P&L amounts in EUR million
|
Q2 2015 |
Q2 2014 |
Change % |
H1 2015 |
H1 2014 |
Change % |
|
|
Revenue |
317.1 |
340.6 |
-7% a |
650.8 |
681.4 |
-4% b |
|
Gross Profit |
54.3 |
57.7 |
-6% |
113.6 |
119.7 |
-5% |
|
Gross margin |
17.1% |
16.9% |
17.5% |
17.6% |
||
|
Operating costs |
45.1 |
43.2 |
5% c |
90.1 |
84.1 |
7% d |
|
EBIT |
9.2 |
14.5 |
-37% |
23.5 |
35.6 |
-34% |
|
EBIT % |
2.9% |
4.3% |
3.6% |
5.2% |
||
|
Average directs |
10,983 |
11,886 |
-8% |
11,171 |
12,177 |
-8% |
|
Average indirects |
1,677 |
1,603 |
5% |
1,648 |
1,612 |
2% |
|
Ratio direct / Indirect |
6.5 |
7.4 |
6.8 |
7.6 |
constant currencies:
a -14%
b -12%
c 1%
d 3%
Brunel Oil & Gas (unaudited)
P&L amounts in EUR million
|
Q2 2015 |
Q2 2014 |
Change % |
H1 2015 |
H1 2014 |
Change % |
|
|
Revenue |
220.8 |
242.6 |
-9% a |
452.5 |
480.8 |
-6% b |
|
Gross Profit |
26.6 |
28.7 |
-7% |
53.0 |
56.6 |
-6% |
|
Gross margin |
12.1% |
11.8% |
11.7% |
11.8% |
||
|
Operating costs |
17.0 |
16.7 |
2% c |
35.5 |
32.4 |
9% d |
|
EBIT |
9.6 |
12.0 |
-20% |
17.5 |
24.2 |
-28% |
|
EBIT % |
4.3% |
4.9% |
3.9% |
5.0% |
||
|
Average directs |
6,544 |
7,437 |
-12% |
6,739 |
7,728 |
-13% |
|
Average indirects |
778 |
766 |
2% |
752 |
779 |
-3% |
|
Ratio direct / Indirect |
8.4 |
9.6 |
9.0 |
9.9 |
constant currencies:
a -19%
b -17%
c -7%
d -2%
The Oil & Gas division consists of the Energy division and the Projects division.
P&L amounts in EUR million
|
Q2 2015 |
Q2 2014 |
Change % |
H1 2015 |
H1 2014 |
Change % |
|
|
Revenue |
188.5 |
200.4 |
-6% a |
386.9 |
393.7 |
-2% b |
|
Gross Profit |
23.0 |
24.6 |
-6% |
46.0 |
47.9 |
-4% |
|
Gross margin |
12.2% |
12.3% |
11.9% |
12.2% |
||
|
Operating costs |
16.0 |
15.6 |
3% c |
33.4 |
30.3 |
10% d |
|
EBIT |
7.0 |
9.0 |
-22% |
12.6 |
17.6 |
-28% |
|
EBIT % |
3.7% |
4.5% |
3.3% |
4.5% |
||
|
Average directs |
6,102 |
6,940 |
-12% |
6,249 |
7,096 |
-12% |
|
Average indirects |
754 |
736 |
2% |
727 |
749 |
-3% |
|
Ratio direct / Indirect |
8.1 |
9.3 |
8.6 |
9.5 |
constant currencies:
a -18%
b -14%
c -6%
d -1%
Our clients’ cost saving initiatives in response to the low oil price has continued to put pressure on our headcount and revenue. Initiatives we have seen, besides headcount reduction, are salary reductions for our contractors as well as lower mark-ups for our services. According to our information, most of our clients have implemented these initiatives during Q2. The overall lower level of activities in the industry due to the capex reductions will continue to impact our business. On the other side, we have seen increased activities around new projects in Q2. However, it will take some time before we will really experience any increased business from these new projects. In Q2, the headcount continued to decrease, but at a lower pace. For the next couple of months we still expect our headcount to decrease slightly.
As in Q1, the impact on our revenue of the decrease in headcount of 12% was largely offset by changes in exchange rates, resulting in a decrease of revenue of 6%.
