective tax rate for the full year to come
down significantly to just under 40%.
Risk
profile
Reference is made to our 2017
Annual Report (pages 69 - 86).
Reassessment of our earlier identified risks and the potential
impact on occurrence has not resulted in required changes in our
internal risk management and control systems.
Cash
position
Brunel's cash position decreased
to EUR 100 million, due to an increase in working capital as a
result of the growth, our normal seasonality in our cash flow and
the dividend payment in June.
Segment
reporting
In Q1, we have changed our segment
reporting in accordance with Brunel's regional approach. 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 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 segment
information is updated accordingly.
The main items for the adjusted
segment reporting for 2017 are included in the appendix to this
press release.
Outlook for
2018
Throughout our business, we see
the growth and profitability accelerating. We see an opportunity to
benefit from the scarcity in the labour market with our strong
brand and communities of professionals. Across the globe the
investment level is increasing and our diversification efforts will
continue to contribute to our growth.
For the full year, we expect
revenue between EUR 875 million and EUR 925 million and EBIT
between EUR 32 million and EUR 38 million.
Statement of the
Board of Directors
The Board of Directors of Brunel
International N.V. hereby declares that, to the best of its
knowledge, the interim financial statements give a true and fair
view of the assets, liabilities, financial position and result of
Brunel International N.V. and the companies jointly included in the
consolidation, and that the interim report gives a true and fair
view of the information referred to in the eighth and, insofar as
applicable, the ninth subsection of Section 5:25d of the Dutch Act
on Financial Supervision and with reference to the section on
related parties in the interim financial statements.
Amsterdam, 14 August
2018
Brunel International N.V.
Jilko Andringa (CEO)
Peter de Laat (CFO)
Brunel Q2 2018 results
Brunel Q2 2018 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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