Key points Q4 2020
- EBIT increased substantially to
EUR 9.8 million helped by continued strong cost control resulting in 21% cost reduction - Revenue stable vs Q3-20, despite seasonality effects
Key points full year 2020
- EBIT of
EUR 28.8 million driven by 15% lower cost base - Revenue down 14% due to Covid-19 related impact on global demand for flexible workforce solutions
- Free cash flow of
EUR 68 million resulting in an increase of net cash toEUR 155 million - Earnings per share of
EUR 0.31 with a proposed dividend ofEUR 0.30 (pay-out: 99%) over the 2020 financial year - Capital markets day planned in H1 2021 as Brunel gears up for the next phase of development and growth post-Covid
Jilko Andringa, CEO of
P&L amounts in EUR million | |||||||||
Q4 2020 | Q4 2019 | Δ% | FY 2020 | FY 2019 | Δ% | ||||
Revenue | 209.3 | 257.1 | -19% | a | 892.6 | 1,041.1 | -14% | b | |
Gross Profit | 48.3 | 47.5 | 2% | 191.4 | 209.4 | -9% | |||
Gross margin | 23.1% | 18.5% | 21.4% | 20.1% | |||||
Operating costs | 38.5 | 49.0 | -21% | c | 162.6 | 192.0 | -15% | d | |
EBIT | 9.8 | -1.5 | +743% | 28.8 | 17.4 | 65% | |||
EBIT % | 4.7% | -0.6% | 3.2% | 1.7% | |||||
Average directs | 9,518 | 11,365 | -16% | 10,227 | 12,046 | -15% | |||
Average indirects | 1,324 | 1,612 | -18% | 1,442 | 1,631 | -12% | |||
7.2 | 7.1 | 7.1 | 7.4 | ||||||
a -15.8 % like-for-like | b 12.7 % like-for-like | ||||||||
c -20.1 % like-for-like | d -14.4 % like-for-like | ||||||||
Like-for-like is measured excluding the impact of currencies and acquisitions |
Q4 2020 and FY 2020 results by division
P&L amounts in EUR million
Summary:
Revenue | Q4 2020 | Q4 2019 | Δ% | FY 2020 | FY 2019 | Δ% | |
DACH region | 53.5 | 66.6 | -20% | 230.5 | 284.3 | -19% | |
47.9 | 51.1 | -6% | 190.6 | 206.8 | -8% | ||
25.4 | 30.6 | -17% | 110.4 | 119.0 | -7% | ||
24.7 | 32.3 | -23% | 113.4 | 117.4 | -3% | ||
18.8 | 27.9 | -33% | 88.3 | 104.1 | -15% | ||
Rest of world | 38.8 | 46.9 | -17% | 158.3 | 167.8 | -6% | |
Subtotal | 209.1 | 255.4 | -18% | 891.5 | 999.4 | -11% | |
BIS | 0.2 | 1.7 | -89% | 1.0 | 41.7 | -98% | |
Total | 209.3 | 257.1 | -19% | 892.6 | 1041.1 | -14% |
EBIT | Q4 2020 | Q4 2019 | Δ% | FY 2020 | FY 2019 | Δ% | |
DACH region | 6.8 | 3.6 | 87% | 17.0 | 27.1 | -37% | |
4.0 | 2.7 | 48% | 11.8 | 9.7 | 22% | ||
0.3 | -0.4 | 181% | 0.2 | -1.6 | 111% | ||
2.3 | 3.3 | -32% | 9.4 | 11.0 | -15% | ||
-0.3 | -0.3 | 23% | -2.2 | -0.8 | -172% | ||
Rest of world | 0.8 | 1.5 | -48% | 3.7 | 1.3 | 181% | |
Unallocated 1) | -3.2 | -1.5 | -111% | -9.6 | -7.2 | -34% | |
Subtotal | 10.7 | 8.9 | 21% | 30.3 | 39.6 | -24% | |
BIS 2) | -0.8 | -10.4 | -1.5 | -22.2 | 93% | ||
Total | 9.8 | -1.5 | 28.8 | 17.4 | 65% |
1) Unallocated Q4 includes an impairment of IT-assets of
2) The project of the water treatment plant project has been finalized and we have agreed the final settlement. This concludes the wind-down of BIS.
