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Brunel International N.V.

Quarterly Report Feb 23, 2024

3823_iss_2024-02-23_b64e69cf-3ac9-4788-aa04-6741a60ed132.pdf

Quarterly Report

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Q4 2023 Press Release

Brunel Q4 and FY 2023 results: continued revenue growth; ready for the next level

Amsterdam, 23 February 2024 – Brunel International N.V. (Brunel; BRNL), a global provider of flexible workforce solutions and expertise, today announced its fourth quarter and full year 2023 results.

Key points Q4 2023

  • Revenue of EUR 344 million, up 9% (14% organically)
  • Underlying EBIT of EUR 15.5, down 13% (up 3% organically)

Key points full year 2023

  • Revenue of EUR 1.3 billion, up 13% (18% organically)
  • Underlying EBIT of EUR 61.1, 0% year-on-year (10% organically)
  • Net cash position at EUR 31.8 million
  • Earnings per share of EUR 0.63, up 9% year-on-year
  • Proposed dividend of EUR 0.55 (pay-out: 87%)

"In 2023 we celebrated many highlights. Based on the strong first nine months, we continued high single digit growth in the year while we attracted many new clients. We strengthened our leadership team through internal promotions, had a high engagement score from candidates and colleagues, and attracted many new talents.

In the last quarter, we experienced some unexpected headwinds. While our revenues continued to grow, the impact of high interest rates and inflation on the offshore wind industry caused sudden

project stops and reconsiderations of projects in the pipeline. This hit our perm business at Taylor Hopkinson quite hard.

At the same time, the German market slowed down across all industries. We responded fast, rightsizing our organisation and adjusting our cost levels where needed and made a step up in executing our entrepreneurial sales approach. Through these actions, we are well positioned to weather these circumstances.

During our Capital Markets Day in November, we showed how we executed our strategy over the last 3 years. We now have a well-diversified portfolio of markets and capabilities. Our conversion ratio has grown significantly, and we are on track to reach our long-term goals. We presented data on the expected capital investments in our focus markets, underlining our high confidence that our clients need us more and more in the quarters and years to come. That's why we reconfirmed our growth ambitions, while new tooling, smarter processes and more leverage of our infrastructure will drive conversion and profitability even more.

In this year we also made important steps in executing our ESG strategy. We trained many colleagues on reducing unconscious bias, continued to work with autism organizations around the world to bring talent with an identification in this spectrum, closer to job-opportunities and our foundation enlarged our Brunel Foundation Forrest, organized 'Offshore Wind for Kids' events and Trash and Trace events with clients, candidates and internal colleagues.

With our unique infrastructure of more than 12,000 Brunellers in over 45 countries serving more than 1,000 clients, we are strongly positioned to benefit from the energy and digital transformation. Through our high integrity standards, our entrepreneurial spirit, our result driven mindset and our passion for people we are ready for all business challenges and can turn them into opportunities."

Contents

Brunel Q4 and FY 2023 results: continued revenue growth; ready for the next level

  • Performance
  • Use of performance measures
  • Appendix to the press release

GROUP PERFORMANCE Brunel International (unaudited)

P&L amounts in EUR million

Organic Organic
Q4 2023 Q4 2022 Δ% Δ% FY 2023 FY 2022 Δ% Δ%
Revenue 344.2 316.3 9% 14% 1,330.5 1,181.8 13% 18%
Gross Profit 66.2 65.7 1% 6% 273.6 252.1 9% 13%
Gross margin 19.2% 20.8% 20.6% 21.3%
Operating costs 51.5 46.9 10% 12% 211.6 187.0 13% 16%
Operating result 14.7 18.8 -22% -7% 62.0 65.1 -5% 5%
Earn out related share
based payments* -0.8 1.0 -180% -180% 0.9 4.2 -79% -79%
Underlying EBIT 15.5 17.8 -13% 3% 61.1 60.9 0% 10%
EBIT % (underlying) 4.5% 5.6% 4.6% 5.2%
One-off costs** 4.8 - 4.8 -
EBIT (after one-off) 10.7 17.8 -40% -24% 56.3 60.9 -7% 1%
Average directs 11,041 11,148 -1% -1% 11,138 11,187 0% 0%
Average indirects 1,610 1,478 9% 9% 1,574 1,452 8% 8%
Ratio direct / Indirect 6.9 7.5 7.1 7.7

Organic change is measured by excluding the impact of currencies, acquisitions, disposals and by adjusting for working days

*Relates to the acquisition related expenses for Taylor Hopkinson

**Relates to one-off costs, mainly restructuring costs

Fourth quarter developments

Revenue

Organic revenue was up 14% YoY in Q4 2023. Reported revenue was up 9% YoY, with a negative impact from working days of 2% and a negative effect of FX of 3%.

