Brunel Boosts EBIT With 50% in 2006

Dit is een origineel persbericht.

Brunel Boosts EBIT With 50% in 2006

AMSTERDAM

Net turnover up 28%. Net income 2006 increased to an amount of EUR 26.3

million including a book profit on disposal of a subsidiary of EUR 2.0

million. Earnings per share EUR 1.16 (2005: EUR 0.70). Proposed dividend EUR

0.50 per share (2005: EUR 0.30).

Brunel International

X EUR

1 million 2006 2005 Change %

Turnover 499.1 390.8 28%

Gross Profit 115.3 88.4 30%

Gross margin 23.1% 22.6%

Ebit 35.3 23.5 50%

Ebit % 7.1% 6.0%

Net income 26.3 15.9 65%

Highlights 2006:

- Turnover of Brunel International increased by 28% to EUR 499

million

- Gross profit up by 30% to EUR 115 million

- EBIT jumps from EUR23.5 million to EUR 35.3 million, +50%

- Net income increased by 65%.

- Brunel Netherlands: turnover up 28%

- Brunel Germany: turnover up 40%

- Brunel Energy: turnover up 27%

Over 2006, Brunel International achieved a

turnover of EUR 499 million; up 28% compared to 2005 (EUR 391 million). The

gross profit increased by 30%, from EUR 88 million to

EUR 115 million. Gross margin further climbed to 23.1%. EBIT amounted to

EUR 35.3 million, being 7.1% of turnover (2005: 6.0%). The company realised a

net income of EUR 26.3 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, ICT, Finance, Legal and Insurance & Banking. Brunel offers its core

activities globally in almost 30 countries. Brunel Netherlands, Brunel

Germany and Brunel Energy are the company's largest business regions. In 2006

these divisions accounted for 24%, 21% and 51%, respectively, of the global

net turnover.

All main business regions contributed significantly to the strong growth

in turnover. In 2006 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 2006.

Brunel International held on to a strong balance sheet. Solvency at

year-end 2006 was 64 %. The capitalised goodwill EUR 4 million, representing

less than 4% of the shareholders equity. Accounts receivable amount to EUR

105.4 million at 2006 year end (2005: EUR 78.4 million). Brunel's cash

position as at December 31st is EUR 25.1 million. Due to the strong business

growth the company's net cash flow amounted to EUR 4.1 million negative

(2005: EUR 9.5 million negative).

The average workforce of Brunel International increased by 28% from 4,796

in 2005 to an average of 6,148 in 2006. The number of fee-earners and service

organisation employees rose by 30% and 19% respectively.

Jan Arie van Barneveld, CEO of Brunel International: 'Brunel's global

achievements for 2006 are good and in line with our expectations. The strong

growth figures in all three main divisions demonstrate Brunel's ability and

eagerness to further expand its business. This makes Brunel International a

strong group we're proud of. The successes of Brunel International rely on

our employees, especially their loyalty, dedication and expertise to fulfil

our customers needs. We continue to share knowledge with our people and

improve processes throughout the group.'

Brunel Netherlands

Brunel Netherlands recorded a turnover figure of EUR 117.5 million, a 28%

growth compared to 2005

(EUR 91.9 million). The gross profit increased by 45% from EUR 31.5

million in previous year to EUR 45.5 million in 2006. Gross margin improved

with 4.5 percentpoint due to an increase of recruitment activities and better

productivity in the 2nd half of 2006. All business lines have increased their

turnover and gross profits.

Overhead costs increased by 18% to EUR 28.7 million. The leverage further

improved. Brunel Netherlands recorded an EBIT of EUR 16.8 million or 14.3% of

net turn over (2005: EUR 7.2 million or 7.8%).

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 2006 Brunel Germany achieved a turnover of EUR 104 million and a gross

profit of EUR 34.4 million, representing increases of 40% and 36%

respectively compared to 2005. The gross margin was pressurized due to

incidental business disruptions with BenQ and Airbus in the 4th quarter.

The overhead costs rose by 37% to EUR 24.4 million in 2006. The German

business infrastructure is now almost complete. EBIT increased with 33% or

EUR 2.4 million to EUR 9.9 million in 2006. The 2006 EBIT margin is 9.6%.

This percentage is expected to improve going forward.

