Brunel International (BRNL) H2 2024 earnings summary

Executive summary

• FY 2024 revenue increased by 3% to €1,364.8 million, with organic growth of 2%, despite macroeconomic and geopolitical uncertainties impacting the second half.

• Underlying EBIT for FY 2024 was €58.6 million, down 6% (down 10% organically); net profit declined 6% to €30.2 million; EPS also down 6% to €0.59.

• Cost reduction plan executed in Q3 2024, lowering annual cost base by €20 million; new CFO to start in April 2025.

• Acquisitions of Advance Careers (Australia, ESG recruitment) and Equals (Netherlands, IT training for women) strengthened market position and expanded sustainability and IT capabilities.

• Strong free cash flow of €74.6 million, driven by improved client collections and cost reductions; net cash balance at year-end was €64.7 million.

Financial highlights

• Q4 2024 revenue was €334.5 million, down 3% (down 5% organically); Q4 gross profit was €61.8 million, down 7% (down 10% organically); gross margin for FY 2024 was 19.3%.

• EBIT margin for 2024 at 4.3% (down from 4.7% in 2023); conversion ratio (EBIT/GP) at 22.3%.

• Proposed dividend of €0.55 per share, payout ratio 93%, fully funded by free cash flow.

• Net cash balance at year-end was €64.7 million, up from €31.8 million.

• Financial expenses increased year-on-year due to higher overdraft usage and a tax settlement in Germany.

Outlook and guidance

• Q1 2025 expected to continue current trends; challenging economic conditions to persist, but lower cost base and operational efficiencies to partly offset impact.

• Still targeting EBIT over 6% by 2027, with 2024 EBIT at 4.3%; high single-digit revenue growth until 2027 remains feasible but not guided.

• Growth prospects in Americas, Middle East & India, and Australasia remain positive; strong project pipeline in renewables and new contracts expected to contribute from H1 2025.