Gross profit

Organic gross profit was up 6.5% YoY in Q4 2023. Reported gross profit was up 0.8% YoY, of which working days had a negative impact of 3.7% while FX had a negative effect of 2%. The gross margin decreased mainly as a result of a change in the mix due to stronger growth in regions with a relatively lower gross margin.

EBIT

Organic EBIT was up 3.1% YoY in Q4 2023. Reported EBIT was down 12.8% YoY, of which working days had a negative impact of 13.5% while FX had a negative effect of 2.4%.

Gross profit (net fees) per vertical

The breakdown of gross profit per vertical is as follows:

2023 2022 Δ%
Global verticals
Conventional Energy 67.9 25% 62.0 25% 10%
Renewable Energy 38.8 14% 29.6 12% 31%
Future Mobility 33.4 12% 25.3 10% 32%
Mining 21.1 8% 12.4 5% 70%
Infrastructure 11.6 4% 12.1 5% -4%
Local verticals
Industrials & Technology 40.3 15% 43.2 17% -7%
Public Sector 20.0 6% 19.0 7% 5%
Life Sciences 17.8 7% 10.7 4% 66%
Financial Services 15.4 6% 14.5 6% 6%
Other 7.3 3% 23.3 9% -69%
Total 273.6 100% 252.1 100% 9%

To provide further insights into the underlying performance, Brunel has updated the verticals, with Engineering split into Industrials & Technology and Life Sciences, and Financial Services and Public Sector excluded from Other and reported separately.

We managed to achieve growth in all our global markets, supported by high levels of capital investments in those markets. Renewable energy additionally benefitted from the synergies of Taylor Hopkinson's expertise in offshore wind with Brunel's global infrastructure and contracting capabilities and managed to achieve significant growth despite the headwind in Q4.

Headline performance by region

Summary (amounts in EUR million)

Revenue Q4
2023
Q4
2022
Δ% Organic
Δ%
FY
2023
FY
2022
Δ% Organic
Δ%
DACH region 59.3 57.0 4% 5% 249.3 229.2 9% 9%
The Netherlands 55.8 50.3 11% 13% 213.2 190.3 12% 12%
Australasia 54.0 45.1 20% 29% 192.9 161.9 19% 27%
Middle East & India 44.0 39.8 10% 18% 160.7 143.3 12% 17%
Americas 43.3 40.4 7% 13% 177.8 146.6 21% 26%
Asia 46.4 46.7 -1% 6% 182.2 161.1 13% 20%
Rest of world 50.8 44.8 13% 16% 188.0 177.0 6% 20%
Eliminations -9.4 -8.0 -18% -18% -33.7 -27.5 -23% -23%
Total 344.2 316.3 9% 14% 1330.5 1181.8 13% 18%
Q4 Q4 Organic FY FY Organic
Gross Profit 2023 2022 Δ% Δ% 2023 2022 Δ% Δ%
DACH region 18.7 19.1 -2% 3% 85.8 81.0 6% 8%
The Netherlands 14.5 14.7 -2% 4% 56.6 55.7 2% 3%
Australasia 5.5 4.7 15% 24% 20.4 16.2 26% 34%
Middle East & India 6.1 7.2 -15% -10% 22.6 23.9 -6% -2%
Americas 6.2 5.6 12% 18% 24.8 19.9 25% 29%
Asia 8.5 7.2 18% 26% 30.8 23.6 31% 39%
Rest of world 6.8 7.2 -5% 21% 32.6 31.8 2% 31%
Total 66.2 65.7 1% 6% 273.6 252.1 9% 13%
Q4 Q4 Organic FY FY Organic
EBIT (underlying) 2023 2022 Δ% Δ% 2023 2022 Δ% Δ%
-29% -12% -3% 5%
DACH region 4.0 5.6 -8% 10% 23.6 24.4 -1% 4%
The Netherlands 4.5 4.9 16.5 16.7
Australasia 1.7 1.2 38% 53% 5.3 3.3 62% 72%
Middle East & India 3.6 4.6 -22% -16% 12.3 14.3 -14% -10%
Americas 1.5 1.0 52% 62% 4.5 2.6 76% 84%
Asia 3.5 3.2 9% 20% 11.9 9.4 27% 36%
Rest of world -0.5 -0.5 6% 17% 0.2 1.4 -86% -12%
Unallocated -2.7 -2.2 -25% -25% -13.2 -11.0 -20% -20%
Total 15.5 17.8 -13% 3% 61.1 60.9 0% 10%

