Brunel continues strong growth path in Q1 2023 through leading position in attractive markets
Amsterdam, 5 May 2023 – Brunel International N.V. (Brunel; BRNL), a global provider of flexible workforce solutions and expertise, today announced its first quarter (Q1) 2023 results.
Key points
- Revenue of EUR 317 million, up 15% (19% like-for-like)
- Gross profit of EUR 68.8 million, up 11% (15% like-for-like)
- EBIT of EUR 15.8 million, up 1% (6% like-for-like)
Jilko Andringa, CEO of Brunel International N.V.: “We continued to demonstrate strong organic revenue growth across all regions and in all strategic markets. The expected development of our chosen focus markets continues to be very positive and that’s why we continue to invest accordingly in our organization. We were able to mostly offset inflation-related salary increases as well as higher cost associated with continued growth-related investments. As a result, our like-for-like EBIT increased by 6%.
Trends in our markets remain robust as continued investments in the digital and energy transition require many more specialists, now and in the foreseeable future. By combining recruitment expertise with global mobility services, we are in a unique position to provide great value to our clients and simultaneously take advantage of the favorable environment in which we operate.
Supporting our clients in the energy transition and in their drive to become more sustainable, is an important element of our ESG strategy. Next to that we continue to execute our plans to lower our own footprint. With our support of certified green projects, we are proud to be a carbon neutral company.
In Q1 we also adapted new tooling to improve further on our ‘excellence in execution’. Our account managers and recruiters are now using market leading AI tools to attract, search, select and retain top talent for our clients.
Brunel is getting stronger and stronger, with all regions maturing and contributing to our strategic profitability goal. We remain ahead of our plan with a sustained focus on multi year, high single digit growth and profitability enhancement across our regions, aimed at achieving a higher than 6% EBIT in 2025.”
ESG Update
In Q1 2023, Brunel Foundation, hosted by our Global partner OffshoreWind4Kids, supported the First LEGO league regional and national finals in Eindhoven and Delft in the Netherlands. Almost 600 children, ranging from 9 to 15 years old, got insights about how to measure wind power generated by building wind turbines with a built-in display. This workshop perfectly matched the theme of this year’s challenge: SUPERPOWERED. For this edition, the First LEGO League teams were challenged to learn more about energy sources, energy distribution, storage and usage. Together all participating children collaborated and innovated for a better future with green energy.
We believe that involving children at an early age in fun activities related to renewable energy is a great way to create awareness for the environment in general and to inspire them to join the industry later in life. The numbers in our Global Trash ‘n Trace Challenge with Litterati grew to 415,000 pieces of litter picked and registered in our challenge.
Group performance
| Brunel International (unaudited) | ||||||||
| P&L amounts in EUR million | ||||||||
| Q1 2023 | Q1 2022 | Δ% | ||||||
| Revenue | 316.9 | 274.6 | 15% | a | ||||
| Gross Profit | 68.8 | 61.8 | 11% | |||||
| Gross margin | 21.7% | 22.5% | ||||||
| Operating costs | 52.3 | 46.2 | 13% | b | ||||
| Operating result | 16.5 | 15.6 | 6% | |||||
| Earn out related share based payments* | 0.7 | 1.1 | -36% | |||||
| EBIT | 15.8 | 15.6 | 1% | c | ||||
| EBIT % | 5.0% | 5.7% | ||||||
| Average directs | 11,000 | 11,233 | -2% | |||||
| Average indirects | 1,529 | 1,436 | 6% | |||||
| Ratio direct / Indirect | 7.2 | 7.8 | ||||||
| a 19 % like-for-like | ||||||||
| b 20 % like-for-like | ||||||||
| c 6 % like-for-like | ||||||||
| Like-for-like is measured excluding the impact of currencies, acquisitions and divestments | ||||||||
| *Relates to the acquisition related expenses for Taylor Hopkinson | ||||||||
The average number of directs reflects our specialists working at clients (the average for Q1 2022 still included the average for Russia of 941).
Headline performance by region
P&L amounts in EUR million
| Revenue | Q1 2023 | Q1 2022 | Δ% |
| DACH region | 64.9 | 58.4 | 11% |
| The Netherlands | 53.4 | 48.9 | 9% |
| Australasia | 43.5 | 34.0 | 28% |
| Middle East & India | 37.8 | 30.8 | 23% |
| Americas | 44.0 | 32.5 | 35% |
| Asia | 44.2 | 33.0 | 34% |
| Rest of world | 29.1 | 37.0 | -21% |
| Total | 316.9 | 274.6 | 15% |
| EBIT | Q1 2023 | Q1 2022 | Δ% |
| DACH region | 8.3 | 6.9 | 20% |
| The Netherlands | 4.8 | 5.2 | -8% |
| Australasia | 0.9 | 0.2 | 350% |
| Middle East & India | 3.0 | 3.0 | 0% |
| Americas | 0.4 | 0.4 | 0% |
| Asia | 2.0 | 1.9 | 5% |
| Rest of world | -0.1 | 0.9 | -111% |
| Unallocated | -3.5 | -2.9 | -21% |
| Total | 15.8 | 15.6 | 1% |
In Q1 2023 the Group’s revenue increased by 15% or EUR 42.3 million y-o-y, with the largest growth in Americas, Asia, Australasia and Middle East & India. Like-for-like revenue increased by 19%. Following very strong growth in the Asia region for the past consecutive quarters, we commenced separate reporting on the region as of 2023. In Q1 2022, Rest of World still included our activities in Russia (EUR 10 million revenue and EUR 1 million EBIT).
