Brunel delivers accelerated EBIT growth and continued revenue
growth
Amsterdam, 28 July 2023 – Brunel International N.V. (Brunel;
BRNL), a global provider of flexible workforce solutions and
expertise, today announced its second quarter 2023 results.
Key points Q2 2023
- Revenue of EUR 328 million, up 13% (20% like-for-like)
- Gross Profit of EUR 66 million, up 11% (15% like-for-like)
- EBIT of EUR 11.0 million, up 10% (17% like-for-like)
Key points H1 2023
- Revenue of EUR 645 million, up 14% (20% like-for-like)
- Gross profit increase of 11% compared to H1 2022
- EBIT of EUR 26.8 million, up 4% (10% like-for-like)
- Earnings per share of EUR 0.32, up 167% compared to H1
2022
Jilko Andringa, CEO of Brunel
International N.V.:“I’m excited to report that since 8
quarters we have consistently shown strong growth across all
metrics, confirming our strategic positioning against the favorable
trends in our markets. We were able to achieve strong EBIT growth
despite one less working day in DACH. I am proud that all our
regions are now contributing, confirming our progress on
diversification.
I would especially like to call out the Dutch team, who further
improved their growth and outperformed the market.
We continue to see strong demand from our clients across the
globe. The energy and digital transformations create a high demand
for specialized Science, Technology, Engineering and Mathematics
talent. With our expanded capabilities in over 45 countries, we
continue to win projects and new clients in our chosen market
segments.
Following the acquisition of the biggest pure-play renewable
team Taylor Hopkinson in 2021, we achieve accelerated growth in the
renewable energy markets across all our regions. The combination of
Taylor Hopkinson’s renewable energy expertise and our global
infrastructure with 100% compliant solutions, puts us in a unique
position to service this industry globally. We are very proud to be
recognized as the global leader in renewable recruitment
solutions.
To support our continued profitable growth, we have further
rolled out our Digital/AI strategy to continue to move to market
leading SAAS-solutions. This enables us to easily add new
best-in-class IT-tools and benefit from the software and AI
developments by our leading global partners.
We will organize a Capital Markets Day in Q4 to present our
mid-term ambitions, as we are clearly ahead of the 5-year plan we
communicated in 2021.”
ESG UpdateIn April the Brunel
Foundation kicked off Autism Awareness Month as we believe that
impactful change is achieved through increased awareness.
Colleagues around the world organized events such as a webinar on
autism in the workplace, an autism awareness quiz, viewing session
and panel discussion with the documentary My journey for education
as a starting point, “AUT in the Brunel office” interviews and
walk-in coaching sessions. All with the aim to contribute to a more
inclusive workforce.
We also engaged in several cleanup activities during the
quarter, in line with the Brunel Foundation's mission to safeguard
the environment. Brunellers from various parts of Asia joined
forces with Seven Clean Seas for a beach clean-up in Phuket,
collecting 490kg of waste. In the Amsterdam headquarters colleagues
rolled up their sleeves for a lunchbreak clean up, while the Europe
and Africa team cleaned the Delft canals as part of their team
event. On top of that, the numbers in our Global Trash 'n Trace
Challenge with Litterati grew to over 440,000 pieces of litter
picked and registered in our challenge.
In June, we united for the preservation of our precious planet
by spreading awareness in an online campaign. It's crucial to
recognize the interdependencies between land and sea, as their
vitality and prosperity are inherently intertwined. We highlighted
the value of life on land and below water. We believe that raising
awareness helps to educate and mobilize individuals and foster a
shared responsibility for taking action.
