BRUNEL INTERNAT (AMS:BRNL) Q1 2019 results Brunel: 25% revenue growth, EBIT increased by 68%

Transparency directive : regulatory news

03/05/2019 07:30

Press Release

Amsterdam, 3 May 2019

Key points Q1 2019     

  • Revenue growth further accelerated to 25% (yoy) to EUR 266 million over the quarter
  • Strong operational leverage, resulting in a 68% increase in EBIT (yoy) to EUR 12 million with EBIT margin up by 1.1 ppt to 4.5%
  • Best quarter in the history of DACH and Middle East & India regions 

Jilko Andringa, CEO of Brunel: Our sales growth has further accelerated in the first quarter. This is yet another confirmation of our strong position, focused around investment projects for customers, in the markets and sectors in which we operate. The outlook remains very positive, with our customers planning significant investments in our main markets, Oil Gas, Automotive, Renewable Energy and Mining & Infrastructure over the next few years. In the Netherlands, we experienced a slight decrease in revenue, mainly due to the circumstances in Insurance & Banking, but we believe this to be temporary. I am especially proud of the results achieved in DACH and Middle East: both regions have broken their record for revenue and EBIT in the first quarter and we see other regions developing in the same direction. We continue to build on our operational leverage in all regions and are well positioned for further growth. I’m also very proud of the global partnership with Specialisterne that we have established in Q1. We will collaborate for the inclusion of autistic and neurodiverse people in the labour market. ”

Brunel International (unaudited)  
P&L amounts in EUR million    
  Q1 2019 Q1 2018 Change %  
Revenue 266.2 213.8 25% a
Gross Profit 59.1 50.0 18%  
Gross margin 22.2% 23.4%   
Operating costs 47.0 42.8 10% b
EBIT 12.1 7.2 68%  
EBIT % 4.5% 3.4%   
     
Average directs 12,987 11,228 16%  
Average indirects 1,609 1,527 5%  
Ratio direct / Indirect 8.1 7.4   
     
a 22 % like-for-like  
b 9 % like-for-like  
Like-for-like is measured excluding the impact of currencies and acquisitions  

Q1 2019 results by division
P&L amounts in EUR million

Summary:

Revenue Q1 2019 Q1 2018 Change % LFL %
     
DACH region 73.6 64.1 15% 15%
The Netherlands 54.5 56.2 -3% -3%
Australasia 28.7 27.7 4% 3%
Middle East & India 27.0 19.2 41% 31%
Rest of world 82.4 46.6 77% 71%
     
Total 266.2 213.8 25% 22%
     
Like-for-like is measured excluding the impact of currencies and acquisitions


EBIT Q1 2019 Q1 2018 Change % LFL %
     
DACH region 8.5 5.7 49% 49%
The Netherlands 2.8 4.2 -33% -33%
Australasia -0.6 0.0   
Middle East & India 2.9 1.7 71% 56%
Rest of world 0.7 -1.9 137% 126%
Unallocated -2.2 -2.5 12% 12%
     
Total 12.1 7.2 68% 64%
     
Like-for-like is measured excluding the impact of currencies and acquisitions

The Group’s revenue increased by 25% over the quarter to EUR 266.2 million, or 22% on a like-for-like basis. EBIT increased by 68% despite an adverse working day effect in The Netherlands, and the EBIT margin is up by 1.1 ppt.

DACH region (unaudited)  
P&L amounts in EUR million    
  Q1 2019 Q1 2018 Change %  
Revenue 73.6 64.1 15%  
Gross Profit 24.8 20.6 20%  
Gross margin 33.7% 32.1%   
Operating costs 16.3 14.9 9%  
EBIT 8.5 5.7 49%  
EBIT % 11.5% 8.9%   
     
Average directs 2,698 2,524 7%  
Average indirects 503 472 7%  
Ratio direct / Indirect 5.4 5.3   

Revenue per working day in the DACH region increased by 15%. This growth is achieved in all our markets, including our main market Automotive. The gross margin increased due to a better productivity, especially at our competence centers, and less price pressure. Headcount as of 31 March was 2,713 (2018: 2,546).

