Brunel Q4 and FY18 results: continued high revenue growth and
strongly improved profit margins
Press Release
Amsterdam, 15 February 2019
Key points Q4 2018
- Revenue growth of 16% (yoy) to EUR 245 million over the
quarter
- Strong EBIT improvement, growing 69% (yoy) to EUR 10.7 million
with EBIT margin up by 1.4ppt to 4.4%
- All-time high number of 13,000 specialists and
professionals.
Key points full year 2018
- Revenue growth of 16% to EUR 915 million
- Excellent results in Middle East, India and Russia in multiple
verticals
- Strong EBIT improvement, growing 90% (yoy) to EUR 34.1 million
with EBIT margin up by 1.4ppt to 3.7%
- Earnings per share (EPS) up 173% to EUR 0.41
- Proposed dividend EUR 0.25 per share, versus EUR 0.15 in
2017
Jilko Andringa, CEO of Brunel:
“Brunel’s 43rd and my first year was in many aspects a very good
year. Thanks to the hard work of all our professionals at our
clients and the colleagues in our offices, growth returned and
accelerated in many regions through the year. We ended the year
with almost 13,000 professionals working on projects at our local
and global clients. An all-time record for Brunel, proof that our
strategy to diversify to adjacent vertical activities is starting
to pay off. To follow the successful course and performance of Team
Brunel during last year’s Volvo Ocean Race: we will continue to
execute on our strategy to further improve our growth and
profitability and to create a more sustainable world for
professionals and future professionals. We have seen continued
strong growth in January 2019, so we expect another exciting
year!”
Brunel International (unaudited) |
P&L amounts in EUR million |
|
|
|
|
|
|
|
|
|
Q4 2018 |
Q4 2017 |
Δ% |
|
|
FY 2018 |
FY 2017 |
Δ% |
|
Revenue |
244.9 |
|
210.2 |
|
16 |
% |
a |
|
914.6 |
|
790.1 |
|
16 |
% |
b |
Gross Profit |
55.4 |
|
49.4 |
|
12 |
% |
|
|
208.9 |
|
182.7 |
|
14 |
% |
|
Gross margin |
22.6 |
% |
23.5 |
% |
|
|
|
22.8 |
% |
23.1 |
% |
|
|
Operating
costs |
44.7 |
|
43.0 |
|
4 |
% |
c |
|
174.8 |
|
164.8 |
|
6 |
% |
d |
EBIT |
10.7 |
|
6.4 |
|
69 |
% |
|
|
34.1 |
|
17.9 |
|
90 |
% |
|
EBIT % |
4.4 |
% |
3.0 |
% |
|
|
|
3.7 |
% |
2.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Average
directs |
12,618 |
|
10,505 |
|
20 |
% |
|
|
11,955 |
|
9,589 |
|
25 |
% |
|
Average
indirects |
1,570 |
|
1,533 |
|
2 |
% |
|
|
1,544 |
|
1,497 |
|
3 |
% |
|
Ratio direct /
Indirect |
8.0 |
|
6.9 |
|
|
|
|
7.7 |
|
6.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share |
|
|
|
|
|
0.41 |
|
0.15 |
|
173 |
% |
|
Dividend |
|
|
|
|
|
0.25 |
|
0.15 |
|
67 |
% |
|
|
|
|
|
|
|
|
|
|
|
a 17
% like-for-like |
|
|
|
|
|
|
b 16
% like-for-like |
|
|
|
|
|
|
c 4 %
like-for-like |