GROUP PERFORMANCE
Brunel International (unaudited) |
P&L
amounts in EUR million |
|
|
|
|
|
|
|
|
|
Q2 2023 |
Q2 2022 |
Δ% |
|
|
H1 2023 |
H1 2022 |
Δ% |
|
Revenue |
327.8 |
289.1 |
13% |
a |
|
644.7 |
563.7 |
14% |
d |
Gross Profit |
65.6 |
59.0 |
11% |
|
|
134.4 |
120.9 |
11% |
|
Gross margin |
20.0% |
20.4% |
|
|
|
20.8% |
21.4% |
|
|
Operating costs |
53.8 |
48.0 |
12% |
b |
|
106.2 |
93.1 |
14% |
e |
Operating result |
11.7 |
11.0 |
6% |
|
|
28.2 |
27.8 |
2% |
|
Earn out related share based
payments* |
0.7 |
1.0 |
-30% |
|
|
1.4 |
2.1 |
-33% |
|
EBIT |
11.0 |
10.0 |
10% |
c |
|
26.8 |
25.7 |
4% |
f |
EBIT % |
3.4% |
3.5% |
|
|
|
4.2% |
4.6% |
|
|
|
|
|
|
|
|
|
|
|
|
Average directs |
11,237 |
11,356 |
-1% |
|
|
11,118 |
11,295 |
-2% |
|
Average indirects |
1,582 |
1,446 |
9% |
|
|
1,555 |
1,441 |
8% |
|
Ratio direct / indirect |
7.1 |
7.9 |
|
|
|
7.1 |
7.8 |
|
|
|
|
|
|
|
|
|
|
|
|
a 20 % at like-for-like |
d 20 % at
like-for-like |
|
|
b 18 % at like-for-like |
e 18 % at
like-for-like |
|
|
c 17 % at like-for-like |
f 10 % at
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 |
|
|
|
|
|
Headline performance by region Summary (amounts
in EUR million):
Revenue |
Q2 2023 |
Q2 2022 |
Δ% |
|
H1 2023 |
H1 2022 |
Δ% |
|
|
|
|
|
|
|
|
DACH region |
60.2 |
55.1 |
9% |
|
125.2 |
113.5 |
10% |
The
Netherlands |
52.4 |
45.9 |
14% |
|
105.9 |
94.8 |
12% |
Australasia |
46.1 |
39.6 |
16% |
|
89.6 |
73.6 |
22% |
Middle East &
India |
37.7 |
34.9 |
8% |
|
75.5 |
65.8 |
15% |
Americas |
45.1 |
35.2 |
28% |
|
89.1 |
67.7 |
32% |
Asia |
46.0 |
37.8 |
22% |
|
90.1 |
70.8 |
27% |
Rest of
world |
40.4 |
40.6 |
-1% |
|
69.4 |
77.6 |
-11% |
|
|
|
|
|
|
|
|
Total |
327.8 |
289.1 |
13% |
|
644.7 |
563.7 |
14% |
EBIT |
Q2 2023 |
Q2 2022 |
Δ% |
|
H1 2023 |
H1 2022 |
Δ% |
|
|
|
|
|
|
|
|
DACH region |
2.9 |
3.8 |
-22% |
|
11.2 |
10.6 |
6% |
The
Netherlands |
3.0 |
2.7 |
9% |
|
7.8 |
7.9 |
-1% |
Australasia |
1.2 |
0.8 |
52% |
|
2.1 |
1.0 |
125% |
Middle East &
India |
2.6 |
3.1 |
-17% |
|
5.6 |
6.2 |
-9% |
Americas |
1.1 |
0.5 |
105% |
|
1.5 |
0.9 |
63% |
Asia |
3.0 |
2.0 |
49% |
|
5.0 |
4.0 |
27% |
Rest of
world |
0.9 |
0.1 |
967% |
|
0.7 |
1.1 |
-38% |
Unallocated |
-3.7 |
-3.0 |
-22% |
|
-7.1 |
-5.9 |
-20% |
|
|
|
|
|
|
|
|
Total |
11.0 |
10.0 |
10% |
|
26.8 |
25.7 |
4% |
In Q2 2023 the Group’s revenue increased by 13%
or EUR 38.7 million y-o-y. We achieved growth in revenue and EBIT
despite the increasing impact of the unfavorable development of
exchange rates. Like-for-like revenue increased by 20%. In Q2 2022,
Rest of world still included EUR 8 million in revenues from Russia,
at zero EBIT.
