Risk of Contracted Projects Becoming Unprofitable
First written in FY2025. 2 of 3 entries say "Materialised", first in FY2026-H1. Latest entry: FY2026.
S&J moved to the "Worse" side of this theme in 2025, 4 years after the typical company in this theme (2021).
The whole theme swung hardest in 2025: 5 of 16 companies on the "Worse" side.
4 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「Provision for loss on orders — ¥185 thousand」
A ¥185 thousand provision for loss on orders was recognized, indicating that anticipated future losses related to unprofitable orders were reflected in the financial figures for the fiscal year. - FY2026-H1MaterialisedAnnual report
「This was mainly due to increases of ¥21.981 million in accrued corporate taxes and other taxes, ¥83.7 million in contract liabilities as orders for subscription sales remained firm, ¥7.042 million in provision for loss on orders, ¥4.556 million in accounts payable included in other current liabilities, and ¥43.942 million in consumption taxes payable and other taxes included in other current liabilities.」
The ¥7.042 million increase in the provision for loss on orders is disclosed as a financial figure, indicating that anticipated losses related to unprofitable orders have materialized. - FY2025First statedAnnual report
「If unexpected events occur or the number of work hours exceeds expectations, profitability will deteriorate. If the number of loss-making projects increases and continues for an extended period, this may worsen the cost-of-sales ratio and affect our business performance.」
The disclosure identifies as a new risk the deterioration in project profitability caused by work hours exceeding expectations or unexpected events, and the resulting impact on the cost-of-sales ratio and business performance.