AMSTERDAM, March 10 /PRNewswire/ --
Key figures from the 2005 financial year
Brunel International
X EUR 1 million 2005 2004 Change %
Turnover 391 313 +25%
Gross Margin 88 68 +30%
Overhead 65 57 +14%
Ebit 23.5 10.9 +117%
Net profit 15.9 7.4 +119%
GM % 22.6% 21.8%
-- Turnover EUR 391m; up 25%
-- Gross margin EUR 88m; up 30%
-- EBIT EUR 23.5m (2004: EUR 10.9m)
-- Net profit EUR 15.9m (2004: EUR 7.4m)
-- Brunel Netherlands: turnover + 24%
-- Brunel Germany: turnover + 25%
-- Brunel Energy: turnover + 26%
In 2005 staffing company Brunel recorded a turnover of EUR 391m, up 25% compared with 2004 (EUR 313m). The net profit was EUR 15.9m, more than double the amount registered in 2004 (EUR 7.4m).
Brunel's gross margin increased by more than 30%, from EUR 68m in 2004 to EUR 88 m in 2005.
In percentage terms, the gross margin for 2005 rose to 22.6% (2004: 21.7%). The operating result amounted to EUR 23.5m. This, too, is more than double the amount recorded in reference year 2004 (EUR 10.9m).
Brunel International is an enterprise with a solid financial position and a strong balance sheet. One side effect of the rapid growth in turnover figures in recent years is the associated increase in the balance of accounts receivable. In addition, average payment terms are relatively long due to a number of long-term agreements with multinational companies.
Due in part to the growth financing structure, the liquidity position at year-end 2005 was EUR 29.0m (year-end 2004: EUR 36.6m).
Jan Arie van Barneveld, CEO of Brunel International: "In 2005 various historical financial records were broken. More importantly, however, we have experienced a total transformation of this company in just five years. Brunel in the year 2006 is an enterprise with a worldwide presence, a clear corporate vision and approach, and a transparent organisational structure in which the number of management layers has been reduced to the bare minimum. As such, we have an excellent platform for continued development".
Results by region
Brunel Netherlands
Brunel Netherlands achieved a turnover of EUR 92m, which represents an increase of 24% compared with 2004. The gross margin rose by 32% to EUR 31m. In percentage terms, the gross margin improved from 32.2% in 2004 to 34.2% in 2005. Overheads rose by 6% to EUR 24m.
Brunel Netherlands recorded EBIT in the amount of EUR 7.2m (2004: EUR 1.0m).
The Dutch staffing market expanded in 2005. Improved market conditions were in evidence across the board. Brunel managed to capitalise on this trend with optimum effect, and all of its activities contributed to the excellent operating result. Brunel Engineering experienced considerable growth, Brunel ICT fully recovered after ending 2004 with a loss, and Brunel Insurance & Banking registered a nearly 100% increase in turnover and profit figures.
Brunel Netherlands managed to secure an all-round increase in market share in 2005.
In 2005, as in previous years, Brunel Netherlands invested heavily in the quality of its sales organisation. Further service improvements continue to feature prominently in the strategy outlined for the years to come.
Brunel Germany
Brunel Germany registered a 25% rise in turnover, from EUR 59m in 2004 to EUR 74m in 2005. The gross margin increased by 19% to EUR 25m. The relative gross margin dropped slightly, from 35.8% in 2004 to 34.2% in 2005. Overheads rose by 11% to EUR 18m.
Brunel Germany recorded an EBIT figure of EUR 7.5m (2004: EUR 5.2m).
In the course of the year under review, the German market for technical project management and engineer assignments continued to expand. Brunel Germany successfully capitalised on this trend and was able to consolidate its position in the German market.
In 2005, the company made heavy investments in the size and quality of its sales organisation and in marketing Brunel as a brand. The Board of Directors expects that the German market will continue to grow, and will become more sensitive to competition in the years to come. The investments focus on further increasing the competitive strength of Brunel's presence in Germany.
Expressed as a percentage, the gross margin suffered some downward pressure as a result of the increased competition and the conclusion of long-term volume contracts.
In 2005 Brunel Germany took over Falkenburger: a strategic acquisition intended to strengthen Brunel's position in specific technical market segments.
In addition, Brunel Germany tested the waters in the Polish and Danish markets. In the year to come, Brunel will decide whether the experiences gained warrant a more structural presence in these markets in future.
Brunel Energy
Brunel Energy recorded a 26% rise in turnover, from EUR 160m in 2004 to EUR 201m in 2005. The gross margin rose by 43% to EUR 25m. In terms of percentage, the gross margin increased from 10.9% to 12.4%. Overheads amounted to EUR 14m (2004: 12m).
Brunel Energy recorded EBIT in the amount of EUR 10.5m (2004: EUR 5.7m).
The favourable trend in the staffing market for oil and gas engineers continued in 2005. This segment is characterised by a substantial investment drive, fuelled primarily by the huge worldwide demand for oil and gas products and by high oil prices. Thanks in particular to its global office network, Brunel Energy has been able to develop into a preferred supplier of virtually all major oil companies.
The year to come, too, is expected to offer plenty of opportunity for further growth. However, the Board of Directors stresses that the projects, due to their nature, their erratic frequency and their increasing scope, may lead to fluctuations in turnover and gross margin trends.
In the course of the year under review, Brunel opened new branches in Vietnam, South Korea and the Philippines to reinforce its global office network.
Outlook for Brunel International in 2006
The Board of Directors expects sustained growth for all of Brunel's activities in 2006, in terms of turnover and profitability alike. The developments in January and February of this year clearly underpin this outlook.
A more detailed forecast will be published in the course of the year.
Dividend
The Board of Directors intends to pay a cash dividend of EUR 0.30 per share for 2005 and will submit its proposal to that effect to the general meeting of shareholders on 18 May 2006.
--------------------------------------------------
Brunel International NV is an international service provider specialised in the flexible deployment of knowledge and capacity in the fields of engineering, ICT, legal, finance and insurance & banking. The company offers its services in the form of Consultancy, Project Management en Recruitment.
Brunel is active on the Dutch, German, Belgian, Canadian and the worldwide oil and gas market. Operations are run from an international network of 67 offices throughout 24 countries.
Distinguished by a superior service Brunel offers the business world and governments added value by competently fulfilling it's clients existing needs for specialist knowledge.
Since its establishment in 1975, Brunel has grown into an international organisation with more than 5,000 employees and an annual turnover of more than EUR391 million (2005). The company is listed on Euronext Amsterdam N.V. (Euronext: BRNL).
Financial highlights
(CONTINUA)
