Amsterdam, 23 February 2024 - Brunel International N.V. (Brunel; BRNL), a global
provider of flexible workforce solutions and expertise today announced its
fourth quarter and full year 2023 results.
Key points Q4 2023

  * Revenue of EUR 344 million, up 9% (14% organically)
  * Underlying EBIT of EUR 15.5, down 13% (up 3% organically)

Key points full year 2023

  * Revenue of EUR 1.3 billion, up 13% (18% organically)
  * Underlying EBIT of EUR 61.1, 0% year-on-year (10% organically)
  * Net cash position at EUR 31.8 million
  * Earnings per share of EUR 0.63, up 9% year-on-year
  * Proposed dividend of EUR 0.55 (pay-out: 87%)

Jilko Andringa, CEO of Brunel International N.V.:
"In 2023 we celebrated many highlights. Based on the strong first nine months,
we continued high single digit growth in the year while we attracted many new
clients. We strengthened our leadership team through internal promotions, had a
high engagement score from candidates and colleagues, and attracted many new
talents.
In the last quarter, we experienced some unexpected headwinds. While our
revenues continued to grow, the impact of high interest rates and inflation on
the offshore wind industry caused sudden project stops and reconsiderations of
projects in the pipeline. This hit our perm business at Taylor Hopkinson quite
hard.
At the same time, the German market slowed down across all industries. We
responded fast, rightsizing our organisation and adjusting our cost levels where
needed and made a step up in executing our entrepreneurial sales approach.
Through these actions, we are well positioned to weather these circumstances.
During our Capital Markets Day in November, we showed how we executed our
strategy over the last 3 years. We now have a well-diversified portfolio of
markets and capabilities. Our conversion ratio has grown significantly, and we
are on track to reach our long-term goals. We presented data on the expected
capital investments in our focus markets, underlining our high confidence that
our clients need us more and more in the quarters and years to come. That's why
we reconfirmed our growth ambitions, while new tooling, smarter processes and
more leverage of our infrastructure will drive conversion and profitability even
more.
In this year we also made important steps in executing our ESG strategy. We
trained many colleagues on reducing unconscious bias, continued to work with
autism organizations around the world to bring talent with an identification in
this spectrum, closer to job-opportunities and our foundation enlarged our
Brunel Foundation Forrest, organized 'Offshore Wind for Kids' events and Trash
and Trace events with clients, candidates and internal colleagues.
With our unique infrastructure of more than 12,000 Brunellers in over 45
countries serving more than 1,000 clients, we are strongly positioned to benefit
from the energy and digital transformation. Through our high integrity
standards, our entrepreneurial spirit, our result driven mindset and our passion
for people we are ready for all business challenges and can turn them into
opportunities."
GROUP PERFORMANCE
Brunel International (unaudited)
--------------------------------------------------------------------------------------------------------------
P&L amounts in EUR million

                     Q4 2023        Q4 2022    ?% Organic ?%           FY 2023         FY 2022   ?% Organic ?%
 Revenue               344.2          316.3    9%        14%           1,330.5         1,181.8  13%        18%
 Gross Profit           66.2           65.7    1%         6%             273.6           252.1   9%        13%
 Gross margin          19.2%          20.8%                              20.6%           21.3%

Operating
costs 51.5 46.9 10% 12% 211.6 187.0 13% 16%
Operating
result 14.7 18.8 -22% -7% 62.0 65.1 -5% 5%
Earn out
related
share based
payments* -0.8 1.0 -180% -180% 0.9 4.2 -79% -79%
Underlying
EBIT 15.5 17.8 -13% 3% 61.1 60.9 0% 10%
EBIT %
(underlying) 4.5% 5.6% 4.6% 5.2%
One-off
costs** 4.8 - 4.8 -
EBIT (after
one-off) 10.7 17.8 -40% -24% 56.3 60.9 -7% 1%
Average
directs 11,041 11,148 -1% -1% 11,138 11,187 0% 0%
Average
indirects 1,610 1,478 9% 9% 1,574 1,452 8% 8%
Ratio direct
/ Indirect 6.9 7.5 7.1 7.7
(Organic change is measured by excluding the impact of currencies, acquisitions, disposals and by
adjusting for working days)
(*Relates to the acquisition related expenses for Taylor
Hopkinson)
(**Relates to one-off costs, mainly restructuring )(costs)
Fourth quarter developments
Revenue
Organic revenue was up 14% YoY in Q4 2023. Reported revenue was up 9% YoY, with
a negative impact from working days of 2% and a negative effect of FX of 3%.
Gross profit
Organic gross profit was up 6.5% YoY in Q4 2023. Reported gross profit was up
0.8% YoY, of which working days had a negative impact of 3.7% while FX had a
negative effect of 2%. The gross margin decreased mainly as a result of a change
in the mix due to stronger growth in regions with a relatively lower gross
margin.
EBIT
Organic EBIT was up 3.1% YoY in Q4 2023. Reported EBIT was down 12.8% YoY, of
which working days had a negative impact of 13.5% while FX had a negative effect
of 2.4%.
Gross profit (net fees) per vertical
The breakdown of gross profit per vertical is as follows:

