Brunel reports strong organic growth supported by all regions, additional boost from Taylor Hopkinson acquisition
Amsterdam, 29 April 2022 – Brunel International N.V. (Brunel; BRNL), a global provider of flexible workforce solutions and expertise, today announced its first quarter (Q1) 2022 results.
Key points Q1 2022
- Revenue of EUR 275 million, up 29%, 18% growth like-for-like
- EBIT up 46% to EUR 15.6 million
- Strategy continues to gain traction with strong need for specialists and engineering solutions across global industries; all regions growing and profitable
- Updated ESG strategy to accelerate commitments: Net zero emission in 2022
- Acceleration in renewable recruitment solutions through Taylor Hopkinson acquisition. Integration on track; market leadership position strengthened
- Operational leverage further enhanced with a conversion to EBIT of 39% of the increase in gross profit
- Strong cash position maintained at EUR 103 million
- Brunel is in the process of selling the activities in Russia to local management.
Jilko Andringa, CEO of Brunel International N.V.: “We started the year 2022 strongly with revenue growth accelerating in all regions and strong growth outside of Europe, particularly in Asia. As the quarter advanced, we saw the trend accelerating even faster with revenue exceeding EUR 100 million in March. Our gross margin increased in almost all regions, as our clients recognize the value of the connected Brunel specialists in many pioneering projects. Supported by strict operating cost management, this resulted in an EBIT of 5.7% for the quarter, which is testament to our ability of disciplined execution.
We are in the process of selling our Russian activities to local management. I would like to thank our Russian colleagues for their commitment to Brunel and the business they build over the last 20 years.
As we acquired Taylor Hopkinson in the last quarter of 2021 to expand our capabilities in the renewable market, we are steadily progressing with the post-merger integration activities and are confident that we will complete this in the coming months. This will allow us to maintain our leading position in the renewables vertical as we are driving the energy transition of our clients. To show our strong commitment to these trends, we have updated our own ESG strategy and accelerate our ambitions to become carbon neutral.
We can build upon our strong team of Brunellers. We ask all Brunellers to be ‘curious’ to grow our knowledge leadership and to be ‘eager’ to show the right attitude to further expand our business. We are confident we can stay ahead of our five year plan and take advantage of the post-COVID momentum as most regions have abandoned their restrictions and are already delivering upon the increased demand for engineers.”
ESG strategy
Following our strategy update in March 2021, we have seen our new growth strategy gaining further traction. We are well positioned to take advantage of the increased demand for specialists and engineering solutions for a more sustainable world. The acquisition of Taylor Hopkinson has established our leadership position in the renewables vertical and we are instrumental in our clients’ energy transition. To underline our commitments for a more sustainable world, we have updated our ESG strategy and will accelerate the efforts to become carbon neutral. At last year’s capital markets day, we had committed to reduce our footprint and to fully compensate the remaining emission by 2030. The reduction plan is well underway. We have decided to already offset all remaining emission as of 2022.
| Brunel International (unaudited) | ||||||||
| P&L amounts in EUR million | ||||||||
| Q1 2022 | Q1 2021 | Δ% | ||||||
| Revenue | 274.6 | 213.0 | 29% | a | ||||
| Gross Profit | 61.8 | 49.3 | 25% | |||||
| Gross margin | 22.5% | 23.1% | ||||||
| Operating costs | 45.1 | 38.6 | 17% | b | ||||
| Operating result | 16.7 | 10.7 | 56% | |||||
| Earn out related share based payments* | 1.1 | - | ||||||
| EBIT | 15.6 | 10.7 | 46% | c | ||||
| EBIT % | 5.7% | 5.0% | ||||||
| Average directs | 11,233 | 9,290 | 21% | |||||
| Average indirects | 1,436 | 1,310 | 10% | |||||
| Ratio direct / Indirect | 7.8 | 7.1 | ||||||
| a 18 % like-for-like | ||||||||
| b 8 % like-for-like | ||||||||
| c 43 % like-for-like | ||||||||
| Like-for-like is measured excluding the impact of currencies and acquisitions | ||||||||
| *Relates to the acquisition related expenses for Taylor Hopkinson | ||||||||
Q1 2022 results by region
P&L amounts in EUR million
Summary:
| Revenue | Q1 2022 | Q1 2021 | Δ% |
| DACH region | 58.4 | 55.7 | 5% |
| The Netherlands | 48.9 | 47.2 | 4% |
| Australasia | 34.0 | 25.2 | 35% |
| Middle East & India | 30.8 | 25.2 | 22% |
| Americas | 32.5 | 20.3 | 60% |
| Rest of world | 70.0 | 39.4 | 78% |
| Total | 274.6 | 213.0 | 29% |
| EBIT | Q1 2022 | Q1 2021 | Δ% |
| DACH region | 6.9 | 6.0 | 15% |
| The Netherlands | 5.2 | 4.0 | 30% |
| Australasia | 0.2 | 0.0 | |
| Middle East & India | 3.0 | 2.4 | 25% |
| Americas | 0.4 | -0.1 | 500% |
| Rest of world | 2.8 | 1.3 | 115% |
| Unallocated | -2.9 | -2.9 | 0% |
| Total | 15.6 | 10.7 | 46% |
In Q1 2022 the Group’s revenue increased by 29% or EUR 61.6 million y-o-y, driven by all regions, with the largest growth in Rest of World and Americas. Excluding acquisitions, revenue increased by 22%.
