Q4 and FY 2022 results: Brunel’s strong execution in chosen and fast growing markets drives a strong performance in 2022
17/02/2023 06:30
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230217:nGNE9y8VZ3&default-theme=true
Amsterdam, 17 February 2023 – Brunel International N.V. (Brunel; BRNL), a
global provider of flexible workforce solutions and expertise, today announced
its fourth quarter and full year 2022 results.
Key points Q4 2022
* Gross profit and EBIT increased by 11% and 13% respectively, despite 2
working days less (impact of EUR 4.6 million)
* Revenue up 29% (20% like-for-like) at EUR 316.3 million (up 33% per working
day)
Key points full year 2022
* EBIT increased 28% (reported and like-for-like) to EUR 60.9 million to
highest level in the last 8 years
* Revenue up 31% (19% like-for-like) to EUR 1.2 billion
* Strong net cash position maintained at EUR 77.8 million
* Earnings per share of EUR 0.58
* Proposed dividend of EUR 0.55 (pay-out: 95%), up 22% year-on-year
Jilko Andringa, CEO of Brunel International N.V.: “We ended the year with
another quarter of high growth. In Q4, revenue per working day increased by
33% and despite two less working days on average, we managed to increase our
EBIT by 13%. Over the full year 2022, EBIT was up 28% at EUR 60.9 million, the
highest level in the past 8 years. Our performance demonstrates Brunel’s
unique position in fast growing market segments, the success of our strategy
and our ability to take advantage of the megatrends towards a more sustainable
world.
Yet, 2022 has also been a turbulent year. Many global events impacted our
clients, internal teams and our specialists. The war in Ukraine led to the
discontinuation of our operations in Russia in Q2 which impacted our results
and footprint. The recent disaster in Turkey and Syria has deep impact on
those effected. We are relieved that no Brunel colleague was harmed by the
earthquake and we don't expect any business impact. Our thoughts and sympathy
are with everybody involved.
At the same time, the high commodity prices and the increased need for LNG and
renewable energy installations, have been accelerating our growth. The
integration of our renewable energy recruitment specialist brand Taylor
Hopkinson has been very successful and contributed to our growth in renewable
energy well beyond expectations; 12% of our gross profit is now generated in
renewable energy, up from 4% last year. With energy transition and circularity
as big global themes, we also expect strong growth in the renewables sector to
continue in the years to come. Lastly, the integration of ICE, the
Singapore-based commissioning company we acquired in Q3, is well underway.
Their capabilities provide a great addition to our skill set and portfolio of
services and will be contributing to our growth and profitability in 2023.
Our Brunellers continued to connect more specialists to client’s pioneering
projects across the world. We are impressed with and grateful for their
dedication and hard work which have led to both highly engaged clients and
specialists as well as a high level of recruitment services delivery and
strong group performance.
In 2022, we have also continued to reduce our already downsized carbon
footprint. As a result Brunel has become carbon neutral, taking into account
that for certain elements that cannot be reduced such as contractors traveling
to project locations, we are compensating emissions in the form of
high-quality and certified carbon credits. We are proud to have achieved this
milestone as it underpins our ambition and commitment to contribute to a
better and greener planet.
We are now 2 years down the road of our ambitious strategic 5-year plan and we
are well on track. Our outlook remains positive. We expect to continue to grow
our revenue, gross margin and EBIT as we will connect more and more
specialists to pioneering projects supporting our clients in their energy and
digital transitions.”
ESG strategy
Q4 2022 marked by the 10th anniversary of the Brunel Foundation in December.
Starting in the Netherlands in 2012 as a voluntary initiative, the Foundation
went global in 2019, with a clear sight on two focal points: people and
planet. Together with its community members, the Brunel Foundation works
towards a better future for professionals and a better planet for future
professionals. As part of the festivities the Brunel Foundation organized
Brunel’s first internal auction, raising money for Seven Clean Seas, whose
mission is to preserve the marine environment by ridding the ocean of plastic
for good. All Brunellers were invited to donate an item or their time to
benefit from their talent or passion, or to bid on the items.
