Returning to Profitability through Investment Reallocation, Productivity Improvements and a Company-Wide Cost Review

「Operating profit was ¥201.278 million, up 84.4% year on year, and ordinary profit was ¥207.076 million, up 79.5%.」

「Meanwhile, the AX Consulting business was a factor behind the decline in profit during the interim consolidated accounting period due to the lag in monetization resulting from its hiring-first business model. The business is expected to contribute to profit from the second half of the fiscal year.」

「Operating profit for the consolidated fiscal year was ¥109.169 million, up 44.7% year on year.」

「As a result, revenue for the six months ended the interim period was ¥2,256.535 million, up 2.0% year on year, operating profit was ¥50.120 million, compared with an operating loss of ¥2.597 million in the same period of the previous year, ordinary profit was ¥51.824 million, compared with an ordinary loss of ¥1.742 million, and interim net income attributable to owners of the parent was ¥47.657 million, compared with an interim net loss attributable to owners of the parent of ¥11.666 million.」

「In the consolidated fiscal year, the company achieved full-year operating profit of ¥75 million through structural reforms, including disciplined investment, the implementation of productivity improvement measures and the absorption merger of its subsidiary 株式会社ワークスタイルラボ conducted in January 2024.」

「During the nine months ended the third quarter, the Company achieved an operating profit of ¥43.279 million while continuing to pursue disciplined investment and productivity improvement measures, and progressed as planned toward full-year operating profitability.」

「During the three months ended the second quarter, the Company achieved an operating profit of ¥51.603 million while continuing to pursue disciplined investment and productivity improvement measures, and progressed as planned toward full-year operating profitability. In its businesses, gross profit per employee increased as the organisational framework was strengthened, while ongoing reviews of selling, general and administrative expenses substantially improved profitability.」

「We are also continuing to pursue disciplined investment and productivity improvement measures. We expect to achieve operating profitability for the month of July, and are progressing as planned toward operating profitability for the full fiscal year.」

「The Company recorded an operating loss and negative operating cash flow for the fiscal year under review, and circumstances or events existed at that point that raised significant doubt about the Company's ability to continue as a going concern. However, the operating loss narrowed for 3 consecutive quarters, and the Company recorded an operating profit in the fourth quarter from January to March 2023.」

「Although the operating loss has narrowed for 3 consecutive quarters, the plan to record an operating profit in the fourth quarter (January to March 2023) and achieve full-year profitability in the following fiscal year is progressing smoothly and remains unchanged.」

「The Company planned to record an operating profit in the fourth quarter (January to March 2023) and achieve full-year profitability in the following fiscal year.」

「During the three months ended the first quarter, the Company reviewed its business structure and organisational framework to achieve sustainable profitability and advanced its growth strategy for its 2 core businesses.」

「The Company will focus on the 2 businesses to further accelerate growth, improve company-wide profitability by fully withdrawing from the managed services business, and aim to achieve sustainable profitability from the fourth quarter onward.」

「As a result of continuing initiatives to review company-wide costs, including the allocation of investment and productivity improvements, the company returned to profitability in the consolidated fiscal year.」