Brunel increases EBIT by 45% in 2007

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Overig advies 29/02/2008 08:05
Net turnover up 16%. Net income 2007 increased to € 36.1. Earnings per share € 1.59 (2006: € 1.16). Proposed dividend € 0.70 per share (2006: € 0.50).
Brunel International
X € 1 million 2007 2006 Change %
Turnover 579.9 499.1 16%
Gross Profit 136.3 115.3 18%
Gross margin 23.5% 23.1%
Ebit 51.2 35.3 45%
Ebit % 8.8% 7.1%
Net income 36.1 26.3 38%
Highlights 2007:
Turnover of Brunel International increased by 16% to € 580 million
Gross profit up by 18% to € 136 million
EBIT increased from € 35.3 million to € 51.2 million, +45%
Net income increased by 38%.
Brunel Netherlands: turnover up 18%
Brunel Germany: turnover up 24%
Brunel Energy: turnover up 13%

Amsterdam, 29 February 2008 - Over 2007, Brunel International achieved a turnover of € 580 million; up 16% compared to 2006 (€ 499 million). The gross profit increased by 18%, from € 115 million to € 136 million. Gross margin further climbed to 23.5%. EBIT amounted to € 51.2 million, being 8.8% of turnover (2006: 7.1%). The company realised a net income of € 36.1 million.

Brunel's core activities are project management, personnel secondment and consultancy. The company performs these activities through the flexible deployment of highly skilled specialists in the fields of Engineering, Oil & Gas, Aerospace, Automotive, Rail, ICT, Finance, Legal and Insurance & Banking. Brunel offers its core activities globally from its own network of 90 branch offices in 25 countries. Brunel Netherlands, Brunel Germany and Brunel Energy are the company's largest business regions. In 2007 these divisions accounted for 24%, 22% and 50%, respectively, of the global net turnover.

All main business regions contributed significantly to the strong growth in turnover. In 2007 market share increased by each of these three divisions. A sound account management organization, a highly attractive proposition to job seekers and a global market approach are important foundations for the growth shown in 2007.

Brunel International held on to a strong balance sheet. Solvency at year-end 2007 was 69 %. The capitalised goodwill € 4 million, representing less than 3% of the shareholders equity. Accounts receivable amount to € 111.7 million at 2007 year end (2006: € 105.4 million). Brunel's cash position as at December 31st is € 39.7 million.

The average workforce of Brunel International increased by 18% from 6,148 in 2006 to an average of 7,248 in 2007.

Jan Arie van Barneveld, CEO of Brunel International: 'The excellent growth and profitability achieved in 2007, particularly in the Netherlands, Germany, Middle East and Asia, is the result of a great effort by our very professional and dedicated management teams throughout the whole organization.
Our continuous drive to improve all aspects of our business is key to our success and achieving a lead position in our market place. We will continue our efforts to further improve our quality of service and profitability which, we believe, will protect us against any possible negative economic factors that may arise. Based on the strong foundation we have in all our operating areas we can look forward again, with confidence, to a very successful 2008.'

Brunel Netherlands
Brunel Netherlands recorded a turnover figure of € 138.1 million, an 18% growth compared to 2006 (€ 117.5 million). The gross profit increased by 22% from € 45.5 million in previous year to € 55.5 million in 2007. Gross margin % improved by 1.5 percentage point due to continued improvement of quality resulting in higher productivity. All business lines have increased their turnover and gross profits. The leverage further improved. Brunel Netherlands recorded an EBIT of € 27.6 million or 20.0% of net turnover (2006: € 16.8 million or 14.3%).

The Dutch market for temporary specialist staffing continues to grow. At this point there are still no signs that the demand for hired flexible labor will decrease, at the same time we foresee an increasing shortage in highly skilled professionals in the market. Brunel sees these developments as an opportunity, not a threat.

Brunel Germany
In 2007 Brunel Germany achieved a turnover of € 129.3 million and a gross profit of € 41.8 million, representing increases of 24% and 22% respectively compared to 2006. The performance of the Competence Centres was disappointing, reorganization of these business activities directly resulted in an improvement of EBIT from 6.9% in the first half year to 11% in the second half of 2007. EBIT increased by 15% or € 1.5 million to € 11.5 million in 2007. The overall 2007 EBIT margin is 8.9%, this percentage is expected to improve.

The German market for technical project management and engineering secondment is growing and we expect this to continue well into 2008. Brunel Germany has with its Competence Centres a unique strategy for attracting top class technicians and rendering engineering services in the fields of aerospace, automotive, rail, electronics, information technology and communications. Brunel Germany is able to maintain the high level of professionalism with its depth of knowledge in several niche markets which sets us apart from our competitors.

Brunel Energy
Brunel Energy increased its net turnover by 13% to € 287.3 million (2006: € 255.3 million). The gross profit was up 9%, from € 28.8 million to € 31.4 million. The 2007 gross margin was 10.9%. A single large but low yielding contract predominantly caused a low gross margin compared to the previous year. Overhead costs increased by 5% to € 19.7 million (2006: € 18.7 million). One-off costs of a reorganizational nature are included in the 2007 amount.

In its market segment Brunel Energy is the leading supplier for technical expertise and capacity. Worldwide demand for energy continued during 2007. The division had commercial successes with new and existing clients, leading to the higher turnover. Due to the nature of the business i.e. projects executed for our customers, revenues as well as gross margins are more volatile than in the other Brunel divisions. In the longer term profit margins will average between 11% to 12%. For 2008 the EBIT margin is expected to be between 5% and 6%.

Other regions
Other regions contributed to the global results in 2007. Brunel Belgium and Brunel Canada booked a combined turnover of € 25.1 million and a gross profit of € 7.6 million resulting in an EBIT of € 1.8 million (2006: € 0.7 million).
Outlook for 2008
In the current circumstances the Brunel International Board of Directors expects turnover figures in all main regions to grow. The operating profit percentages of both Brunel Germany and Brunel Energy will improve. We expect a significant growth of revenue and profitability in 2008.

For further information:
Jan Arie van Barneveld CEO Brunel International tel.: +31(0)20 312 50 00
The 2007 financial statements of Brunel International NV have not been compiled yet. The 2007 annual results of Brunel International NV are not audited yet.

Certain statements in this document concern prognoses about the future financial condition and the results of operations of Brunel International NV as well as plans and objectives. Obviously, such prognoses involve risks and a degree of uncertainty since they concern future events and depend on circumstances that will apply then. Many factors may contribute to the actual results and developments differing from the prognoses made in this document. These factors include general economic conditions, a shortage on the job market, changes in the demand for (flexible) personnel, changes in employment legislation, future currency and interest fluctuations, future takeovers, acquisitions and disposals and the rate of technological developments. These prognoses therefore apply only on the date on which the document was compiled.

Brunel International N.V. is an international service provider specialized in the flexible deployment of knowledge and capacity in the fields of Engineering, Oil & Gas, Aerospace, Automotive, Rail, ICT, Finance, Legal and Insurance & Banking. Services are provided in the form of Project Management, Secondment and Consultancy. Incorporated in 1975, Brunel has since become a global company with some 7000 employees and an annual turnover of € 600 million. The company is listed at Euronext Amsterdam N.V.





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