                                 2023           2022        ?%
  Global verticals
  Conventional Energy         67.9    25%    62.0    25%    10%
  Renewable Energy            38.8    14%    29.6    12%    31%
  Future Mobility             33.4    12%    25.3    10%    32%
  Mining                      21.1     8%    12.4     5%    70%
  Infrastructure              11.6     4%    12.1     5%    -4%
  Local verticals
  Industrials & Technology    40.3    15%    43.2    17%    -7%
  Public Sector               20.0     6%    19.0     7%     5%
  Life Sciences               17.8     7%    10.7     4%    66%
  Financial Services          15.4     6%    14.5     6%     6%
  Other                        7.3     3%    23.3     9%   -69%
  Total                      273.6   100%   252.1   100%     9%

To provide further insights into the underlying performance, Brunel has updated the verticals, with Engineering split into Industrials & Technology and Life Sciences, and Financial Services and Public Sector excluded from Other and reported separately.
We managed to achieve growth in all our global markets, supported by high levels
of capital investments in those markets. Renewable energy additionally benefitted from the synergies of Taylor Hopkinson's expertise in offshore wind with Brunel's global infrastructure and contracting capabilities and managed to achieve significant growth despite the headwind in Q4.
Headline performance by region
Summary (amounts in EUR million):

                                                                        Organic
 Revenue         Q4 2023 Q4 2022   ?% Organic ?% FY 2023 FY 2022   ?%        ?%

-------------------------------------------------------------------------------

 DACH region        59.3    57.0   4%         5%   249.3   229.2   9%        9%
 The Netherlands    55.8    50.3  11%        13%   213.2   190.3  12%       12%
 Australasia        54.0    45.1  20%        29%   192.9   161.9  19%       27%

Middle East &

 India              44.0    39.8  10%        18%   160.7   143.3  12%       17%
 Americas           43.3    40.4   7%        13%   177.8   146.6  21%       26%
 Asia               46.4    46.7  -1%         6%   182.2   161.1  13%       20%
 Rest of world      50.8    44.8  13%        16%   188.0   177.0   6%       20%
 Eliminations       -9.4    -8.0 -18%       -18%   -33.7   -27.5 -23%      -23%
 Total             344.2   316.3   9%        14%  1330.5  1181.8  13%       18%
 Gross Profit    Q4 2023 Q4 2022   ?% Organic ?% FY 2023 FY 2022  ?% Organic ?%

-------------------------------------------------------------------------------

 DACH region        18.7    19.1  -2%         3%    85.8    81.0  6%         8%
 The Netherlands    14.5    14.7  -2%         4%    56.6    55.7  2%         3%
 Australasia         5.5     4.7  15%        24%    20.4    16.2 26%        34%

Middle East &

 India               6.1     7.2 -15%       -10%    22.6    23.9 -6%        -2%
 Americas            6.2     5.6  12%        18%    24.8    19.9 25%        29%
 Asia                8.5     7.2  18%        26%    30.8    23.6 31%        39%
 Rest of world       6.8     7.2  -5%        21%    32.6    31.8  2%        31%
 Total              66.2    65.7   1%         6%   273.6   252.1  9%        13%
 EBIT                                                                   Organic
 (underlying)    Q4 2023 Q4 2022   ?% Organic ?% FY 2023 FY 2022   ?%        ?%

-------------------------------------------------------------------------------

 DACH region         4.0     5.6 -29%       -12%    23.6    24.4  -3%        5%
 The Netherlands     4.5     4.9  -8%        10%    16.5    16.7  -1%        4%
 Australasia         1.7     1.2  38%        53%     5.3     3.3  62%       72%

