H1 2017: Disappointing half year, first signs of recovery
Key points Q2 2017
Revenue down by 18% to EUR 189 million
EBIT down to EUR -1 million

Key points H1 2017
Revenue down by 18% to EUR 385 million
EBIT down to EUR 5 million

Brunel International (unaudited)
P&L amounts in EUR million
Q2 2017 Q2 2016 Change % H1 2017 H1 2016 Change %
Revenue 188.9 231.2 -18% a 385.3 469.6 -18% b
Gross Profit 39.7 47.7 -17% 86.9 95.6 -9%
Gross margin 21.0% 20.6% 22.6% 20.4%
Operating costs 40.8 40.2 2% c 82.4 79.0 4% d
EBIT -1.2 7.5 -116% 4.6 16.6 -73%
EBIT % -0.6% 3.2% 1.2% 3.5%
Average directs 9,201 9,336 -1% 9,093 9,629 -6%
Average indirects 1,496 1,500 0% 1,478 1,526 -3%
Ratio direct / indirect 6.2 6.2 6.2 6.3

a -19 % at constant currencies
b -19 % at constant currencies
c 2 % at constant currencies
d 4 % at constant currencies

H1 2017 results by division
Brunel Global Business (unaudited)
P&L amounts in EUR million
Q2 2017 Q2 2016 Change % H1 2017 H1 2016 Change %
Revenue 81.1 119.8 -32% a 163.2 248.3 -34% b
Gross Profit 9.2 13.3 -30% 18.7 27.3 -31%
Gross margin 11.4% 11.1% 11.5% 11.1%
Operating costs 11.3 12.7 -11% c 22.7 25.0 -9% d
EBIT -2.0 0.6 -446% -3.9 2.3 -270%
EBIT % -2.5% 0.5% -2.4% 0.9%
Average directs 4,418 4,656 -5% 4,351 4,911 -11%
Average indirects 510 598 -15% 507 613 -17%
Ratio direct / Indirect 8.7 7.8 8.6 8.0
a -33 % at constant currencies
b -36 % at constant currencies
c- 12 % at constant currencies
d -12 % at constant currencies


Key points Q2 2017
Revenue down by 32% to EUR 81 million
Gross margin 11.4%, up from 11.1% last year
EBIT down by 446% to EUR -2 million

Key points H1 2017
Revenue down by 34% to EUR 163 million
Gross margin 11.5%, up from 11.1% last year
EBIT down by 270% to EUR -4 million

Revenue
Revenue in Q2 decreased by 32% year on year, and 1% compared to Q1. The regions Americas, Middle East and Russia achieved growth compared to Q1, offset by a decline in Australia and South East Asia. In Australia and South East Asia, significant projects were largely completed in the course of Q2. We are working on several initiatives to speed up our diversification. We expect that some of these initiatives will start contributing in the second half of the year.

Gross profit
The gross margin increased slightly as a result of a change in the mix, both across the globe and between activities.

Operating costs
Cost savings in our existing business are partly offset by investments in new initiatives, as a result operating costs in Q2 decreased by 11%.

Operating costs
The operating costs increased due to continuous investment in sales force and technology.

Effective tax rate

The effective tax rate in the first half year of 2017 is 75.6%. Due to the seasonality in Europe our tax rate is higher in the first half of the year. For the full year, we project the effective tax rate to come down significantly.

Risk profile

Reference is made to our 2016 Annual Report (pages 57 – 75). 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 127 million, due to the seasonality and the dividend payment in June.

Outlook for 2017

The Netherlands will return to revenue growth from Q3 onwards, and Germany will continue to grow. For Global Business we expect revenue to remain flat for the next couple of months until the impact of our initiatives becomes visible. There is some uncertainty around the timing of the first revenues from these initiatives, but we expect to achieve an EBIT of at least EUR 15 million for the full year.

Jan Arie van Barneveld, CEO of Brunel International N.V.: “We knew the first half year would be tough, but we have reached the bottom of the trough sooner than expected. Our actual performance has been improving day by day. With Europe on a growth track, and all the initiatives in Global Business, I’m confident that we will return to sustainable growth pretty quickly” .

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.

See more on
https://www.brunelinternational.net/-/media/files/corporate/press-room/press-releases/2017/press-release-q2-and-hy-2017-results.pdf

tijd 09.13
De Smallcap 1.001,89 -7,82 -0,77% Brunel houdt zich goed op EUR 12,27 +10ct vol. 61.785 na eerst een kleine dip.