Risk of Deteriorating Profitability and Delivery Delays in System Development Projects
First written in FY2016. 14 of 33 entries say "Restated". Latest entry: FY2026.
Comture moved to the "Worse" side of this theme in 2020, 1 year before the typical company in this theme (2021).
The whole theme swung hardest in 2020: 6 of 10 companies on the "Worse" side.
3 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Provision for loss on construction contracts 9 —」
The provision for loss on construction contracts decreased from ¥9 million at the end of the previous fiscal year to nil at the end of the fiscal year ending March 2026. The balance-sheet balance related to past low-profitability projects and future loss risk has been eliminated. - FY2025MitigatedAnnual report
「Provision for loss on construction contracts 11 △5」
The provision for loss on construction contracts decreased from ¥14 million at the end of the previous fiscal year to ¥9 million at the end of the current fiscal year, while the provision recognised decreased from ¥11 million to △¥5 million. The balance-sheet balance related to the risk of deteriorating project profitability declined. - FY2025-H1MitigatedAnnual report
「Provision for loss on construction contracts 14 2」
The provision for loss on construction contracts decreased from ¥14 million at the end of the previous fiscal year to ¥2 million at the end of the current interim period. The balance-sheet balance related to past low-profitability projects and future loss risk has declined. - FY2024MaterialisedAnnual report
「Provision for loss on construction contracts 2 14」
The provision for loss on construction contracts increased from ¥2 million at the end of the previous fiscal year to ¥14 million, and the provision recognised during the current period was ¥11 million. The risk from low-profitability projects previously described as having converged and been resolved has reappeared on the balance sheet as an increase in the provision. - FY2024-Q2MitigatedAnnual report
「The Business Solutions business increased both revenue and gross profit due to growth in SAP-related businesses, including the conversion to S/4HANA through cross-group employee resource shifts based on reskilling programs, increased demand related to the financial sector, and the resolution of trouble projects that arose in the previous consolidated fiscal year.」
The company explained that the trouble cases arising in the previous fiscal year had been resolved, reducing the impact of past project problems and deteriorating profitability. - FY2024-Q1MitigatedAnnual report
「Provision for loss on construction contracts 2 -」
The provision for loss on construction contracts declined from ¥2 million at the end of the previous consolidated fiscal year to none at the end of the first quarter. The balance-sheet balance associated with previously arising low-profitability projects and the risk of future losses has been eliminated. - FY2023-Q3MaterialisedAnnual report
「Provision for loss on construction contracts 5 17」
The provision for loss on construction contracts increased from ¥5 million at the end of the previous consolidated fiscal year to ¥17 million at the end of the third quarter, indicating that the risk of deteriorating profitability and future losses in system development projects continues to be reflected on the balance sheet. - FY2023-Q2MitigatedAnnual report
「As a result of efforts including bringing new employees up to full productivity and resolving low-profitability projects」
As a response to the previously arising risk of deteriorating profitability, the company explained that it worked to resolve low-profitability projects. The provision for loss on construction contracts declined from ¥5 million at the end of the previous consolidated fiscal year to none at the end of the second quarter. - FY2023-Q1RestatedAnnual report
「During the first quarter of the current consolidated cumulative period, there were no occurrences of matters that could materially affect investors’ investment decisions among the matters relating to the business and financial position described in this quarterly report, nor were there any material changes to the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」
The company summarizes that there were no material changes in business risks, including the risk of deteriorating profitability and delivery delays in system development projects. The provision for loss on construction contracts declined from ¥5 million at the end of the previous fiscal year to ¥2 million. - FY2022MaterialisedAnnual report
「Provision for loss on construction contracts ¥5 million」
In connection with the risk of deteriorating profitability and future losses in system development projects, a provision for loss on construction contracts of ¥5 million and an expense recognized for the provision of the same amount were recorded at the end of the consolidated fiscal year. The company also explained that no contract assets were expected to generate future losses. - FY2022-Q3RestatedAnnual report
「During the cumulative third quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that could materially affect investors’ decisions, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」
The company summarizes that there were no material changes in business risks, including the risk of deteriorating profitability and delivery delays in system development projects. - FY2022-Q2RestatedAnnual report
「During the cumulative second quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that could materially affect investors’ decisions, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」
The company summarizes that there were no material changes in business risks, and does not describe any additional occurrence or change in response regarding the risk of deteriorating profitability and delivery delays in system development projects. - FY2022-Q1MitigatedAnnual report
「The resolution of unprofitable projects that arose in the year-earlier period absorbed a substantial increase in personnel expenses to improve employee satisfaction and higher outsourcing costs associated with business expansion, resulting in a 41.7% year-on-year increase in profit.」
The company explained that the unprofitable projects that actually arose in the previous fiscal year had been resolved during the quarter. Gross profit increased 41.7% year on year, reducing the impact of deteriorating profitability. - FY2021MaterialisedAnnual report
「Despite the impact of unprofitable projects, revenue effectively increased 4.3% year on year, marking the eleventh consecutive period of growth, as a result of efforts including a further shift toward DX-related businesses and expanded sales activities through stronger vendor collaboration.」
The company states that the impact of unprofitable projects extended to the full-year results. Meanwhile, it explains that, as of the fiscal year-end, there were no contract assets for which future losses were expected. - FY2021-Q3MaterialisedAnnual report
「Meanwhile, revenue increased but growth slowed and gross profit declined due to postponements of cloud projects in the aviation and manufacturing industries, as well as higher costs and lost sales opportunities resulting from temporary unprofitable projects.」
Higher costs and lost sales opportunities resulting from unprofitable projects continued, causing gross profit in the Cloud Solutions business to decline 0.7% year on year. - FY2021-Q2MaterialisedAnnual report
「Gross profit declined 4.5% due largely to higher costs from unprofitable projects. The company explained that the unprofitable projects were temporary and had all been resolved.」