Working days Germany:

  Q1 Q2 Q3 Q4 FY
2019 63 59 66 62 250
2018 63 60 65 62 250


The Netherlands (unaudited)  
P&L amounts in EUR million    
  Q1 2019 Q1 2018 Change %  
Revenue 54.5 56.2 -3%  
Gross Profit 15.1 16.9 -11%  
Gross margin 27.7% 30.1%   
Operating costs 12.3 12.7 -3%  
EBIT 2.8 4.2 -33%  
EBIT % 5.1% 7.5%   
     
Average directs 2,377 2,419 -2%  
Average indirects 429 422 1%  
Ratio direct / Indirect 5.5 5.7   

  

Revenue per working day in The Netherlands decreased by 2%. Gross margin adjusted for working days is 28.7% in Q1 2019 (Q1 2018: 30.1%). The gross margin decreased due to a higher bench in Q1 that will likely also impact Q2. Headcount as of 31 March was 2,339 (2018: 2,424).

Working days The Netherlands:

  Q1 Q2 Q3 Q4 FY
2019 63 62 66 64 255
2018 64 61 65 64 254


Australasia (unaudited)  
P&L amounts in EUR million    
  Q1 2019 Q1 2018 Change %  
Revenue 28.7 27.7 4% a
Gross Profit 2.3 2.4 -4%  
Gross margin 8.0% 8.7%   
Operating costs 2.9 2.4 23% b
EBIT -0.6 0.0   
EBIT % -2.1% 0.0%   
     
Average directs 908 925 -2%  
Average indirects 85 77 10%  
Ratio direct / Indirect 10.7 12.0   
     
a 3 % like-for-like  
b 23 % like-for-like  
Like-for-like is measured excluding the impact of currencies and acquisitions  

Australasia managed to achieve limited growth, even despite the severe weather conditions in Queensland, Australia. The growth is mainly driven by our traditional services in the Oil & Gas sector. The increased operating cost reflect our investments to diversify.

Middle East & India (unaudited)  
P&L amounts in EUR million    
  Q1 2019 Q1 2018 Change %  
Revenue 27.0 19.2 41% a
Gross Profit 4.8 3.3 45%  
Gross margin 17.8% 17.2%   
Operating costs 1.9 1.6 19% b
EBIT 2.9 1.7 71%  
EBIT % 10.7% 8.9%   
     
Average directs 3,932 2,392 64%  
Average indirects 129 112 15%  
Ratio direct / Indirect 30.4 21.3   
     
a 31 % like-for-like  
b 12 % like-for-like  
Like-for-like is measured excluding the impact of currencies and acquisitions  

In the region Middle East & India we continue to see strong results and a healthy pipeline of projects in multiple areas and specialisms. Qatar, Kuwait and India are the main growth drivers.

Rest of world (unaudited)  
P&L amounts in EUR million    
  Q1 2019 Q1 2018 Change %  
Revenue 82.4 46.6 77% a
Gross Profit 12.1 6.8 78%  
Gross margin 14.7% 14.6%   
Operating costs 11.4 8.7 31% b
EBIT 0.7 -1.9 137%  
EBIT % 0.8% -4.1%   
     
Average directs 3,073 2,968 4%  
Average indirects 415 388 7%  
Ratio direct / Indirect 7.4 7.7   
     
a 71 % like-for-like  
b 28 % like-for-like  
Like-for-like is measured excluding the impact of currencies and acquisitions

The Rest of World includes Asia, Russia, Belgium, Europe & Africa and Americas. All regions included in Rest of World have achieved revenue growth in Q1. Activity at current clients increases and we continue to see results of our diversification efforts.

Change in accounting policies: IFRS 16
Brunel applies IFRS 16: leases as per 1 January 2019, using the retrospective approach with the cumulative effect of EUR 831,000 of the initial application added to retained earnings at 1 January 2019. As a consequence, we have not restated comparative information. The impact of this change in accounting policy for leases on our reported results is not significant: the positive impact on our reported EBIT per quarter for 2019 is approximately EUR 300,000. The total value of the relating right-of-use assets at 31 March 2019 amounts to EUR 44.9 million, and the corresponding lease liabilities amount to EUR 44.8 million.

Attachments

Attachment(s):
Press Release Q1 - Attachment


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