PERFORMANCE BY REGION
DACH (unaudited) | |||||||||
P&L amounts in EUR million | |||||||||
Q4 2020 | Q4 2019 | Δ% | FY 2020 | FY 2019 | Δ% | ||||
Revenue | 53.5 | 66.6 | -20% | 230.5 | 284.3 | -19% | |||
Gross Profit | 19.7 | 20.2 | -3% | 74.9 | 92.6 | -19% | |||
Gross margin | 36.7% | 30.3% | 32.5% | 32.6% | |||||
Operating costs | 12.9 | 16.6 | -22% | 57.9 | 65.5 | -12% | |||
EBIT | 6.8 | 3.6 | 87% | 17.0 | 27.1 | -37% | |||
EBIT % | 12.8% | 5.5% | 7.4% | 9.5% | |||||
Average directs | 1,992 | 2,650 | -25% | 2,148 | 2,697 | -20% | |||
Average indirects | 392 | 517 | -24% | 454 | 513 | -12% | |||
5.1 | 5.1 | 4.7 | 5.3 |
The DACH region includes
Revenue
Despite the last quarter of the year being typically weaker than the third quarter due to seasonality effects, we were able to keep our headcount and revenue on a stable level in Q4 compared to Q3. Revenue per working day decreased by 23% YoY. We brought short-time working down from 200 specialists in Q3 to 130 specialists in Q4. The drop at the change of the year was comparable to previous years.
The headcount development in 2020 is as follows:
Working days:
Q1 | Q2 | Q3 | Q4 | FY | |
2021 | 63 | 61 | 66 | 65 | 255 |
2020 | 64 | 59 | 66 | 65 | 254 |
2019 | 63 | 59 | 66 | 62 | 250 |
Gross margin
The gross margin adjusted for working days in Q4 is 34.0% (2019: 30,3%). We had a high productivity and a low bench in Q4, compared to a fairly weak productivity in Q4 2019.
Operating costs
In Q4, operating costs decreased by 22.4%, mainly as a result of the lower indirect headcount.
P&L amounts in EUR million | ||||||||
Q4 2020 | Q4 2019 | Δ% | FY 2020 | FY 2019 | Δ% | |||
Revenue | 47.9 | 51.1 | -6% | 190.6 | 206.8 | -8% | ||
Gross Profit | 13.4 | 13.7 | -2% | 51.3 | 55.7 | -8% | ||
Gross margin | 27.9% | 26.8% | 26.9% | 26.9% | ||||
Operating costs | 9.4 | 11.0 | -15% | 39.5 | 46.0 | -14% | ||
EBIT | 4.0 | 2.7 | 48% | 11.8 | 9.7 | 22% | ||
EBIT % | 8.3% | 5.3% | 6.2% | 4.7% | ||||
Average directs | 1,838 | 2,135 | -14% | 1,899 | 2,242 | -15% | ||
Average indirects | 311 | 386 | -20% | 337 | 409 | -18% | ||
5.9 | 5.5 | 5.6 | 5.5 |
Revenue
In Q4, headcount remained at a stable level. Adjusted for working days, revenue decreased by 7%. We continued to achieve growth in our business line Legal, with revenues up 41% compared to last year. The drop at change of the year was comparable to previous years.
The headcount development in 2020 is as follows:
Working days:
Q1 | Q2 | Q3 | Q4 | FY | |
2021 | 63 | 61 | 66 | 66 | 256 |
2020 | 64 | 60 | 66 | 65 | 255 |
2019 | 63 | 62 | 66 | 64 | 255 |
Gross margin
The gross margin adjusted for working days is 27.1% (2019: 26.8%). The increase in gross margin is mainly driven by a lower bench and a higher productivity. The business lines IT and Legal achieved a significant growth in gross profit positively contributing to gross margin on a group level in Q4.
Operating costs
Operating costs have decreased as a result of cost saving initiatives, including the reduction of indirect headcount executed in Q2.
EBIT
Full year EBIT exceeds prior year EBIT. We did not receive any government relief (NOW) in 2020.