PERFORMANCE BY REGION DACH region (unaudited)

P&L amounts in EUR million

Organic Organic
Q4 2023 Q4 2022 Δ% Δ% FY 2023 FY 2022 Δ% Δ%
Revenue 59.3 57.0 4% 5% 249.3 229.2 9% 9%
Gross Profit 18.7 19.1 -2% 3% 85.8 81.0 6% 8%
Gross margin 31.6% 33.5% 34.4% 35.3%
Operating costs 14.7 13.5 9% 9% 62.2 56.6 10% 10%
EBIT 4.0 5.6 -29% -12% 23.6 24.4 -3% 5%
EBIT % 6.7% 9.8% 9.5% 10.6%
Average directs 2,025 2,114 -4% 2,062 2,042 1%
Average indirects 445 414 8% 435 405 7%
Ratio direct / Indirect 4.6 5.1 4.7 5.0

Organic change is measured by excluding the impact of currencies, acquisitions, disposals and by adjusting for working days

The DACH region includes Germany, Switzerland, Austria and Czech Republic.

Despite the weaker market conditions, specifically in the German market, we achieved growth per working day in revenue and gross profit. The decrease in headcount and the lower productivity were offset by higher rates. The productivity was lower in Q4 due to more vacation taken and slightly higher bench and illness. Gross margin adjusted for working days was 32.6% in Q4 2023 (Q4 2022: 33.5%). The year-on-year decrease in gross margin is the result of the lower productivity.

The drop at the change of the year was in line with last year, and as a result our headcount in the beginning of 2024 was slightly down year-on-year.

Operating cost increased in Q4, amongst others as a result of inflation. As a result, EBIT in Q4 decreased compared to Q4 2022, also when adjusted for one less working day. We have taken actions in Q4 to adjust our organisation to the current activity level in order to return to EBIT growth in the course of 2024.

The headcount development in 2023 is as follows:

Headcount as of 31 December 2023 was 2,008 (2022: 2,133).

Working days Germany:
Q1 Q2 Q3 Q4 FY
2024 63 61 66 62 252
2023 65 60 65 61 251
2022 64 61 66 62 253

Brunel Netherlands (unaudited)

P&L amounts in EUR million

Organic Organic
Q4 2023 Q4 2022 Δ% Δ% FY 2023 FY 2022 Δ% Δ%
Revenue 55.8 50.3 11% 13% 213.2 190.3 12% 12%
Gross Profit 14.5 14.7 -2% 4% 56.6 55.7 2% 3%
Gross margin 25.9% 29.3% 26.5% 29.3%
Operating costs 10.0 9.8 2% 1% 40.1 39.0 3% 3%
EBIT 4.5 4.9 -8% 10% 16.5 16.7 -1% 4%
EBIT % 8.1% 9.7% 7.7% 8.7%
Average directs 1,752 1,687 4% 1,726 1,667 4%
Average indirects 272 282 -3% 270 279 -3%
Ratio direct / Indirect 6.4 6.0 6.4 6.0

Organic change is measured by excluding the impact of currencies, acquisitions, disposals and by adjusting for working days

Revenue increased as a result of higher headcount and rates, slightly offset by a lower productivity due to a higher bench. Gross margin decreased as a result of the ongoing inflation on the compensation of our specialists, which we can only partly pass on. The gross margin adjusted for working days is 26.7% in Q4 2023 (Q4 2022: 29.3%).

Operating cost remain under control. The decrease in EBIT compared to Q4 2022 is the result of the one less working day (impact EUR 0.6 million).

The start in 2024 shows a continuation of the trend of Q4 2023.

The headcount development in 2023 is as follows:

Headcount as of 31 December 2023 was 1,753 (2022: 1,718).

Working days The Netherlands:

Q1 Q2 Q3 Q4 FY
2024 64 62 66 64 256
2023 65 61 65 63 254
2022 64 61 66 64 255

Australasia (unaudited)

P&L amounts in EUR million

Q4 2023 Q4 2022 Δ% Organic
Δ%
FY 2023 FY 2022 Δ% Organic
Δ%
Revenue 54.0 45.1 20% 29% 192.9 161.9 19% 27%
Gross Profit 5.5 4.7 15% 24% 20.4 16.2 26% 34%
Gross margin 10.1% 10.5% 10.6% 10.0%
Operating costs 3.8 3.5 9% 14% 15.1 12.9 17% 25%
EBIT 1.7 1.2 38% 53% 5.3 3.3 62% 72%
EBIT % 3.1% 2.7% 2.7% 2.0%
Average directs 1,670 1,479 13% 1,575 1,375 15%
Average indirects 129 109 18% 124 107 16%
Ratio direct / Indirect 12.9 13.5 12.7 12.9

Organic change is measured by excluding the impact of currencies, acquisitions, disposals and by adjusting for working days

Australasia includes Australia and Papua New Guinea.

