One-time expenses and lower earnings growth rate resulting from unprofitable projects
First written in FY2020-Q3. 2 of 5 entries say "Mitigated", first in FY2024-Q2. Latest entry: FY2025.
The whole theme swung hardest in 2025: 5 of 16 companies on the "Worse" side.
6 other companies' latest entry also says "Mitigated".
- FY2025MitigatedAnnual report
「During the period, revenue declined due in part to the reallocation of management resources to other businesses, while profitability improved in the core businesses of IT problem-solving support, project management engagements and system development.」
The Company states that profitability improved in the business related to previously unprofitable projects through the reallocation of management resources and a review of the project mix. - FY2024-Q3RestatedAnnual report
「Although the unprofitable project that continued from the first quarter was brought to an end in the second quarter, the business was affected by lost opportunities, missed sales opportunities because resources were allocated to the response, and delays in assigning personnel. As a result, revenue was ¥15,748 million, down 5.1% year on year, and operating profit was ¥1,670 million, down 39.6%.」
The unprofitable project itself was brought to an end, but its impact on performance from lost opportunities, missed sales opportunities and delays in assigning personnel remains. - FY2024-Q2MitigatedAnnual report
「Although the unprofitable project that continued from the first quarter was brought to a close in the second quarter, the resulting opportunity loss and the loss of business opportunities because resources were devoted to addressing the project, together with delays in assigning personnel, led to revenue of ¥10,453 million, down 3.8% year on year, and operating profit of ¥944 million, down 44.6%.」
The unprofitable project was brought to an end in the second quarter, and the direct risk has entered the resolution phase, but the impact on performance from lost opportunities, missed sales opportunities and delays in assigning personnel remained. - FY2024-Q1MaterialisedAnnual report
「An unprofitable project occurred in this category, but it is moving toward resolution.」
The occurrence of an unprofitable project was confirmed again this quarter and became a factor behind the decline in earnings in the Solution Design Business. At the same time, the Company states that the project is moving toward resolution. - FY2020-Q3First statedAnnual report
「The earnings growth rate declined because one-off costs were recorded during the third quarter of the consolidated fiscal year in connection with unprofitable projects, but we are working to strengthen our project management structure to recover.」
This is the first disclosure that unprofitable projects occurred in the Solution Design Business and that the earnings growth rate declined due to the recognition of one-off costs.