P&L amounts in EUR million | |||||||||
Q4 2020 | Q4 2019 | Δ% | FY 2020 | FY 2019 | Δ% | ||||
Revenue | 25.4 | 30.6 | -17% | a | 110.4 | 119.0 | -7% | b | |
Gross Profit | 2.6 | 2.6 | 0% | 9.7 | 9.8 | -1% | |||
Gross margin | 10.1% | 8.4% | 8.8% | 8.3% | |||||
Operating costs | 2.3 | 3.0 | -23% | c | 9.5 | 11.4 | -17% | d | |
EBIT | 0.3 | -0.4 | 181% | 0.2 | -1.6 | 111% | |||
EBIT % | 1.3% | -1.3% | 0.2% | -1.4% | |||||
Average directs | 960 | 968 | -1% | 999 | 922 | 8% | |||
Average indirects | 76 | 84 | -10% | 80 | 85 | -6% | |||
12.7 | 11.5 | 12.5 | 10.9 | ||||||
a -15.2 % like-for-like | |||||||||
b -4.2 % like-for-like | |||||||||
c -23.5 % like-for-like | |||||||||
d -14.2 % like-for-like | |||||||||
Like-for-like is measured excluding the impact of currencies and acquisitions |
P&L amounts in EUR million | |||||||||
Q4 2020 | Q4 2019 | Δ% | FY 2020 | FY 2019 | Δ% | ||||
Revenue | 24.7 | 32.3 | -23% | a | 113.4 | 117.4 | -3% | b | |
Gross Profit | 4.1 | 5.8 | -30% | 18.5 | 20.8 | -11% | |||
Gross margin | 16.4% | 17.9% | 16.3% | 17.7% | |||||
Operating costs | 1.8 | 2.5 | -28% | c | 9.1 | 9.8 | -7% | d | |
EBIT | 2.3 | 3.3 | -32% | 9.4 | 11.0 | -15% | |||
EBIT % | 9.1% | 10.3% | 8.3% | 9.4% | |||||
Average directs | 2,085 | 2,628 | -21% | 2,348 | 3,215 | -27% | |||
Average indirects | 125 | 139 | -10% | 135 | 137 | -1% | |||
16.7 | 18.9 | 17.3 | 23.5 | ||||||
a -17.1 % like-for-like | |||||||||
b -0.5 % like-for-like | |||||||||
c -21.1 % like-for-like | |||||||||
d -3.9 % like-for-like | |||||||||
Like-for-like is measured excluding the impact of currencies and acquisitions |
The current travel restrictions continue to put a strain on our business in the
P&L amounts in EUR million | |||||||||
Q4 2020 | Q4 2019 | Δ% | FY 2020 | FY 2019 | Δ% | ||||
Revenue | 18.8 | 27.9 | -33% | a | 88.3 | 104.1 | -15% | b | |
Gross Profit | 2.8 | 4.0 | -30% | 10.6 | 13.4 | -20% | |||
Gross margin | 14.7% | 14.2% | 12.0% | 12.8% | |||||
Operating costs | 3.1 | 4.3 | -28% | c | 12.8 | 14.2 | -10% | d | |
EBIT | -0.3 | -0.3 | 23% | -2.2 | -0.8 | -172% | |||
EBIT % | -1.4% | -1.2% | -2.5% | -0.8% | |||||
Average directs | 686 | 903 | -24% | 750 | 861 | -13% | |||
Average indirects | 103 | 125 | -18% | 108 | 127 | -16% | |||
6.6 | 7.2 | 7.0 | 6.8 | ||||||
a -24.5 % like-for-like | |||||||||
b -9.9 % like-for-like | |||||||||
c -23.1 % like-for-like | |||||||||
d -4.6 % like-for-like | |||||||||
Like-for-like is measured excluding the impact of currencies and acquisitions |
The
The Covid-19 pandemic also continued to affect the
Rest of world (unaudited) | |||||||||
P&L amounts in EUR million | |||||||||
Q4 2020 | Q4 2019 | Δ% | FY 2020 | FY 2019 | Δ% | ||||
Revenue | 38.8 | 46.9 | -17% | a | 158.3 | 167.8 | -6% | b | |
Gross Profit | 6.4 | 8.0 | -20% | 26.9 | 27.2 | -1% | |||
Gross margin | 16.6% | 17.1% | 17.0% | 16.2% | |||||
Operating costs | 5.6 | 6.5 | -14% | c | 23.2 | 25.9 | -10% | d | |
EBIT | 0.8 | 1.5 | -48% | 3.7 | 1.3 | 181% | |||
EBIT % | 1.9% | 3.1% | 2.4% | 0.8% | |||||
Average directs | 1,956 | 1,984 | -1% | 2,070 | 1,855 | 12% | |||
Average indirects | 257 | 291 | -12% | 264 | 286 | -8% | |||
7.6 | 6.8 | 7.8 | 6.5 | ||||||
a -10.3 % like-for-like | |||||||||
b -2.1 % like-for-like | |||||||||
c -9.8 % like-for-like | |||||||||
d -7.8 % like-for-like | |||||||||
Like-for-like is measured excluding the impact of currencies and acquisitions |
Rest of world includes
The main driver of the region is
Tax and net profit
The effective tax rate decreased from 99.2% in 2019 to 38.5% in 2020. As a result, net profit came in at
Free cash flow and net cash
We achieved a strong cash flow in 2020, mainly as a result of an improvement in working capital. This improvement is the result of the lower activity level and strongly supported by a better collection. Total days outstanding for receivables decreased by 8 days, or 10% in 2020. The cash balance at
Dividend
We propose a cash dividend of
Outlook Q1 2021
The current trend will continue in Q1 2021: year on year a lower revenue, at slightly higher gross margins (%) and significantly lower cost, resulting in an EBIT similar to Q1 2020.
Capital markets day
Brunel will host a virtual Capital Markets Day in H1 2021 to provide an update on our strategy and growth plans and the execution thereof. Further details on start and end time will be announced at our website.
Attachments
Press Release Q4 and FY 2020
Press Release Q4 and FY 2020 Appendix
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