The strong performance continued in Australasia, especially in mining and conventional energy. Leveraging the growth is resulting in an increased conversion and increased profitability.

We have joined forces with the small expert team of Advance Careers, a boutique agency specialized in energy and sustainability recruitment. Advance Careers' existing staff, clients and contracts are incorporated into Brunel from January 2024.

Middle East & India (unaudited)

P&L amounts in EUR million

Organic Organic
Q4 2023 Q4 2022 Δ% Δ% FY 2023 FY 2022 Δ% Δ%
Revenue 44.0 39.8 10% 18% 160.7 143.3 12% 17%
Gross Profit 6.1 7.2 -15% -10% 22.6 23.9 -6% -2%
Gross margin 13.8% 18.0% 14.1% 16.7%
Operating costs 2.5 2.6 -4% 1% 10.3 9.6 7% 11%
EBIT 3.6 4.6 -22% -16% 12.3 14.3 -14% -10%
EBIT % 8.2% 11.6% 7.6% 9.9%
Average directs 1,982 2,281 -13% 2,103 2,235 -6%
Average indirects 173 153 13% 167 139 20%
Ratio direct / Indirect 11.5 14.9 12.6 16.0

Organic change is measured by excluding the impact of currencies, acquisitions, disposals and by adjusting for working days

Middle East & India includes Qatar, Dubai, Kuwait, Iraq and India.

Our activities on yards for construction in Dubai were the main driver of the growth in Q4, and the outlook for the region remains very promising. The project in which we experienced a delay earlier in 2023, started in 2024. Gross margin decreased as a result of a change in the project mix, and the completion of a higher margin project in Q3. The region continues to deliver an outstanding conversion and strong profitability.

Americas (unaudited)

P&L amounts in EUR million

Organic Organic
Q4 2023 Q4 2022 Δ% Δ% FY 2023 FY 2022 Δ% Δ%
Revenue 43.3 40.4 7% 13% 177.8 146.6 21% 26%
Gross Profit 6.2 5.6 12% 18% 24.8 19.9 25% 29%
Gross margin 14.4% 13.8% 14.0% 13.6%
Operating costs 4.7 4.6 2% 8% 20.3 17.3 17% 21%
EBIT 1.5 1.0 52% 62% 4.5 2.6 76% 84%
EBIT % 3.4% 2.4% 2.6% 1.8%
Average directs 990 1,012 -2% 1,028 929 11%
Average indirects 144 137 5% 147 125 18%
Ratio direct / Indirect 6.9 7.4 7.0 7.4

Organic change is measured by excluding the impact of currencies, acquisitions, disposals and by adjusting for working days

The Americas includes Brazil, Canada, USA, Guyana and Suriname.

Most of the countries achieved strong growth, in our main markets conventional energy, renewable energy and mining. Supported by the growth, in combination with cost control, our conversion and profitability is improving.

Asia (unaudited)

P&L amounts in EUR million

Organic Organic
Q4 2023 Q4 2022 Δ% Δ% FY 2023 FY 2022 Δ% Δ%
Revenue 46.4 46.7 -1% 6% 182.2 161.1 13% 20%
Gross Profit 8.5 7.2 18% 26% 30.8 23.6 31% 39%
Gross margin 18.3% 15.4% 16.9% 14.6%
Operating costs 5.0 4.0 25% 32% 18.9 14.2 33% 40%
EBIT 3.5 3.2 9% 20% 11.9 9.4 27% 36%
EBIT % 7.6% 6.9% 6.5% 5.8%
Average directs 1,375 1,524 -10% 1,424 1,481 -4%
Average indirects 167 135 24% 156 132 18%
Ratio direct / Indirect 8.2 11.3 9.1 11.2

Organic change is measured by excluding the impact of currencies, acquisitions, disposals and by adjusting for working days

Asia includes Singapore, China, Hong Kong, South Korea, Taiwan, Japan, Indonesia, Thailand and Malaysia.

The strong trend in mining in Indonesia and at fabrication yards in China continued, resulting in increased gross margins, conversion and profitability. This region is benefitting significantly from our position in renewable energy and achieving fast growth in yard construction projects in this vertical.