Gross margin for the group decreased slightly, mainly as a result in the continued change in mix between the regions.
Unallocated costs were higher due to the implementation of new digital tools.
EBIT increased by 1% to EUR 15.8 million. Excluding Russia and impact of currencies, the increase was 6% or EUR 1.0 million.
Performance by region
| DACH region (unaudited) | ||||
| P&L amounts in EUR million | ||||
| Q1 2023 | Q1 2022 | Δ% | ||
| Revenue | 64.9 | 58.4 | 11% | |
| Gross Profit | 24.0 | 21.1 | 14% | |
| Gross margin | 37.0% | 36.1% | ||
| Operating costs | 15.7 | 14.2 | 11% | |
| EBIT | 8.3 | 6.9 | 20% | |
| EBIT % | 12.8% | 11.8% | ||
| Average directs | 2,085 | 1,985 | 5% | |
| Average indirects | 428 | 388 | 10% | |
| Ratio direct / Indirect | 4.9 | 5.1 | ||
The DACH region includes Germany, Switzerland, Austria and Czech Republic.
Revenue per working day in DACH increased by 9.5%, as a result of a higher number of specialists working at our clients, and increased rates. Gross margin adjusted for working days is 36.1% in Q1 2023 (Q1 2022; 36.1%), and remains robust.
Working days Germany:
| Q1 | Q2 | Q3 | Q4 | FY | |
| 2023 | 65 | 60 | 65 | 61 | 251 |
| 2022 | 64 | 60 | 66 | 62 | 252 |
Headcount as of 31 March 2023 was 2,078 (2022: 1,996).
| The Netherlands (unaudited) | ||||
| P&L amounts in EUR million | ||||
| Q1 2023 | Q1 2022 | Δ% | ||
| Revenue | 53.4 | 48.9 | 9% | |
| Gross Profit | 15.0 | 14.9 | 1% | |
| Gross margin | 28.1% | 30.5% | ||
| Operating costs | 10.2 | 9.7 | 5% | |
| EBIT | 4.8 | 5.2 | -8% | |
| EBIT % | 9.0% | 10.6% | ||
| Average directs | 1,701 | 1,677 | 1% | |
| Average indirects | 273 | 276 | -1% | |
| Ratio direct / Indirect | 6.2 | 6.1 | ||
Revenue per working day in The Netherlands increased by 7.6%. The increase is mainly the result of higher headcount and higher rates, partially offset by the lower productivity due to higher bench. The business lines Finance & risk and Legal are the main driver of the growth. Gross margin adjusted for working days is 27.3% in Q1 2023 (Q1 2022: 30.5%). As expected, the indexation of rates to cover for higher salaries has been hindered by timing-effects, putting pressure on margins in Q1 which is expected to soften in the course of this year.
Working days The Netherlands:
| Q1 | Q2 | Q3 | Q4 | FY | |
| 2023 | 65 | 61 | 65 | 63 | 254 |
| 2022 | 64 | 61 | 66 | 64 | 255 |
Headcount as of 31 March 2023 was 1,735 (2022: 1,679).
| Australasia (unaudited) | ||||
| P&L amounts in EUR million | ||||
| Q1 2023 | Q1 2022 | Δ% | ||
| Revenue | 43.5 | 34.0 | 28% | a |
| Gross Profit | 4.6 | 3.1 | 48% | |
| Gross margin | 10.6% | 9.1% | ||
| Operating costs | 3.7 | 2.9 | 28% | b |
| EBIT | 0.9 | 0.2 | 350% | c |
| EBIT % | 2.1% | 0.6% | ||
| Average directs | 1,495 | 1,256 | 19% | |
| Average indirects | 118 | 101 | 16% | |
| Ratio direct / Indirect | 12.7 | 12.4 | ||
| a 30 % like-for-like | ||||
| b 26 % like-for-like | ||||
| c 467 % like-for-like | ||||
| Like-for-like is measured excluding the impact of currencies, acquisitions and divestments | ||||
Australasia includes Australia and Papua New Guinea.
