Net profit doubled in first six months to an amount of € 11.7 million including an extraordinary profit of € 1.9 million.
Highlights for the first six months of 2006:
- Turnover of Brunel International increases by 31% to € 242 million
- Gross margin jumps by 36% to € 54 million
- EBIT increases from € 8.3 million to € 14.3 million
- Net profit includes book profit of € 1.9 million from sale Technosoft
- All regions contribute to positive turnover and profit trends
- Brunel Netherlands: turnover up 25%
- Brunel Germany: turnover up 35%
- Brunel Energy: turnover up 35%
Amsterdam, 18 August 2006 - In the first six months of 2006, Brunel International realised a turnover of € 242 million - up 31% compared to the same period in 2005 (€ 184 million). The gross margin improved by 36%, from € 40 million to € 54 million. EBIT amounted to € 14.3 million, and the group realised a net result of € 11.7 million - double the amount recorded in 2005 (€ 5.8 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, IT, Finance, Legal and Insurance & Banking. Brunel offers its core activities globally in over 30 countries. Brunel Netherlands, Brunel Germany and Brunel Energy are the company's largest business regions. In the first six months of 2006, these business regions accounted for 36%, 30% and 27%, respectively, of the gross margin (in real terms).
The strong growth in turnover and margin is a result of a positive contribution from all business units. Brunel gained market share in all important areas. A strong and focussed management team, collaborating globally has continued to keep up the good result of last year by offering specialised services and achieving a high level of customer-oriented performance.
Jan Arie van Barneveld, CEO of Brunel International: "I am happy that for the fourth consecutive year we have shown an important improvement in turnover and results. I am obviously extremely satisfied with the strong growth figures for all our core activities. Our success can be attributed to the sound health of our youthful organisation. Over the past years we have consistently invested in the quality of our people, they do the work and serve our clients. Besides continuing to exert this policy around the world we are learning to share knowledge and simplify processes by collaboration between people and coordination between offices."
Brunel International has a strong balance sheet. Solvency as at 30 June 2006 was 65 %. Brunel's cash position as at 30 June 2006 was € 28.9 million, compared to € 29.0 million as at December 31st 2005. The company's net cash flow for the first six months of this year amounted to € 2.3 million (2005: € 7.8 million negative). The average workforce of Brunel International increased from 4,488 in the first six months of 2005 to 5,819 in 2006. The number of fee-earners and service organisation employees rose by 32% and 17% respectively.
Brunel Netherlands
In the first six months, Brunel Netherlands recorded a turnover of € 55.1 million, a 25% improvement compared to 2005 (€ 44.0 million). The gross margin increased by 39%, from € 13.9 million in 2005 to € 19.2 million in 2006. Overhead costs increased by 11% to € 12.9 million.
Brunel Netherlands recorded an EBIT of € 6.3 million (2005: € 2.2 million).
The Dutch market for temporary staffing is continuing to grow. All business lines have increased their turnover and absolute margins. At this point there are no signs that the demand for hired flexible labor will decrease, at the same time we foresee a shortage in highly skilled professionals in the market. Herein lies the challenge for Brunel, being the preferred employer and the preferred supplier.
Brunel Germany
In the first half of 2006, Brunel Germany recorded a turnover of € 47.2 million and a gross margin of € 16.4 million, representing increases of 35% and 38% respectively compared with last year's results. Overhead costs rose from € 8.8 million to € 11.7 million (up 34%). EBIT increased compared to the same period last year: € 4.7 million in 2006 versus € 3.1 million in 2005.
The German market for technical project management and engineering secondment is growing and we expect this to continue well into 2007. Brunel Germany has a unique formula for rendering engineering services in the fields of aerospace, automotive, rail and communications. Brunel has been able to maintain the high level of professionalism and its depth of knowledge in several niche markets which sets us apart from our competitors.
Brunel Energy
In the first six months of 2006, Brunel Energy increased its turnover figure by 35% to € 126.7 million (2005: € 93.7 million). The gross margin was up 33%, from € 11.0 million to € 14.6 million; in percentage terms, the gross margin was 11.5%. Overhead costs increased with 40% to € 9.4 million. Brunel Energy's EBIT amounted to € 5.2 million (2005: € 4.3million).
Worldwide demand for energy has continued to be strong during this period. The company has had commercial success with new clients, which has resulted in increased turnover, and a more balanced business base. Start-up operations of previous years have become profitable. The board expects this trend to continue.
Other regions
Other regions contributed to growth and overall profitability. Brunel Belgium and Brunel Canada booked a turnover of € 12.6 million and a gross margin of € 3.8 million resulting in an EBIT of € 0.6 million.
Outlook for 2006
The Board of Directors expects that turnover and profit figures will continue to grow in the second half of 2006. Brunel's success is ultimately determined by the outstanding quality of its own organization; however macro economic factors also influence our growth path.
In all, we expect that the company's full-year EBIT for 2006 will amount to at least € 32 million, based on current market conditions.
-----------------------
For further information:
Jan Arie van Barneveld CEO Brunel International tel.: +31(0)20 312 50 00
Brunel International N.V. is an international service provider specialized in the flexible deployment of knowledge and capacity in the fields of ICT, engineering, legal, finance and insurance & banking. Services are provided in the form of Project Management, Secondment and Consultancy. Incorporated in 1975, Brunel has since become an international concern with some 5,500 employees and an annual turnover in excess of € 400 million. The company is listed at Euronext Amsterdam N.V.
Please click on the link below for the full version of the press release including tables:
