Earnings Release • Mar 2, 2012
Earnings Release
Open in ViewerOpens in native device viewer
Strong Q4 for Brunel with increase of revenue by 36% and Ebit by 53% Proposed dividend € 0.90 per share (2010: € 0.80)
Amsterdam, 2 March 2012
Brunel International (unaudited)
| X € 1 million | ||||||
|---|---|---|---|---|---|---|
| Q4 2011 | Q4 2010 | Change % | FY 2011 | FY 2010 | Change % | |
| Revenue | 291.0 | 214.0 | 36% | 979.9 | 720.9 | 36%* |
| Gross profit | 55.1 | 45.6 | 21% | 193.6 | 152.0 | 27%* |
| Gross margin | 18.9% | 21.3% | 19.8% | 21.1% | ||
| Other income / expense | -2.1 | -2.1 | ||||
| Ebit | 20.1 | 13.1 | 53% | 64.4 | 37.3 | 72%* |
| Ebit % | 6.9% | 6.1% | 6.6% | 5.2% |
* 37% at constant currencies
Brunel realised Q4 revenue of € 291 million, an increase of 36% compared to 2010. Brunel Energy realised the largest increase (+47%) compared to last year, followed by Germany (+26%) and The Netherlands (+9%). The main driver for the growth in Energy are the offshore projects in Australia.
As a result of the varying growth rates, the revenue mix has changed. Whereas The Netherlands, Germany and Energy accounted for respectively 14%, 14% and 70% of Q4 2011 revenue, these percentages were 18%, 15% and 65% in Q4 2010.
Q4 2011 gross profit amounts to € 55.1 million, an increase of 21% compared to 2010. The gross margin was 18.9% which is down 2.4 ppt compared to last year. The decrease in gross margin is caused in equal measure by two fewer working days in Europe and the increased share of Energy offshore project revenue.
The Q4 operating expenses amount to € 35 million, up 15% compared to Q4 2010. Excluding the € 2 million one-off social security costs included last year, the operating expenses increased by 23%. The increase is mainly attributable to the increased number of commercial, recruitment and business support employees in the operating entities which increased from 1,082 FTEs per the end of 2010 to 1,254 FTEs at the end of 2011.
Q4 EBIT increased by 53% to € 20 million. Adjusted for € 4 million one-off charges, € 2 million social security costs and € 2 million other expenses included in Q4 2010, the increase amounts to 18%.
Jan Arie van Barneveld, CEO Brunel International: "Our company, organisation and business developed extremely well in 2011. With a revenue growth of 36% and an increase in EBIT of 72% the growth rates are excellent. The results are a mere reflection of our strategy which in essence is simple, we aim to further expand globally in the specialised technical sector. We have also proven to be less vulnerable to the general economic conditions and are confident that the entrepreneurial culture with a strong focus on the quality of our service to the clients will drive further growth."
| Brunel Netherlands | ||||||
|---|---|---|---|---|---|---|
| X € 1 million | Q4 2011 | Q4 2010 | Change % | FY 2011 | FY 2010 | Change % |
| Revenue | 41.5 | 38.0 | 9% | 156.2 | 132.9 | 18% |
| Gross Profit | 14.2 | 14.0 | 1% | 52.6 | 46.1 | 14% |
| Gross margin | 34.1% | 36.8% | 33.7% | 34.7% | ||
| Ebit | 5.8 | 5.3 | 11% | 17.9 | 12.2 | 47% |
| Ebit % | 14.1% | 13.9% | 11.5% | 9.2% |
During the fourth quarter the average number of fee earners continued to increase in The Netherlands. As a result of this increase and higher productivity, revenue increased by 9% compared to the third quarter of 2011. Despite the general market view that growth in the industrial sector is slowing down, it was the Engineering business line driving this growth.
Revenue also increased by 9% compared to the fourth quarter of 2010. Although revenue increased in every business line, it was the Finance business line that contributed most to this increase in both relative and absolute terms.