Rest of world (unaudited)

P&L amounts in EUR million

Organic Organic
Q4 2023 Q4 2022 Δ% Δ% FY 2023 FY 2022 Δ% Δ%
Revenue 50.8 44.8 13% 16% 188.0 177.0 6% 20%
Gross Profit 6.8 7.2 -5% -4% 32.6 31.8 2% 14%
Gross margin 13.3% 16.0% 17.3% 18.0%
Operating costs 8.1 6.7 21% 21% 31.5 26.2 20% 31%
Operating result -1.3 0.5 -390% -355% 1.1 5.6 -81% -71%
Earn out related share
based payments -0.8 1.0 -180% -180% 0.9 4.2 -79% -79%
EBIT -0.5 -0.5 6% 17% 0.2 1.4 -86% -12%
EBIT % -1.0% -1.2% 0.1% 0.8%
Average directs 1,246 1,051 19% 1,219 1,459 -16%
Average indirects 214 188 14% 213 205 3%
Ratio direct / Indirect 5.8 5.6 5.7 7.1

Organic change is measured by excluding the impact of currencies, acquisitions, disposals and by adjusting for working days

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.

Despite the challenging market circumstances, and perm revenues decreasing 26% year-onyear, Taylor Hopkinson continued to achieve revenue growth. We are seeing the first signs of a slow recovery in the perm market for Taylor Hopkinson. Due to the lower activity level, we have reduced the estimated liability related to the earn out for the remaining shares.

Our energy activities in Europe & Africa continued their strong performance in a strong market.

In Q2 2022 we sold our Russian activities to local management. Revenue and EBIT included in our 2022 results amounted to EUR 18 million and EUR 0.8 million respectively. After a slight adjustment of the payment plan, we have now received the first installments relating to the divestments of our activities in Russia.

Tax and net profit

The effective tax rate increased from 35.2% in 2022 to 35.8% in 2023. Net profit came in at EUR 32.2 million (2022: EUR 30.8 million), up 5% and resulting in earnings per share of EUR 0.63 (2022: EUR 0.58).

Dividend

We propose a cash dividend of EUR 0.55 per share over the 2023 financial year (2022: EUR 0.55 per share), which represents a pay-out ratio of 87%.

Cash position

The net cash balance at 31 December 2023 is EUR 31.8 million (EUR 77.8 per 31 December 2022), of which EUR 20.1 million is restricted (EUR 15.5 per 31 December 2022). The decrease in net cash is mainly the result of the increase in working capital as a result of our revenue growth, combined with a slight delay in collection.

Outlook Q1 2024

We started the year with high single digit revenue growth and expect the current trend to continue, whilst we start to see the first benefits of our cost saving initiatives.

Just Spee to step down from the Supervisory Board

Due to health reasons, Just Spee has decided to step down from the Supervisory Board as of the AGM in May this year.

New role Tom Hopkinson

Founder of Taylor Hopkinson, Tom Hopkinson, has successfully managed growth acceleration in our Renewables vertical, after the acquisition of Taylor Hopkinson by Brunel in December 2021.Combining Taylor Hopkinson's expertise in offshore wind with Brunel's global infrastructure and expertise in contracting, has resulted in many revenue synergies. Preparing for the next phase and level, we agreed that from January 2024, Tom Hopkinson will move into a global advisory role. Tom will focus on sharing industry expertise across the entire business, extending professional networks and industry relationships and developing our brand as an industry partner and enabler to clients worldwide. With Tom's extensive knowledge, expertise and network in renewables, he will continue to add significant value to the business and will be available for advice to the new leadership team upon their request. Considering the change in role and responsibilities, we have agreed to an earlier exercise of the put and call option on the shares in Taylor Hopkinson (20%) he still owns. This will be settled in Q1 2024, in stead of Q1 2025 as was initially agreed.

ESG update

Future professionals

The Brunel Foundation and OffshoreWind4Kids had the opportunity to teach children from Weekendschool Eindhoven more about wind energy. The Weekendschool helps children develop their talents and gives them a glimpse into what their future job could look like. The kids were stimulated to imagine an exciting future in the field of wind energy. Trying on the mandatory clothing when building wind turbines at sea, made the day complete.

Autism Awareness

The Brunel Foundation was invited by Taylor Hopkinson to organize a Lunch and Learn inspiration session about autism. As part of the session, we invited guest speaker Elise Cordaro. Elise gave a spotlight on what it is like to live with an ADHD and Autism diagnosis. She talked about how she navigates the workplace and provided hints and tips for working with and managing people with Autism.

Clean ups

The Delft colleagues rolled up their sleeves for a lunch break clean up this quarter. Besides, marketing colleagues from around the world joined a lunch break cleanup as part of their Global Marketing Summit in Amsterdam. Altogether they collected over 50 kg of litter. The numbers in our Global Trash 'n Trace Challenge with Litterati grew to over 493,000 pieces of litter picked and registered in our challenge.

