Brunel Q4 and FY 2020 results: Operational discipline delivers strong results
12 Février 2021 - 7:30AM
Brunel Q4 and FY 2020 results: Operational discipline delivers
strong results
Amsterdam, 12 February 2021 – Brunel International N.V. (Brunel;
BRNL), a global provider of flexible workforce solutions and
expertise today announced its fourth quarter and full year 2020
results.Key points Q4 2020
- EBIT increased substantially to EUR 9.8 million helped by
continued strong cost control resulting in 21% cost reduction
- Revenue stable vs Q3-20, despite seasonality effects
Key points full year 2020
- EBIT of EUR 28.8 million driven by 15% lower cost base
- Revenue down 14% due to Covid-19 related impact on global
demand for flexible workforce solutions
- Free cash flow of EUR 68 million resulting in an increase of
net cash to EUR 155 million
- Earnings per share of EUR 0.31 with a proposed dividend of EUR
0.30 (pay-out: 99%) over the 2020 financial year
- Capital markets day planned in H1 2021 as Brunel gears up for
the next phase of development and growth post-Covid
Jilko Andringa, CEO of Brunel International
N.V.: “We finished the year strong, thanks to the enormous
flexibility and hard work of all Brunellers around the world. In a
year with revenues severely under pressure due to Covid-19, we have
truly shown agility and resilience. After putting in place strict
cost control and cash preservation measures, we have worked hard to
improve our gross margins and deliver higher value added services.
We also made progress in our diversification strategy reducing our
dependency on the Oil & Gas market. Our organizational
discipline has truly been tested in 2020 and along the way we have
further improved this capability resulting in a high quality,
future ready, lean and agile organization. In the last quarter of
2020, we were able to stop the downward trend in the month over
month revenue development. Despite the ongoing limitations we
experience in almost all our markets, the recruitment and client
activities are high and we see a positive trend in our pipeline.
When the world opens up in 2021, we expect to return to top line
growth and increased profitability.”
Brunel International (unaudited) |
P&L amounts in EUR million |
|
|
|
|
|
|
|
|
|
Q4 2020 |
Q4 2019 |
Δ% |
|
|
FY 2020 |
FY 2019 |
Δ% |
|
Revenue |
209.3 |
257.1 |
-19% |
a |
|
892.6 |
1,041.1 |
-14% |
b |
Gross
Profit |
48.3 |
47.5 |
2% |
|
|
191.4 |
209.4 |
-9% |
|
Gross
margin |
23.1% |
18.5% |
|
|
|
21.4% |
20.1% |
|
|
Operating
costs |
38.5 |
49.0 |
-21% |
c |
|
162.6 |
192.0 |
-15% |
d |
EBIT |
9.8 |
-1.5 |
+743% |
|
|
28.8 |
17.4 |
65% |
|
EBIT % |
4.7% |
-0.6% |
|
|
|
3.2% |
1.7% |
|
|
|
|
|
|
|
|
|
|
|
|
Average
directs |
9,518 |
11,365 |
-16% |
|
|
10,227 |
12,046 |
-15% |
|
Average
indirects |
1,324 |
1,612 |
-18% |
|
|
1,442 |
1,631 |
-12% |
|
Ratio direct /
Indirect |
7.2 |
7.1 |
|
|
|
7.1 |
7.4 |
|
|
a
-15.8 % like-for-like |
|
|
b