Middle East &

 India               3.6     4.6 -22%       -16%    12.3    14.3 -14%      -10%
 Americas            1.5     1.0  52%        62%     4.5     2.6  76%       84%
 Asia                3.5     3.2   9%        20%    11.9     9.4  27%       36%
 Rest of world      -0.5    -0.5   6%        17%     0.2     1.4 -86%      -12%
 Unallocated        -2.7    -2.2 -25%       -25%   -13.2   -11.0 -20%      -20%
 Total              15.5    17.8 -13%         3%    61.1    60.9   0%       10%

PERFORMANCE BY REGION
DACH region (unaudited)
---------------------------------------------------------------------------------------------------
P&L amounts in EUR
million

                 Q4 2023       Q4 2022   ?% Organic ?%         FY 2023       FY 2022  ?% Organic ?%
 Revenue            59.3          57.0   4%         5%           249.3         229.2  9%         9%

Gross
Profit 18.7 19.1 -2% 3% 85.8 81.0 6% 8%
Gross
margin 31.6% 33.5% 34.4% 35.3%
Operating

 costs              14.7          13.5   9%         9%            62.2          56.6 10%        10%
 EBIT                4.0           5.6 -29%       -12%            23.6          24.4 -3%         5%
 EBIT %             6.7%          9.8%                            9.5%         10.6%

Average
directs 2,025 2,114 -4% 2,062 2,042 1%
Average
indirects 445 414 8% 435 405 7%
Ratio
direct /
Indirect 4.6 5.1 4.7 5.0
(Organic change is measured by excluding the impact of currencies, acquisitions,
disposals and by adjusting for working days)
The DACH region includes Germany, Switzerland, Austria and Czech Republic
Despite the weaker market conditions, specifically in the German market, we achieved growth per working day in revenue and gross profit. The decrease in headcount and the lower productivity were offset by higher rates. The productivity was lower in Q4 due to more vacation taken and slightly higher bench and illness. Gross margin adjusted for working days was 32.6% in Q4 2023
(Q4 2022: 33.5%). The year-on-year decrease in gross margin is the result of the
lower productivity.
The drop at the change of the year was in line with last year, and as a result our headcount in the beginning of 2024 was slightly down year-on-year.
Operating cost increased in Q4, amongst others as a result of inflation. As a result, EBIT in Q4 decreased compared to Q4 2022, also when adjusted for one less working day. We have taken actions in Q4 to adjust our organisation to the current activity level in order to return to EBIT growth in the course of 2024.
The headcount development in 2023 is as follows:
Headcount as of 31 December 2023 was 2,008 (2022: 2,133).
Working days:
| Q1 | Q2 | Q3 | Q4 | FY
-------+----+----+----+----+-----
2024 | 63 | 61 | 66 | 62 | 252
-------+----+----+----+----+-----
2023 | 65 | 60 | 65 | 61 | 251
-------+----+----+----+----+-----
2022 | 64 | 61 | 66 | 62 | 253
-------+----+----+----+----+-----
Brunel Netherlands (unaudited)
--------------------------------------------------------------------------------------------------
P&L amounts in EUR
million

                 Q4 2023       Q4 2022  ?% Organic ?%         FY 2023       FY 2022  ?% Organic ?%
 Revenue            55.8          50.3 11%        13%           213.2         190.3 12%        12%

Gross
Profit 14.5 14.7 -2% 4% 56.6 55.7 2% 3%
Gross
margin 25.9% 29.3% 26.5% 29.3%
Operating

 costs              10.0           9.8  2%         1%            40.1          39.0  3%         3%
 EBIT                4.5           4.9 -8%        10%            16.5          16.7 -1%         4%
 EBIT %             8.1%          9.7%                           7.7%          8.7%