When compared to 2010, full year revenue increased by 18%. The main driver of revenue growth is the increased number of fee earners: whereas the average number of fee earners in 2010 was 1,408 this increased by 19% to 1,674 in 2011. The majority of this increase was realised during the first and last quarter of the year.
Year-on-year quarterly gross profit increased by 1%. Gross margin in Q4 2011 was 2.7 ppt lower than in Q4 2010. The main reason for the decrease in gross margin is two fewer working days in Q4 2011.
The full year gross profit increases by 14%, 3.3 ppt less than the increase in revenue. The difference arises as a result of gross margin decreasing by 1 ppt to 34% for the year caused by higher relative share of revenue generated by contractors at lower than average margins.
At € 35 million the full year overhead costs increased by 2% compared to 2010. This increase is mainly due to an increase in average indirect headcount.
EBIT
As a result of the lower overhead costs the Ebit in Q4 2011 is up 11% compared to the same period in 2010.
FY 2011 EBIT amounts to € 18 million, an increase of almost 47% compared to 2010. The EBIT margin increased as well: from 9.2% in 2010 to 11.5% for 2011.
| X € 1 million | Q4 2011 | Q4 2010 | Change % | FY 2011 | FY 2010 | Change % |
|---|---|---|---|---|---|---|
| Revenue | 39.7 | 31.6 | 26% | 152.3 | 110.7 | 38% |
| Gross Profit | 15.6 | 12.6 | 24% | 59.2 | 42.3 | 40% |
| Gross margin | 39.2% | 39.7% | 38.8% | 38.2% | ||
| Other income/expense | -2.1 | -2.1 | ||||
| Ebit | 5.4 | 0.5 | 1,102% | 21.6 | 8.2 | 162% |
| Ebit % | 13.6% | 1.4% | 14.2% | 7.4% |
In 2011 Brunel Germany increased its' revenue compared to the same period 2010, both in the quarter (+26%) as well as for the year (+38%). FY 2011 revenue amounts to € 152 million which is an increase of € 42 million.
During the year the number of fee earning employees grew continuously. At the end of 2010 the number of direct employees was 1,433 which has increased by 27% to 1,815 per the end of 2011. The bench remains low (3.7%).
The 2011 quarterly development shows growth in the first three quarters. Revenue in the fourth quarter is slightly lower than revenue in the third quarter. This is mainly a result of two fewer working days. The number of fee earners continued to grow during the fourth quarter.
FY 2011 operational expenses are € 6 million higher than in 2010. This is mainly due to higher commercial staff costs and marketing costs. During 2011 Brunel Germany continuously strengthened its' sales force in order to enable further growth. This has resulted in increased salaries and staff related costs (€ 4 million).
FY 2011 operational expenses amount to € 37.6 million and overhead costs as a percentage of revenue are 24.7%, which is an improvement compared to 2010 (28.9%).
The above mentioned developments have resulted in a sharp increase of Brunel Germany's EBIT. FY 2011 EBIT amounts to € 21.6 million, which is € 13.4 million higher than 2010.
| X € 1 million | Q4 2011 | Q4 2010 | Change % | FY 2011 | FY 2010 | Change % |
|---|---|---|---|---|---|---|
| Revenue | 5.8 | 5.8 | 0% | 23.8 | 21.3 | 12% |
| Gross Profit | 1.4 | 1.3 | 11% | 5.4 | 4.5 | 22% |
| Gross margin | 25.0% | 22.6% | 22.8% | 20.9% | ||
| Ebit | 0.4 | 0.4 | 7% | 1.7 | 1.0 | 81% |
| Ebit % | 6.4% | 6.0% | 7.3% | 4.5% |
FY 2011 revenue in Belgium increased by 12% to € 23.8 million. The additional revenue was realised by a strong increase in the Engineering business line. The ICT business line, mainly providing services to the financial services industry, is experiencing difficult market conditions.
