Brunel International NV: H1 2017: Disappointing half year, first signs of recovery
18 Août 2017 - 8:00AM
Amsterdam, 18 August 2017
Key points Q2 2017
- Revenue down by 18% to EUR 189 million
- EBIT down to EUR -1 million
Key points H1 2017
- Revenue down by 18% to EUR 385 million
- EBIT down to EUR 5 million
Brunel International (unaudited) |
|
P&L
amounts in EUR million |
|
|
|
|
|
|
|
|
|
|
Q2 2017 |
Q2 2016 |
Change % |
|
|
H1 2017 |
H1 2016 |
Change % |
|
Revenue |
188.9 |
231.2 |
-18% |
a |
|
385.3 |
469.6 |
-18% |
b |
Gross
Profit |
39.7 |
47.7 |
-17% |
|
|
86.9 |
95.6 |
-9% |
|
Gross
margin |
21.0% |
20.6% |
|
|
|
22.6% |
20.4% |
|
|
Operating
costs |
40.8 |
40.2 |
2% |
c |
|
82.4 |
79.0 |
4% |
d |
EBIT |
-1.2 |
7.5 |
-116% |
|
|
4.6 |
16.6 |
-73% |
|
EBIT
% |
-0.6% |
3.2% |
|
|
|
1.2% |
3.5% |
|
|
|
|
|
|
|
|
|
|
|
|
Average
directs |
9,201 |
9,336 |
-1% |
|
|
9,093 |
9,629 |
-6% |
|
Average
indirects |
1,496 |
1,500 |
0% |
|
|
1,478 |
1,526 |
-3% |
|
Ratio
direct / indirect |
6.2 |
6.2 |
|
|
|
6.2 |
6.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
a -19 % at constant
currencies |
|
|
|
|
|
|
|
b -19 % at constant
currencies |
|
|
|
|
|
|
|
c 2 % at constant
currencies |
|
|
|
|
|
|
|
d 4 % at constant
currencies |
|
|
|
|
|
|
|
H1 2017 results by division
Brunel Global Business (unaudited) |
|
P&L
amounts in EUR million |
|
|
|
|
|
|
|
|
|
|
Q2 2017 |
Q2 2016 |
Change % |
|
|
H1 2017 |
H1 2016 |
Change % |
|
Revenue |
81.1 |
119.8 |
-32% |
a |
|
163.2 |
248.3 |
-34% |
b |
Gross
Profit |
9.2 |
13.3 |
-30% |
|
|
18.7 |
27.3 |
-31% |
|
Gross
margin |
11.4% |
11.1% |
|
|
|
11.5% |
11.1% |
|
|
Operating
costs |
11.3 |
12.7 |
-11% |
c |
|
22.7 |
25.0 |
-9% |
d |
EBIT |
-2.0 |
0.6 |
-446% |
|
|
-3.9 |
2.3 |
-270% |
|
EBIT
% |
-2.5% |
0.5% |
|
|
|
-2.4% |
0.9% |
|
|
|
|
|
|
|
|
|
|
|
|
Average
directs |
4,418 |
4,656 |
-5% |
|
|
4,351 |
4,911 |
-11% |
|
Average
indirects |
510 |
598 |
-15% |
|
|
507 |
613 |
-17% |
|
Ratio
direct / Indirect |
8.7 |
7.8 |
|
|
|
8.6 |
8.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
a -33 % at constant
currencies |
|
|
|
|
|
|
|
b -36 % at constant
currencies |
|
|
|
|
|
|
|
c- 12 % at constant
currencies |
|
|
|
|
|
|
|
d -12 % at constant
currencies |
|
|
|
|
|
|
|
Key points Q2 2017
- Revenue down by 32% to EUR 81 million
- Gross margin 11.4%, up from 11.1% last year
- EBIT down by 446% to EUR -2 million
Key points H1 2017
- Revenue down by 34% to EUR 163 millionGross
margin 11.5%, up from 11.1% last year
- EBIT down by 270% to EUR -4 million
Revenue
Revenue in Q2 decreased by 32% year on year, and 1% compared to Q1.