The risk of deteriorating profitability in system development projects materialized during the quarter, reducing gross profit by 4.5%. Meanwhile, the company explained that the unprofitable projects were temporary and had all been resolved. - FY2021-Q1WorsenedAnnual report
「Meanwhile, although revenue increased during the nine-month consolidated period, gross profit declined due to the impact of lower IT investment in the aviation and manufacturing industries and the occurrence of temporary unprofitable projects.」
The previously disclosed risk of deteriorating profitability in system development projects arose during the quarter in the form of temporary unprofitable projects, putting downward pressure on gross profit and operating profit while revenue increased. - FY2020MaterialisedAnnual report
「Although some unprofitable projects arose」
The company states that the previously disclosed risk of deteriorating profitability in system development projects actually materialized during the fiscal year in the form of some unprofitable projects. A provision for loss on construction contracts of ¥29.748 million was also recognized. - FY2020-Q3RestatedAnnual report
「During the cumulative third quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that could materially affect investors’ decisions, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」
The company summarizes that there were no material changes in business risks, and does not describe any additional occurrence or change in response regarding the risk of deteriorating profitability and delivery delays in system development projects. - FY2020-Q2RestatedAnnual report
「During the cumulative second quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that could materially affect investors’ decisions, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」
The company summarizes that there were no material changes in business risks, and does not describe any additional occurrence or change in response regarding the risk of deteriorating profitability and delivery delays in system development projects. - FY2020-Q1RestatedAnnual report
「During the first quarter of the current consolidated cumulative period, there were no occurrences of matters that could materially affect investors’ investment decisions among the matters relating to the business and financial position described in this quarterly report, nor were there any material changes to the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」
The company summarizes that there were no material changes in business risks, and does not describe any additional occurrence or change in response regarding the risk of deteriorating profitability and delivery delays in system development projects. - FY2019-Q3RestatedAnnual report
「During the cumulative third quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that could materially affect investors’ decisions, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」
The company summarizes that there were no material changes in business risks. No additional occurrence or change in response is described regarding the risk of deteriorating profitability and delivery delays in system development projects. - FY2019-Q2RestatedAnnual report
「During the cumulative second quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that could materially affect investors’ decisions, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」
The company summarizes that there were no material changes in business risks, and does not describe any additional occurrence or change in response regarding the risk of deteriorating profitability and delivery delays in system development projects. - FY2019-Q1RestatedAnnual report
「During the first quarter of the current consolidated cumulative period, there were no occurrences of matters that could materially affect investors’ investment decisions among the matters relating to the business and financial position described in this quarterly report, nor were there any material changes to the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」
The company summarizes that there were no material changes in business risks, and does not describe any additional occurrence or change in response regarding the risk of deteriorating profitability and delivery delays in system development projects. - FY2018RestatedAnnual report
「While improving the accuracy of estimates at the time of order acceptance and rigorously managing processes, our Group's policy when entering into contracts is to avoid large, comprehensive contracts extending over long periods. Instead, it seeks to minimize the impact by dividing them into multiple individual contracts, or to obtain partial acceptance and secure additional orders for added or modified specifications.」
The company continues to disclose risks including excess labor hours and schedule overruns, deteriorating profitability, delivery delays, defects and liability for damages, and provides details on its response policy, including improving estimate accuracy, process management, dividing contracts and partial acceptance. - FY2018-Q3RestatedAnnual report
「During the cumulative third quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that could materially affect investors’ decisions, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」
The company summarizes that there were no material changes in business risks. No additional occurrence or change in response is described regarding the risk of deteriorating profitability and delivery delays in system development projects. - FY2018-Q2RestatedAnnual report
「During the cumulative second quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that could materially affect investors’ decisions, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」
The company summarizes that there were no material changes in business risks. No additional occurrence or change in response is described regarding the risk of deteriorating profitability and delivery delays in system development projects. - FY2018-Q1RestatedAnnual report
「During the first quarter of the current consolidated cumulative period, there were no occurrences of matters that could materially affect investors’ investment decisions among the matters relating to the business and financial position described in this quarterly report, nor were there any material changes to the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」
The company summarizes that there were no material changes in business risks. No additional occurrence or change in response is described regarding the risk of deteriorating profitability and delivery delays in system development projects. - FY2017-Q3RestatedAnnual report
「Provision for loss on construction contracts 11,421」
While stating that there were no material changes in business risks, the quarterly consolidated balance sheet includes a provision for loss on construction contracts of ¥11.421 million. There is no explanation that the risk arose in a specific project. - FY2017-Q2MaterialisedAnnual report
「Provision for loss on construction contracts 19,846」
A provision for loss on construction contracts of ¥19.846 million was recognized on the quarterly consolidated balance sheet, increasing from none at the end of the previous consolidated fiscal year. The risk disclosure states that there were no material changes and does not specify a connection between the provision and any particular project or cause. - FY2016First statedAnnual report
「Projects may exceed the estimated labor hours and schedule at the time of order acceptance because they cannot be completed using the planned technologies, package software or other resources.」
The company discloses risks including excess labor hours and schedule overruns, deteriorating profitability, delivery delays, and liability for damages related to defects, and describes measures such as improving estimate accuracy and process management.