The continuing focus on gross margin has resulted in gross profit increasing while revenue stayed at last year's level. Gross margin increased to 25% in Q4 2011.
The operating expenses amounted to € 3.7 million in FY 2011. Despite the minor increase, operational costs as a percentage of revenue has decreased by 1 ppt compared to 2010.
FY 2011 EBIT almost doubled compared to last year as it reached € 1.7 million.
| X € 1 million | Q4 2011 | Q4 2010 | Change % | FY 2011 | FY 2010 | Change % |
|---|---|---|---|---|---|---|
| Revenue | 202.0 | 138.0 | 47% | 642.3 | 454.2 | 41% |
| Gross Profit | 23.5 | 17.6 | 34% | 74.8 | 58.6 | 28% |
| Gross margin | 11.6% | 12.8% | 11.6% | 12.9% | ||
| Ebit | 12.6 | 8.5 | 48% | 30.1 | 20.0 | 51% |
| Ebit % | 6.2% | 6.2% | 4.7% | 4.4% |
Brunel Energy realised a revenue of € 202 million in Q4 2011, the division's highest ever quarterly revenue.
Compared to the fourth quarter revenue of 2010 it increased by € 64 million or 47%. The main developments driving this growth are the increased project revenue on the large offshore projects in Australia and continued growth in the regions South East Asia and the America's.
As a result of the developments mentioned above, the Energy division's full year revenue increased by € 188 million to € 642 million. This puts the division's revenue growth rate at 41%. Over 60% of the growth is associated with the increased revenue from offshore projects. Consequently 25% of the division's revenue is now derived from offshore projects. Whereas this was less than 10% in 2010.
In Q4 2011 gross profit increased to € 23.5 million, up 36% compared to Q3. Compared to Q4 2010 gross profit grew by 34%, again with the offshore projects fuelling this growth. Business in the Europe and Africa region has slowed down slightly compared to last year. This has been a trigger for a restructuring of operations in the region which is currently in progress.
Full year gross profit is up 28% to € 74.8 million. Gross margin decreased however by 1.3 ppt to 11.6%. This decrease in gross margin is largely explained by the increased proportion of lower margin offshore project revenue.
Operational expenses amounted to € 11 million in Q4. This is slightly lower than in Q3 but 20% higher than in Q4 2010.
The full year costs have increased by 16%. This is predominantly the result of the improvements made in the organisation's managerial and commercial capabilities during 2010. We have set up a global recruitment centre that will enable us to be more efficient and effective in our search and selection
process. Despite the cost increases, overhead costs as a percentage of revenue has decreased from 8.5% in 2010 to 7.0% in 2011, marking an increase in efficiency.
At € 12.6 million Q4 2011 EBIT was up € 7 million compared to Q3 and € 4 million compared to Q4 2010. EBIT for FY 2011 amounts to € 30 million, an increase of 51% compared to 2010. The EBIT margin also improved from 4% to 5%.
The effective tax rate of 33.9% (2010 33.3%) is strongly affected by changes in the mix of results of subsidiaries in countries with different tax rates and/or systems. Countries with alternative minimum taxes had a relatively higher share in the results.
The cash position as per the end of this year includes an amount of € 25 million of accrued personnel costs in relation to the Australia offshore projects. This was charged and paid by our customers and will be paid to the contractors upon completion of the projects.
Based on our net income of € 43 million and our solid cash position we propose to increase our dividend to € 0.90 per ordinary share, up from € 0.80 in previous year.
Reference is made to our 2010 Annual Report (pages 25 – 27). Reassessment of earlier identified risks and the potential impact on occurrence has resulted in not requiring changes in our Internal Risk management and Control systems.
In Europe the general economic outlook is uncertain but we remain positive. We are well placed in the most significant industrial areas and we do expect to further develop our business in highly specialised markets.