Trash ‘n Trace and the Brunel Foundation Forest
In Q4, Brunellers around the world continued rolling up their sleeves to pick
litter. The numbers in our Global Trash 'n Trace Challenge with Litterati grew
to 382,000 pieces of litter picked and registered in our challenge. In
addition, we brought the size of our Brunel Foundation Forest to a total of
17,000 trees worldwide. In line with our ESG strategy, we're supporting
this initiative of reforestation by our trusted partner EcoMatcher, taking
part in long-lasting climate action, contributing to making earth a greener
planet.
Brunel International (unaudited)
P&L amounts in EUR million
Q4 2022 Q4 2021 Δ% FY 2022 FY 2021 Δ%
Revenue 316.3 245.4 29% (a) 1,181.8 899.7 31% (d)
Gross profit 65.7 59.4 11% 252.1 210.6 20%
Gross margin 20.8% 24.2% 21.3% 23.4%
Operating costs 46.9 43.7 7% (b) 187.0 162.9 15% (e)
Operating result 18.8 15.7 19% 65.1 47.7 37%
Earn out related share based payments* 1.0 - 4.2 -
EBIT 17.8 15.7 13% (c) 60.9 47.7 28% (f)
EBIT % 5.6% 6.4% 5.2% 5.3%
Average directs 11,148 10,728 4% 11,187 9,909 13%
Average indirects 1,478 1,344 10% 1,452 1,313 11%
Ratio direct / Indirect 7.5 8.0 7.7 7.5
(a)( 20 % like-for-like) (d)( 19)( % like-for-like)
(b)( -2 % like-for-like) (e)( 5 % like-for-like)
(c)( 20 % like-for-like) (f)( 28 % 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)
In Q4 2022, revenue increased by 29% or EUR 70.9 million year-on-year, while
revenue per working day grew by 33%. Almost all regions achieved double digit
revenue growth per working day. Gross profit and EBIT increased by 11% and 13%
respectively.
On average, Q4 2022 had 2 less working days compared to Q4 2021, which had the
largest impact on our activity levels in the DACH region and the Netherlands.
The total negative impact on gross profit and EBIT amounted to EUR 4.6
million. Adjusted for this effect, EBIT-margin for Q4 would be at 6.9%, and
hence higher than Q4 2021, despite certain mix changes.
For FY 2022, EBIT came in 28% higher at EUR 60.9 million. Due to the
acquisition related expenses, Taylor Hopkinson did not yet contribute to EBIT.
EBIT % ended at 5.2%. Hence, we remain ahead of our plan to achieve an EBIT %
of higher than 6% as of 2025.
Gross profit (net fees) per vertical
The breakdown of gross profit per vertical is as follows:
2022 2021
Conventional Energy 62.0 25% 50.1 24%
Renewable Energy 29.6 12% 7.5 4%
Future Mobility 25.3 10% 23.7 11%
Mining 12.4 5% 7.2 3%
Infrastructure 12.1 5% 13.7 6%
Engineering 43.2 17% 44.9 21%
Life Sciences 10.7 4% 11.5 5%
Other 56.8 23% 52.1 25%
Total 252.1 100% 210.6 100%
We managed to achieve growth in all our markets. Renewable energy benefitted
from the acquisition of Taylor Hopkinson in December 2021. Growth in this
vertical was further supported by high levels of capital investments causing a
strong uptick in demand for our specialists. Other mainly covers our services
in the public sector and financial service industry in The Netherlands.
