BRNL Brunel International NV

Amsterdam, 28 July 2023 – Brunel International N.V. (Brunel; BRNL), a global provider of flexible workforce solutions and expertise, today announced its second quarter 2023 results.

Key points Q2 2023

• Revenue of EUR 328 million, up 13% (20% like-for-like)
• Gross Profit of EUR 66 million, up 11% (15% like-for-like)
• EBIT of EUR 11.0 million, up 10% (17% like-for-like)

Key points H1 2023

• Revenue of EUR 645 million, up 14% (20% like-for-like)
• Gross profit increase of 11% compared to H1 2022
• EBIT of EUR 26.8 million, up 4% (10% like-for-like)
• Earnings per share of EUR 0.32, up 167% compared to H1 2022

Jilko Andringa, CEO of Brunel International N.V.:“I’m excited to report that since 8 quarters we have consistently shown strong growth across all metrics, confirming our strategic positioning against the favorable trends in our markets. We were able to achieve strong EBIT growth despite one less working day in DACH. I am proud that all our regions are now contributing, confirming our progress on diversification.

I would especially like to call out the Dutch team, who further improved their growth and outperformed the market.

We continue to see strong demand from our clients across the globe. The energy and digital transformations create a high demand for specialized Science, Technology, Engineering and Mathematics talent. With our expanded capabilities in over 45 countries, we continue to win projects and new clients in our chosen market segments.

Following the acquisition of the biggest pure-play renewable team Taylor Hopkinson in 2021, we achieve accelerated growth in the renewable energy markets across all our regions. The combination of Taylor Hopkinson’s renewable energy expertise and our global infrastructure with 100% compliant solutions, puts us in a unique position to service this industry globally. We are very proud to be recognized as the global leader in renewable recruitment solutions.

To support our continued profitable growth, we have further rolled out our Digital/AI strategy to continue to move to market leading SAAS-solutions. This enables us to easily add new best-in-class IT-tools and benefit from the software and AI developments by our leading global partners.

We will organize a Capital Markets Day in Q4 to present our mid-term ambitions, as we are clearly ahead of the 5-year plan we communicated in 2021.”

ESG UpdateIn April the Brunel Foundation kicked off Autism Awareness Month as we believe that impactful change is achieved through increased awareness. Colleagues around the world organized events such as a webinar on autism in the workplace, an autism awareness quiz, viewing session and panel discussion with the documentary My journey for education as a starting point, “AUT in the Brunel office” interviews and walk-in coaching sessions. All with the aim to contribute to a more inclusive workforce.

We also engaged in several cleanup activities during the quarter, in line with the Brunel Foundation's mission to safeguard the environment. Brunellers from various parts of Asia joined forces with Seven Clean Seas for a beach clean-up in Phuket, collecting 490kg of waste. In the Amsterdam headquarters colleagues rolled up their sleeves for a lunchbreak clean up, while the Europe and Africa team cleaned the Delft canals as part of their team event. On top of that, the numbers in our Global Trash 'n Trace Challenge with Litterati grew to over 440,000 pieces of litter picked and registered in our challenge.  

In June, we united for the preservation of our precious planet by spreading awareness in an online campaign. It's crucial to recognize the interdependencies between land and sea, as their vitality and prosperity are inherently intertwined. We highlighted the value of life on land and below water. We believe that raising awareness helps to educate and mobilize individuals and foster a shared responsibility for taking action.

GROUP PERFORMANCE

Headline performance by region Summary (amounts in EUR million):

In Q2 2023 the Group’s revenue increased by 13% or EUR 38.7 million y-o-y. We achieved growth in revenue and EBIT despite the increasing impact of the unfavorable development of exchange rates. Like-for-like revenue increased by 20%. In Q2 2022, Rest of world still included EUR 8 million in revenues from Russia, at zero EBIT.

The gross margin decreased by 0.4 percentage points, mainly due to a continued change in the mix between the regions.

