Brunel continues strong growth path in Q1 2023 through leading
position in attractive markets
Amsterdam, 5 May 2023 – Brunel International
N.V. (Brunel; BRNL), a global provider of flexible workforce
solutions and expertise, today announced its first quarter (Q1)
2023 results.Key
points
- Revenue of EUR 317 million, up 15%
(19% like-for-like)
- Gross profit of EUR 68.8 million,
up 11% (15% like-for-like)
- EBIT of EUR 15.8 million, up 1% (6%
like-for-like)
Jilko Andringa, CEO of Brunel International
N.V.: “We continued to demonstrate strong
organic revenue growth across all regions and in all strategic
markets. The expected development of our chosen focus markets
continues to be very positive and that’s why we continue to invest
accordingly in our organization. We were able to mostly offset
inflation-related salary increases as well as higher cost
associated with continued growth-related investments. As a result,
our like-for-like EBIT increased by 6%.
Trends in our markets remain robust as continued investments in
the digital and energy transition require many more specialists,
now and in the foreseeable future. By combining recruitment
expertise with global mobility services, we are in a unique
position to provide great value to our clients and simultaneously
take advantage of the favorable environment in which we
operate.
Supporting our clients in the energy transition and in their
drive to become more sustainable, is an important element of our
ESG strategy. Next to that we continue to execute our plans to
lower our own footprint. With our support of certified green
projects, we are proud to be a carbon neutral company.
In Q1 we also adapted new tooling to improve further on our
‘excellence in execution’. Our account managers and recruiters are
now using market leading AI tools to attract, search, select and
retain top talent for our clients.
Brunel is getting stronger and stronger, with all regions
maturing and contributing to our strategic profitability goal. We
remain ahead of our plan with a sustained focus on multi year, high
single digit growth and profitability enhancement across our
regions, aimed at achieving a higher than 6% EBIT in 2025.”
ESG Update In Q1 2023, Brunel
Foundation, hosted by our Global partner OffshoreWind4Kids,
supported the First LEGO league regional and national finals in
Eindhoven and Delft in the Netherlands. Almost 600 children,
ranging from 9 to 15 years old, got insights about how to measure
wind power generated by building wind turbines with a built-in
display. This workshop perfectly matched the theme of this year’s
challenge: SUPERPOWERED. For this edition, the First
LEGO League teams were challenged to learn more about energy
sources, energy distribution, storage and usage. Together all
participating children collaborated and innovated for a better
future with green energy.
We believe that involving children at an early age in fun
activities related to renewable energy is a great way to create
awareness for the environment in general and to inspire them to
join the industry later in life. The numbers in our Global Trash ‘n
Trace Challenge with Litterati grew to 415,000 pieces of litter
picked and registered in our challenge.
Group performance
Brunel International (unaudited) |
|
|
P&L amounts in EUR million |