|
|
|
|
|
|
d 7 %
like-for-like |
|
|
|
|
|
|
Like-for-like is measured excluding the impact of currencies and
acquisitions |
|
Q4 2018 and FY 2018 results by divisionP&L
amounts in EUR million
Summary:
Revenue |
Q4 2018 |
Q4 2017 |
Δ% |
|
YTD 2018 |
YTD 2017 |
Δ% |
|
|
|
|
|
|
|
|
DACH region |
68.1 |
59.7 |
14 |
% |
|
268.6 |
238.5 |
13 |
% |
The
Netherlands |
57.0 |
53.9 |
6 |
% |
|
220.1 |
195.3 |
13 |
% |
Australasia |
27.6 |
31.9 |
-14 |
% |
|
113.9 |
102.4 |
11 |
% |
Middle East &
India |
25.1 |
17.8 |
41 |
% |
|
87.3 |
63.7 |
37 |
% |
Rest of
world |
67.0 |
46.9 |
43 |
% |
|
224.6 |
190.3 |
18 |
% |
|
|
|
|
|
|
|
|
Total |
244.9 |
210.2 |
16 |
% |
|
914.6 |
790.1 |
16 |
% |
EBIT |
Q4 2018 |
Q4 2017 |
Δ% |
|
YTD 2018 |
YTD 2017 |
Δ% |
|
|
|
|
|
|
|
|
DACH region |
6.2 |
3.4 |
80 |
% |
|
25.1 |
21.9 |
15 |
% |
The
Netherlands |
3.3 |
5.3 |
-37 |
% |
|
11.6 |
11.3 |
3 |
% |
Australasia |
-0.3 |
0.8 |
-134 |
% |
|
-0.8 |
0.0 |
-6683 |
% |
Middle East &
India |
2.5 |
1.0 |
155 |
% |
|
8.0 |
2.3 |
243 |
% |
Rest of
world |
0.6 |
-2.0 |
127 |
% |
|
-1.5 |
-7.8 |
81 |
% |
Unallocated |
-1.6 |
-2.1 |
27 |
% |
|
-8.4 |
-9.8 |
15 |
% |
|
|
|
|
|
|
|
|
Total |
10.7 |
6.4 |
69 |
% |
|
34.1 |
17.9 |
90 |
% |
The Group’s revenue in Q4 increased
by 16%, which was fully organically.
DACH region (unaudited) |
P&L amounts in EUR million |
|
|
|
|
|
|
|
|
Q4 2018 |
Q4 2017 |
Δ% |
|
|
YTD 2018 |
YTD 2017 |
Δ% |
Revenue |
68.1 |
|
59.7 |
|
14 |
% |
|
|
268.6 |
|
238.5 |
|
13 |
% |
Gross Profit |
21.8 |
|
18.5 |
|
18 |
% |
|
|
86.3 |
|
79.6 |
|
8 |
% |
Gross margin |
32.0 |
% |
31.0 |
% |
|
|
|
32.1 |
% |
33.4 |
% |
|
Operating
costs |
15.6 |
|
15.1 |
|
3 |
% |
|
|
61.2 |
|
57.7 |
|
6 |
% |
EBIT |
6.2 |
|
3.4 |
|
80 |
% |
|
|
25.1 |
|
21.9 |
|
15 |
% |
EBIT % |
9.1 |
% |
5.8 |
% |
|
|
|
9.3 |
% |
9.2 |
% |
|
|
|
|
|
|
|
|
|
|
Average
directs |
2,757 |
|
2,528 |
|
9 |
% |
|
|
2,646 |
|
2,441 |
|
8 |
% |
Average
indirects |
484 |
|
457 |
|
6 |
% |
|
|
476 |
|
449 |
|
6 |
% |
Ratio direct /
Indirect |
5.7 |
|
5.5 |
|
|
|
|
5.6 |
|
5.4 |
|
|
Our activities in the DACH
region continued to show strong growth. Especially our
organisation in Germany, the biggest contributor in this region,
has proven to be able to quickly and professionally adjust to
changes in the market, with the careful implementation of the equal
pay regulations, whilst continuing to provide excellent services to
our clients.
Revenue per working day increased by 11% in Q4.
The gross margin adjusted for working days in Q4 is 30.1% (2017:
31.0%). The decrease was due to the introduction of equal pay, and
has now stabilized at this level. The productivity in our
competence center was on a normal level.
