Sales Concentration Among Top Clients and Cessation of Repeat Business
First written in FY2022. 2 of 4 entries say "Restated". Latest entry: FY2025.
The whole theme swung hardest in 2020: 29 of 92 companies on the "Worse" side.
- FY2025ReframedAnnual report
「Our Group’s revenue tends to have a relatively high concentration among major client companies. We develop our sales strategy while factoring in the possibility that transactions may shrink or end because organizational transformation at major client companies is completed or management undergoes a generational change. However, if contracts with major clients involving substantial order amounts are not renewed, or if coaching sessions are delayed, this may affect the Group’s business and performance.」
The Group reframed the existing major-client concentration and termination risk in terms of revenue composition and added failure to renew contracts and delays in coaching sessions as risk factors. - FY2024-H1RestatedAnnual report
「No new business or other risks arose during the interim consolidated accounting period. There were also no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」
The Group stated that there were no new occurrences or material changes concerning revenue concentration among major clients or the risk of repeat business stopping. - FY2023RestatedAnnual report
「We are developing our sales strategy in anticipation of the possibility that transactions may shrink or end because organizational transformation at major client companies is completed or they discontinue our services following a generational change in management.」
The Group continues to identify revenue concentration among major clients and the risk of repeat business stopping following completion of transformation or management changes. - FY2022First statedAnnual report
「Our revenue also tends to have a high concentration among major client companies.」
Because projects for large companies are substantial, completion of organizational transformation or changes in management could reduce or end transactions and affect performance.