Cost burden from rising personnel costs at the Singapore subsidiary and yen depreciation
First written in FY2024-Q3. 2 of 4 entries say "Materialised", first in FY2024-Q3. Latest entry: FY2025.
1 other company's latest entry also says "Mitigated".
- FY2025MitigatedAnnual report
「Following the completion of the operational downsizing of consolidated subsidiary TeamSpirit Singapore Pte. Ltd., we recorded as income a reversal of the provision for business restructuring expenses for costs that are no longer expected to be incurred.」
The Singapore subsidiary completed the downsizing of its operations, and costs that were no longer expected to be incurred were reversed from the provision for business restructuring expenses recorded in the previous fiscal year. - FY2025-H1MitigatedAnnual report
「Operating profit amounted to ¥134 million (compared with an operating loss of ¥80 million in the same period of the previous year), mainly due to cost rationalization accompanying the downsizing of the Singapore subsidiary's operations and the curtailment of advertising expenses following a review of cost effectiveness.」
The company explained that downsizing the Singapore subsidiary's operations and rationalizing costs in response to the increased cost burden from higher personnel costs and yen depreciation contributed to the return to operating profitability. - FY2024MaterialisedAnnual report
「Funds generated from operating activities amounted to ¥68 million (compared with an outflow of ¥6 million in the previous consolidated fiscal year). This was mainly because, while we recorded a net loss before income taxes of ¥201 million, we recorded deferred revenue of ¥195 million in line with the increase in orders and a provision for business restructuring expenses of ¥112 million associated with downsizing the Singapore subsidiary's operations.」
In response to the increased cost burden at the Singapore subsidiary due to higher personnel costs and the depreciation of the yen, the company proceeded with operational downsizing and recorded a provision for business restructuring expenses of ¥112 million. - FY2024-Q3MaterialisedAnnual report
「At the subsidiary responsible for developing our products, the increase in personnel costs and the higher cost burden resulting from the sharp depreciation of the yen have become pronounced. Accordingly, we are reviewing our development structure and seeking to rationalize the cost burden by scaling down the subsidiary's operations and expanding collaboration with domestic engineers and external partners. In the fourth quarter of the fiscal year ended August 2024, we expect to record ¥130 million in various costs, including retirement payments, as business restructuring expenses under extraordinary losses, for the purpose of facilitating a smooth handover and other measures to complete the operational downsizing smoothly.」
The pronounced increase in the Singapore subsidiary's cost burden due to higher personnel costs and the sharp depreciation of the yen led to the downsizing of its operations, a review of the development structure, and the expected recognition of ¥130 million in business restructuring expenses.