Risk of Dependence on the Payroll Business and Failure to Diversify
First written in FY2017. 4 of 14 entries say "Restated". Latest entry: FY2026.
Ecomic moved to the "Worse" side of this theme in 2024, 1 year after the typical company in this theme (2023).
The whole theme swung hardest in 2025: 23 of 63 companies on the "Worse" side.
7 other companies' latest entry also says "Reframed".
- FY2026ReframedAnnual report
「Although the Company has a certain level of competitiveness in its BPaaS business, which is centered on payroll processing, it recognizes that the high degree of dependence on a single business could become a business risk in the future. Accordingly, the Company considers it an important task to diversify its earnings base and strengthen its business foundation by developing new services based on synergies with existing businesses and expanding into HR and labor-related BPO services other than payroll processing through collaboration with external SaaS companies.」
The Company has reframed the previous risk of dependence on the BPO business as dependence on a single business centered on payroll processing, while specifying diversification measures through new service development and collaboration with external SaaS companies. - 2026-05-29AdvancedGeneral Meeting of Shareholders
「当社は、給与計算を中心とする人事関連BPaaS事業において一定の競争力を有しているものの、単一事業への依存度が高いことは、将来的な事業リスクとなり得るものと認識しております。」
単一事業依存を将来リスクとして明示し、収益基盤の多様化を課題としている。 - FY2025WorsenedAnnual report
「The BPO Business accounted for 99.5% of the Group’s revenue in its 28th fiscal year, from 1 April 2024 to 31 March 2025.」
Revenue dependence on the BPO business increased from 95.2% in the previous fiscal year to 99.5%, placing the risk of failure to diversify on a more clearly quantified footing. - FY2025-H1WorsenedAnnual report
「The Group operates the BPO business and the software and hardware development business. As the BPO business is its principal business and the software and hardware development business has become quantitatively immaterial, the latter is presented as Other.」
The BPO business is the principal business, while the software and hardware development business has become quantitatively immaterial. Numerically, external-customer revenue from the BPO business of ¥610,396 thousand accounts for most of total revenue of ¥616,005 thousand. - FY2024WorsenedAnnual report
「In the sales of the Group's 27th fiscal year, from 1 April 2023 to 31 March 2024, revenue from the BPO business accounted for 95.2%.」
Revenue dependence on the BPO business increased from 91.7% in the previous fiscal year to 95.2%. Measures to develop a second pillar continue, but the dependence risk is now quantified at a higher level. - FY2024-Q3Higher revenue dependence on the BPO businessAnnual report
「Revenue from external customers in the BPO business was ¥1,656,384 thousand, up 5.7% year on year.」
External-customer revenue for the cumulative third quarter was ¥1,656,384 thousand in the BPO business and ¥1,743,951 thousand overall, meaning that the BPO business accounted for approximately 95.0% on a simple calculation. Compared with the disclosure that the BPO business accounted for 91.7% of revenue in the previous consolidated fiscal year, revenue dependence on the BPO business increased. - FY2023MitigatedAnnual report
「In the sales of the Group's 26th fiscal year, from 1 April 2022 to 31 March 2023, revenue from the BPO business accounted for 91.7%. When dependence on a particular business is high, as it is currently, the Group may pursue more stable management by diversifying its businesses.」
Following the consolidation of 株式会社ビズライト・テクノロジー, dependence declined from payroll business revenue accounting for 100% of sales to BPO business revenue accounting for 91.7%. However, the disclosure states that dependence on the BPO business remains high. - FY2023-Q2RestatedAnnual report
「During the first quarter of the consolidated fiscal year, the Company entered the software and hardware development business, but its revenue remains dependent on its core BPO business. To develop a business that would become a second pillar, the Company made 株式会社ビズライト・テクノロジー a consolidated subsidiary in April 2022. However, if business diversification and earnings stabilization do not progress as planned, the Company will continue to depend on the BPO business. Accordingly, a slowdown in growth in that business could affect the Group's results.」
The Company continues to recognize the risk that revenue remains dependent on its core BPO business even after entering the software and hardware development business. - FY2023-Q1ReframedAnnual report
「The Company has entered the software and hardware development business, but its revenue remains dependent on its core BPO business. To develop a business that would become a second pillar, the Company made 株式会社ビズライト・テクノロジー a consolidated subsidiary in April 2022. However, if business diversification and earnings stabilization do not progress as planned, the Company will continue to depend on the BPO business.」
The description was revised from the previous reference to dependence on the payroll business to state that dependence on the core BPO business remains even after entering the software and hardware development business. - FY2022Acquisition to develop a second pillarAnnual report
「In the sales of the Group's 25th fiscal year, from 1 April 2021 to 31 March 2022, revenue from the payroll business accounted for 100%. To develop a business that would become a second pillar, the Group acquired shares in 株式会社ビズライト・テクノロジー, now a consolidated subsidiary, in April 2022. However, if business diversification and earnings stabilization do not progress as planned, the Group will continue to depend on the payroll business.」
While showing a revenue structure in which the payroll business accounts for 100% of sales, the disclosure states that shares were acquired as a measure to develop a second pillar. No change in the revenue mix after the acquisition has yet been shown. - FY2020RestatedAnnual report
「In the sales of the Group's 23rd fiscal year, from 1 April 2019 to 31 March 2020, revenue from the payroll business accounted for 100%. Although the Group plans to develop a business that will become a second pillar, if business diversification and earnings stabilization do not progress as planned, the Group will continue to depend on the payroll business.」
The Group has reconfirmed its revenue structure dependent on the payroll business, which accounts for 100% of sales, and the risk that this dependence will continue if development of a second pillar does not progress as planned. - FY2019RestatedAnnual report
「In the sales of the Group's 22nd fiscal year, from 1 April 2018 to 31 March 2019, revenue from the payroll business accounted for 100%. Although the Group plans to develop a business that will become a second pillar, if business diversification and earnings stabilization do not progress as planned, the Group will continue to depend on the payroll business.」
The Group has reconfirmed its revenue structure dependent on the payroll business, which accounts for 100% of sales, and the risk that this dependence will continue if development of a second pillar does not progress as planned. - FY2018RestatedAnnual report
「In the sales of the Group's 21st fiscal year, from 1 April 2017 to 31 March 2018, revenue from the payroll business accounted for 100%. Although the Group plans to develop a business that will become a second pillar, if business diversification and earnings stabilization do not progress as planned, the Group will continue to have a high degree of dependence on the payroll business.」
The Group continues to have a revenue structure dependent on the payroll business, which accounts for 100% of sales, and faces the risk associated with failure to develop a second pillar as planned. - FY2017First statedAnnual report
「In the sales of the Group's 20th fiscal year, from 1 April 2016 to 31 March 2017, revenue from the payroll business, its principal business, accounted for 100%. Although the Group plans to develop a business that will become a second pillar, if business diversification and earnings stabilization do not progress as planned, the Group will continue to have a high degree of dependence on the payroll business.」
The Group's payroll business accounts for 100% of revenue, highlighting the risk that dependence will continue if development of a second pillar and diversification do not progress as planned.