Progress on next level targets 2027

Results call

Today (February 23, 2024), at 10:30 AM CET, Brunel will be hosting a results call.

To join the conference call, use access code 544241 and dial, depending on your location. The dial-in number for the Netherlands is +31.85.888.7233 Other locations – see www.brunelinternational.net.

You can listen to the call through a real-time audio webcast. You can access the webcast and presentation at https://events.q4inc.com/attendee/654645681.A replay of the presentation and the Q&A will be available on our website by the end of the day.

Use of performance measures

Acquisition-related expenses

Costs that are directly triggered by the acquisition of a company, such as transaction costs, purchase accounting related costs and integration-related expenses.

Organic growth

Externally reported income statement line items (revenue, gross profit, operating expenses & EBIT) adjusted for the impact of changes in foreign currency ("FX"), excluding the impact of one-offs, acquisitions and disposals on revenues and adjusted for the number of working days. Brunel operates in an industry where for each additional working day compared to the previous period, additional revenue/gross profit can be generated. Therefore, the organic growth is a measure that best shows underlying/ comparable performance isolating the working day effect.

Gross Profit (GP)

Contribution margin, i.e. Revenue minus direct personnel expenses

Gross Margin

Gross profit as a percentage of Revenue

Divestment

The action or process of selling off subsidiary business interests or investments.

Elimination

Exclusion of intercompany revenue within the group companies of Brunel.

Underlying EBIT

Refers to Brunel's EBIT, excluding certain one-off and/or exceptional items that may distort the true operational performance of the business. It provides a clearer picture of the company's ongoing profitability by eliminating the impact of restructuring costs, integration and M&A costs related to acquisitions and other exceptional items.

One- offs

Exceptional nonrecurring items that distort the true operational performance of the business. It provides a clearer picture of the company's ongoing profitability by eliminating the impact of restructuring costs, integration and M&A costs related to acquisitions and other exceptional items.

Net Cash

Net cash is the sum of all cash and cash equivalent, restricted cash minus loans and borrowings.

Directs/ specialists

Direct employees are those employees of an entity that are billed to an external client.

Indirect

Staff whose time is not billable to a client.

EBIT

Operating profit.

EBIT% (underlying)

Operating profit excluding restructuring costs, acquisition-related charges and other incidental charges expressed as a percentage of total revenue.

Conversion ratio (EBIT/GP)

A performance measure on how Brunel's EBIT develops in relation to the Gross Profit. This makes the performance per region better comparable, taking out margin differences between regions.

Rev/Directs

The ratio of total revenue to the direct employees.

Revenue growth organic

The percentage of growth in revenue compared to the previous period, measured by excluding the impact of currencies, acquisitions, disposals and by adjusting for working days.

Gross Profit growth organic

The percentage of growth in contribution margin over the previous period, measured by excluding the impact of currencies, acquisitions, disposals and by adjusting for working days.

Operating cost growth organic

The percentage of growth in operating cost over the previous period, measured by excluding the impact of one- offs, currencies, acquisitions, disposals and by adjusting for working days.

EBIT growth organic

The percentage of growth in operating profit over the previous period, measured by excluding the impact of one-offs, currencies, acquisitions, disposals and by adjusting for working days.

For further information:

Jilko Andringa CEO Peter de Laat CFO Graeme Maude COO tel.: +31(0)20 312 50 81

Brunel International N.V. is a global provider of flexible specialist workforce solutions. We deliver tailor made solutions like Recruitment, Global Mobility, Project Management, Secondment, Consultancy or scope of work for our clients, both on a global scale and on a local level. Our ability to help our clients beyond their expectations is a testament to our people and their entrepreneurial spirit, knowledge and results-driven approach. Our people are at the heart of everything we do.

We connect the most talented professionals with leading clients in Conventional Energy, Renewable Energy, Future Mobility, Mining, Life Sciences and Infrastructure.

Incorporated in 1975, Brunel has since become a global company with over 11,000 employees and annual revenue of EUR 1,3 billion (2023). The company is listed at Euronext Amsterdam N.V. For more information on Brunel International N.V. visit our website www.brunelinternational.net.

Financial Calendar

3 May 2024 Trading update for the first quarter 2024
16 May 2024 Annual general meeting of shareholders
20 May 2024 Ex-dividend listing
14 June 2024 Dividend available for payment
2 August 2024 Publication half-year 2024 results
1 November 2024 Trading update for the third quarter 2024

Certain statements in this document concern prognoses about the future financial condition and the results of operations of Brunel International N.V. 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. The financial figures as presented in this press release are unaudited.

