Q1 2019 results Brunel: 25% revenue growth, EBIT increased by 68%

Press Release

Amsterdam, 3 May 2019

Key points Q1 2019     

• Revenue growth further accelerated to 25% (yoy) to EUR 266 million over the quarter
• Strong operational leverage, resulting in a 68% increase in EBIT (yoy) to EUR 12 million with EBIT margin up by 1.1 ppt to 4.5%
• Best quarter in the history of DACH and Middle East & India regions 

Jilko Andringa, CEO of Brunel: "Our sales growth has further accelerated in the first quarter. This is yet another confirmation of our strong position, focused around investment projects for customers, in the markets and sectors in which we operate. The outlook remains very positive, with our customers planning significant investments in our main markets, Oil Gas, Automotive, Renewable Energy and Mining & Infrastructure over the next few years. In the Netherlands, we experienced a slight decrease in revenue, mainly due to the circumstances in Insurance & Banking, but we believe this to be temporary. I am especially proud of the results achieved in DACH and Middle East: both regions have broken their record for revenue and EBIT in the first quarter and we see other regions developing in the same direction. We continue to build on our operational leverage in all regions and are well positioned for further growth. I’m also very proud of the global partnership with Specialisterne that we have established in Q1. We will collaborate for the inclusion of autistic and neurodiverse people in the labour market. ”

Q1 2019 results by division
P&L amounts in EUR million

Summary:

The Group’s revenue increased by 25% over the quarter to EUR 266.2 million, or 22% on a like-for-like basis. EBIT increased by 68% despite an adverse working day effect in The Netherlands, and the EBIT margin is up by 1.1 ppt.

Revenue per working day in the DACH region increased by 15%. This growth is achieved in all our markets, including our main market Automotive. The gross margin increased due to a better productivity, especially at our competence centers, and less price pressure. Headcount as of 31 March was 2,713 (2018: 2,546).

Working days Germany:

Revenue per working day in The Netherlands decreased by 2%. Gross margin adjusted for working days is 28.7% in Q1 2019 (Q1 2018: 30.1%). The gross margin decreased due to a higher bench in Q1 that will likely also impact Q2. Headcount as of 31 March was 2,339 (2018: 2,424).

Working days The Netherlands:

Australasia managed to achieve limited growth, even despite the severe weather conditions in Queensland, Australia. The growth is mainly driven by our traditional services in the Oil & Gas sector. The increased operating cost reflect our investments to diversify.

In the region Middle East & India we continue to see strong results and a healthy pipeline of projects in multiple areas and specialisms. Qatar, Kuwait and India are the main growth drivers.

The Rest of World includes Asia, Russia, Belgium, Europe & Africa and Americas. All regions included in Rest of World have achieved revenue growth in Q1. Activity at current clients increases and we continue to see results of our diversification efforts.

Change in accounting policies: IFRS 16
Brunel applies IFRS 16: leases as per 1 January 2019, using the retrospective approach with the cumulative effect of EUR 831,000 of the initial application added to retained earnings at 1 January 2019. As a consequence, we have not restated comparative information. The impact of this change in accounting policy for leases on our reported results is not significant: the positive impact on our reported EBIT per quarter for 2019 is approximately EUR 300,000. The total value of the relating right-of-use assets at 31 March 2019 amounts to EUR 44.9 million, and the corresponding lease liabilities amount to EUR 44.8 million.

Attachments

• Press Release Q1 - Attachment