Average
directs 1,752 1,687 4% 1,726 1,667 4%
Average
indirects 272 282 -3% 270 279 -3%
Ratio
direct /
Indirect 6.4 6.0 6.4 6.0
(Organic change is measured by excluding the impact of currencies, acquisitions,
disposals and by adjusting for working days)
Revenue increased as a result of higher headcount and rates, slightly offset by a lower productivity due to a higher bench. Gross margin decreased as a result of the ongoing inflation on the compensation of our specialists, which we can only partly pass on. The gross margin adjusted for working days is 26.7% in Q4 2023 (Q4 2022: 29.3%).
Operating cost remain under control. The decrease in EBIT compared to Q4 2022 is
the result of the one less working day (impact EUR 0.6 million).
The start in 2024 shows a continuation of the trend of Q4 2023.
The headcount development in 2023 is as follows:
Headcount as of 31 December 2023 was 1,753 (2022: 1,718).
Working days:
| Q1 | Q2 | Q3 | Q4 | FY
-------+----+----+----+----+-----
2024 | 64 | 62 | 66 | 64 | 256
-------+----+----+----+----+-----
2023 | 65 | 61 | 65 | 63 | 254
-------+----+----+----+----+-----
2022 | 64 | 61 | 66 | 64 | 255
-------+----+----+----+----+-----
Australasia (unaudited)
--------------------------------------------------------------------------------------------------
P&L amounts in EUR
million

                 Q4 2023       Q4 2022  ?% Organic ?%         FY 2023       FY 2022  ?% Organic ?%
 Revenue            54.0          45.1 20%        29%           192.9         161.9 19%        27%

Gross
Profit 5.5 4.7 15% 24% 20.4 16.2 26% 34%
Gross
margin 10.1% 10.5% 10.6% 10.0%
Operating

 costs               3.8           3.5  9%        14%            15.1          12.9 17%        25%
 EBIT                1.7           1.2 38%        53%             5.3           3.3 62%        72%
 EBIT %             3.1%          2.7%                           2.7%          2.0%

Average
directs 1,670 1,479 13% 1,575 1,375 15%
Average
indirects 129 109 18% 124 107 16%
Ratio
direct /
Indirect 12.9 13.5 12.7 12.9
(Organic change is measured by excluding the impact of currencies, acquisitions,
disposals and by adjusting for working days)
Australasia includes Australia and Papua New Guinea.
The strong performance continued in Australasia, especially in mining and conventional energy. Leveraging the growth is resulting in an increased conversion and increased profitability.
We have joined forces with the small expert team of Advance Careers, a boutique agency specialized in energy and sustainability recruitment. Advance Careers' existing staff, clients and contracts are incorporated into Brunel from January 2024.
Middle East & India (unaudited)
----------------------------------------------------------------------------------------------------
P&L amounts in EUR
million

                 Q4 2023       Q4 2022   ?% Organic ?%         FY 2023       FY 2022   ?% Organic ?%
 Revenue            44.0          39.8  10%        18%           160.7         143.3  12%        17%

Gross
Profit 6.1 7.2 -15% -10% 22.6 23.9 -6% -2%
Gross
margin 13.8% 18.0% 14.1% 16.7%
Operating

 costs               2.5           2.6  -4%         1%            10.3           9.6   7%        11%
 EBIT                3.6           4.6 -22%       -16%            12.3          14.3 -14%       -10%
 EBIT %             8.2%         11.6%                            7.6%          9.9%

Average
directs 1,982 2,281 -13% 2,103 2,235 -6%
Average
indirects 173 153 13% 167 139 20%
Ratio
direct /
Indirect 11.5 14.9 12.6 16.0
(Organic change is measured by excluding the impact of currencies, acquisitions,
disposals and by adjusting for working days)
Middle East & India includes Qatar, Dubai, Kuwait, Iraq and India.
Our activities on yards for construction in Dubai were the main driver of the growth in Q4, and the outlook for the region remains very promising. The project
in which we experienced a delay earlier in 2023, started in 2024. Gross margin decreased as a result of a change in the project mix, and the completion of a higher margin project in Q3. The region continues to deliver an outstanding conversion and strong profitability.
Americas (unaudited)
-------------------------------------------------------------------------------------------------
P&L amounts in EUR
million

                Q4 2023       Q4 2022  ?% Organic ?%         FY 2023       FY 2022  ?% Organic ?%
 Revenue           43.3          40.4  7%        13%           177.8         146.6 21%        26%

Gross
Profit 6.2 5.6 12% 18% 24.8 19.9 25% 29%
Gross
margin 14.4% 13.8% 14.0% 13.6%
Operating

 costs              4.7           4.6  2%         8%            20.3          17.3 17%        21%
 EBIT               1.5           1.0 52%        62%             4.5           2.6 76%        84%

EBIT % 3.4% 2.4% 2.6%