|
|
|
|
|
Q1 2023 |
Q1 2022 |
Δ% |
|
Revenue |
316.9 |
274.6 |
15% |
a |
Gross
Profit |
68.8 |
61.8 |
11% |
|
Gross
margin |
21.7% |
22.5% |
|
|
Operating
costs |
52.3 |
46.2 |
13% |
b |
Operating
result |
16.5 |
15.6 |
6% |
|
Earn out
related share based payments* |
0.7 |
1.1 |
-36% |
|
EBIT |
15.8 |
15.6 |
1% |
c |
EBIT % |
5.0% |
5.7% |
|
|
|
|
|
|
|
Average
directs |
11,000 |
11,233 |
-2% |
|
Average
indirects |
1,529 |
1,436 |
6% |
|
Ratio direct /
Indirect |
7.2 |
7.8 |
|
|
|
|
|
|
|
a
19 % like-for-like |
|
|
b
20 % like-for-like |
|
|
c
6 % like-for-like |
|
|
Like-for-like is measured excluding the impact of currencies,
acquisitions and divestments |
|
|
*Relates to the acquisition related expenses for Taylor
Hopkinson |
|
|
The average number of directs reflects our
specialists working at clients (the average for Q1 2022 still
included the average for Russia of 941).Headline
performance by regionP&L amounts in EUR million
Revenue |
Q1 2023 |
Q1 2022 |
Δ% |
|
|
|
|
DACH region |
64.9 |
58.4 |
11% |
The
Netherlands |
53.4 |
48.9 |
9% |
Australasia |
43.5 |
34.0 |
28% |
Middle East &
India |
37.8 |
30.8 |
23% |
Americas |
44.0 |
32.5 |
35% |
Asia |
44.2 |
33.0 |
34% |
Rest of
world |
29.1 |
37.0 |
-21% |
|
|
|
|
Total |
316.9 |
274.6 |
15% |
EBIT |
Q1 2023 |
Q1 2022 |
Δ% |
|
|
|
|
DACH region |
8.3 |
6.9 |
20% |
The
Netherlands |
4.8 |
5.2 |
-8% |
Australasia |
0.9 |
0.2 |
350% |
Middle East &
India |
3.0 |
3.0 |
0% |
Americas |
0.4 |
0.4 |
0% |
Asia |
2.0 |
1.9 |
5% |
Rest of
world |
-0.1 |
0.9 |
-111% |
Unallocated |
-3.5 |
-2.9 |
-21% |
|
|
|
|
Total |
15.8 |
15.6 |
1% |
In Q1 2023 the Group’s
revenue increased by 15% or EUR 42.3 million
y-o-y, with the largest growth in Americas, Asia, Australasia and
Middle East & India. Like-for-like revenue increased by 19%.
Following very strong growth in the Asia region for the past
consecutive quarters, we commenced separate reporting on the region
as of 2023. In Q1 2022, Rest of World still included our activities
in Russia (EUR 10 million revenue and EUR 1 million EBIT).
Gross margin for the group
decreased slightly, mainly as a result in the continued change in
mix between the regions.
Unallocated costs were higher due to the
implementation of new digital tools.
EBIT increased by 1% to EUR
15.8 million. Excluding Russia and impact of currencies, the
increase was 6% or EUR 1.0 million.
Performance by region
DACH region (unaudited) |
|
P&L amounts in EUR million |
|
|
|
|
Q1 2023 |
Q1 2022 |
Δ% |
|
Revenue |
64.9 |
58.4 |
11% |
|
Gross Profit |
24.0 |
21.1 |
14% |
|
Gross margin |
37.0% |
36.1% |
|
|
Operating
costs |
15.7 |
14.2 |
11% |
|
EBIT |
8.3 |
6.9 |
20% |
|
EBIT % |
12.8% |
11.8% |
|
|
|
|
|
|
|
Average
directs |
2,085 |
1,985 |
5% |
|
Average
indirects |
428 |
388 |
10% |
|
Ratio direct /
Indirect |
4.9 |
5.1 |
|
|
The DACH
region includes Germany, Switzerland, Austria and
Czech Republic.
Revenue per working day in DACH increased by
9.5%, as a result of a higher number of specialists working at our
clients, and increased rates. Gross margin adjusted for working
days is 36.1% in Q1 2023 (Q1 2022; 36.1%), and remains robust.
Working days Germany:
|
Q1 |
Q2 |
Q3 |
Q4 |
FY |
2023 |
65 |
60 |
65 |
61 |
251 |
2022 |
64 |
60 |
66 |
62 |
252 |
Headcount as of 31 March 2023 was 2,078 (2022:
1,996).