In the Oil and Gas industry our outlook is also optimistic. The growth we will be able to realise in 2012 will to a certain extent depend on the timing of the completion of existing projects as well as commencement date for new projects. We are however confident that growth for the energy division will continue. The year 2012 started positively and subsequently we expect revenue to grow in 2012 by at least 10%.
A recorded interview in which Jan Arie van Barneveld provides comments in relation to this press release is available on www.brunel.net.
| Not for publication | -------------------------------------------------------------------------------------------------------------------------------- | |
|---|---|---|
| For further information: | ||
| Jan Arie van Barneveld | CEO Brunel International | tel.: +31(0)20 312 50 81 |
| Rob van der Hoek | CFO Brunel International | tel.: +31(0)20 312 50 81 |
Brunel International N.V. is an international service provider specialising in the flexible deployment of knowledge and capacity in the fields of Engineering, Oil & Gas, Aerospace, Automotive, ICT, Finance, Legal and Insurance & Banking. Services are provided in the form of Project Management, Secondment and Consultancy. Incorporated in 1975, Brunel has since become a global company with some 10,000 employees and an annual revenue of € 980 million. The company is listed at Euronext Amsterdam N.V. For more information on Brunel International visit our website www.brunel.net.
| May 3, 2012 | Annual General Meeting of Shareholders |
|---|---|
| May 3, 2012 | Trading update for the first quarter 2012 |
| May 7, 2012 | Ex-dividend listing |
| May 17, 2012 | Dividend available for payment |
| August 17, 2012 | Half year results 2012 |
| November 2, 2012 | Trading update for the third quarter 2012 |
Certain statements in this document concern prognoses about the future financial condition and the results of operations of Brunel International NV as well as plans and objectives. Obviously, such prognoses involve risks and a degree of uncertainty since they concern future events and depend on circumstances that will apply then. Many factors may contribute to the actual results and developments differing from the prognoses made in this document. These factors include general economic conditions, a shortage on the job market, changes in the demand for (flexible) personnel, changes in employment legislation, future currency and interest fluctuations, future takeovers, acquisitions and disposals and the rate of technological developments. These prognoses therefore apply only on the date on which the document was compiled.
| FY 2011 | FY 2010 | |
|---|---|---|
| (X € 1,000) | ||
| Revenue | 979,868 | 720,924 |
| Gross profit | 193,566 | 151,980 |
| Operating profit (ebit) | 64,403 | 37,346 |
| Result after tax | 43,143 | 25,601 |
| Minority interest | -291 | -423 |
| Net income | 42,852 | 25,178 |
| Gross profit as % of Revenue | 19.8% | 21.1% |
| Net result as % of Revenue | 4.4% | 3.5% |
| Workforce | ||
| Direct employees (average) | 8,320 | 6,579 |
| Indirect employees (average) | 1,225 | 1,077 |
| Total | 9,545 | 7,656 |
| Direct employees (period end) | 9,132 | 7,684 |
| Indirect employees (period end) | 1,254 | 1,082 |
| Total | 10,386 | 8,766 |
| Earnings per share (in euros) | ||
| Earnings per share for ordinary shareholders | 1.83 | 1.09 |
| Diluted earnings per share | 1.82 | 1.08 |
| Weighted average number of ordinary shares | ||
| for the purpose of basic earnings per share | 23,388,812 | 23,183,812 |
| Weighted average number of ordinary shares | ||
| for the purpose of diluted earnings per share | 23,545,312 | 23,343,812 |
| FY 2011 | FY 2010 | |
|---|---|---|
| (X € 1,000) | ||
| Revenue | 979,868 | 720,924 |
| Direct personnel expenses | 786,302 | 568,944 |
| Gross profit | 193,566 | 151,980 |
| Other income | -2,100 | |
| Indirect personnel expenses | 81,743 | 68,877 |
| Depreciation | 3,710 | 3,633 |
| Other general and administrative expenses | 43,710 | 40,024 |