Gross margin in DACH and The Netherlands increased over the quarter. As a result of the change in the mix between Europe and the other regions, total gross margin decreased by 0.6 percentage points.
EBIT increased by 46% or EUR 4.9 million y-o-y. Excluding acquisitions, EBIT increased by 47% or EUR 5.1 million.
BREAKDOWN BY REGION
| DACH region (unaudited) | ||||
| P&L amounts in EUR million | ||||
| Q1 2022 | Q1 2021 | Δ% | ||
| Revenue | 58.4 | 55.7 | 5% | |
| Gross Profit | 21.1 | 19.6 | 8% | |
| Gross margin | 36.1% | 35.2% | ||
| Operating costs | 14.2 | 13.6 | 4% | |
| EBIT | 6.9 | 6.0 | 15% | |
| EBIT % | 11.8% | 10.8% | ||
| Average directs | 1,985 | 1,901 | 4% | |
| Average indirects | 388 | 377 | 3% | |
| Ratio direct / Indirect | 5.1 | 5.0 | ||
The DACH region includes Germany, Switzerland, Austria and Czech Republic.
Revenue per working day in DACH increased by 3%. The higher revenue and the 0.9 percentage point higher gross margin are mainly driven by one additional working day as well as higher rates, partially offset by a lower productivity due to higher illness related absence. The gross margin adjusted for working days is 35.2% in Q1 2022 (Q1 2021: 35.2%). EBIT% increased 1.0 percentage point.
Working days Germany:
| Q1 | Q2 | Q3 | Q4 | FY | |
| 2022 | 64 | 60 | 66 | 62 | 252 |
| 2021 | 63 | 60 | 66 | 65 | 254 |
| The Netherlands (unaudited) | ||||
| P&L amounts in EUR million | ||||
| Q1 2022 | Q1 2021 | Δ% | ||
| Revenue | 48.9 | 47.2 | 4% | |
| Gross Profit | 14.9 | 13.5 | 10% | |
| Gross margin | 30.5% | 28.6% | ||
| Operating costs | 9.7 | 9.5 | 2% | |
| EBIT | 5.2 | 4.0 | 30% | |
| EBIT % | 10.6% | 8.5% | ||
| Average directs | 1,677 | 1,733 | -3% | |
| Average indirects | 276 | 301 | -8% | |
| Ratio direct / Indirect | 6.1 | 5.8 | ||
Revenue per working day in The Netherlands increased by 2.1%. The increase is mainly the result of higher rates, partially offset by the lower headcount and a lower productivity. The business line Legal continues to be the major driver of the growth. The gross margin adjusted for working days is 29.7% in Q1 2022 (Q1 2021: 28.6%).
Working days The Netherlands:
| Q1 | Q2 | Q3 | Q4 | FY | |
| 2022 | 64 | 61 | 66 | 64 | 255 |
| 2021 | 63 | 61 | 66 | 66 | 256 |
| Australasia (unaudited) | ||||
| P&L amounts in EUR million | ||||
| Q1 2022 | Q1 2021 | Δ% | ||
| Revenue | 34.0 | 25.2 | 35% | a |
| Gross Profit | 3.1 | 2.4 | 29% | |
| Gross margin | 9.1% | 9.5% | ||
| Operating costs | 2.9 | 2.4 | 21% | b |
| EBIT | 0.2 | - | ||
| EBIT % | 0.6% | 0.0% | ||
| Average directs | 1,256 | 906 | 39% | |
| Average indirects | 101 | 83 | 22% | |
| Ratio direct / Indirect | 12.4 | 10.9 | ||
| a 31 % like-for-like | ||||
| b 22 % like-for-like | ||||
| Like-for-like is measured excluding the impact of currencies and acquisitions | ||||
Australasia includes Australia and Papua New Guinea. Revenue increased significantly in both markets following the lifting of travel restrictions in the second half of 2021. Gross margin decreased slightly due to a change in the client mix.