12.7 % like-for-like |
|
c
-20.1 % like-for-like |
|
|
d
-14.4 % like-for-like |
|
|
Like-for-like is measured excluding the impact of currencies and
acquisitions |
|
Q4 2020 and FY 2020 results by divisionP&L
amounts in EUR millionSummary:
Revenue |
Q4 2020 |
Q4 2019 |
Δ% |
|
FY 2020 |
FY 2019 |
Δ% |
|
|
|
|
|
|
|
|
DACH region |
53.5 |
66.6 |
-20% |
|
230.5 |
284.3 |
-19% |
The
Netherlands |
47.9 |
51.1 |
-6% |
|
190.6 |
206.8 |
-8% |
Australasia |
25.4 |
30.6 |
-17% |
|
110.4 |
119.0 |
-7% |
Middle East &
India |
24.7 |
32.3 |
-23% |
|
113.4 |
117.4 |
-3% |
Americas |
18.8 |
27.9 |
-33% |
|
88.3 |
104.1 |
-15% |
Rest of
world |
38.8 |
46.9 |
-17% |
|
158.3 |
167.8 |
-6% |
Subtotal |
209.1 |
255.4 |
-18% |
|
891.5 |
999.4 |
-11% |
|
|
|
|
|
|
|
|
BIS |
0.2 |
1.7 |
-89% |
|
1.0 |
41.7 |
-98% |
|
|
|
|
|
|
|
|
Total |
209.3 |
257.1 |
-19% |
|
892.6 |
1041.1 |
-14% |
EBIT |
Q4 2020 |
Q4 2019 |
Δ% |
|
FY 2020 |
FY 2019 |
Δ% |
|
|
|
|
|
|
|
|
DACH region |
6.8 |
3.6 |
87% |
|
17.0 |
27.1 |
-37% |
The
Netherlands |
4.0 |
2.7 |
48% |
|
11.8 |
9.7 |
22% |
Australasia |
0.3 |
-0.4 |
181% |
|
0.2 |
-1.6 |
111% |
Middle East &
India |
2.3 |
3.3 |
-32% |
|
9.4 |
11.0 |
-15% |
Americas |
-0.3 |
-0.3 |
23% |
|
-2.2 |
-0.8 |
-172% |
Rest of
world |
0.8 |
1.5 |
-48% |
|
3.7 |
1.3 |
181% |
Unallocated
1) |
-3.2 |
-1.5 |
-111% |
|
-9.6 |
-7.2 |
-34% |
Subtotal |
10.7 |
8.9 |
21% |
|
30.3 |
39.6 |
-24% |
|
|
|
|
|
|
|
|
BIS 2) |
-0.8 |
-10.4 |
|
|
-1.5 |
-22.2 |
93% |
|
|
|
|
|
|
|
|
Total |
9.8 |
-1.5 |
|
|
28.8 |
17.4 |
65% |
1) Unallocated Q4 includes an impairment of
IT-assets of EUR 1 million.2) The project of the
water treatment plant project has been finalized and we have agreed
the final settlement. This concludes the wind-down of BIS.
PERFORMANCE BY REGION
DACH (unaudited) |
|
|
|
|
|
|
|
|
P&L amounts in EUR million |
|
|
|
|
|
|
|
|
|
Q4 2020 |
Q4 2019 |
Δ% |
|
|
|
FY 2020 |
FY 2019 |
Δ% |
Revenue |
53.5 |
66.6 |
-20% |
|
|
|
230.5 |
284.3 |
-19% |
Gross Profit |
19.7 |
20.2 |
-3% |
|
|
|
74.9 |
92.6 |
-19% |
Gross margin |
36.7% |
30.3% |
|
|
|
|
32.5% |
32.6% |
|
Operating
costs |
12.9 |
16.6 |
-22% |
|
|
|
57.9 |
65.5 |
-12% |
EBIT |
6.8 |
3.6 |
87% |
|
|
|
17.0 |
27.1 |
-37% |
EBIT % |
12.8% |
5.5% |
|
|
|
|
7.4% |
9.5% |
|
|
|
|
|
|
|
|
|
|
|
Average
directs |
1,992 |
2,650 |
-25% |
|
|
|
2,148 |
2,697 |
-20% |
Average
indirects |
392 |
517 |
-24% |
|
|
|
454 |
513 |
-12% |
Ratio direct /
Indirect |
5.1 |
5.1 |
|
|
|
|
4.7 |
5.3 |
|
The DACH region includes Germany, Switzerland, Austria and Czech
Republic.RevenueDespite the last quarter of the year being
typically weaker than the third quarter due to seasonality effects,
we were able to keep our headcount and revenue on a stable level in
Q4 compared to Q3. Revenue per working day decreased by 23% YoY. We
brought short-time working down from 200 specialists in Q3 to 130
specialists in Q4. The drop at the change of the year was
comparable to previous years.