Appendix to the press release

Appendix to the press release 23 February 2024 Full year 2023

Financial Highlights for the period ended 31 December (unaudited) (EUR '000)

Revenue
Gross Profit
EBIT
FY 2023
1,330,535
273,582
56,321
FY 2022
1,181,824
252,116
60,874
Δ%
13%
9%
-7%
Group result after tax
Non-controlling interests
32,159
-507
30,764
-1,374
5%
63%
Net profit for the year 31,652 29,390 8%
Gross profit as % of revenue
Net profit as % of revenue
20.6%
2.4%
21.3%
2.5%
-
-
Workforce
Average directs (average-YTD)
Average indirects (average-YTD)
Total
11,138
1,574
12,712
11,187
1,452
12,639
0%
8%
1%
Direct employees (period end)
Indirect employees (period end)
Total
10,939
1,600
12,539
11,083
1,479
12,562
-1%
8%
0%
Earnings per share (in euro)
Earnings per share for ordinary
shareholders
Diluted earnings per share
Dividend per share
Weighted average number of
ordinary shares for the purpose of
basic earnings per share
0.63
0.63
0.55
50,400,988
0.58
0.58
0.55
50,400,988
Weighted average number of
ordinary shares for the purpose of
diluted earnings per share
50,461,602 50,538,200

Condensed consolidated profit & loss account for the period ended 31 December (unaudited) (EUR '000)

FY 2023 FY 2022 Δ%
Revenue 1,330,535 1,181,824 13%
Direct personnel expenses 1,056,953 929,708 14%
Gross Profit 273,582 252,116 9%
Indirect personnel expenses 147,647 128,549 15%
Depreciation and amortisation 22,019 21,328 3%
Other expenses 47,595 41,365 15%
Total operating costs 217,261 191,242 14%
EBIT 56,321 60,874 -7%
Financial income and expenses -6,219 -2,939 -112%
Loss on disposal of subsidiaries 0 -10,431
Share of profit of investments accounted
for using the equity method
0 0
Group result before tax 50,102 47,504 5%
Income tax 17,943 16,740 7%
Group result after tax 32,159 30,764 5%

Attributable to:

Net profit for the year 32,159 30,764 5%
Net profit/loss attributable to non
controlling interest
507 1,374 -63%
Net profit attributable to equity holders of
the parent (ordinary shares)
31,652 29,390 8%

Condensed consolidated statement of comprehensive income for the period ended 31 December (unaudited) (EUR '000)

FY 2023 FY 2022
Net profit 32,159 30,764
Other comprehensive income/expense
Items that may be reclassified subsequently to profit or loss
Exchange differences arising on translation of foreign operations -7,832 9,284
Income tax relating to components of other comprehensive income 732 -634
-7,100 8,650
Items that will not be reclassified subsequently to profit or loss
Actuarial gains/(losses) on defined benefit plans -255 733
-255 733
Total other comprehensive income/expense (net of tax) -7,355 9,383
Total comprehensive income 24,804 40,147
Attributable to:
Ordinary shareholders 24,572 38,625
Non-controlling interest 232 1,522
Total comprehensive income 24,804 40,147

Condensed consolidated balance sheet (unaudited) (EUR '000)

31 December 2023 31 December 2022
Non-current assets
Goodwill 44,268 44,443
Other intangible assets 24,657 21,259
Property, plant and equipment 11,952 11,620
Right-of-use assets 37,223 43,962
Financial fixed assets 6,717 8,689
Investments accounted for using
the equity method - -
Non-current restricted cash 5,618 8,769
Deferred income tax assets 17,265 14,725
Total non-current assets 147,700 153,467
Current assets
Trade and other receivables
351,374 303,050
Income tax receivables 7,429 2,994
Restricted cash 14,556 6,768
Cash and cash equivalents 90,225 80,861
Total current assets 463,584 393,673
Total assets 611,284 547,140
Group equity
Share capital 1,517 1,517
Share premium 86,145 86,145
Reserves 182,141 187,627
Unappropriated result 31,651 29,390
Shareholders' equity 301,454 304,679
Non-controlling interest 11,081 13,138
Total equity 312,535 317,817
Non-current liabilities
Provisions 7,129 6,750
Deferred income tax liabilities 2,460 1,782
Lease liability 27,028 32,449
Other non-current liabilities 83,448 32,604
Total non-current liabilities 120,065 73,585
Current liabilities
Lease liability 12,179 13,176
Trade and other payables 150,098 130,629
Income tax payables 16,407 11,933
Total current liabilities 178,684 155,738
Total liabilities 298,749 229,323
Total equity & liabilities 611,284 547,140

Condensed consolidated statement of changes in shareholders' equity (unaudited) (EUR '000)