| Middle East & India (unaudited) | ||||
| P&L amounts in EUR million | ||||
| Q1 2022 | Q1 2021 | Δ% | ||
| Revenue | 30.8 | 25.2 | 22% | a |
| Gross Profit | 5.2 | 4.1 | 27% | |
| Gross margin | 16.9% | 16.3% | ||
| Operating costs | 2.2 | 1.7 | 29% | b |
| EBIT | 3.0 | 2.4 | 25% | |
| EBIT % | 9.7% | 9.5% | ||
| Average directs | 2,179 | 2,078 | 5% | |
| Average indirects | 130 | 125 | 4% | |
| Ratio direct / Indirect | 16.8 | 16.7 | ||
| a 14 % like-for-like | ||||
| b 21 % 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.
All countries contributed to the strong revenue increase, mainly driven by new projects with both existing and new clients, another short term shutdown project and a favourable currency effect. Gross margin increased due to focus on higher value added activities and client diversification. Operating costs increased as a result of investments in staff to support future growth.
| Americas (unaudited) | |||
| P&L amounts in EUR million | |||
| Q1 2022 | Q1 2021 | Δ% | |
| Revenue | 32.5 | 20.3 | 60% |
| Gross Profit | 4.2 | 2.6 | 62% |
| Gross margin | 12.9% | 12.8% | |
| Operating costs | 3.8 | 2.7 | 41% |
| EBIT | 0.4 | -0.1 | 500% |
| EBIT % | 1.2% | -0.5% | |
| Average directs | 861 | 761 | 13% |
| Average indirects | 115 | 100 | 15% |
| Ratio direct / Indirect | 7.5 | 7.6 | |
| a 47 % like-for-like | |||
| b 26 % like-for-like | |||
| Like-for-like is measured excluding the impact of currencies and acquisitions | |||
We continue to see strong growth in our main markets in the USA, Canada and Brazil. The growth is mainly driven by new projects and higher rates. The increased volume helped the region return to profitability in Q1 2022.
| Rest of world (unaudited) | ||||
| P&L amounts in EUR million | ||||
| Q1 2022 | Q1 2021 | Δ% | ||
| Revenue | 70.0 | 39.4 | 78% | a |
| Gross Profit | 13.3 | 7.1 | 87% | |
| Gross margin | 19.0% | 18.0% | ||
| Operating costs | 9.4 | 5.8 | 62% | b |
| Operating result | 3.9 | 1.3 | 200% | |
| Earn out related share based payments* | 1.1 | - | ||
| EBIT | 2.8 | 1.3 | 115% | c |
| EBIT % | 4.0% | 3.3% | ||
| Average directs | 3,276 | 1,911 | 71% | |
| Average indirects | 366 | 264 | 39% | |
| Ratio direct / Indirect | 9.0 | 7.2 | ||
| a 35 % like-for-like | ||||
| b 8 % like-for-like | ||||
| c 127 % like-for-like | ||||
| Like-for-like is measured excluding the impact of currencies and acquisitions | ||||
| *Relates to the acquisition related expenses for Taylor Hopkinson | ||||
The growth is mainly driven by the acquisition of Taylor Hopkinson in Q4 2021 and a strong performance in Asia, where we continue to see strong growth with construction projects in China and Singapore.
Outlook
We expect the current favourable trends to continue throughout Q2 2022: Revenue will be higher y-o-y at a slightly lower overall gross margin compared to the same quarter in 2021. Compared to Q1 2022, gross margin and EBIT in Q2 2022 are expected to be lower than Q1 due to seasonality and a lower number of working days, following the normal trend in our business.
Brunel is in the process of selling the activities in Russia to local management. In Q1 2022, Russia contributed EUR 9.7 million revenue and EUR 0.8 million EBIT to Brunel’s results. The net investment in Russia at 31 March 2022 is EUR 14 million.
Source: Brunel International NV
Attachment
To view this piece of content from www.globenewswire.com, please give your consent at the top of this page.To view this piece of content from ml-eu.globenewswire.com, please give your consent at the top of this page.
About GlobeNewswire by notified
GlobeNewswire by notifiedGlobeNewswire by notified is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public.