The regions Americas, Middle East and Russia achieved growth
compared to Q1, offset by a decline in Australia and South East
Asia. In Australia and South East Asia, significant projects were
largely completed in the course of Q2. We are working on several
initiatives to speed up our diversification. We expect that some of
these initiatives will start contributing in the second half of the
year.
Gross
profit
The gross margin increased slightly as a result of a change in the
mix, both across the globe and between activities.
Operating
costs
Cost savings in our existing business are partly offset by
investments in new initiatives, as a result operating costs in Q2
decreased by 11%.
Brunel Europe (unaudited) |
P&L
amounts in EUR million |
|
|
|
|
|
|
|
|
Q2 2017 |
Q2 2016 |
Change % |
|
|
H1 2017 |
H1 2016 |
Change % |
Revenue |
107.8 |
111.4 |
-3% |
|
|
222.1 |
221.3 |
0% |
Gross Profit |
30.4 |
34.4 |
-11% |
|
|
68.2 |
68.4 |
0% |
Gross margin |
28.2% |
30.9% |
|
|
|
30.7% |
30.9% |
|
Operating costs |
27.3 |
24.8 |
10% |
|
|
54.9 |
49.3 |
11% |
EBIT |
3.2 |
9.6 |
-67% |
|
|
13.3 |
19.1 |
-30% |
EBIT % |
3.0% |
8.6% |
|
|
|
6.0% |
8.6% |
|
|
|
|
|
|
|
|
|
|
Average directs |
4,783 |
4,680 |
2% |
|
|
4,742 |
4,718 |
1% |
Average indirects |
934 |
859 |
9% |
|
|
921 |
870 |
6% |
Ratio direct /
Indirect |
5.1 |
5.4 |
|
|
|
5.1 |
5.4 |
|
Brunel Europe consists of Brunel Germany, Brunel Netherlands,
Brunel Belgium, Brunel Czech Republic, Brunel Switzerland and
Brunel Austria.
Key points Q2 2017
- Revenue down by 3% to EUR 108 million
- Gross margin 28.2%, down from 30.9% last
year
- EBIT down by 67% to EUR 3 million
Key points H1 2017
- Revenue up by 1 million to 222 million
- Gross margin 30.7%, down from 30.9% last
year
- EBIT down by 30% to EUR 13 million
Brunel Germany (unaudited) |
P&L
amounts in EUR million |
|
|
|
|
|
|
|
|
Q2 2017 |
Q2 2016 |
Change % |
|
|
H1 2017 |
H1 2016 |
Change % |
Revenue |
52.0 |
52.9 |
-2% |
|
|
108.3 |
102.5 |
6% |
Gross Profit |
16.4 |
18.9 |
-13% |
|
|
37.3 |
35.8 |
4% |
Gross margin |
31.5% |
35.7% |
|
|
|
34.4% |
34.9% |
|
Operating costs |
13.5 |
12.6 |
6% |
|
|
27.2 |
24.5 |
11% |
EBIT |
2.9 |
6.3 |
-54% |
|
|
10.1 |
11.3 |
-11% |
EBIT % |
5.6% |
11.9% |
|
|
|
9.3% |
11.0% |
|
|
|
|
|
|
|
|
|
|
Average directs |
2,274 |
2,174 |
5% |
|
|
2,265 |
2,160 |
5% |
Average indirects |
423 |
405 |
4% |
|
|
412 |
416 |
-1% |
Ratio direct /
Indirect |
5.4 |
5.4 |
|
|
|
5.5 |
5.2 |
|
Revenue
On 1 April, the new law came into effect and to comply we had to
renew our union trade agreement. Some of our customers have
suspended us as supplier until we had our new union trade agreement
in place, what caused a temporary hiccup in the growth. We
finalized the renewal at the end of July. This renewed agreement
offers us a strong competitive advantage. Revenue per working day
increased by 3%. Headcount at 30 June 2017 is 3% above last year's
headcount.
