Recognition of Extraordinary Losses and a Deferred Tax Gain, and Revisions to the Consolidated Earnings Forecasts for the Fiscal Year Ending October 2026 (Interim Period and Full Year)
NATIONAL CAR PARKS LIMITED (UK subsidiary) and PARK24 Co.,Ltd. (standalone and consolidated)
The parking business in the UK (UK business) and other overseas parking businesses
The Company resolved to restructure its UK business after NATIONAL CAR PARKS LIMITED commenced insolvency rehabilitation proceedings. The Company is also conducting a review of its other overseas parking businesses.
The Company expects to record a ¥25,000 million extraordinary loss related to the restructuring of the UK business, an extraordinary loss of approximately ¥3,000 million related to its review of other overseas parking businesses, and a deferred tax gain of ¥30,000 million. Net income attributable to owners of the parent for the interim period is expected to be ¥19,000 million lower than the previous forecast of ¥9,000 million, at a revised forecast of ¥19,000 million net loss. For the full year, it is expected to increase from the previous forecast of ¥24,000 million to a revised forecast of ¥26,000 million.
Extraordinary losses: the second-quarter consolidated accounting period of the fiscal year ending October 2026. Deferred tax gain: the fourth-quarter consolidated accounting period of the fiscal year ending October 2026 (1 August 2026 to 31 October 2026).
The Company has revised its consolidated earnings forecasts for the interim period and full year. For the interim period, the forecasts are net sales of ¥201,500 million, operating income of ¥16,200 million, ordinary income of ¥14,500 million, and an interim net loss attributable to owners of the parent of ¥19,000 million. For the full year, the forecasts are net sales of ¥410,000 million, operating income of ¥41,500 million, ordinary income of ¥38,500 million, and net income attributable to owners of the parent of ¥26,000 million. The annual dividend forecast remains unchanged at ¥65 per share.
Related procedures
Insolvency rehabilitation proceedings
The Company will proceed with the restructuring of its UK business and expects to record an extraordinary loss in the second-quarter consolidated accounting period of the fiscal year ending October 2026 and a deferred tax gain in the fourth-quarter consolidated accounting period of the same fiscal year.
| Item | Details |
|---|---|
| Event name | Recognition of Extraordinary Losses and a Deferred Tax Gain, and Revisions to the Consolidated Earnings Forecasts for the Fiscal Year Ending October 2026 (Interim Period and Full Year) |
| Date of occurrence | 17 March 2026 (the date on which the Company resolved to restructure its UK business and announced the expected accounting treatment and revisions to its earnings forecasts) |
| Date recognized / date notice received | 16 March 2026 (the date on which the UK subsidiary announced the commencement of insolvency rehabilitation proceedings) |
| Subject Entity | NATIONAL CAR PARKS LIMITED (UK subsidiary) and PARK24 Co.,Ltd. (standalone and consolidated) |
| Target Locations / Products | The parking business in the UK (UK business) and other overseas parking businesses |
| Cause | The Company resolved to restructure its UK business after NATIONAL CAR PARKS LIMITED commenced insolvency rehabilitation proceedings. The Company is also conducting a review of its other overseas parking businesses. |
| Amount of Impact on Business Performance | The Company expects to record a ¥25,000 million extraordinary loss related to the restructuring of the UK business, an extraordinary loss of approximately ¥3,000 million related to its review of other overseas parking businesses, and a deferred tax gain of ¥30,000 million. Net income attributable to owners of the parent for the interim period is expected to be ¥19,000 million lower than the previous forecast of ¥9,000 million, at a revised forecast of ¥19,000 million net loss. For the full year, it is expected to increase from the previous forecast of ¥24,000 million to a revised forecast of ¥26,000 million. |
| Accounting period in which recognized | Extraordinary losses: the second-quarter consolidated accounting period of the fiscal year ending October 2026. Deferred tax gain: the fourth-quarter consolidated accounting period of the fiscal year ending October 2026 (1 August 2026 to 31 October 2026). |
| Impact on Earnings Forecast | The Company has revised its consolidated earnings forecasts for the interim period and full year. For the interim period, the forecasts are net sales of ¥201,500 million, operating income of ¥16,200 million, ordinary income of ¥14,500 million, and an interim net loss attributable to owners of the parent of ¥19,000 million. For the full year, the forecasts are net sales of ¥410,000 million, operating income of ¥41,500 million, ordinary income of ¥38,500 million, and net income attributable to owners of the parent of ¥26,000 million. The annual dividend forecast remains unchanged at ¥65 per share. |
| Type of litigation or proceeding | Insolvency rehabilitation proceedings |
| Outlook | The Company will proceed with the restructuring of its UK business and expects to record an extraordinary loss in the second-quarter consolidated accounting period of the fiscal year ending October 2026 and a deferred tax gain in the fourth-quarter consolidated accounting period of the same fiscal year. |
Items this document does not state (14)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The Company resolved to restructure its UK business after its UK subsidiary, NATIONAL CAR PARKS LIMITED, commenced insolvency rehabilitation proceedings. In connection with this, the Company expects to record as an extraordinary loss the portion of its cumulative investment in the UK business that has not been recognized as a loss in prior years, as well as losses expected from its review of the overseas parking business. In addition, because the restructuring of the UK business will allow the entire cumulative investment in the UK subsidiary to be treated as tax-deductible, the Company expects to record a deferred tax gain.