Q4 2022 and FY 2022 results by division
P&L amounts in EUR million
Summary:
Revenue Q4 2022 Q4 2021 Δ% FY 2022 FY 2021 Δ%
DACH region 57.0 53.9 6% 229.2 218.6 5%
The Netherlands 50.3 49.6 2% 190.3 186.1 2%
Australasia 45.1 31.4 44% 161.9 109.0 48%
Middle East & India 39.8 31.8 25% 143.3 107.6 33%
Americas 40.4 27.6 47% 146.6 96.8 51%
Rest of world 83.6 51.2 63% 310.6 181.5 71%
Total 316.3 245.4 29% 1181.8 899.7 31%
Gross Profit Q4 2022 Q4 2021 Δ% FY 2022 FY 2021 Δ%
DACH region 19.1 20.9 -8% 81.0 79.0 2%
The Netherlands 14.7 16.8 -12% 55.7 57.1 -2%
Australasia 4.7 3.0 56% 16.2 10.9 48%
Middle East & India 7.2 5.5 30% 23.9 17.8 34%
Americas 5.6 3.8 45% 19.9 12.9 54%
Rest of world 14.4 9.4 53% 55.4 32.8 69%
Total 65.7 59.4 11% 252.1 210.6 20%
EBIT Q4 2022 Q4 2021 Δ% FY 2022 FY 2021 Δ%
DACH region 5.6 7.4 -25% 24.4 24.2 1%
The Netherlands 4.9 6.1 -19% 16.7 17.7 -6%
Australasia 1.2 0.2 478% 3.3 0.7 358%
Middle East & India 4.6 3.1 49% 14.3 9.8 45%
Americas 1.0 0.2 333% 2.6 0.5 419%
Rest of world 2.7 1.9 40% 10.7 7.0 54%
Unallocated -2.2 -3.3 33% -11.0 -12.3 11%
Total 17.8 15.7 13% 60.9 47.7 28%
BREAKDOWN BY REGION
DACH region (unaudited)
P&L amounts in EUR million
Q4 2022 Q4 2021 Δ% FY 2022 FY 2021 Δ%
Revenue 57.0 53.9 6% 229.2 218.6 5%
Gross Profit 19.1 20.9 -8% 81.0 79.0 2%
Gross margin 33.5% 38.7% 35.3% 36.2%
Operating costs 13.5 13.5 0% 56.6 54.8 3%
EBIT 5.6 7.4 -25% 24.4 24.2 1%
EBIT % 9.8% 13.8% 10.6% 11.1%
Average directs 2,114 1,997 6% 2,042 1,951 5%
Average indirects 414 391 6% 405 381 6%
Ratio direct / Indirect 5.1 5.1 5.0 5.1
The DACH region includes Germany, Switzerland, Austria and Czech Republic.
Revenue per working day increased by 10% in Q4 2022 as the result of headcount
growth and higher rates, offset by a lower productivity. The demand for
specialists at our clients remained at a high level, with our growth
determined by our success to attract the right professionals. Productivity was
lower due to a high illness of on average 7% in Q4.
Gross margin adjusted for working days stood at 36.2% in Q4 2022 (Q4 2021:
38.7%). The year-on-year decrease in gross margin is caused by the lower
productivity.
Operating cost remained at the same level. The decrease in EBIT compared to Q4
2021 is primarily the result of the three less working days (impact EUR 2.4
million).
Headcount as of December 31st 2022, was 2,133 (2021: 2,001).
Working days:
Q1 Q2 Q3 Q4 FY
2023 65 60 65 61 251
2022 63 61 66 62 252
2021 63 60 66 65 254
Brunel Netherlands (unaudited)
P&L amounts in EUR million
Q4 2022 Q4 2021 Δ% FY 2022 FY 2021 Δ%
Revenue 50.3 49.6 2% 190.3 186.1 2%
Gross Profit 14.7 16.8 -12% 55.7 57.1 -2%
Gross margin 29.3% 33.8% 29.3% 30.7%
Operating costs 9.8 10.7 -8% 39.0 39.4 -1%
EBIT 4.9 6.1 -19% 16.7 17.7 -6%
EBIT % 9.7% 12.2% 8.7% 9.5%
Average directs 1,687 1,740 -3% 1,667 1,720 -3%
Average indirects 282 276 2% 279 281 -1%
Ratio direct / Indirect 6.0 6.3 6.0 6.1
Revenue per working day increased by 4% as the decline in headcount was more
than offset by higher rates. The start in 2023 is promising, with the
headcount being on the same level as in 2022.
The gross margin adjusted for working days is 30.8% in Q4 2022 (Q4 2021:
33.8%). The year-on-year decrease in gross margin is caused by a lower
productivity: illness, bench and holidays were at a higher level than in Q4
2021.
Operating cost decreased due to lower bonus and marketing cost. The decrease
in EBIT compared to Q4 2021 is the result of the two less working days (impact
EUR 1.1 million).
Headcount as of December 31st 2022 was 1,718 (2021: 1,764).