Working days:
|
Q1 |
Q2 |
Q3 |
Q4 |
FY |
2019 |
63 |
60 |
66 |
61 |
250 |
2018 |
63 |
60 |
65 |
62 |
250 |
2017 |
65 |
59 |
65 |
60 |
249 |
Brunel Netherlands (unaudited) |
P&L amounts in EUR million |
|
|
|
|
|
|
|
|
Q4 2018 |
Q4 2017 |
Δ% |
|
|
YTD 2018 |
YTD 2017 |
Δ% |
Revenue |
57.0 |
|
53.9 |
|
6 |
% |
|
|
220.1 |
|
195.3 |
|
13 |
% |
Gross Profit |
15.8 |
|
16.7 |
|
-6 |
% |
|
|
62.3 |
|
57.3 |
|
9 |
% |
Gross margin |
27.7 |
% |
31.0 |
% |
|
|
|
28.3 |
% |
29.3 |
% |
|
Operating
costs |
12.5 |
|
11.4 |
|
10 |
% |
|
|
50.7 |
|
46.0 |
|
10 |
% |
EBIT |
3.3 |
|
5.3 |
|
-37 |
% |
|
|
11.6 |
|
11.3 |
|
3 |
% |
EBIT % |
5.8 |
% |
9.8 |
% |
|
|
|
5.3 |
% |
5.8 |
% |
|
|
|
|
|
|
|
|
|
|
Average
directs |
2,531 |
|
2,368 |
|
7 |
% |
|
|
2,463 |
|
2,220 |
|
11 |
% |
Average
indirects |
447 |
|
430 |
|
4 |
% |
|
|
438 |
|
435 |
|
1 |
% |
Ratio direct /
Indirect |
5.7 |
|
5.5 |
|
|
|
|
5.6 |
|
5.1 |
|
|
In The Netherlands we continued to grow, but we
were unable to match the excellent performance of Q4 2017.
Productivity decreased primarily on the back of an upfront hiring
campaign of talented professionals and training initiatives in all
our business lines, which will enable us to service the future HR
needs of our clients. Vacation and illness percentages were up
compared to Q4 2017. For the full year, almost all business lines
achieved significant growth, and both Engineering and IT reached
new records. This growth was partly offset by a decline in our
business line Insurance & Banking, due to the changes in this
market. We are confident that the actions we have taken in this
business line will result in a return to growth in 2019.
Revenue per working day increased by 4% in Q4.
The gross margin adjusted for working days in Q4 is 26.8% (2017:
31.0%). Gross margin decreased due to the lower productivity.
Operating costs increased year on year due to continuous
investments in technology and digital tools. For the full year, EUR
2.5 million of costs relating to digital market initiatives are
non-recurring.
Working days:
|
Q1 |
Q2 |
Q3 |
Q4 |
FY |
2019 |
63 |
62 |
66 |
64 |
255 |
2018 |
64 |
61 |
65 |
64 |
254 |
2017 |
65 |
61 |
65 |
63 |
254 |
Australasia (unaudited) |
P&L amounts in EUR million |
|
|
|
|
|
|
|
|
Q4 2018 |
Q4 2017 |
Δ% |
|
|
YTD 2018 |
YTD 2017 |
Δ% |
Revenue |
27.6 |
|
31.9 |
|
-14 |
% |
a |
|
113.9 |
|
102.4 |
|
11 |
% |
Gross Profit |
2.9 |
|
3.7 |
|
-23 |
% |
|
|
9.9 |
|
9.0 |
|
11 |
% |
Gross margin |
10.4 |
% |
11.7 |
% |
|
|
|
8.7 |
% |
8.7 |
% |
|
Operating
costs |
3.2 |
|
2.9 |
|
10 |
% |
c |
|
10.7 |
|
9.0 |
|
19 |
% |
EBIT |
-0.3 |
|
0.8 |
|
-134 |
% |
|
|
-0.8 |
|
0 |
|
|
EBIT % |
-1.0 |
% |
2.6 |
% |
|
|
|
-0.7 |
% |
0.0 |
% |
|
|
|
|
|
|
|
|
|
|
Average
directs |
902 |
|
856 |
|
5 |
% |
|
|
919 |
|
601 |
|
53 |
% |
Average
indirects |
79 |
|
78 |
|
1 |
% |
|
|
78 |
|
71 |
|
9 |
% |
Ratio direct /
Indirect |
11.4 |
|
10.9 |
|
|
|
|
11.8 |
|
8.5 |
|
|
|
|
|
|
|
|
|
|
|
a
-10% like-for-like |
|
|
|
|
|
b -2%
like-for-like |
|
|
|
|
|
c 12
% like-for-like |
|
|
|
|
|
d 13
% like-for-like |
|
|
|
|
|
Like-for-like is measured excluding the impact of currencies and
acquisitions |
Revenue in Australasia declined in Q4, mainly
because one major client hired part of our professionals directly.