Growth in the region continues to be driven by conventional energy and mining clients. Gross margin increased by 1.5 ppt as a result of margin discipline and the additional services offered to clients.
| Middle East & India (unaudited) | ||||
| P&L amounts in EUR million | ||||
| Q1 2023 | Q1 2022 | Δ% | ||
| Revenue | 37.8 | 30.8 | 23% | a |
| Gross Profit | 5.6 | 5.2 | 8% | |
| Gross margin | 14.8% | 16.9% | ||
| Operating costs | 2.6 | 2.2 | 18% | b |
| EBIT | 3.0 | 3.0 | 0% | c |
| EBIT % | 7.9% | 9.7% | ||
| Average directs | 2,196 | 2,179 | 1% | |
| Average indirects | 160 | 130 | 24% | |
| Ratio direct / Indirect | 13.7 | 16.8 | ||
| a 20 % like-for-like | ||||
| b 16 % like-for-like | ||||
| c -3 % like-for-like | ||||
| Like-for-like is measured excluding the impact of currencies, acquisitions and divestments | ||||
Middle East & India includes Qatar, Kuwait, Dubai, Saudi Arabia, Iraq and India.
All countries contributed to the strong revenue increase, mainly driven by new projects with both existing and new clients, Gross margin dropped due to change in client mix, and the absence of higher margin ‘shut down’ projects in Q1 2023.
| Americas (unaudited) | ||||
| P&L amounts in EUR million | ||||
| Q1 2023 | Q1 2022 | Δ% | ||
| Revenue | 44.0 | 32.5 | 35% | a |
| Gross Profit | 5.5 | 4.2 | 31% | |
| Gross margin | 12.5% | 12.9% | ||
| Operating costs | 5.1 | 3.8 | 34% | b |
| EBIT | 0.4 | 0.4 | 0% | c |
| EBIT % | 0.9% | 1.2% | ||
| Average directs | 1,021 | 861 | 19% | |
| Average indirects | 150 | 115 | 31% | |
| Ratio direct / Indirect | 6.8 | 7.5 | ||
| a 33 % like-for-like | ||||
| b 31 % like-for-like | ||||
| c 8 % like-for-like | ||||
| Like-for-like is measured excluding the impact of currencies, acquisitions and divestments | ||||
Americas saw continued strong growth in its main markets, USA and Brazil. The growth is mainly driven by conventional energy and mining clients, with a number of bigger projects in Canada completed in Q1 2023. Operating costs increased due to investments in staff to support future growth.
| Asia (unaudited) | ||||
| P&L amounts in EUR million | ||||
| Q1 2023 | Q1 2022 | Δ% | ||
| Revenue | 44.2 | 33.0 | 34% | a |
| Gross Profit | 6.6 | 4.9 | 35% | |
| Gross margin | 14.9% | 14.8% | ||
| Operating costs | 4.6 | 3.0 | 53% | b |
| EBIT | 2.0 | 1.9 | 5% | c |
| EBIT % | 4.5% | 5.8% | ||
| Average directs | 1,459 | 1,371 | 6% | |
| Average indirects | 146 | 135 | 8% | |
| Ratio direct / Indirect | 10.0 | 10.1 | ||
| a 35 % like-for-like | ||||
| b 56 % like-for-like | ||||
| c 6 % like-for-like | ||||
| Like-for-like is measured excluding the impact of currencies, acquisitions and divestments | ||||
Asia includes, Singapore, China, Hong Kong, South Korea, Taiwan, Japan, Indonesia, Thailand, Malaysia.
Due to the high level of activity at energy and mining clients, strong growth was achieved in almost all countries in this region. Operating costs increased as a result of investments in staff to support future growth.
| Rest of world (unaudited) | ||||||||
| P&L amounts in EUR million | ||||||||
| Q1 2023 | Q1 2022 | Δ% | ||||||
| Revenue | 29.1 | 37.0 | -21% | a | ||||
| Gross Profit | 7.5 | 8.4 | -11% | |||||
| Gross margin | 25.8% | 22.7% | ||||||
| Operating costs | 6.9 | 7.5 | -8% | b | ||||
| Operating result | 0.6 | 0.9 | -33% | |||||
| Earn out related share based payments* | 0.7 | 1.1 | -36% | |||||
| EBIT | -0.1 | 0.9 | -111% | |||||
| EBIT % | -0.3% | 2.4% | ||||||
| Average directs | 1,042 | 1,906 | -45% | |||||
| Average indirects | 191 | 231 | -17% | |||||
| Ratio direct / Indirect | 5.5 | 8.3 | ||||||
| a 16 % like-for-like | ||||||||
| b 36 % like-for-like | ||||||||
| Like-for-like is measured excluding the impact of currencies, acquisitions and divestments | ||||||||
| *Relates to the acquisition related expenses for Taylor Hopkinson | ||||||||
Rest of World includes Taylor Hopkinson, Belgium and our other energy activities in Europe. In Q1 2022, this region also still included Russia which activities were divested in Q2 2022.
On a like-for-like basis (excl. Russia) revenue was up 16% and EBIT was stable versus Q1 2022. Taylor Hopkinson performed in line with Q1 2022. Their offshore wind activities are slightly impacted by seasonality, with a typically lower activity level in Q1 which has recently started to pick up strongly again.
Outlook
We expect the current favourable trends to continue throughout Q2 2023, with the normal seasonality.
Attachment
Source: Brunel International NV