The gross margin decreased by 0.4 percentage
points, mainly due to a continued change in the mix between the
regions.
EBIT increased by 10% to EUR 11.0 million.
Adjusted for the impact of foreign currencies, EBIT increased by
17% or EUR 1.7 million.PERFORMANCE BY REGION
DACH region (unaudited) |
P&L
amounts in EUR million |
|
|
|
|
|
|
|
|
Q2 2023 |
Q2 2022 |
Δ% |
|
|
H1 2023 |
H1 2022 |
Δ% |
Revenue |
60.2 |
55.1 |
9% |
|
|
125.2 |
113.5 |
10% |
Gross Profit |
18.9 |
18.4 |
3% |
|
|
43.0 |
39.5 |
9% |
Gross margin |
31.5% |
33.5% |
|
|
|
34.3% |
34.8% |
|
Operating costs |
16.0 |
14.6 |
10% |
|
|
31.8 |
28.9 |
10% |
EBIT |
2.9 |
3.8 |
-22% |
|
|
11.2 |
10.6 |
6% |
EBIT % |
4.9% |
6.8% |
|
|
|
9.0% |
9.4% |
|
|
|
|
|
|
|
|
|
|
Average directs |
2,103 |
2,014 |
4% |
|
|
2,094 |
1,999 |
5% |
Average indirects |
437 |
402 |
9% |
|
|
432 |
395 |
9% |
Ratio direct / indirect |
4.8 |
5.0 |
|
|
|
4.8 |
5.1 |
|
The DACH
region includes Germany, Switzerland, Austria and
Czech Republic. Revenue per working day in DACH increased by 11.2%,
as a result of a higher number of specialists working at our
clients, and increased rates. Gross margin adjusted for working
days is 32.5% in Q2 2023 (Q2 2022: 33.5%), and remains robust,
where this was impacted by higher illness rates in the same period
last year.
Headcount as of 30 June was 2,084 (2022:
2,033).
Working days Germany:
|
Q1 |
Q2 |
Q3 |
Q4 |
FY |
2023 |
65 |
60 |
65 |
61 |
251 |
2022 |
64 |
61 |
66 |
62 |
253 |
Brunel Netherlands (unaudited) |
P&L
amounts in EUR million |
|
|
|
|
|
|
|
|
Q2 2023 |
Q2 2022 |
Δ% |
|
|
H1 2023 |
H1 2022 |
Δ% |
Revenue |
52.4 |
45.9 |
14% |
|
|
105.9 |
94.8 |
12% |
Gross Profit |
13.2 |
12.7 |
4% |
|
|
28.2 |
27.6 |
2% |
Gross margin |
25.2% |
27.6% |
|
|
|
26.6% |
29.1% |
|
Operating costs |
10.2 |
10.0 |
2% |
|
|
20.4 |
19.7 |
4% |
EBIT |
3.0 |
2.7 |
9% |
|
|
7.8 |
7.9 |
-1% |
EBIT % |
5.6% |
5.9% |
|
|
|
7.3% |
8.3% |
|
|
|
|
|
|
|
|
|
|
Average directs |
1,733 |
1,669 |
4% |
|
|
1,717 |
1,673 |
3% |
Average indirects |
270 |
278 |
-3% |
|
|
271 |
277 |
-2% |
Ratio direct / indirect |
6.4 |
6.0 |
|
|
|
6.3 |
6.0 |
|
In The Netherlands the revenue
growth was mainly driven by higher rates and a higher number of
specialists. The gross margin decreased with 2.4 ppt, partly as a
result of faster growth in our freelance population. We are making
progress on the indexation of rates to cover for higher
salaries.