2023 2022
Balance at 1 January Attributable
to ordinary
shareholde
rs
304,679
Non
controlling
interest
13,138
Total
317,817
Attributable
to ordinary
shareholde
rs
288,236
Non
controlling
interest
13,693
Total
301,929
Net profit/loss 31,652 507 32,159 29,390 1,374 30,764
Exchange differences arising
on translation of foreign
operations
-7,557 -275 -7,832 9,136 148 9,284
Actuarial gains/(losses) -255 -255 733 733
Income tax relating to
components of other
comprehensive
income/expense
732 732 -634 -634
Total comprehensive
income/expense
24,572 232 24,804 38,625 1,522 40,147
- 0 - 0
Cash dividend -27,721 -2,222 -29,943 -22,680 -2,240 -24,920
Share based payments -143 -143 498 498
Acquisition of subsidiary 0 0 0 163 163
Gain on liquidation of
subsidiary
67 -67 0 0 0
Balance at 31 December 301,454 11,081 312,535 304,679 13,138 317,817

Condensed consolidated Cash flow statement (unaudited) (EUR '000)

2023 2022
Cash flow from operating activities
Result after tax 32,159 30,764
Adjustments for:
Income tax expense 17,942 16,740
Depreciation and amortisation 22,019 21,328
Exchange differences 1,559 1,352
Interest income -904 -545
Interest expense 4,232 1,173
Loss on disposal of subsidiaries 0 10,431
Other non-cash expenses 1,482 4,176
Share based payments 1,723 -190
Changes in:
Receivables -53,853 -49,818
Provisions 380 -183
Trade and other payables 7,844 11,467
Restricted cash -5,230 3,790
-50,859 -34,744
Income tax paid -19,193 -23,563
Interest paid -3,379 -754
Interest received 950 165
Cash flow generated from operating activities 7,733 26,333
Cash flow from investing activities
Additions to property, plant and equipment -2,998 -3,088
Additions to intangible fixed assets -8,734 -8,183
Disposals of property, plant and equipment 17 49
Disposals of intangible assets 3 0
Acquisition of subsidiaries 0 -733
Disposal of subsidiaries 0 -9,497
Repayment of loans by third parties 402 0
Cash flow used in investing activities -11,311 -21,452
Cash flow from financing activities
Dividend non-controlling interest -2,222 -2,240
Dividend ordinary shareholders -27,721 -22,680
Proceeds from drawing of loans and borrowings 59,968 18,634
Principal elements of lease payments -14,008 -14,731
Cash flow used in financing activities 16,017 -21,017
Total cash flow 12,439 -16,136
Cash and cash equivalents at 1 January 80,861 93,757
Exchange rate fluctuations -3,075 3,240
Cash and cash equivalents at 31 December 90,225 80,861

Segment reporting (unaudited)

Reportable segments

(EUR '000)

Revenue Gross Profit EBIT
2023 2022 2023 2022 2023 2022
Segments
DACH region 249,278 229,242 85,826 80,966 20,124 24,362
Netherlands 213,205 190,326 56,582 55,727 16,103 16,652
Australasia 192,893 161,854 20,355 16,210 5,267 3,250
Middle East & India 160,709 143,281 22,588 23,911 12,285 14,253
Americas 177,840 146,560 24,832 19,917 4,547 2,586
Asia 182,248 161,086 30,809 23,553 11,873 9,359
Rest of World 188,020 176,950 32,591 31,832 -716 1,362
Unallocated 0 0 0 0 -13,163 -10,950
Eliminations -33,658 -27,475 0 0 0 0
Total 1,330,535 1,181,824 273,582 252,116 56,321 60,874

Employees

The total number of direct and indirect employees with the group companies is set out below:

Average workforce:

2023 2022
Direct Indirect Direct Indirect
DACH region 2,062 435 2,042 405
Netherlands 1,726 270 1,667 279
Australasia 1,575 124 1,375 107
Middle East & India 2,103 167 2,235 139
Americas 1,028 147 929 125
Rest of World 2,644 367 2,939 338
Unallocated - 64 - 59
Total 11,138 1,574 11,187 1,452
Total workforce 12,712 12,639

Workforce at 31 December:

2023 2022
Direct Indirect Indirect
DACH region 2,008 438 2,133 412
Netherlands 1,753 274 1,718 281
Australasia 1,692 128 1,491 109
Middle East & India 1,930 174 2,260 155
Americas 958 142 999 143
Rest of World 2,598 379 2,482 317
Unallocated - 65 - 62
Total 10,939 1,600 11,083 1,479
Total workforce 12,539 12,562

Disaggregation of revenue (unaudited)

(EUR '000)

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