Brunel Q3 2017 results

Friday, November 3, 2017

Q3 2017: Through the trough

Key points Q3 2017

  • Strong improvement compared to Q2 2017
  • All time high headcount in Europe

Brunel International (unaudited)

P&L amounts in EUR million

Q3 2017

Q3 2016

Δ%

YTD 2017

YTD 2016

Δ%

Revenue

194.5

204.7

-5%

a

579.8

674.3

-14%

b

Gross Profit

46.3

45.3

2%

133.3

140.9

-5%

Gross margin

23.8%

22.1%

23.0%

20.9%

Operating costs

39.3

37.2

6%

c

121.7

116.2

5%

d

EBIT

7.0

8.1

-14%

11.6

24.7

-53%

EBIT %

3.6%

4.0%

2.0%

3.7%

Average directs

9,665

8,931

8%

9,283

9,398

-1%

Average indirects

1,500

1,456

3%

1,485

1,494

-1%

Ratio direct / Indirect

6.4

6.1

6.3

6.3

 

a -5 % like-for-like
b -15 % like-for-like
c 6 % like-for-like
d 4 % like-for-like
Like-for-like is measured excluding the impact of currencies and acquisitions

The Group’s revenue decreased by 5% due to the decrease in Global Business. In Q3, Europe has achieved the highest headcount ever.

Revenue in The Netherlands increased by 6% compared to the third quarter of 2016, mainly driven by the business lines Engineering and IT. Revenue per working day increased by 8%. The gross margin adjusted for working days is 30.6% (2016: 29.3%).

Headcount as of September 30th was 2,280 (2016: 2,125)

Working days The Netherlands

Q1

Q2

Q3

Q4

FY

2017

65

61

65

63

254

2016

63

62

66

64

255

 

Revenue in Germany increased by 4% compared to the third quarter of 2016. Revenue per working day increased by 5%. The gross margin adjusted for working days is 38.2% (2016: 37.8%).  

Revenue in Germany increased by 4% compared to the third quarter of 2016. Revenue per working day increased by 5%. The gross margin adjusted for working days is 38.2% (2016: 37.8%).

Working days Germany

Q1

Q2

Q3

Q4

FY

2017

65

59

65

60

249

2016

62

62

66

62

252

 

In Global Business revenue, excluding impact of the acquisition of SES Labour Solutions, remained stable from Q2 to Q3. A 10% decline in revenue due to completed projects from the previous cycle was fully compensated by new projects. All regions, except Asia, are growing consecutively. Our new shutdown and maintenance activities in the USA have already been able to secure USD 25 million of contracts, with a first small contribution in Q4.

Outlook for 2017

The headcount development in Europe will result in a record revenue for Europe in Q4, with The Netherlands showing the strongest growth. For Global Business we expect to see the first signs of our initiatives in our revenue for Q4, of course apart from the impact of the acquisition. We confirm our EBIT forecast of at least EUR 15 million for the full year.

Jan Arie van Barneveld, CEO of Brunel International N.V.: “The development in Europe has resulted in a strong performance in Q3. More importantly, this gives rise to a very nice outlook for Q4 and onwards. With all the initiatives and successes in Global Business I’m confident we are on our way to a growth path I have become accustomed to at Brunel.”