Headcount as of 30 June was 1,748 (2022:
1,673)
Working days The Netherlands:
|
Q1 |
Q2 |
Q3 |
Q4 |
FY |
2023 |
65 |
61 |
65 |
63 |
254 |
2022 |
64 |
61 |
66 |
64 |
255 |
Australasia (unaudited) |
P&L
amounts in EUR million |
|
|
|
|
|
|
|
|
|
Q2 2023 |
Q2 2022 |
Δ% |
|
|
H1 2023 |
H1 2022 |
Δ% |
|
Revenue |
46.1 |
39.6 |
16% |
a |
|
89.6 |
73.6 |
22% |
d |
Gross Profit |
5.0 |
4.0 |
26% |
|
|
9.5 |
7.0 |
36% |
|
Gross margin |
10.8% |
10.0% |
|
|
|
10.6% |
9.6% |
|
|
Operating costs |
3.8 |
3.2 |
19% |
b |
|
7.4 |
6.0 |
23% |
e |
EBIT |
1.2 |
0.8 |
52% |
c |
|
2.1 |
1.0 |
125% |
f |
EBIT % |
2.6% |
2.0% |
|
|
|
2.4% |
1.3% |
|
|
|
|
|
|
|
|
|
|
|
|
Average directs |
1,545 |
1,351 |
14% |
|
|
1,520 |
1,303 |
17% |
|
Average indirects |
121 |
105 |
15% |
|
|
119 |
103 |
16% |
|
Ratio direct / indirect |
12.8 |
12.9 |
|
|
|
12.8 |
12.7 |
|
|
|
|
|
|
|
|
|
|
|
|
a 26 % like-for-like |
d 27 % at
like-for-like |
|
|
|
|
|
b 28 % like-for-like |
e 27 % at
like-for-like |
|
|
|
|
|
c 63 % like-for-like |
f 133 % at
like-for-like |
|
|
|
|
|
Like-for-like is
measured excluding the impact of currencies, acquisitions and
divestments |
|
|
|
|
|
Australasia includes Australia
and Papua New Guinea.
We continue to see an increased client demand
for specialists in the conventional energy and mining markets,
resulting in a strong increase of our workforce. The revenue
increase of 16% was achieved despite the unfavourable impact from
foreign currencies and would have been 26% at constant
currencies.
The gross margin increased with 0.8 ppt, mainly
due to strong margin discipline and focus on higher value added
activities.
Middle East & India (unaudited) |
P&L
amounts in EUR million |
|
|
|
|
|
|
|
|
|
Q2 2023 |
Q2 2022 |
Δ% |
|
|
H1 2023 |
H1 2022 |
Δ% |
|
Revenue |
37.7 |
34.9 |
8% |
a |
|
75.5 |
65.8 |
15% |
d |
Gross Profit |
5.2 |
5.5 |
-6% |
|
|
10.8 |
10.7 |
0% |
|
Gross margin |
13.7% |
15.7% |
|
|
|
14.3% |
16.3% |
|
|
Operating costs |
2.6 |
2.4 |
8% |
b |
|
5.2 |
4.5 |
16% |
e |
EBIT |
2.6 |
3.1 |
-17% |
c |
|
5.6 |
6.2 |
-9% |
f |
EBIT % |
6.9% |
9.0% |
|
|
|
7.4% |
9.4% |
|
|
|
|
|
|
|
|
|
|
|
|
Average directs |
2,110 |
2,205 |
-4% |
|
|
2,153 |
2,192 |
-2% |
|
Average indirects |
164 |
133 |
23% |
|
|
162 |
132 |
23% |
|
Ratio direct / indirect |
12.9 |
16.5 |
|
|
|
13.3 |
16.7 |
|
|
|
|
|
|
|
|
|
|
|
|
a 11 % like-for-like |
d 16 % at
like-for-like |
|
|
|
|
|
b 12 % like-for-like |
e 14 % at
like-for-like |
|
|
|
|
|
c -13 % like-for-like |
f -8 % at
like-for-like |
|
|
|
|
|
Like-for-like is
measured excluding the impact of currencies, acquisitions and
divestments |
|
|
|
|
|
Middle East & India
includes Qatar, Dubai, Kuwait, Iraq and India.