| Total operating costs | 129,163 | 112,534 |
| Operating profit | 64,403 | 37,346 |
| Financial income and expense | 865 | 1,014 |
| Result before tax | 65,268 | 38,360 |
| Tax | 22,125 | 12,759 |
| Net income | 43,143 | 25,601 |
| Attributable to : | ||
| Net income for ordinary shareholders | 42,852 | 25,178 |
| Minority interests | 291 | 423 |
| Net income | 43,143 | 25,601 |
| (X € 1,000) | 43,143 | |
|---|---|---|
| Net income | 25,601 | |
| Other comprehensive income | ||
| Exchange differences arising on translation of foreign operations |
4,102 | 12,196 |
| Income tax relating to components of other comprehensive income |
-286 | -790 |
| Other comprehensive income (net of tax) | 3,816 | 11,406 |
| Total comprehensive income | 46,959 | 37,007 |
| Attributable to: | ||
| Ordinary shareholders | 46,668 | 36,584 |
| Minority interests | 291 | 423 |
| Total comprehensive income | 46,959 | 37,007 |
| 2011 | 2010 | |||
|---|---|---|---|---|
| December 31 | December 31 | |||
| (X € 1,000) | ||||
| Fixed assets | ||||
| Goodwill | 7,003 | 6,972 | ||
| Other intangible assets | 8,789 | 5,277 | ||
| Property, plant and equipment | 8,719 | 9,085 | ||
| Deferred income tax assets | 5,712 | 6,298 | ||
| 30,223 | 27,632 | |||
| Current assets | ||||
| Trade and other receivables | 260,995 | 190,882 | ||
| Income tax receivables | 11,483 | 11,752 | ||
| Cash | 86,034 | 63,924 | ||
| Total current assets | 358,512 | 266,558 | ||
| Current liabilities | 135,329 | 83,737 | ||
| Income tax payables | 15,525 | 7,805 | ||
| Total current liabilities | 150,854 | 91,542 | ||
| Working capital | 207,658 | 175,016 | ||
| Non-current liabilities | ||||
| Deferred income tax liabilities | 1,263 | 454 | ||
| 236,618 | 202,194 | |||
| Group equity | ||||
| Shareholders' equity | 236,424 | 201,965 | ||
| Minority interest | 194 | 229 | ||
| 236,618 | 202,194 | |||
| Balance sheet total | 388,735 | 294,190 | ||
| Other balance sheet items / key figures | ||||
| Current assets / current liabilities | 2.38 | 2.91 | ||
| Shareholders' equity / Balance sheet Total | 60.8% | 68.7% | ||
| Issued ordinary shares (x 1,000) | 23,531 | 23,246 |
| (X € 1,000) | 2011 | 2010 |
|---|---|---|
| FY | FY | |
| Result before tax | 65,268 | 38,360 |
| Adjustments for: | ||
| Depreciation | 3,710 | 3,633 |
| Interest received | -701 | -740 |
| Other non-cash expense | 897 | 187 |
| Share based payments | 1,493 | 980 |
| Changes in: | ||
| Receivables | -64,627 | -34,665 |
| Current liabilities | 48,288 | 12,478 |
| Cash flow from operations | 54,328 | 20,233 |
| Taxes | -13,622 | -16,468 |
| Cash flow from operational activities | 40,706 | 3,765 |
| Additions to property, plant and equipment | -2,651 | -2,323 |
| Additions to software | -4,477 | -981 |
| Disposals of property, plant and equipment | 235 | 479 |
| Interest received | 701 | 740 |
| Cash flow from investments | -6,192 | -2,085 |
| Issue of new shares | 5,143 | 2,632 |
| Acquisition Minority interest | -185 | |
| Dividend Minority interest | -355 | -552 |
| Dividend | -18,816 | -18,545 |
| Cash flow from financial operations | -14,028 | -16,650 |
| Net cash flow | 20,486 | -14,970 |
| Cash position at start of financial period | 63,924 | 73,157 |
| Net cash flow | 20,486 | -14,970 |
| Exchange rate fluctuations | 1,624 | 5,737 |
| Cash position at end of financial period | 86,034 | 63,924 |
| Revenue | Operating profit | Total Assets | ||||
|---|---|---|---|---|---|---|
| FY 2011 | FY 2010 | FY 2011 | FY 2010 | FY 2011 | FY 2010 | |
| (X € 1,000) | ||||||
| Netherlands | 156,171 | 132,890 | 17,925 | 12,220 | 64,087 | 55,492 |
| Worldwide Energy* | 642,319 | 454,176 | 30,098 | 19,984 | 250,640 | 174,114 |
| Germany | 152,294 | 110,710 | 21,567 | 8,234 | 45,215 | 37,514 |
| Other regions | 29,084 | 23,148 | 50 | -675 | 28,793 | 27,070 |
| Unallocated | -5,237 | -2,417 | ||||
| 979,868 | 720,924 | 64,403 | 37,346 | 388,735 | 294,190 |
* Included in Worldwide Energy revenue is € 11.0 mln (2010 € 8.3 mln) revenue generated in The Netherlands.