The decrease in revenue also caused a decrease in gross profit, whereas we managed to achieve a similar gross margin.
Operating costs were adversely affected by the changes in exchange rates. In constant currencies, overhead costs decreased by 6% in Q2 due to efficiencies resulting from our IT implementations and cost control. We expect the operating costs to remain at this level for the rest of the year, with further savings to be achieved next year.
Driven by the revenue decrease, EBIT margin reduced to 3.7% (EUR 7 million) for the quarter.
P&L amounts in EUR million
|
Q2 2015 |
Q2 2014 |
Change % |
H1 2015 |
H1 2014 |
Change % |
|
|
Revenue |
32.4 |
42.2 |
-23% a |
65.5 |
87.1 |
-25% b |
|
Gross Profit |
3.6 |
4.1 |
-13% |
7.0 |
8.8 |
-20% |
|
Gross margin |
11.1% |
9.8% |
10.7% |
10.1% |
||
|
Operating costs |
1.0 |
1.1 |
-9% |
2.1 |
2.2 |
-3% |
|
EBIT |
2.6 |
3.0 |
-14% |
4.9 |
6.6 |
-26% |
|
EBIT % |
7.9% |
7.1% |
7.4% |
7.6% |
||
|
Average directs |
442 |
497 |
-11% |
490 |
632 |
-22% |
|
Average indirects |
24 |
30 |
-19% |
25 |
30 |
-17% |
|
Ratio direct / Indirect |
18.4 |
16.8 |
19.6 |
21.1 |
constant currencies:
a -25%
b -28%
Revenue remained at the same level as Q1. The decrease compared to last year is fully due to the lower level of activities, as expected. Activities will decrease further as of the end of Q3 as the large offshore Projects in Australia are nearing completion.
The reduction in gross profit was limited compared to the revenue drop, mainly as a result of supplier discounts, increasing gross margin.
Operating costs reduced following the smaller size of the operations.
Despite the lower level of activities, Projects still achieved an EBIT margin of 7.9%, due to the gross margin increase and operating efficiencies. EBIT for the quarter amount to EUR 2.6 million.
Brunel Europe (unaudited)
P&L amounts in EUR million
|
Q2 2015 |
Q2 2014 |
Change % |
H1 2015 |
H1 2014 |
Change % |
|
|
Revenue |
96.2 |
98.0 |
-2% |
198.3 |
200.5 |
-1% |
|
Gross Profit |
27.7 |
29.0 |
-5% |
60.7 |
63.1 |
-4% |
|
Gross margin |
28.8% |
29.6% |
30.6% |
31.5% |
||
|
Operating costs |
25.6 |
23.5 |
9% |
50.1 |
46.7 |
7% |
|
EBIT |
2.1 |
5.5 |
-62% |
10.6 |
16.4 |
-35% |
|
EBIT % |
2.2% |
5.6% |
5.4% |
8.2% |
||
|
Average directs |
4,439 |
4,501 |
-1% |
4,432 |
4,448 |
0% |
|
Average indirects |
884 |
823 |
7% |
896 |
833 |
8% |
|
Ratio direct / Indirect |
5.0 |
5.5 |
5.0 |
5.4 |
Brunel Europe consists of Brunel Germany, Brunel Netherlands, Brunel Belgium, Brunel Czech Republic, Brunel Switzerland and Brunel Austria.
P&L amounts in EUR million
|
Q2 2015 |
Q2 2014 |
Change % |
H1 2015 |
H1 2014 |
Change % |
|
|
Revenue |
45.9 |
48.8 |
-6% |
94.5 |
100.2 |
-6% |
|
Gross Profit |
14.9 |
16.1 |
-7% |
31.9 |
35.0 |
-9% |
|
Gross margin |
32.5% |
33.0% |
33.7% |
34.9% |
||
|
Operating costs |
13.0 |
11.9 |
10% |
25.6 |
23.8 |
7% |
|
EBIT |
1.9 |
4.2 |
-56% |
6.3 |
11.2 |
-44% |
|
EBIT % |
4.1% |
8.7% |
6.7% |
11.2% |
||
|
Average directs |
2,012 |
2,186 |
-8% |
2,035 |
2,174 |
-6% |
|
Average indirects |
447 |
415 |
8% |
449 |
413 |
9% |
|
Ratio direct / Indirect |
4.5 |
5.3 |
4.5 |
5.3 |
The headcount in Germany remained fairly stable during Q2. In Q2 2014, we did achieve limited growth. Hence, the decrease in revenue YoY has remained almost equal (5% in Q1 vs 6% in Q2). We did achieve growth week on week in June and July. Slightly later than expected, but our German activities are moving in the right direction. Q2 2015 had the same number of working days as last year.