We continue to see growth in almost all
countries from new projects and project extensions in the region,
while Kuwait continues to trail. The gross margin decreased due to
change in the client mix and absence of high margin shut down
projects.
Americas (unaudited) |
P&L
amounts in EUR million |
|
|
|
|
|
|
|
|
|
Q2 2023 |
Q2 2022 |
Δ% |
|
|
H1 2023 |
H1 2022 |
Δ% |
|
Revenue |
45.1 |
35.2 |
28% |
a |
|
89.1 |
67.7 |
32% |
d |
Gross Profit |
6.3 |
4.8 |
30% |
|
|
11.8 |
9.0 |
30% |
|
Gross margin |
13.9% |
13.7% |
|
|
|
13.2% |
13.3% |
|
|
Operating costs |
5.2 |
4.3 |
21% |
b |
|
10.3 |
8.1 |
27% |
e |
EBIT |
1.1 |
0.5 |
105% |
c |
|
1.5 |
0.9 |
63% |
f |
EBIT % |
2.4% |
1.5% |
|
|
|
1.7% |
1.4% |
|
|
|
|
|
|
|
|
|
|
|
|
Average directs |
1,056 |
906 |
17% |
|
|
1,039 |
883 |
18% |
|
Average indirects |
156 |
121 |
29% |
|
|
153 |
118 |
30% |
|
Ratio direct / indirect |
6.8 |
7.5 |
|
|
|
6.8 |
7.5 |
|
|
|
|
|
|
|
|
|
|
|
|
a 33 % like-for-like |
d 33 % at
like-for-like |
|
|
|
|
|
b 25 % like-for-like |
e 28 % at
like-for-like |
|
|
|
|
|
c 120 % like-for-like |
f 69 % at
like-for-like |
|
|
|
|
|
Like-for-like is
measured excluding the impact of currencies, acquisitions and
divestments |
|
|
|
|
|
The Americas includes Brazil,
Canada, USA, Guyana and Surinam. In Q2 the growth was mainly
achieved in the USA and new projects won in South America, slightly
offset by lower revenue in Canada due to the completion of big
projects in Q1. We have been able to grow our sales organisation to
support continued growth, which resulted in higher operating
costs.
Asia (unaudited) |
P&L
amounts in EUR million |
|
|
|
|
|
|
|
|
|
Q2 2023 |
Q2 2022 |
Δ% |
|
|
H1 2023 |
H1 2022 |
Δ% |
|
Revenue |
46.0 |
37.8 |
22% |
a |
|
90.1 |
70.8 |
27% |
d |
Gross Profit |
7.6 |
5.4 |
41% |
|
|
14.3 |
10.3 |
38% |
|
Gross margin |
16.6% |
14.4% |
|
|
|
15.9% |
14.6% |
|
|
Operating costs |
4.6 |
3.4 |
35% |
b |
|
9.3 |
6.3 |
48% |
e |
EBIT |
3.0 |
2.0 |
49% |
c |
|
5.0 |
4.0 |
27% |
f |
EBIT % |
6.5% |
5.3% |
|
|
|
5.6% |
5.6% |
|
|
|
|
|
|
|
|
|
|
|
|
Average directs |
1,426 |
1,502 |
-5% |
|
|
1,442 |
1,437 |
0% |
|
Average indirects |
153 |
127 |
20% |
|
|
150 |
131 |
14% |
|
Ratio direct / indirect |
9.3 |
11.8 |
|
|
|
9.6 |
10.9 |
|
|
|
|
|
|
|
|
|
|
|
|
a 28 % like-for-like |
d 31 % at
like-for-like |
|
|
|
|
|
b 42 % like-for-like |
e 49 % at
like-for-like |
|
|
|
|
|
c 61 % like-for-like |
f 34 % at
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 and
Malaysia. The region had another strong second quarter as it
continues to benefit from growing activity levels at the
fabrication yards for large energy projects. Operating costs
increased as a result of strategic investments to support the
future growth.
