Brunel Q1 2016

Wednesday, May 4, 2016

Growth continues in Europe, Oil & Gas market continues to decline

 

Growth continues in Europe, Oil & Gas market continues to decline

Amsterdam, 4 May 2016

Key points Q1 2016

  • Revenue down by 29% to EUR 238 million and gross profit down by 19% to EUR 48 million
  • Gross margin at 20.1 % up from 17.8%
  • Operational costs down by 14% to EUR 39 million
  • EBIT down by 36% to EUR 9.1 million 

Brunel International (unaudited)

 

 

P&L amounts in EUR million

Q1 2016

Q1 2015

Change %

Revenue

238.4

333.7

-29% a

Gross Profit

47.9

59.3

-19%

Gross margin

20.1%

17.8%

Operating costs

38.8

45.0

-14% b

EBIT

9.1

14.3

-36%

EBIT %

3.8%

4.3%

 

Average directs

9,771

11,400

-14%

Average indirects

1,503

1,683

-11%

Ratio direct / Indirect

6.5

6.8

a -27 % at constant currencies
b -13 % at constant currencies

The adverse developments in the Energy division continued in Q1 2016. We have seen further project delays and cancellations, rate reductions and reduced workload. As a result, revenue and profitability fell significantly in Q1 year on year.

Revenue in Europe continued to grow year on year, both in The Netherlands and in Germany.

Revenue in The Netherlands increased compared to previous year by 14%, at the same number of working days. The business lines IT, Marketing and Legal showed strong growth, while Engineering and Finance showed limited growth.

An increased headcount and lower bench, largely offset by one less working day and unusual high illness, resulted in a 2% growth in Germany.

Gross margin increased by 2.3ppt, mainly driven by the increased share of the European activities. The gross margin in Energy was negatively impacted (0.5 ppt) by exchange rate developments.

Overhead costs decreased by 14%, driven by efficiency measures taken in the Energy division, following the downturn in the market. We are continuously optimising the organisation and adapting it to the market circumstances, leading to various cost savings.

As a result of the revenue drop, offset by the cost savings in the Energy division, EBIT came to EUR 9 million.


Outlook

Given the current market circumstances in the Energy division, it remains difficult to provide an outlook for the rest of the year. The growth in The Netherlands will continue strongly, while growth in Germany is expected to accelerate.

Jan Arie van Barneveld, CEO of Brunel International N.V.: “We continue to perform strongly in the growing secondment market in The Netherlands and are happy to see growth in all business lines. The future looks bright in our home market. We also see the German organisation developing nicely and this will definitely result in stronger growth. Since the Oil & Gas market is currently so unpredictable we continue to right size the organisation in order to operate as efficient as possible; and we also continue to see market opportunities both in the long and short term.”

Download Press Release Q1 2016 and its appendix