The gross margin for the quarter decreased compared to last year due to mild pricing pressure. For the first half of the year, a lower productivity in Q1 has caused an additional decrease in the gross margin. Productivity in Q2 was at the same level as last year.
Operating costs increased due to the additional account managers we have hired in the second half of last year and will remain at this level for the near future.
Revenue and margin reduction, combined with a higher cost base, caused EBIT to decrease to EUR 2 million.
P&L amounts in EUR million
|
Q2 2015 |
Q2 2014 |
Change % |
H1 2015 |
H1 2014 |
Change % |
|
|
Revenue |
43.1 |
42.4 |
2% |
88.4 |
86.6 |
2% |
|
Gross Profit |
11.2 |
11.3 |
-1% |
25.0 |
24.9 |
1% |
|
Gross margin |
25.9% |
26.6% |
28.3% |
28.7% |
||
|
Operating costs |
10.5 |
9.8 |
7% |
20.3 |
19.4 |
5% |
|
EBIT |
0.7 |
1.5 |
-52% |
4.7 |
5.5 |
-14% |
|
EBIT % |
1.6% |
3.5% |
5.4% |
6.4% |
||
|
Average directs |
2,078 |
1,984 |
5% |
2,047 |
1,947 |
5% |
|
Average indirects |
367 |
345 |
6% |
362 |
341 |
6% |
|
Ratio direct / Indirect |
5.7 |
5.7 |
5.7 |
5.7 |
Q2 2015 had two less working days compared to last year due to public holidays, and this has affected our results. Revenue in The Netherlands increased by 2% to EUR 43 million, driven by a headcount growth from 2,031 by the end of Q2 2014 to 2,121 by the end of Q2 2015. Adjusted for the working days, revenue growth is 5%. Main drivers are business lines Legal and IT. Finance was flat YoY for the quarter, but achieved growth in June. Engineering continued the upward trend in revenue, although slowly.
The working day effect had a negative impact on the gross margin. Adjusted for this, the gross margin for the quarter would have been 27.9%. The improvement compared to last year is the result of improved productivity and a decreased share of freelancers.
Following the continued investment in the Dutch commercial organisation in 2014 and 2015, operating costs increased.
Adjusted for the working days, EBIT is at 4.3%.
The effective tax rate in the first half year of 2015 is 37.7%, up 4.4ppt compared to the same period last year, driven by reduction of the relative share of countries where the tax rate is relatively low.
For the full year we project the effective tax rate to come down again.
Reference is made to our 2014 Annual Report (pages 45 – 62). 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.
Brunel’s cash position remained strong compared to December 2014 at EUR 144 million, despite the dividend payment of EUR 35 million in May 2015.
We expect further growth in The Netherlands, in line with further positive economic developments and increased headcount. For Germany we expect to return to growth towards the end of the year, resulting in a top line almost equal to 2014. European profitability is expected to improve in the second half of the year, helped by the additional working days (compared to the first half year). Our Energy business will remain challenging in 2015. The activities in our Projects division are forecasted to decrease slowly in the remainder of the year, with the large projects nearing completion.
For the full year, we expect revenue between EUR 1,250 million and EUR 1,300 million and EBIT between EUR 50 million and EUR 60 million.
Jan Arie van Barneveld, CEO of Brunel International N.V.: “At first glance the results in figures look disappointing. However, we have a very strong company and have been able to limit the damage in Energy considering the current circumstances in the industry. Our European organisation is in good condition and the headcount has been growing for a couple of months now. The results for the second half of the year will certainly reflect this.”
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, 14 August 2015
Brunel International N.V.
Jan Arie van Barneveld (CEO)
Peter de Laat (CFO)
Arjan de Vries (COO Energy)