Working days
|
Q1 |
Q2 |
Q3 |
Q4 |
FY |
2017 |
65 |
59 |
65 |
60 |
249 |
2016 |
62 |
62 |
66 |
62 |
252 |
Gross
Profit
Gross margin adjusted for working days is 34.8% (2016: 35.7%).
Additional price pressure is mainly due to volumetric
customers.
Operating
costs
Operating costs in H1 increased with 11% mainly driven by
strengthening the commercial organization to facilitate further
growth.
Brunel Netherlands (unaudited) |
P&L
amounts in EUR million |
|
|
|
|
|
|
|
|
Q2 2017 |
Q2 2016 |
Change % |
|
|
H1 2017 |
H1 2016 |
Change % |
Revenue |
46.6 |
49.2 |
-5% |
|
|
94.5 |
100.9 |
-6% |
Gross Profit |
12.3 |
13.4 |
-9% |
|
|
26.6 |
28.5 |
-6% |
Gross margin |
26.3% |
27.3% |
|
|
|
28.2% |
28.2% |
|
Operating costs |
11.6 |
10.2 |
14% |
|
|
23.5 |
20.7 |
13% |
EBIT |
0.6 |
3.2 |
-81% |
|
|
3.2 |
7.7 |
-59% |
EBIT % |
1.3% |
6.5% |
|
|
|
3.3% |
7.6% |
|
|
|
|
|
|
|
|
|
|
Average directs |
2,181 |
2,173 |
0% |
|
|
2,153 |
2,224 |
-3% |
Average indirects |
437 |
381 |
15% |
|
|
437 |
381 |
15% |
Ratio direct /
Indirect |
5.0 |
5.7 |
|
|
|
4.9 |
5.8 |
|
Revenue
The revenue development is a mix of a decline in freelancers
(impact -10%) and growth in own employees (impact +5%). Q2 2017 had
one less working day compared to last year. Revenue per working day
decreased by 4%. The growth in Engineering and Legal is more than
offset by the decline in the other business lines. Headcount at 30
June 2017 is 2% above last year's headcount.
Working days
|
Q1 |
Q2 |
Q3 |
Q4 |
FY |
2017 |
65 |
61 |
65 |
63 |
254 |
2016 |
63 |
62 |
66 |
64 |
255 |
Gross
Profit
The gross margin adjusted for working days is 27.5% (2016: 27.3%).
The increase in gross margin due to the change in mix is largely
offset by a lower productivity.
Operating
costs
The operating costs increased due to continuous investment in sales
force and technology.
Effective tax rate
The effective tax rate in the first half year of 2017 is 75.6%. Due
to the seasonality in Europe our tax rate is higher in the first
half of the year. For the full year, we project the effective tax
rate to come down significantly.
Risk
profile
Reference is made to our 2016 Annual Report (pages 57 - 75).
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 127 million, due to the
seasonality and the dividend payment in June.
Outlook for
2017
The Netherlands will return to revenue growth from Q3 onwards, and
Germany will continue to grow. For Global Business we expect
revenue to remain flat for the next couple of months until the
impact of our initiatives becomes visible. There is some
uncertainty around the timing of the first revenues from these
initiatives, but we expect to achieve an EBIT of at least EUR 15
million for the full year.
Jan Arie van Barneveld, CEO of
Brunel International N.V.: "We knew the first half
year would be tough, but we have reached the bottom of the trough
sooner than expected. Our actual performance has been improving day
by day. With Europe on a growth track, and all the initiatives in
Global Business, I'm confident that we will return to sustainable
growth pretty quickly"
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, 18 August
2017
Brunel International N.V.
Jan Arie van Barneveld
(CEO)
Peter de Laat (CFO)
Brunel Q2 and H1 2017 results
Brunel Q2 and H1 2017 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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