Risk of cost overruns and deteriorating project profitability in large-scale projects
First written in FY2020. 4 of 15 entries say "Materialised", first in FY2020. Latest entry: FY2026.
Nextgen moved to the "Worse" side of this theme in 2020, 3 years before the typical company in this theme (2023).
The whole theme swung hardest in 2024: 17 of 57 companies on the "Worse" side.
13 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Provision for loss on orders — ¥1.8 million」
The provision for loss on orders, which had no balance at the end of the preceding consolidated fiscal year, was recognized at ¥1.8 million at the end of the current consolidated fiscal year, once again reflecting expected future losses related to order contracts in the financial statements. - FY2026-H1Contract loss provision re-recognizedAnnual report
「Provision for loss on orders — ¥100 thousand」
The provision for loss on orders, which had no balance at the end of the preceding consolidated fiscal year, was recognized at ¥100 thousand at the end of the interim consolidated accounting period, reflecting expected losses related to order profitability in the financial statements once again. - FY2024Provision for contract losses balance reduced to zeroAnnual report
「Provision for loss on orders ¥400 thousand —」
The balance of the provision for loss on orders fell from ¥400 thousand at the end of the preceding consolidated fiscal year to zero at the end of the current consolidated fiscal year. - FY2024-Q3Decrease in balance from fiscal year-endAnnual report
「Provision for loss on orders ¥400 thousand ¥200 thousand」
The balance of the provision for loss on orders decreased from ¥400 thousand at the end of the preceding consolidated fiscal year to ¥200 thousand at the end of the third quarter. - FY2024-Q2Provision for contract losses balance reduced to zeroAnnual report
「Provision for loss on orders ¥400 thousand —」
The balance of the provision for loss on orders fell from ¥400 thousand at the end of the preceding consolidated fiscal year to zero at the end of the second quarter. - FY2024-Q1Increase in provision for loss on orders balanceAnnual report
「Provision for loss on orders ¥400 thousand ¥1.6 million」
The balance of the provision for loss on orders increased from ¥400 thousand at the end of the preceding consolidated fiscal year to ¥1.6 million at the end of the first quarter, continuing to reflect expected order-related profitability losses in the financial statements. - FY2023-Q3Provision for loss on orders balance: ¥5.1 millionAnnual report
「Provision for loss on orders — ¥5.1 million」
The balance of the provision for loss on orders was ¥5.1 million at the end of the third quarter, up from ¥2.6 million at the end of the preceding quarter. - FY2023-Q2Provision for loss on orders balance: ¥2.6 millionAnnual report
「Provision for loss on orders — ¥2.6 million」
A provision for loss on orders of ¥2.6 million was recognized at the end of the second quarter, reflecting expected order-related profitability losses in the financial statements. - FY2022-Q3Decrease in provision for loss on ordersAnnual report
「Provision for loss on orders — ¥7.3 million」
The balance of the provision for loss on orders was ¥7.3 million at the end of the third quarter, down from ¥15.3 million reported in the immediately preceding second-quarter report. - FY2022-Q2WorsenedAnnual report
「The provision for loss on orders increased by ¥15.3 million.」
The provision for loss on orders increased from zero at the end of the fiscal year to ¥15.3 million, reflecting expected order-related profitability losses in the financial statements. - FY2021-Q3MaterialisedAnnual report
「Provision for loss on orders ¥11.3 million」
At the end of the third quarter, a provision for loss on orders of ¥11.3 million was recognized, and expected order-related profitability losses continued to be reflected in the financial statements. - FY2021-Q2MaterialisedAnnual report
「The main factors behind the increase were a ¥408.6 million increase in short-term borrowings, an ¥11.4 million increase in the provision for loss on orders, and a ¥139.306 million increase in advances received included in "Other" under current liabilities.」
A provision for loss on orders of ¥11.4 million was recognized, reflecting expected order-related profitability losses in the financial statements. The text does not explain a direct causal relationship with cost overruns on large projects. - FY2020MaterialisedAnnual report
「A substantial cost overrun on projects involving large orders, license sales with high profit margins falling below plan, higher outsourcing costs mainly in product development and planning, and upfront investment of resources related to new businesses resulted in a substantial increase in costs.」
The Group stated that substantial cost overruns on large projects, together with license sales falling short of plan and higher outsourcing costs and upfront investment, reduced profit.