The headcount development in 2020 is as
follows:Working days:
|
Q1 |
Q2 |
Q3 |
Q4 |
FY |
2021 |
63 |
61 |
66 |
65 |
255 |
2020 |
64 |
59 |
66 |
65 |
254 |
2019 |
63 |
59 |
66 |
62 |
250 |
Gross marginThe gross margin adjusted for
working days in Q4 is 34.0% (2019: 30,3%). We had a high
productivity and a low bench in Q4, compared to a fairly weak
productivity in Q4 2019.Operating costsIn Q4, operating costs
decreased by 22.4%, mainly as a result of the lower indirect
headcount.
Netherlands (unaudited) |
|
|
|
|
|
|
|
P&L amounts in EUR million |
|
|
|
|
|
|
|
|
Q4 2020 |
Q4 2019 |
Δ% |
|
|
FY 2020 |
FY 2019 |
Δ% |
Revenue |
47.9 |
51.1 |
-6% |
|
|
190.6 |
206.8 |
-8% |
Gross Profit |
13.4 |
13.7 |
-2% |
|
|
51.3 |
55.7 |
-8% |
Gross margin |
27.9% |
26.8% |
|
|
|
26.9% |
26.9% |
|
Operating
costs |
9.4 |
11.0 |
-15% |
|
|
39.5 |
46.0 |
-14% |
EBIT |
4.0 |
2.7 |
48% |
|
|
11.8 |
9.7 |
22% |
EBIT % |
8.3% |
5.3% |
|
|
|
6.2% |
4.7% |
|
|
|
|
|
|
|
|
|
|
Average
directs |
1,838 |
2,135 |
-14% |
|
|
1,899 |
2,242 |
-15% |
Average
indirects |
311 |
386 |
-20% |
|
|
337 |
409 |
-18% |
Ratio direct /
Indirect |
5.9 |
5.5 |
|
|
|
5.6 |
5.5 |
|
RevenueIn Q4, headcount remained at a stable level. Adjusted for
working days, revenue decreased by 7%. We continued to achieve
growth in our business line Legal, with revenues up 41% compared to
last year. The drop at change of the year was comparable to
previous years.
The headcount development in 2020 is as
follows:Working days:
|
Q1 |
Q2 |
Q3 |
Q4 |
FY |
2021 |
63 |
61 |
66 |
66 |
256 |
2020 |
64 |
60 |
66 |
65 |
255 |
2019 |
63 |
62 |
66 |
64 |
255 |
Gross margin The gross margin adjusted for
working days is 27.1% (2019: 26.8%). The increase in gross margin
is mainly driven by a lower bench and a higher productivity. The
business lines IT and Legal achieved a significant growth in gross
profit positively contributing to gross margin on a group level in
Q4.Operating costsOperating costs have decreased as a result of
cost saving initiatives, including the reduction of indirect
headcount executed in Q2.EBITFull year EBIT exceeds prior year
EBIT. We did not receive any government relief (NOW) in 2020.
Australasia (unaudited) |
|
|
|
|
|
|
|
|
P&L amounts in EUR million |
|
|
|
|
|
|
|
|
|
Q4 2020 |
Q4 2019 |
Δ% |
|
|
FY 2020 |
FY 2019 |
Δ% |
|
Revenue |
25.4 |
30.6 |
-17% |
a |
|
110.4 |
119.0 |
-7% |
b |
Gross Profit |
2.6 |
2.6 |
0% |
|
|
9.7 |
9.8 |
-1% |
|
Gross margin |
10.1% |
8.4% |
|
|
|
8.8% |
8.3% |
|
|
Operating
costs |
2.3 |
3.0 |
-23% |
c |
|
9.5 |
11.4 |
-17% |
d |
EBIT |
0.3 |
-0.4 |
181% |
|
|
0.2 |
-1.6 |
111% |
|
EBIT % |
1.3% |
-1.3% |
|
|
|
0.2% |
-1.4% |
|
|
|
|
|
|
|
|
|
|
|
|
Average
directs |
960 |
968 |
-1% |
|
|
999 |
922 |
8% |
|
Average
indirects |
76 |
84 |
-10% |
|
|
80 |
85 |
-6% |
|
Ratio direct /
Indirect |
12.7 |
11.5 |
|
|
|
12.5 |
10.9 |
|
|
|
|
|
|
|
|
|
|
|
|
a -15.2 %
like-for-like |
|
|
|
|
|
|
|
|
|
b -4.2 %
like-for-like |
|
|
|
|
|
|
|
|
|
c -23.5 %
like-for-like |
|
|
|
|
|
|
|
|
|
d -14.2 %
like-for-like |
|
|
|
|
|
|
|
|
|
Like-for-like is measured excluding the impact of currencies and
acquisitions |
|
|
|
Australasia includes Australia and Papua New Guinea.Eastern
Australia suffered from extreme weather conditions in Q4 2020,
reducing the workable days and pushing back start dates of
projects. This resulted in lower revenue. At the same time we were
able to achieve higher margin as a result of diversification and
increased client focus in combination with tight cost control. This
led to a significantly better result.
