Dutch global energy staffing firm Brunel reported revenue today of €344.2 million, up 14% on an organic basis in the fourth quarter of 2023 compared to the prior-year period. Reported revenue was up 9%, with a negative impact from working days of 2% and a negative impact of currency effects of 3%.

Jilko Andringa, CEO of Brunel said, “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,” Andringa said. “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.”

Revenue by region

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.

In the Netherlands, revenue increased as a result of higher headcount and rates, slightly offset by a lower productivity due to a higher bench.

Australasia includes Australia and Papua New Guinea. The group’s strong performance continued in Australasia, especially in mining and conventional energy. Leveraging the growth is resulting in an increased conversion and increased profitability.

Middle East & India includes Qatar, Dubai, Kuwait, Iraq and India. 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 Americas includes Brazil, Canada, USA, Guyana and Suriname. Most of the countries achieved strong growth, in the group’s main markets conventional energy, renewable energy and mining. Supported by the growth, in combination with cost control, conversion and profitability is improving.

Asia includes Singapore, China, Hong Kong, South Korea, Taiwan, Japan, Indonesia, Thailand and Malaysia. The strong trend in mining in Indonesia and at fabrication yards in China continued, resulting in increased gross margins, conversion and profitability. This region is benefitting significantly from the group’s position in renewable energy and achieving fast growth in yard construction projects in this vertical.

Rest of World includes Taylor Hopkinson, Belgium and other energy activities in Europe. Until June 2022, this region also included Russia which activities were divested.

Despite the challenging market circumstances, and perm revenues decreasing 26% year-on-year, Taylor Hopkinson reported revenue growth. Brunel added that it is seeing the first signs of a slow recovery in the perm market for Taylor Hopkinson.

Brunel’s energy activities in Europe & Africa continued their strong performance in a strong market.

After a slight adjustment of its payment plan, Brunel said it has now received the first instalments relating to the divestments of its activities in Russia.

For the full year 2023, Brunel reported revenue of €1.3 billion, up 13% on a reported basis and 18% organically.

Looking ahead, Brunel said it started the year with high single digit revenue growth and expects the current trend to continue, while it is starting to see the first benefits of its cost saving initiatives.

Brunel International shares last traded at €10.50, down 5.23% on the day and 3.55% above its 52-week low of €10.14, set on 1 February 2024. The company has a market cap of €536.09 million.