Working days:
Q1 Q2 Q3 Q4 FY
2023 65 61 65 63 254
2022 64 61 66 64 255
2021 63 61 66 66 256
Australasia (unaudited)
P&L amounts in EUR million
Q4 2022 Q4 2021 Δ% FY 2022 FY 2021 Δ%
Revenue 45.1 31.4 44% (a) 161.9 109.0 48% (d)
Gross profit 4.7 3.0 56% 16.2 10.9 48%
Gross margin 10.5% 9.7% 10.0% 10.0%
Operating costs 3.5 2.8 25% (b) 12.9 10.2 26% (e)
EBIT 1.2 0.2 478% (c) 3.3 0.7 358% (f)
EBIT % 2.7% 0.7% 2.0% 0.7%
Average directs 1,479 1,119 32% 1,375 991 39%
Average indirects 109 100 10% 107 91 17%
Ratio direct / Indirect 13.5 11.2 12.9 10.9
(a)( 39 % like-for-like) (d) (4)(0)( % like-for-like)
(b)( 23 % like-for-like) (e)( 2)(1)( % like-for-like)
(c)( 424 % like-for-like) (f)( 303)( % like-for-like)
(Like-for-like is measured excluding the impact of currencies, )(acquisitions)( and divestments)
Australasia includes Australia and Papua New Guinea.
Our key markets in Australasia are conventional energy and mining, but we also
achieved significant growth in renewable energy, infrastructure and IT. As a
result of the growth and the efficiency of our organization, profitability has
increased significantly both for Q4 and FY 2022, and we are slightly ahead of
our plan to achieve our EBIT % target of 4% for 2025 for this region.
In Australia we see a lot of activities in all our main markets, so we expect
the growth to continue in the foreseeable future.
Middle East & India (unaudited)
P&L amounts in EUR million
Q4 2022 Q4 2021 Δ% FY 2022 FY 2021 Δ%
Revenue 39.8 31.8 25% (a) 143.3 107.6 33% (d)
Gross profit 7.2 5.5 30% 23.9 17.8 34%
Gross margin 18.0% 17.4% 16.7% 16.5%
Operating costs 2.6 2.4 8% (b) 9.6 8.0 20% (e)
EBIT 4.6 3.1 49% (c) 14.3 9.8 45% (f)
EBIT % 11.6% 9.8% 9.9% 9.1%
Average directs 2,281 2,307 -1% 2,235 2,119 5%
Average indirects 153 127 20% 139 125 11%
Ratio direct / Indirect 14.9 18.2 16.0 16.9
(a)( 15 % like-for-like) (d)( 20 % like-for-like)
(b)( -2 % like-for-like) (e)( 11 % like-for-like)
(c)( 35 % like-for-like) (f)( 29 % like-for-like)
(Like-for-like is measured excluding the impact of currencies, )(acquisitions)( and divestments)
Middle East & India includes Qatar, Kuwait, U.A.E., Saudi, Oman, Kurdistan,
Iraq and India.
Revenue in Q4 2022 increased as a result of the extension of infrastructure
and conventional energy projects in Qatar and conventional energy project in
India. Due to the World Cup event in Qatar, we were not able to do any
shutdown projects, which are typical for Q4.
Like in the last couple of years, Qatar has been the biggest contributor to
our results, with LNG and Infrastructure as main markets. In 2022, we also
achieved strong growth in India in a diverse portfolio of conventional energy
projects and clients, and Dubai, as a result of the increased activities on
the yards for construction.
Our team in the Middle East managed the growth with only limited investments
in our internal organization. This operational leverage, at stable gross
margins, resulted in a strong EBIT margin of 10% for FY 2022.
Americas (unaudited)
P&L amounts in EUR million
Q4 2022 Q4 2021 Δ% FY 2022 FY 2021 Δ%
Revenue 40.4 27.6 47% (a) 146.6 96.8 51% (d)
Gross profit 5.6 3.8 45% 19.9 12.9 54%
Gross margin 13.8% 13.9% 13.6% 13.4%
Operating costs 4.6 3.6 28% (b) 17.3 12.4 40% (e)
EBIT 1.0 0.2 333% (c) 2.6 0.5 419% (f)
EBIT % 2.4% 0.8% 1.8% 0.5%
Average directs 1,012 832 22% 929 809 15%
Average indirects 137 106 29% 125 103 21%
Ratio direct / Indirect 7.4 7.8 7.4 7.8
(a)( 34 % like-for-like) (d)( 36 % like-for-like)
(b)( 16 % like-for-like) (e)( 26 % like-for-like)
(c)( 266 % like-for-like) (f)( 335 % like-for-like)
(Like-for-like is measured excluding the impact of currencies, )(acquisitions)( and divestments)
The Americas include Canada, United States, Mexico, Guyana and Brazil.