The German market for technical project management and engineering

secondment is growing and we expect this to continue well into 2007. Brunel

Germany has with her competence centers 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 and its depth of knowledge in several niche markets which

sets us apart from our competitors.

Brunel Energy

Brunel Energy increased its net turnover by 27% to EUR 255.3 million

(2005: EUR 201.3 million). The gross profit was up 16%, from EUR 24.9 million

to EUR 28.8 million. The 2006 gross margin was 11.3%. A single large but low

yielding contract predominantly caused a low gross margin compared to the

previous year. Overhead costs increased with 30% to EUR 18.7 million (2005:

EUR 14.4 million). One-off costs of a reorganizational nature of

approximately EUR 1 million are included in the 2006 amount.

In its market segment Brunel Energy is the leading supplier for technical

expertise and capacity. Worldwide demand for energy continued during 2006.

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. On a longer term profit margins

will average between 11% to 12%. For 2007 the EBIT margin is expected at a

level between 5% and 6%.

Other regions

Other regions contributed to the global results in 2006. Brunel Belgium

and Brunel Canada booked a mutual turnover of EUR 22.4 million and a gross

profit of EUR 6.6 million resulting in an EBIT of EUR 0.7 million (2005: EUR

0.2 million).

Outlook for 2007

In the current circumstances the Brunel International Board of Directors

expects turnover figures in all main regions to grow significantly to

strongly in 2007. The operating profit percentages of both Brunel Germany and

Brunel Energy will improve. For the current year we expect a strong to

considerable increase of the EBIT compared to 2006.

The 2006 financial statements of Brunel International NV have not

been compiled yet. The 2006 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 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 a global company with some

6,800 employees and an annual turnover of EUR 500 million. The company is

listed at Euronext Amsterdam N.V.

Financial highlights (unaudited)

Profit

2006 2005 %

(X EUR 1,000)

Net turnover 499,070 390,780 28%

Gross profit 115,275 88,356 30%

Gross margin 23.1% 22.6%

Operating profit 35,276 23,500 50%

Operating profit % 7.1% 6.0%

Group result after taxes 24.185 15,969 51%

Result participations 2,517 0 -%

Group net income 26,702 15,969 67%

Net income for ordinary shareholders 26,274 15,885 65%

Workforce

Direct employees (average) 5,396 4,162 30%

Indirect employees (average) 752 634 19%

Total 6,148 4,796 28%

Direct employees (period end) 5,979 4,674 28%

Indirect employees (period end) 813 685 19%

Total 6,792 5,359 27%

Shares (in euros)

Earnings per share 1.16 0.70

Earnings per share (excluding result participations) 1.05 0.70

Condensed consolidated income statement

(unaudited)

2006 2005

(X EUR 1,000)

Net turnover 499,070 390.780

Direct personnel expenses 383,795 302,424

Gross profit 115,275 88,356

Indirect personnel expenses 44,346 37,624

Depreciation property, plant and equipment 2,981 2,090

Impairment 0 746

Other general and administrative expenses 32,672 24,396

Total operating costs 79,999 64,856

Operating profit 35,276 23,500

Interest income 57 550

Result before tax 35,333 24,050

Tax 11,148 8,072

Group result after tax 24,185 15,978

Result participations 2,517 -9

Group net income 26,702 15,969

Attributable to ordinary shareholders

Group net income 26,702 15,969

Minority interests -428 -84

Net income for ordinary shareholders 26,274 15,885

Basic earnings per share . 1.16 0.70

. the diluted earnings per share is equal to the basic earnings per share

Condensed consolidated balance sheet (unaudited)

2006 2005

(X EUR 1,000) December 31 December 31

Non-current assets

Goodwill 4,154 1,919

Property, plant and equipment 7,661 3,948

Software 740 489

Financial assets 593 65

Deferred tax assets 1,939 0

15,087 6,421

Current assets

Trade and other receivables 137,795 111,580

Income tax receivables 518 3,363

Cash 25,091 28,952

Total current assets 163,404 143,895

Current liabilities 61,557 48,605

Income tax payables 2,897 4,676

Total current liabilities 64,454 53,281

Working capital 98,950 90,614

Non-current liabilities

Deferred income tax liabilities 445 288

113,592 96,747

Group equity

Shareholder equity 113,205 96,683

Minority interest 387 64

113,592 96,747

Balance sheet total 178,491 150,316

Other balance sheet items / key figures

Current assets / current liabilities 2.54 2.70

Shareholder equity / total equity 63.4% 64.3%

Issued ordinary shares (x 1,000) 22,657 22,651

Condensed consolidated statement of changes in shareholders'equity

(unaudited)

