Brunel increased EBIT with 41% in first half of 2008

 

Amsterdam, 29 August 2008 - Net turnover increased in first six months with 23%. Ebit increased with 41% to € 31,2 million, group net income increased to € 23,0 million.

 

 

 

 

 

 

 

 

 

 

 

 

Highlights 1st half 2008:

 

Over the first six months of 2008, Brunel International realised a turnover of € 336,5 million; up 23% compared to the same period in 2007.

Gross profit increased with 26%, from € 65 million to € 82 million. Gross margin further improved from 23.7% to 24.2%. EBIT amounted to € 31.2 million, being 9.3% of turnover (first 6 months of 2007: 8.1%). The company achieved a group net income of € 23 million.

 

Brunel's core activities are project management, secondment and consultancy. The company performs these activities through the flexible deployment of highly skilled specialists in the fields of Engineering, Oil & Gas, Aerospace, Automotive, ICT, Finance, Legal and Insurance & Banking. Brunel offers its core activities globally from its own international network of 90 own offices in 25 countries. Brunel Netherlands, Brunel Germany and Brunel Energy are the company's largest business divisions. In the first half of this year these divisions accounted for respectively 22%, 20% and 53% of the global net turnover.

 

Jan Arie van Barneveld, CEO of Brunel International: "The current economic environment provides Brunel International with excellent opportunities. In both Germany and the Netherlands revenue growth percentages are still written with double digits. The Energy division shows a considerable revenue growth of 32%. Overall both gross margin and Ebit continue the upward trend.

We do believe that the continuous growth of the company is a reflection of the strength and reliability of our organisation which reduces the dependency on general economic circumstances".

 

Traditionally Brunel International holds on to a strong balance sheet. Solvency remained high with a ratio over 60% while the capitalised goodwill is relatively insignificant. Trade and other receivables expressed in relation to the turnover decreased.

 

The average workforce of Brunel International increased with 12% from 6,997 during the first 6 months of 2007 to 7,835 over the first half of 2008. The number of fee-earners and service organisation employees rose by 12% and 26% respectively.

 

 

Brunel Netherlands recorded a net turnover of € 74.8 million, a 10% growth compared to the first half of last year. The gross profit increased by 11% from € 26.5 million in H1 2007 to € 29.4 million over the first six months of this year. Most of our business lines contributed to these positive developments. The impact of the current economic developments on Dutch market for temporary specialist staffing appears to be limited. Brunel Netherlands is still able to grow revenue and improve gross margin and Ebit. Brunel outperformed the market with these achievements.

 

 

 

 

 

 

 

 

 

 

 

 

 

We foresee that the growth will continue. We do foresee that the challenges in maintaining the current growth path will increase, at the same time we feel confident that our organization is capable in meeting these challenges.

 

In 2008 Brunel Germany achieved a turnover of € 67.3 million, a growth of 13%.  

The sharp increase of the German EBIT from € 4.1 million to € 7.7 million could be realised as last years Ebit was negatively affected by the disappointing results from the competence centers. The turnaround of these competence centers has contributed sharply to the improvement of the results.

 

 

 

 

 

 

 

 

 

 

 

The German market for technical project management and engineering secondment is still growing and we expect this to continue for Brunel Germany. We still expect the 2008 results to be significantly better than 2007.

 

In the second half year 2008 some Rail engineering activities will be transferred to a client. This will result in a one off gain of about € 2.8 million. These activities represent about  € 5 million revenue on an annual basis.

 

Brunel Energy increased its net turnover with 32% to € 179 million, despite the negative impact of the higher value of the Euro compared to most currencies in which we realize our revenue.

Gross margins are increasing, from 11.8% in the 2nd half of 2007 to 12.5% in the first half year 2008. A major driver is a more critical attitude towards the profitability of new projects and assignments. Gross profit was up 40%, from € 15.9 million to € 22.3 million.

 

 

 

 

 

 

 

 

 

 

 

In its market segment Brunel Energy is the leading global supplier for technical expertise and capacity. Worldwide demand for energy continues to increase. The division had commercial successes with new and existing clients, leading to the higher turnover. We do foresee that the high growth as realised in the first half year will continue in the remainder of 2008.

 

 

Other regions contributed to the global results in the first half year. Brunel Belgium and Brunel Canada generated a mutual turnover of € 15.8 million and a gross profit of € 4.3 million resulting in an EBIT of € 1.2 million (1st half 2007: € 0.8 million).

 

 

The Brunel International Board of Directors expects turnover and profit figures to continue to grow in all main regions in the second half of 2008.

For the full year we expect to achieve an EBIT of over € 62 million. Net turnover is forecasted to grow significantly compared to previous year.

 

 

For further information:

Jan Arie van Barneveld                      CEO Brunel International                                      tel.: +31(0)20 312 50 00

 

 

 

 

 

 

Certain statements in this document concern prognoses about the future financial condition and the results of operations of Brunel International NV as well as plans and objectives. Obviously, such prognoses involve risks and a degree of uncertainty since they concern future events and depend on circumstances that will apply then. Many factors may contribute to the actual results and developments differing from the prognoses made in this document. These factors include general economic conditions, a shortage on the job market, changes in the demand for (flexible) personnel, changes in employment legislation, future currency and interest fluctuations, future takeovers, acquisitions and disposals and the rate of technological developments. These prognoses therefore apply only on the date on which the document was compiled.

 

Brunel International N.V. is an international service provider specialized in the flexible deployment of knowledge and capacity in the fields of Engineering, Oil & Gas, Aerospace, Automotive, ICT, Finance, Legal and Insurance & Banking. Services are provided in the form of Project Management, Secondment and Consultancy. Incorporated in 1975, Brunel has since become a global company with over 7,000 employees and an annual turnover of  € 600 million. The company is listed at Euronext Amsterdam N.V. For more information on Brunel International visit our website www.brunel-international.nl