Working days
Q1 | Q2 | Q3 | Q4 | FY | |
2018 | 64 | 61 | 65 | 64 | 254 |
2017 | 65 | 61 | 65 | 63 | 254 |
Gross Profit
The gross margin remained stable in Q2. H1 2018 had 1 less working day compared to 2017. The gross margin adjusted for working days in H1 is 28.7% (2017: 28.2%)
Operating costs
The operating costs increased due to continuous investment in technology and the costs for the finish of the Volvo Ocean Race in The Hague. Our investments in technology include our new data analytics activity and job platform.
Australasia (unaudited) | |||||||||
P&L amounts in EUR million | |||||||||
Q2 2018 | Q2 2017 | Δ% | H1 2018 | H1 2017 | Δ% | ||||
Revenue | 28.2 | 21.5 | 31% | a | 56.0 | 45.4 | 23% | b | |
Gross Profit | 2.2 | 1.5 | 47% | 4.6 | 3.3 | 38% | |||
Gross margin | 7.8% | 7.0% | 8.2% | 7.3% | |||||
Operating costs | 2.7 | 2.1 | 29% | c | 5.1 | 4.0 | 28% | d | |
EBIT | -0.5 | -0.6 | 12% | -0.5 | -0.7 | 32% | |||
EBIT % | -1.8% | -2.7% | -0.9% | -1.6% | |||||
Average directs | 932 | 482 | 93% | 928 | 462 | 101% | |||
Average indirects | 75 | 69 | 8% | 76 | 72 | 5% | |||
Ratio direct / Indirect | 12.5 | 6.9 | 12.2 | 6.4 |
a 3 % like-for-like
b 2 % like-for-like
c 17 % like-for-like
d 15 % like-for-like
Revenue
Australasia includes Australia and Papua New Guinea. The mining activities of SES Labour Solutions we acquired last year are growing and contributing. In Australia, we continue to work on the finalisation and commissioning of large projects in Oil & Gas that started years ago.
Gross Profit
The improved gross margin is mainly the result of the acquisition of SES. The margins in the existing business remain stable.
Operating costs
Operating costs remained at the same level as 2017 adjusted for SES Labour Solutions.
Middle East & India (unaudited) | |||||||||
P&L amounts in EUR million | |||||||||
Q2 2018 | Q2 2017 | Δ% | H1 2018 | H1 2017 | Δ% | ||||
Revenue | 20.3 | 15.1 | 34% | a | 39.5 | 31.0 | 27% | b | |
Gross Profit | 3.6 | 2.0 | 81% | 7.0 | 4.2 | 65% | |||
Gross margin | 17.8% | 13.2% | 17.6% | 13.6% | |||||
Operating costs | 1.9 | 1.7 | 12% | c | 3.6 | 3.5 | 3% | d | |
EBIT | 1.7 | 0.3 | 557% | 3.4 | 0.7 | 404% | |||
EBIT % | 8.2% | 1.7% | 8.7% | 2.2% | |||||
Average directs | 3,105 | 993 | 213% | 2,748 | 1,039 | 164% | |||
Average indirects | 114 | 109 | 5% | 113 | 105 | 8% | |||
Ratio direct / Indirect | 27.3 | 9.1 | 24.3 | 9.9 |
a 42 % like-for-like
b 40 % like-for-like
c 17 % like-for-like
d 9 % like-for-like
Revenue
The very strong growth is the result of the footprint and capabilities we maintained in the downturn in combination with successes in diversification. Especially in Kuwait, Qatar and India we have won major projects, mostly technical specialists.
Gross Profit
The gross margin has increased as a result of additional services we are delivering on our major projects.
Operating costs
Our existing organisation is able to manage this strong growth without any significant increases in operating cost.
Rest of world (unaudited) | |||||||||
P&L amounts in EUR million | |||||||||
Q2 2018 | Q2 2017 | Δ% | H1 2018 | H1 2017 | Δ% | ||||
Revenue | 52.9 | 49.2 | 8% | a | 99.4 | 96.4 | 3% | b | |
Gross Profit | 8.5 | 6.8 | 25% | 15.3 | 13.7 | 12% | |||
Gross margin | 16.1% | 13.9% | 15.4% | 14.2% | |||||
Operating costs | 8.9 | 8.7 | 2% | c | 17.6 | 17.6 | 0% | d | |
EBIT | -0.4 | -1.9 | 77% | -2.3 | -3.9 | 41% | |||
EBIT % | -0.8% | -3.8% | -2.3% | -4.0% | |||||
Average directs | 2,791 | 3,145 | -11% | 2,880 | 3,050 | -6% | |||
Average indirects | 386 | 374 | 3% | 387 | 371 | 4% | |||
Ratio direct / Indirect | 7.2 | 8.4 | 7.4 | 8.2 |
a 6 % like-for-like
b 3 % like-for-like
c 6 % like-for-like
d 5 % like-for-like
Revenue
Rest of World includes Americas, Russia, Belgium and South East Asia. Americas and Russia are achieving significant growth. South East Asia is also growing week on week, but still has challenging comparatives due to significant projects that ended in Q2 last year.
Gross Profit
The increased gross margin is due to a change in the contribution of several regions.
Effective tax rate
The effective tax rate in the first half year of 2018 is 54.4% (2017 at 75.6%). As a greater part of our businesses is profitable again, the impact of tax losses not recognized as deferred tax asset on the effective tax rate has reduced. Due to the seasonality in our Netherlands and DACH business we expect the effective tax rate for the full year to come down significantly to just under 40%.
Risk profile
Reference is made to our 2017 Annual Report (pages 69 - 86). Reassessment of our earlier identified risks and the potential impact on occurrence has not resulted in required changes in our internal risk management and control systems.
Cash position
Brunel's cash position decreased to EUR 100 million, due to an increase in working capital as a result of the growth, our normal seasonality in our cash flow and the dividend payment in June.
Segment reporting
In Q1, we have changed our segment reporting in accordance with Brunel's regional approach. The main regions are: DACH (Germany, Austria, Switzerland and Czech Republic), The Netherlands, Americas, Australasia, Europe & Africa, Middle East & India, Russia & Caspian area and South East Asia. This is the basis on which internal reports are provided to the Chief Executive Officer for assessing performance and determining the allocation of resources within the Group.
From Q1 onwards, all regions exceeding 10% of total revenue or EBIT are reported separately. The remaining regions are combined in Rest of World. Main changes in our segment reporting are:
- Austria, Switzerland and Czech Republic are now included in DACH and were previously reported under Other Europe.
- Australasia and Middle East & India were previously reported under Global Business.
- The other regions within Global Business, and Belgium, are now reported under Rest of World.
The change in segment reporting has no impact on the net profit or loss of the Group. To enable comparisons with prior period performance, the 2017 segment information is updated accordingly.
The main items for the adjusted segment reporting for 2017 are included in the appendix to this press release.
Outlook for 2018
Throughout our business, we see the growth and profitability accelerating. We see an opportunity to benefit from the scarcity in the labour market with our strong brand and communities of professionals. Across the globe the investment level is increasing and our diversification efforts will continue to contribute to our growth.
For the full year, we expect revenue between EUR 875 million and EUR 925 million and EBIT between EUR 32 million and EUR 38 million.
Statement of the Board of Directors
The 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 that 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, 14 August 2018
Brunel International N.V.
Jilko Andringa (CEO)
Peter de Laat (CFO)
Attachments
- Original document
- Permalink
Disclaimer
Brunel International NV published this content on 14 August 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 14 August 2018 05:35:04 UTC