Over the past 12 months, we have been actively working on new
growth opportunities, which are now starting to contribute, and we
expect a return to revenue growth in the course of 2019. Gross
margin decreased due to a change in the mix: we have been
successful in securing our positions following supplier
consolidation efforts of some of our clients, but this has resulted
in slightly lower margins.
Operating costs increased as a result of the
preparation of our organisation for the recovery in the Oil &
Gas industry that is expected in the course of 2019, as well as
continued investments in new initiatives.
Middle East & India (unaudited) |
P&L amounts in EUR million |
|
|
|
|
|
|
|
|
Q4 2018 |
Q4 2017 |
Δ% |
|
|
YTD 2018 |
YTD 2017 |
Δ% |
Revenue |
25.1 |
|
17.8 |
|
41 |
% |
a |
|
87.3 |
|
63.7 |
|
37 |
% |
Gross Profit |
4.6 |
|
2.7 |
|
67 |
% |
|
|
15.6 |
|
9.2 |
|
70 |
% |
Gross margin |
18.3 |
% |
15.4 |
% |
|
|
|
17.9 |
% |
14.4 |
% |
|
Operating
costs |
2.1 |
|
1.7 |
|
24 |
% |
c |
|
7.6 |
|
6.9 |
|
10 |
% |
EBIT |
2.5 |
|
1.0 |
|
155 |
% |
|
|
8.0 |
|
2.3 |
|
243 |
% |
EBIT % |
10.0 |
% |
5.6 |
% |
|
|
|
9.2 |
% |
3.7 |
% |
|
|
|
|
|
|
|
|
|
|
Average
directs |
3,696 |
|
1,625 |
|
127 |
% |
|
|
3,168 |
|
1,228 |
|
158 |
% |
Average
indirects |
121 |
|
110 |
|
10 |
% |
|
|
116 |
|
106 |
|
9 |
% |
Ratio direct /
Indirect |
30.5 |
|
14.8 |
|
|
|
|
27.3 |
|
11.5 |
|
|
|
|
|
|
|
|
|
|
|
a 38
% like-for-like |
|
|
|
|
|
b 43%
like-for-like |
|
|
|
|
|
c 14%
like-for-like |
|
|
|
|
|
d 14
% like-for-like |
|
|
|
|
|
Like-for-like is measured excluding the impact of currencies and
acquisitions |
Middle East & India ended a very successful
2018 with the best quarter in Q4. The excellent performance in
2018, with a growth in professionals from 1,772 to just under
4,000, and a 37% growth in revenue, is the result of the
diversification strategy that started early 2017. The strong team
and organisation have been able to achieve a very high operational
leverage, resulting in an EBIT of 10% for Q4.
The main contributors are India, Kuwait and
Qatar, and most of the activities are project related. The recently
won projects, in combination with all the activities in the region,
will ensure continued growth in 2019.
Rest of world (unaudited) |
P&L amounts in EUR million |
|
|
|
|
|
|
|
|
Q4 2018 |
Q4 2017 |
Δ% |
|
|
YTD 2018 |
YTD 2017 |
Δ% |
Revenue |
67.0 |
|
46.9 |
|
43 |
% |
a |
|
224.6 |
|
190.3 |
|
18 |
% |
Gross Profit |
10.3 |
|
7.7 |
|
34 |
% |
|
|
34.7 |
|
27.7 |
|
25 |
% |
Gross margin |
15.4 |
% |
16.4 |
% |
|
|
|
15.4 |
% |
14.5 |
% |
|
Operating
costs |
9.7 |
|
9.7 |
|
0 |
% |
c |
|
36.2 |
|
35.5 |
|
2 |
% |
EBIT |
0.6 |
|
-2.0 |
|
127 |
% |
|
|
-1.5 |
|
-7.8 |
|
81 |
% |
EBIT % |
0.8 |
% |
-4.4 |
% |
|
|
|
-0.6 |
% |
-4.1 |
% |
|
|
|
|
|
|
|
|
|
|
Average
directs |
2,733 |
|
3,128 |
|
-13 |
% |
|
|
2,759 |
|
3,098 |
|
-11 |
% |
Average
indirects |
390 |
|
405 |
|
-4 |
% |
|
|
384 |
|
384 |
|
0 |
% |
Ratio direct /
Indirect |
7.0 |
|
7.7 |
|
|
|
|
7.2 |
|
8.1 |
|
|
|
|
|
|
|
|
|
|
|
a 44%
like-for-like |
|
|
|
|
|
b 18
% like-for-like |
|
|
|
|
|
c 5%
like-for-like |
|
|
|
|
|
d 6%
like-for-like |
|
|
|
|
|
Like-for-like is measured excluding the impact of currencies and
acquisitions |
Rest of the World includes Americas, Russia,
South East Asia and the rest of Europe. Growth continued to
accelerate. Main drivers were Americas and Russia. The new project
in the Permian Basin in Texas, the biggest shale oil producing
region in the USA, showed strong growth since the start in October,
despite adverse weather conditions. These conditions also slightly
impacted our gross margin.