Middle East & India (unaudited) |
|
|
|
|
|
|
|
|
P&L amounts in EUR million |
|
|
|
|
|
|
|
|
|
Q4 2020 |
Q4 2019 |
Δ% |
|
|
FY 2020 |
FY 2019 |
Δ% |
|
Revenue |
24.7 |
32.3 |
-23% |
a |
|
113.4 |
117.4 |
-3% |
b |
Gross Profit |
4.1 |
5.8 |
-30% |
|
|
18.5 |
20.8 |
-11% |
|
Gross margin |
16.4% |
17.9% |
|
|
|
16.3% |
17.7% |
|
|
Operating
costs |
1.8 |
2.5 |
-28% |
c |
|
9.1 |
9.8 |
-7% |
d |
EBIT |
2.3 |
3.3 |
-32% |
|
|
9.4 |
11.0 |
-15% |
|
EBIT % |
9.1% |
10.3% |
|
|
|
8.3% |
9.4% |
|
|
|
|
|
|
|
|
|
|
|
|
Average
directs |
2,085 |
2,628 |
-21% |
|
|
2,348 |
3,215 |
-27% |
|
Average
indirects |
125 |
139 |
-10% |
|
|
135 |
137 |
-1% |
|
Ratio direct /
Indirect |
16.7 |
18.9 |
|
|
|
17.3 |
23.5 |
|
|
|
|
|
|
|
|
|
|
|
|
a -17.1 %
like-for-like |
|
|
|
|
|
|
|
|
|
b -0.5 %
like-for-like |
|
|
|
|
|
|
|
|
|
c -21.1 %
like-for-like |
|
|
|
|
|
|
|
|
|
d -3.9 %
like-for-like |
|
|
|
|
|
|
|
|
|
Like-for-like is measured excluding the impact of currencies and
acquisitions |
|
|
|
Middle East & India includes, Qatar, Kuwait,
Dubai, Oman, Kurdistan, Iraq and India.The current travel
restrictions continue to put a strain on our business in the Middle
East & India. A shifted focus to local recruitment, smart
project planning and tight cost control still enabled us to deliver
solid results.
Americas (unaudited) |
|
|
|
|
|
|
|
|
|
P&L amounts in EUR million |
|
|
|
|
|
|
|
|
|
Q4 2020 |
Q4 2019 |
Δ% |
|
|
FY 2020 |
FY 2019 |
Δ% |
|
Revenue |
18.8 |
27.9 |
-33% |
a |
|
88.3 |
104.1 |
-15% |
b |
Gross Profit |
2.8 |
4.0 |
-30% |
|
|
10.6 |
13.4 |
-20% |
|
Gross margin |
14.7% |
14.2% |
|
|
|
12.0% |
12.8% |
|
|
Operating
costs |
3.1 |
4.3 |
-28% |
c |
|
12.8 |
14.2 |
-10% |
d |
EBIT |
-0.3 |
-0.3 |
23% |
|
|
-2.2 |
-0.8 |
-172% |
|
EBIT % |
-1.4% |
-1.2% |
|
|
|
-2.5% |
-0.8% |
|
|
|
|
|
|
|
|
|
|
|
|
Average
directs |
686 |
903 |
-24% |
|
|
750 |
861 |
-13% |
|
Average
indirects |
103 |
125 |
-18% |
|
|
108 |
127 |
-16% |
|
Ratio direct /
Indirect |
6.6 |
7.2 |
|
|
|
7.0 |
6.8 |
|
|
|
|
|
|
|
|
|
|
|
|
a -24.5 %
like-for-like |
|
|
|
|
|
|
|
|
|
b -9.9 %
like-for-like |
|
|
|
|
|
|
|
|
|
c -23.1 %
like-for-like |
|
|
|
|
|
|
|
|
|
d -4.6 %
like-for-like |
|
|
|
|
|
|
|
|
|
Like-for-like is measured excluding the impact of currencies and
acquisitions |
|
|
|
The Americas include Canada, United States,
Mexico, Guyana and Brazil. The Covid-19 pandemic also continued to
affect the Americas region in Q4. Our cost saving initiatives paid
off during the quarter resulting in a significantly lower cost
base. The quarterly result was close to break-even and in line with
Q4 2019. We believe to have laid the foundation to ensure a return
to profitability as soon as markets recover.