The Netherlands (unaudited) |
|
P&L amounts in EUR million |
|
|
|
|
Q1 2023 |
Q1 2022 |
Δ% |
|
Revenue |
53.4 |
48.9 |
9% |
|
Gross Profit |
15.0 |
14.9 |
1% |
|
Gross margin |
28.1% |
30.5% |
|
|
Operating
costs |
10.2 |
9.7 |
5% |
|
EBIT |
4.8 |
5.2 |
-8% |
|
EBIT % |
9.0% |
10.6% |
|
|
|
|
|
|
|
Average
directs |
1,701 |
1,677 |
1% |
|
Average
indirects |
273 |
276 |
-1% |
|
Ratio direct /
Indirect |
6.2 |
6.1 |
|
|
Revenue per working day in The
Netherlands increased by 7.6%. The increase is mainly the
result of higher headcount and higher rates, partially offset by
the lower productivity due to higher bench. The business lines
Finance & risk and Legal are the main driver of the growth.
Gross margin adjusted for working days is 27.3% in Q1 2023 (Q1
2022: 30.5%). As expected, the indexation of rates to cover for
higher salaries has been hindered by timing-effects, putting
pressure on margins in Q1 which is expected to soften in the course
of this year.
Working days The Netherlands:
|
Q1 |
Q2 |
Q3 |
Q4 |
FY |
2023 |
65 |
61 |
65 |
63 |
254 |
2022 |
64 |
61 |
66 |
64 |
255 |
Headcount as of 31 March 2023 was 1,735 (2022:
1,679).
Australasia (unaudited) |
|
P&L amounts in EUR million |
|
|
|
|
Q1 2023 |
Q1 2022 |
Δ% |
|
Revenue |
43.5 |
34.0 |
28% |
a |
Gross Profit |
4.6 |
3.1 |
48% |
|
Gross margin |
10.6% |
9.1% |
|
|
Operating
costs |
3.7 |
2.9 |
28% |
b |
EBIT |
0.9 |
0.2 |
350% |
c |
EBIT % |
2.1% |
0.6% |
|
|
|
|
|
|
|
Average
directs |
1,495 |
1,256 |
19% |
|
Average
indirects |
118 |
101 |
16% |
|
Ratio direct /
Indirect |
12.7 |
12.4 |
|
|
|
|
|
|
|
a 30
% like-for-like |
|
b 26
% like-for-like |
|
c 467
% like-for-like |
|
Like-for-like is measured excluding the impact of currencies,
acquisitions and divestments |
|
Australasia includes Australia
and Papua New Guinea.
Growth in the region continues to be driven by
conventional energy and mining clients. Gross margin increased by
1.5 ppt as a result of margin discipline and the additional
services offered to clients.
Middle East & India (unaudited) |
|
P&L amounts in EUR million |
|
|
|
|
Q1 2023 |
Q1 2022 |
Δ% |
|
Revenue |
37.8 |
30.8 |
23% |
a |
Gross Profit |
5.6 |
5.2 |
8% |
|
Gross margin |
14.8% |
16.9% |
|
|
Operating
costs |
2.6 |
2.2 |
18% |
b |
EBIT |
3.0 |
3.0 |
0% |
c |
EBIT % |
7.9% |
9.7% |
|
|
|
|
|
|
|
Average
directs |
2,196 |
2,179 |
1% |
|
Average
indirects |
160 |
130 |
24% |
|
Ratio direct /
Indirect |
13.7 |
16.8 |
|
|
|
|
|
|
|
a 20
% like-for-like |
|
b 16
% like-for-like |
|
c -3
% like-for-like |
|
Like-for-like is measured excluding the impact of currencies,
acquisitions and divestments |
|
Middle East & India
includes Qatar, Kuwait, Dubai, Saudi Arabia, Iraq and India.
All countries contributed to the strong revenue
increase, mainly driven by new projects with both existing and new
clients, Gross margin dropped due to change in client mix, and the
absence of higher margin ‘shut down’ projects in Q1 2023.