Main markets are conventional energy and mining. The biggest contributor to
growth in Q4 and FY 2022 was the USA driven by the growth in our main markets.
Canada and Brazil also contributed to growth, despite the finalization of
large projects in these countries during the course of the year.
In 2022, we invested significantly in our organization in this region, to
enable the continued growth at a very high pace. Despite the related increase
in operating cost, we managed to significantly improve profitability.
Rest of world (unaudited)
P&L amounts in EUR million
Q4 2022 Q4 2021 Δ% FY 2022 FY 2021 Δ%
Revenue 83.6 51.2 63% (a) 310.6 181.5 71% (d)
Gross profit 14.4 9.4 53% 55.4 32.8 69%
Gross margin 17.2% 18.3% 17.8% 18.1%
Operating costs 10.7 7.5 43% (b) 40.5 25.8 57% (e)
Operating result 3.7 1.9 14.9 7.0
Earn out related share based payments* 1.0 - 4.2 -
EBIT 2.7 1.9 40% (c) 10.7 7.0 54% (f)
EBIT % 3.2% 3.8% 3.5% 3.8%
Average directs 2,575 2,734 -6% 2,939 2,320 27%
Average indirects 323 295 9% 338 274 24%
Ratio direct / Indirect 8.0 9.3 8.7 8.5
(a)( 38 % like-for-like) (d)( 32 % like-for-like)
(b)( -2 % like-for-like) (e)( 6 % like-for-like)
(c)( 225 % like-for-like) (f)( 114 % 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 Asia, Taylor Hopkinson, Russia & Caspian (up to May
22), Belgium and our energy activities in Europe & Africa.
Asia had a very strong Q4 2022, with high revenue and EBIT growth in almost
all countries we are active in. Biggest contributor to the growth were the
large construction projects for the energy market, but we are also making good
progress in our diversification to life science and other industries.
Taylor Hopkinson had an overall very strong year, and managed to achieve steep
growth. Based on their market leading position in the renewable sector, they
were able to attract many senior professionals for our clients.
Our energy activities in Europe & Africa developed at pace with the strong
market growth.
In Q2 2022 we sold our Russian activities to local management. Revenue and
EBIT included in our 2022 results amounted to EUR 18 million and EUR 0.8
million respectively.
Tax and net profit
The effective tax rate increased from 29.7% in 2021 to 35.2% in 2022. This is
mainly due to the loss on the disposal of the activities in Russia, which is
not tax deductible. Net profit came in at EUR 30.8 million (2021: EUR 33.0
million), down 7% and resulting in earnings per share of EUR 0.56 (2021: EUR
0.61).
Dividend
We propose a cash dividend of EUR 0.55 per share over the 2022 financial year,
which represents a pay-out ratio of 95%.
Cash position
The net cash balance at 31 December is EUR 77.8 million (EUR 112.0 per 31
December 2021), of which EUR 15.5 million is restricted (EUR 18.3 per 31
December 2021). The decrease in net cash is mainly the result of the increase
in working capital as a result of our high revenue growth. Cash collection has
improved in 2022, with our total days outstanding decreasing by 7 days
compared to 2021.
Outlook Q1 2023
We expect the current growth to continue in Q1 2023. Normally our revenue
declines in Q1 due to seasonality in productivity and the drop in headcount at
the change of the year. Our growth will make up for this, resulting in a
revenue in Q1 2023 that will be at the same level as in Q4 2022. Operating
cost will increase due to salary increases and continued investments in our
organisation to support the high growth rate.
Attachment
* Press Release Q4 and FY 2022.pdf
(https://ml-eu.globenewswire.com/Resource/Download/694ccf10-aa4d-412d-8e3a-2c74116c3c14)
Source: Brunel International NV