Rest of world (unaudited) |
|
|
|
|
|
|
|
|
P&L amounts in EUR million |
|
|
|
|
|
|
|
|
|
Q4 2020 |
Q4 2019 |
Δ% |
|
|
FY 2020 |
FY 2019 |
Δ% |
|
Revenue |
38.8 |
46.9 |
-17% |
a |
|
158.3 |
167.8 |
-6% |
b |
Gross Profit |
6.4 |
8.0 |
-20% |
|
|
26.9 |
27.2 |
-1% |
|
Gross margin |
16.6% |
17.1% |
|
|
|
17.0% |
16.2% |
|
|
Operating
costs |
5.6 |
6.5 |
-14% |
c |
|
23.2 |
25.9 |
-10% |
d |
EBIT |
0.8 |
1.5 |
-48% |
|
|
3.7 |
1.3 |
181% |
|
EBIT % |
1.9% |
3.1% |
|
|
|
2.4% |
0.8% |
|
|
|
|
|
|
|
|
|
|
|
|
Average
directs |
1,956 |
1,984 |
-1% |
|
|
2,070 |
1,855 |
12% |
|
Average
indirects |
257 |
291 |
-12% |
|
|
264 |
286 |
-8% |
|
Ratio direct /
Indirect |
7.6 |
6.8 |
|
|
|
7.8 |
6.5 |
|
|
|
|
|
|
|
|
|
|
|
|
a -10.3 %
like-for-like |
|
|
|
|
|
|
|
|
|
b -2.1 %
like-for-like |
|
|
|
|
|
|
|
|
|
c -9.8 %
like-for-like |
|
|
|
|
|
|
|
|
|
d -7.8 %
like-for-like |
|
|
|
|
|
|
|
|
|
Like-for-like is measured excluding the impact of currencies and
acquisitions |
|
|
|
Rest of world includes Asia, Russia &
Caspian, Belgium and rest of Europe & Africa.
The main driver of the region is Asia with a
continued strong performance in China and Singapore. Europe &
Africa continued to deliver solid results despite the impact of
Covid-19. Tight cost controls and efficiency improvements have
lowered our break-even levels and give us more agility to scale up
and down in line with changing market circumstances.
Tax and net profitThe effective tax rate
decreased from 99.2% in 2019 to 38.5% in 2020. As a result, net
profit came in at EUR 15.6 million or an earnings per share of EUR
0.31.Free cash flow and net cashWe achieved a
strong cash flow in 2020, mainly as a result of an improvement in
working capital. This improvement is the result of the lower
activity level and strongly supported by a better collection. Total
days outstanding for receivables decreased by 8 days, or 10% in
2020. The cash balance at 31 December 2020 is EUR 155 million
(2019: EUR 91.9 million). This strong cash position will support
our growth in the post Covid-19 recovery and our M&A strategy,
and allows us to return to our normal dividend
policy.DividendWe propose a cash dividend of EUR
0.30 per share over the 2020 financial year, which represents a
pay-out ratio of 99% and is at the top end of our dividend policy
range.Outlook Q1 2021The current trend will
continue in Q1 2021: year on year a lower revenue, at slightly
higher gross margins (%) and significantly lower cost, resulting in
an EBIT similar to Q1 2020.Capital markets
dayBrunel will host a virtual Capital Markets Day in H1
2021 to provide an update on our strategy and growth plans and the
execution thereof. Further details on start and end time will be
announced at our website.
Attachments
Press Release Q4 and FY 2020
Press Release Q4 and FY 2020 Appendix
Brunel International NV (EU:BRNL)
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