Russia continues to grow following the high
level of project activities in that area. In South East Asia, we
see an increase in headcount on yards and engineering sites as a
result of the many new Oil & Gas projects.
Effective tax rateThe effective
tax rate decreased from 46.2% in 2017 to 33.7% in 2018, mainly
because most countries have returned to profitability, and
therefore created a positive mix effect.
Cash positionThe December 2018
cash balance amounted to EUR 106 million, a decrease of EUR 20
million compared to December 2017 due to higher working capital
expenditures resulting from the growth of our activities.
DividendWe propose a dividend
of EUR 0.25 per share, an increase of 67% compared to the EUR 0.15
per share over 2017. This corresponds with a pay-out ratio of
61%.
OutlookIn 2018 we have
continued to invest in the number of direct and indirect employees,
in new activities and markets and in new technologies that will
improve our operational effectiveness. On the back of these
investments we are very well positioned to continue to benefit from
favorable market developments. Moreover, the resulting higher
starting headcount for 2019, in combination with further expected
growth in our main markets will contribute to continued revenue
growth, operational leverage and improved profitability.
Not for
publication-----------------------------------------------------------------------------------------------------------------------------For
further information:
Jilko
Andringa
CEO Brunel International
N.V.
tel.: +31(0)20 312 50 81Peter de Laat
CFO
Brunel International N.V.
tel.: +31(0)20 312 50 81
Brunel International N.V. is a global provider
of flexible workforce solutions and expertise. We deliver tailor
made solutions like Recruitment, Global Mobility, Project
Management, Secondment, Consultancy or scope of work for our
clients, both on a global scale and on a local level. Our ability
to help our clients beyond their expectations is a testament to our
people and their entrepreneurial spirit, knowledge and
results-driven approach. Our people are at the heart of everything
we do.
We connect the most talented professionals with
leading clients in Oil & Gas, Global offshore, Operations &
Maintenance, Renewable Energy, Automotive, Mining and
Infrastructure.
Incorporated in 1975, Brunel has since become a
global company with over 14,000 employees and annual revenue of EUR
0.9 billion (2018). The company is listed at Euronext
Amsterdam N.V. For more information on Brunel International
N.V. visit our website www.brunelinternational.net.
Financial
Calendar 3 May
2019
Trading update for the first quarter 201916 May 2019
Annual General Meeting of
Shareholders20 May 2019
Ex dividend listing 7 June
2019
Dividend available for payment 2 August
2019
Half year results 20191 November 2019
Trading update for the third quarter 2019
Certain statements in this document concern
prognoses about the future financial condition and the results of
operations of Brunel International N.V. as well as plans and
objectives. Obviously, such prognoses involve risks and a degree of
uncertainty since they concern future events and depend on
circumstances that will apply then. Many factors may contribute to
the actual results and developments differing from the prognoses
made in this document. These factors include general economic
conditions, a shortage on the job market, changes in the demand for
(flexible) personnel, changes in employment legislation, future
currency and interest fluctuations, future takeovers, acquisitions
and disposals and the rate of technological developments. These
prognoses therefore apply only on the date on which the document
was compiled.
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Brunel International NV (EU:BRNL)
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From Jul 2023 to Jul 2024