Deteriorating Project Profitability
First written in FY2022. 4 of 8 entries say "Materialised", first in FY2023-Q3. Latest entry: FY2026.
The whole theme swung hardest in 2024: 17 of 54 companies on the "Worse" side.
23 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Provision for development losses 1 April 2025 － Increase during the period － Utilized for its intended purpose － 31 March 2026 －」
At the end of the consolidated fiscal year, the opening balance, increase during the period, utilization for its intended purpose and closing balance of the provision for development losses were all zero. - FY2026-H1MitigatedAnnual report
「Provision for development losses 1 April 2025 － Increase during the period － Utilized for its intended purpose － 30 September 2025 －」
The opening balance, increase during the period, utilization for its intended purpose and closing balance of the provision for development losses were all zero. The ¥34 million provision for development losses recorded in the previous interim period is not shown as a balance this time. - FY2025-H1MaterialisedAnnual report
「Increase during the period － 34 1,076 830 1,941」
A ¥34 million provision for development losses was recorded as an increase during the period, and a loss provision related to deteriorating project profitability was recognized again. - FY2024-Q3MaterialisedAnnual report
「Provision for development losses Increase during the period 1 Utilized for its intended purpose △10 31 December 2023 1」
While ¥10 million of the provision for development losses was utilized for its intended purpose, an additional ¥1 million was recorded during the period, leaving a balance of ¥1 million at the end of December 2023. A loss provision related to deteriorating project profitability continues to be recognized. - FY2024-Q2MitigatedAnnual report
「Provision for development losses 1 April 2023 10 Increase during the period － Utilized for its intended purpose △10 30 September 2023 －」
No increase was recorded in the provision for development losses during the period, ¥10 million was utilized for its intended purpose, and the balance was zero at the end of September 2023. - FY2023MaterialisedAnnual report
「31 March 2023 264 10 699 1,850 2,824」
A ¥10 million provision for development losses was recognized at the end of the fiscal year ended March 2023, and a loss provision related to deteriorating project profitability continued to be recognized. - FY2023-Q3MaterialisedAnnual report
「Increase during the period － 43 690 1,467 2,199」
A ¥43 million provision for development losses was recognized as an increase during the period, indicating that a loss provision related to the risk of deteriorating project profitability was actually recognized. - FY2022First statedAnnual report
「If the outlook for the costs or profitability of projects within the Group is inaccurate, actual costs may exceed estimated costs, resulting in deterioration in project profitability.」
The company identifies inaccurate labor-hour estimates, price competition, accepting orders with priority given to expanding market share and deterioration in profitability due to development issues, and cites strengthening estimation methods, reviews and quality control as countermeasures.