Amsterdam, 4 May 2016
Key points Q1 2016
|Brunel International (unaudited)|
|P&L amounts in EUR million|
|Q1 2016||Q1 2015||Change %|
|Operating costs||38.8||45.0||-14% b|
|Ratio direct / Indirect||6.5||6.8|
-27 % at constant currencies
b -13 % at constant currencies
The adverse developments in the Energy division continued in Q1 2016. We have seen further project delays and cancellations, rate reductions and reduced workload. As a result, revenue and profitability fell significantly in Q1 year on year.
continued to grow year on year, both in The Netherlands and in Germany.
Revenue in The Netherlands increased compared to previous year by 14%, at the same number of working days. The business lines IT, Marketing and Legal showed strong growth, while Engineering and Finance showed limited growth.
An increased headcount and lower bench, largely offset by one less working day and unusual high illness, resulted in a 2% growth in Germany .
Gross margin increased by 2.3ppt, mainly driven by the increased share of the European activities. The gross margin in Energy was negatively impacted (0.5 ppt) by exchange rate developments.
Overhead costs decreased by 14%, driven by efficiency measures taken in the Energy division, following the downturn in the market. We are continuously optimising the organisation and adapting it to the market circumstances, leading to various cost savings.
As a result of the revenue drop, offset by the cost savings in the Energy division, EBIT came to EUR 9 million.
Given the current market circumstances in the Energy division, it remains difficult to provide an outlook for the rest of the year. The growth in The Netherlands will continue strongly, while growth in Germany is expected to accelerate.
Jan Arie van Barneveld, CEO of Brunel International N.V.: "We continue to perform strongly in the growing secondment market in The Netherlands and are happy to see growth in all business lines. The future looks bright in our home market. We also see the German organisation developing nicely and this will definitely result in stronger growth. Since the Oil & Gas market is currently so unpredictable we continue to right size the organisation in order to operate as efficient as possible; and we also continue to see market opportunities both in the long and short term."
For full article and its appendix please see attached pfd files.