EBIT increased by 10% to EUR 11.0 million. Adjusted for the impact of foreign currencies, EBIT increased by 17% or EUR 1.7 million.PERFORMANCE BY REGION

The DACH region includes Germany, Switzerland, Austria and Czech Republic. Revenue per working day in DACH increased by 11.2%, as a result of a higher number of specialists working at our clients, and increased rates. Gross margin adjusted for working days is 32.5% in Q2 2023 (Q2 2022: 33.5%), and remains robust, where this was impacted by higher illness rates in the same period last year.

Headcount as of 30 June was 2,084 (2022: 2,033).

Working days Germany:

In The Netherlands the revenue growth was mainly driven by higher rates and a higher number of specialists. The gross margin decreased with 2.4 ppt, partly as a result of faster growth in our freelance population. We are making progress on the indexation of rates to cover for higher salaries.

Headcount as of 30 June was 1,748 (2022: 1,673)

Working days The Netherlands:

Australasia includes Australia and Papua New Guinea.

We continue to see an increased client demand for specialists in the conventional energy and mining markets, resulting in a strong increase of our workforce. The revenue increase of 16% was achieved despite the unfavourable impact from foreign currencies and would have been 26% at constant currencies.

The gross margin increased with 0.8 ppt, mainly due to strong margin discipline and focus on higher value added activities.

Middle East & India includes Qatar, Dubai, Kuwait, Iraq and India.

We continue to see growth in almost all countries from new projects and project extensions in the region, while Kuwait continues to trail. The gross margin decreased due to change in the client mix and absence of high margin shut down projects.

The Americas includes Brazil, Canada, USA, Guyana and Surinam. In Q2 the growth was mainly achieved in the USA and new projects won in South America, slightly offset by lower revenue in Canada due to the completion of big projects in Q1. We have been able to grow our sales organisation to support continued growth, which resulted in higher operating costs.

Asia includes Singapore, China, Hong Kong, South Korea, Taiwan, Japan, Indonesia, Thailand and Malaysia. The region had another strong second quarter as it continues to benefit from growing activity levels at the fabrication yards for large energy projects. Operating costs increased as a result of strategic investments to support the future growth.

Rest of World includes Taylor Hopkinson, Belgium and our other energy activities in Europe. Until June 2022, this region also included Russia which activities were divested.

Excluding Russia and the impact of foreign currencies, revenue increased by 24%. The growth was mainly driven by new project wins in Europe and the strong performance of Taylor Hopkinson’s offshore wind activities.

Tax and net profitThe effective tax rate for the six-month period ended on 30 June 2023 is 33.3% (2022: 47.8%). For the full year we expect an effective tax rate of approximately 30% (2022: 35.2%). Net profit came in at EUR 15.9 million (H1 2022: EUR 6.2 million), reflecting earnings per share of EUR 0.32 (H1 2022: EUR 0.12).

Risk profileReference is made to our 2022 Annual Report (pages 62 – 79). Reassessment of our earlier identifiedrisks and the potential impact on occurrence has not resulted in required changes in our internal riskmanagement and control systems.

Cash positionThe net cash balance at 30 June 2023 was EUR 5.0 million and includes EUR 16.0 million restricted cash. The decrease in net cash is mainly the result of the dividend payment in June, seasonality in our cash flows, and the additional working capital required to fund the growth. We have sufficient overdraft facilities in place to support continued growth and, as usual, will achieve a strong positive cash flow in H2.

OutlookWe expect the current favourable trends to continue in Q3 2023, including the acceleration of EBIT growth.

Statement of the Board of DirectorsThe 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
• 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, 28 July 2023Brunel International N.V.

Jilko Andringa (CEO)Peter de Laat (CFO)Graeme Maude (COO)

Attachment

• Press Release Q2 and interim financial statements 2023

Source: Brunel International NV

Brunel International NV (EU:BRNL)
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