Subscribe to releases from GlobeNewswire by notified
Subscribe to all the latest releases from GlobeNewswire by notified by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from GlobeNewswire by notified
Centessa Pharmaceuticals Announces Pricing of $100 Million Public Offering of American Depositary Shares24.4.2024 03:36:40 CEST | Press release
BOSTON and LONDON, April 23, 2024 (GLOBE NEWSWIRE) -- Centessa Pharmaceuticals plc (Nasdaq: CNTA), a clinical-stage pharmaceutical company that aims to discover and develop medicines that are transformational for patients, today announced the pricing of an underwritten public offering of 10,810,810 American Depositary Shares (“ADSs”), each representing one ordinary share, at a price to the public of $9.25 per ADS. The aggregate gross proceeds to Centessa from this offering are expected to be approximately $100 million, before deducting underwriting discounts and commissions and offering expenses payable by Centessa. All ADSs sold in the offering were offered by Centessa. The offering is expected to close on or about April 26, 2024, subject to customary closing conditions. Centessa has also granted the underwriters a 30-day option to purchase up to an additional 1,621,621 ADSs at the public offering price, less underwriting discounts and commissions. Goldman Sachs, Leerink Partners, Eve
UK businesses must prioritise payment technology to build customer loyalty and stay competitive: New research from Lloyds Bank and FreedomPay24.4.2024 01:01:00 CEST | Press release
London, United Kingdom, April 23, 2024 (GLOBE NEWSWIRE) -- Less than a third (27%) of businesses are confident they offer seamless payments experiences.Almost two-thirds of businesses (59%) across Retail, Food & Beverages and Hospitality believe a good checkout experience offers the same competitive advantage as having the best products.Customer preference is the factor most likely to influence businesses’ investment in payment technologies. New research from Lloyds Bank and FreedomPay highlights the importance of UK businesses investing in new payment technology. Two-thirds (59%) of UK Retail, Food & Beverage (F&B) and Hospitality companies were found to already put payments at the heart of their customer experience strategy, reflecting the growing importance of payment options to customers. For retail-focused businesses, 59% believe that a good checkout experience is essential to building customer loyalty, with respondents believing it is as much a competitive advantage as having the
Millicom announces the re-issuance of its AGM and EGM Convening Notice23.4.2024 22:30:00 CEST | Press release
Millicom announces the re-issuance of its AGM and EGM Convening Notice Luxembourg, April 23, 2024 – Millicom today announced the re-issuance of the Convening Notice to its Annual General Meeting (“AGM”) and Extraordinary General Meeting (“EGM”) of Shareholders which will be held on May 23, 2024. The Convening Notice contains a rectified note to the AGM agenda item 20 (Share Repurchase Plan). All other items of the AGM and EGM remain unchanged. The Convening Notice is appended to this press release and available on the company’s website at: https://www.millicom.com/our-company/corporate-governance/shareholder-meetings/. AGM voting materials have been updated to reflect the rectified note. -END- For further information, please contact AGM/EGM Inquiries: Patrick Gill, Company Secretary +352 27 759 603 Maria Florencia Maiori, Senior Legal Counsel information@millicom.comPress: Sofia Corral, Director Corporate Communications press@millicom.comInvestors: Michel Morin, VP Investor Relations i
CNH announces signing of a €3.25 billion committed revolving credit facility23.4.2024 22:30:00 CEST | Press release
CNH announces signing of a €3.25 billion committed revolving credit facility Basildon, April 23, 2024 On April 19, 2024, CNH (NYSE: CNHI) signed a €3.25 billion committed revolving credit facility, intended for general corporate purposes of the Company. The facility, entered into with a group of 18 banks providing aggregate commitments in excess of €3.5 billion, has a 5-year tenor with two extension options of one year each, exercisable on the first and second anniversary of the signing date. It replaces an existing 5-year €4 billion facility due to mature in March 2026. The final size of the facility, set at €3.25 billion, aligns with reduced funding needs following the demerger of Iveco Group. The transaction confirms the strong support of a large panel of international key relationship banks for the Company. CNH Industrial (NYSE: CNHI) is a world-class equipment and services company. Driven by its purpose of Breaking New Ground, which centers on Innovation, Sustainability and Produc
Centessa Pharmaceuticals Announces $100 Million Proposed Public Offering of American Depositary Shares23.4.2024 22:17:37 CEST | Press release
BOSTON and LONDON, April 23, 2024 (GLOBE NEWSWIRE) -- Centessa Pharmaceuticals plc (Nasdaq: CNTA), a clinical-stage pharmaceutical company that aims to discover and develop medicines that are transformational for patients, today announced that it has commenced an underwritten public offering of $100 million of American Depositary Shares (“ADSs”), each representing one ordinary share. All of the ADSs are being offered by Centessa. In addition, Centessa intends to grant the underwriters a 30-day option to purchase up to an additional $15 million of ADSs offered in the public offering. The proposed offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering. Goldman Sachs and Leerink Partners are acting as lead joint book-running managers for the proposed offering. Evercore ISI, Guggenheim Securities and BMO Capital Markets are also acting as joint book-running mana