Rest of world (unaudited) |
P&L
amounts in EUR million |
|
|
|
|
|
|
|
|
|
Q2 2023 |
Q2 2022 |
Δ% |
|
|
H1 2023 |
H1 2022 |
Δ% |
|
Revenue |
40.4 |
40.6 |
-1% |
a |
|
69.4 |
77.6 |
-11% |
d |
Gross Profit |
9.4 |
8.2 |
14% |
|
|
16.9 |
16.6 |
2% |
|
Gross margin |
23.3% |
20.3% |
|
|
|
24.3% |
21.4% |
|
|
Operating costs |
7.8 |
7.1 |
10% |
b |
|
14.8 |
13.4 |
10% |
e |
Operating result |
1.6 |
1.1 |
40% |
|
|
2.1 |
3.2 |
-35% |
|
Earn out related share based
payments* |
0.7 |
1.0 |
-30% |
|
|
1.4 |
2.1 |
-33% |
|
EBIT |
0.9 |
0.1 |
967% |
c |
|
0.7 |
1.1 |
-38% |
f |
EBIT % |
2.3% |
0.2% |
|
|
|
1.0% |
1.4% |
|
|
|
|
|
|
|
|
|
|
|
|
Average directs |
1,262 |
1,710 |
-26% |
|
|
1,153 |
1,808 |
-36% |
|
Average indirects |
219 |
221 |
-1% |
|
|
205 |
226 |
-9% |
|
Ratio direct / indirect |
5.8 |
7.7 |
|
|
|
5.6 |
8.0 |
|
|
|
|
|
|
|
|
|
|
|
|
a 24 % like-for-like |
d 20 % at
like-for-like |
|
|
|
|
|
b 58 % like-for-like |
e 31 % at
like-for-like |
|
|
|
|
|
c 9391 % like-for-like |
f 210 % at
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. Until
June 2022, this region also included Russia which activities were
divested.
Excluding Russia and the impact of foreign
currencies, revenue increased by 24%. The growth was mainly driven
by new project wins in Europe and the strong performance of Taylor
Hopkinson’s offshore wind activities.
Tax and net profitThe effective
tax rate for the six-month period ended on 30 June 2023 is 33.3%
(2022: 47.8%). For the full year we expect an effective tax rate of
approximately 30% (2022: 35.2%). Net profit came in at EUR 15.9
million (H1 2022: EUR 6.2 million), reflecting earnings per share
of EUR 0.32 (H1 2022: EUR 0.12).
Risk profileReference is made
to our 2022 Annual Report (pages 62 – 79). Reassessment of our
earlier identifiedrisks and the potential impact on occurrence has
not resulted in required changes in our internal riskmanagement and
control systems.
Cash positionThe net cash
balance at 30 June 2023 was EUR 5.0 million and includes
EUR 16.0 million restricted cash. The decrease in net cash is
mainly the result of the dividend payment in June, seasonality in
our cash flows, and the additional working capital required to fund
the growth. We have sufficient overdraft facilities in place to
support continued growth and, as usual, will achieve a strong
positive cash flow in H2.
OutlookWe expect the current
favourable trends to continue in Q3 2023, including the
acceleration of EBIT growth.
Statement of the Board of
DirectorsThe 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
- 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, 28 July 2023Brunel International
N.V.
Jilko Andringa (CEO)Peter de Laat (CFO)Graeme
Maude (COO)
- Press Release Q2 and interim financial statements 2023
Source: Brunel International NV
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