The total number of direct and indirect employees with the group companies is set out below:
| FY 2011 | FY 2010 | |||
|---|---|---|---|---|
| Direct | Indirect | Direct | Indirect | |
| Netherlands | 1,674 | 316 | 1,408 | 308 |
| Worldwide Energy | 4,600 | 510 | 3,645 | 429 |
| Germany | 1,672 | 315 | 1,248 | 278 |
| Other regions | 374 | 84 | 278 | 62 |
| 8,320 | 1,225 | 6,579 | 1,077 | |
| Total workforce | 9,545 | 7,656 |
| FY 2011 | FY 2010 | |||
|---|---|---|---|---|
| Direct | Indirect | Direct | Indirect | |
| Netherlands | 1,820 | 322 | 1,529 | 312 |
| Worldwide Energy | 5,124 | 501 | 4,382 | 423 |
| Germany | 1,815 | 340 | 1,433 | 282 |
| Other regions | 373 | 91 | 340 | 65 |
| 9,132 | 1,254 | 7,684 | 1,082 | |
| Total workforce | 10,386 | 8,766 |
| Professional | Revenue | Operating Profit | ||
|---|---|---|---|---|
| specialisation | FY 2011 | FY 2010 | FY 2011 | FY 2010 |
| (X € 1,000) | ||||
| Engineering | 248,174 | 193,369 | 32,981 | 19,342 |
| Energy | 642,319 | 454,176 | 30,098 | 19,984 |
| ICT | 52,393 | 46,114 | 4,977 | 2,400 |
| Unallocated | 36,982 | 27,265 | -3,653 | -4,380 |
| 979,868 | 720,924 | 64,403 | 37,346 |
The total number of direct and indirect employees with the group companies is set out below:
| Average workforce | |||||
|---|---|---|---|---|---|
| FY 2011 | FY 2010 | ||||
| Direct | Indirect | Direct | Indirect | ||
| Engineering | 2,762 | 473 | 2,144 | 415 | |
| Energy | 4,600 | 510 | 3,645 | 429 | |
| ICT | 559 | 76 | 498 | 78 | |
| Unallocated | 399 | 166 | 292 | 155 | |
| 8,320 | 1,225 | 6,579 | 1,077 | ||
| Total workforce | 9,545 | 7,656 | |||
| Workforce at 31 December |
FY 2011 | FY 2010 | |||
| Direct | Indirect | Direct | Indirect | ||
| Engineering | 3,006 | 508 | 2,443 | 426 | |
| Energy | 5,124 | 501 | 4,382 | 423 | |
| ICT | 570 | 80 | 544 | 77 | |
| Unallocated | 432 | 165 | 315 | 156 | |
| 9,132 | 1,254 | 7,684 | 1,082 | ||
| Total workforce | 10,386 | 8,766 | |||
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.