2006 2005

Balance at 1 January 96,683 79,434

Exchange differences arising on -3,134 4,155

translation of foreign

operations

Net income recognised directly -3,134 4,155

in equity

Transfer to profit on disposal -557 0

foreign operations

Result financial year 26,274 15,885

Total recognised income and 22,583 20,040

expense for the year

Cash dividend -6,795 -3,389

Approprioation of result 0 0

Share based payments 414 250

Option rights exercised 320 348

Balance at 31 December 113,205 96,683

Condensed consolidated cash flow statement

(unaudited)

(X EUR 1,000) 2006 2005

Result before tax 35,333 24,050

Adjustments for:

Depreciations 2,981 2,090

Impairment 0 746

Interest income -57 -550

Share based payments 414 250

Changes in:

Receivables -28,941 -34,328

Current liabilities 8,085 6,873

Cash flow from operations 17,815 -869

Taxes -12,005 -2,617

Cash flow from operational activities 5,810 -3,486

Additions to property, plant, equipment

and software -4,532 -2,572

Disposals of property, plant and equipment 356 1

Acquisitions -246 -835

Proceeds from divestment of business 1,473 0

Financial assets -500 -74

Interest income 57 550

Cash flow from investments -3,392 -2,930

Re-issue of purchased ordinary shares 323 347

Minority interest -94 5

Dividend -6,795 -3,389

Cash flow from financial operations -6,566 -3,037

Net cash flow -4,148 -9,453

Cash position at start of financial period 28,952 36,609

Exchange rate fluctuations 287 1,796

Cash position at end of financial period 25,091 28,952

Primary reporting (unaudited)

Turnover Gross profit Operating profit

2006 2005 2006 2005 2006 2005

Netherlands 117,465 91,930 45,494 31,457 16,779 7,184

Worldwide 255,251 201,286 28,816 24,917 10,080 10,494

Energy

Germany 103,961 74,041 34,365 25,337 9,947 7,497

Other 22,393 23,523 6,600 6,645 681 153

regions

Corporate -2,211 -1,828

499,070 390,780 115,275 88,356 35,276 23,500

Employees

The total number of direct and indirect employees with the group

companies is set out

below:

Average 2006 2005

workforce

Direct Indirect Direct Indirect

Netherlands 1,359 246 997 225

Worldwide 2,511 230 1,998 187

Energy

Germany 1,256 195 883 144

Other 270 81 284 78

regions

5,396 752 4,162 634

Total 6,148 4,796

workforce

Workforce 2006 2005

31 December

Direct Indirect Direct Indirect

Netherlands 1,600 267 1,168 251

Worldwide 2,742 241 2,214 196

Energy

Germany 1,388 222 1,004 159

Other 249 83 288 79

regions

5,979 813 4,674 685

Total 6,792 5,359

workforce

Secondary reporting (unaudited)

Turnover Gross profit Operating profit

2006 2005 2006 2005 2006 2005

Engineering 169,514 124,751 59,433 43,599 18,086 13,104

Energy 255,252 201,286 28,816 24,921 10,080 10,494

ICT 38,850 36,747 12,743 9,021 3,824 2,305

Unallocated 35,454 27,996 14,283 10,814 3,286 -2,403

499,070 390,780 115,275 88,355 35,276 23,500

Employees

The total number of direct and indirect employees with the group

companies is set out below:

Average 2006 2005

workforce

Direct Indirect Direct Indirect

Engineering 2,084 335 1,548 255

Energy 2,511 230 1,998 187

ICT 468 64 332 52

Unallocated 333 123 284 140

5,396 752 4,162 634

Total 6,148 4,796

workforce

Workforce 2006 2005

31 December

Direct Indirect Direct Indirect

Engineering 2,275 364 1,757 283

Energy 2,742 241 2,214 196

ICT 525 64 356 56

Unallocated 437 144 347 150

5,979 813 4,674 685

Total 6,792 5,359

workforce

For further information: Jan Arie van Barneveld, CEO Brunel International, tel.: +31(0)20-312-50-00

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