Americas (unaudited) |
|
P&L amounts in EUR million |
|
|
|
|
Q1 2023 |
Q1 2022 |
Δ% |
|
Revenue |
44.0 |
32.5 |
35% |
a |
Gross Profit |
5.5 |
4.2 |
31% |
|
Gross margin |
12.5% |
12.9% |
|
|
Operating
costs |
5.1 |
3.8 |
34% |
b |
EBIT |
0.4 |
0.4 |
0% |
c |
EBIT % |
0.9% |
1.2% |
|
|
|
|
|
|
|
Average
directs |
1,021 |
861 |
19% |
|
Average
indirects |
150 |
115 |
31% |
|
Ratio direct /
Indirect |
6.8 |
7.5 |
|
|
|
|
|
|
|
a 33
% like-for-like |
|
b 31
% like-for-like |
|
c 8 %
like-for-like |
|
Like-for-like is measured excluding the impact of currencies,
acquisitions and divestments |
|
Americas saw continued strong
growth in its main markets, USA and Brazil. The growth is mainly
driven by conventional energy and mining clients, with a number of
bigger projects in Canada completed in Q1 2023. Operating costs
increased due to investments in staff to support future growth.
Asia (unaudited) |
|
P&L amounts in EUR million |
|
|
|
|
Q1 2023 |
Q1 2022 |
Δ% |
|
Revenue |
44.2 |
33.0 |
34% |
a |
Gross Profit |
6.6 |
4.9 |
35% |
|
Gross margin |
14.9% |
14.8% |
|
|
Operating
costs |
4.6 |
3.0 |
53% |
b |
EBIT |
2.0 |
1.9 |
5% |
c |
EBIT % |
4.5% |
5.8% |
|
|
|
|
|
|
|
Average
directs |
1,459 |
1,371 |
6% |
|
Average
indirects |
146 |
135 |
8% |
|
Ratio direct /
Indirect |
10.0 |
10.1 |
|
|
|
|
|
|
|
a 35
% like-for-like |
|
b 56
% like-for-like |
|
c 6 %
like-for-like |
|
Like-for-like is measured excluding the impact of currencies,
acquisitions and divestments |
|
Asia includes, Singapore,
China, Hong Kong, South Korea, Taiwan, Japan, Indonesia, Thailand,
Malaysia.
Due to the high level of activity at energy and
mining clients, strong growth was achieved in almost all countries
in this region. Operating costs increased as a result of
investments in staff to support future growth.
Rest of world (unaudited) |
|
|
P&L amounts in EUR million |
|
|
|
|
|
Q1 2023 |
Q1 2022 |
Δ% |
|
Revenue |
29.1 |
37.0 |
-21% |
a |
Gross
Profit |
7.5 |
8.4 |
-11% |
|
Gross
margin |
25.8% |
22.7% |
|
|
Operating
costs |
6.9 |
7.5 |
-8% |
b |
Operating
result |
0.6 |
0.9 |
-33% |
|
Earn out
related share based payments* |
0.7 |
1.1 |
-36% |
|
EBIT |
-0.1 |
0.9 |
-111% |
|
EBIT % |
-0.3% |
2.4% |
|
|
|
|
|
|
|
Average
directs |
1,042 |
1,906 |
-45% |
|
Average
indirects |
191 |
231 |
-17% |
|
Ratio direct /
Indirect |
5.5 |
8.3 |
|
|
|
|
|
|
|
a
16 % like-for-like |
|
|
b
36 % like-for-like |
|
|
Like-for-like is measured excluding the impact of currencies,
acquisitions and divestments |
|
*Relates to the acquisition related expenses for Taylor
Hopkinson |
|
Rest of World includes Taylor
Hopkinson, Belgium and our other energy activities in Europe. In Q1
2022, this region also still included Russia which activities were
divested in Q2 2022.
On a like-for-like basis (excl. Russia) revenue
was up 16% and EBIT was stable versus Q1 2022. Taylor Hopkinson
performed in line with Q1 2022. Their offshore wind activities are
slightly impacted by seasonality, with a typically lower activity
level in Q1 which has recently started to pick up strongly
again.
OutlookWe expect the current
favourable trends to continue throughout Q2 2023, with the normal
seasonality.
- Press Release Q1 2023.pdf
Source: Brunel International NV
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