Failure to recover initial investments and declining profit margins
First written in FY2022. 4 of 10 entries say "Worsened", first in FY2023-Q3. Latest entry: FY2026-H1.
2 other companies' latest entry also says "Mitigated".
- FY2026-H1MitigatedAnnual report
「Revenue was ¥78,806 thousand, up 3.0% year on year, and the segment loss was ¥48,181 thousand, compared with a segment loss of ¥71,619 thousand in the same period of the previous year.」
Talent Solutions revenue increased, and the segment loss narrowed from ¥71,619 thousand to ¥48,181 thousand. The risk of profit deterioration associated with initial investment decreased year on year, but the business remained loss-making. - FY2025WorsenedAnnual report
「The departure of employees in the first quarter delayed sales activities. In the second half, the number of placements increased steadily as the staffing structure was put in place, but we were unable to fully make up for the delay at the beginning of the fiscal year. As a result, revenue was ¥169,072 thousand, down 24.5% year on year, and the segment loss was ¥109,546 thousand, compared with a segment loss of ¥70,443 thousand in the previous year.」
Placements recovered in the second half after the staffing structure was rebuilt, but full-year revenue declined and the segment loss widened from ¥70,443 thousand to ¥109,546 thousand. The risks relating to recovery of initial investment and profit improvement worsened. - FY2025-H1WorsenedAnnual report
「Although companies remained active in recruiting IT and digital talent amid the recent shortage, employees left the company and, despite recruiting new employees, the number of placements did not recover. Revenue was ¥76,518 thousand, down 36.0% year on year, and the segment loss was ¥71,619 thousand, compared with a segment loss of ¥27,958 thousand in the same period of the previous year.」
Talent Solutions revenue fell 36.0% year on year and the segment loss widened from ¥27,958 thousand to ¥71,619 thousand. The previous improvement in the risk associated with initial investment and profit deterioration reversed. - FY2024MitigatedAnnual report
「Against a backdrop of the recent shortage of IT talent, companies are actively recruiting IT and digital talent. However, we currently view this business as being in an initial investment period, and revenue was ¥223,847 thousand, up 65.2% year on year, with a segment loss of ¥70,443 thousand, compared with a segment loss of ¥162,773 thousand in the same period of the previous year.」
The segment loss narrowed from ¥162,773 thousand to ¥70,443 thousand, further reducing the numerical risk of profit deterioration associated with initial investment. The business remained loss-making. - FY2024-H1MitigatedAnnual report
「Against the backdrop of the ongoing shortage of IT talent, companies are actively recruiting IT and digital talent. In addition, business expansion accelerated at our company as a result of establishing systems for recruiting and developing employees. Consequently, revenue was ¥119,490 thousand, up 135.4% year on year, while segment loss was ¥27,958 thousand, compared with a segment loss of ¥92,029 thousand in the same period of the previous year.」
The segment loss narrowed from ¥92,029 thousand to ¥27,958 thousand, reducing the numerical risk of failure to recover initial investment and profit deterioration, although the business remained loss-making. - FY2024-Q1MitigatedAnnual report
「Against the backdrop of the ongoing shortage of IT talent, companies are actively recruiting IT and digital talent. In addition, business expansion accelerated at our company as a result of establishing systems for recruiting and developing employees. Consequently, revenue was ¥63,841 thousand, up 250.4% year on year, while segment loss was ¥4,697 thousand, compared with a segment loss of ¥50,580 thousand in the same period of the previous year.」
The segment loss narrowed from ¥50,580 thousand to ¥4,697 thousand, reducing the numerical risk of profit deterioration associated with initial investment, although the business remained loss-making. - FY2023WorsenedAnnual report
「We currently view this business as being in an initial investment period, and revenue was ¥135,523 thousand, up 28.8% year on year, with a segment loss of ¥162,773 thousand, compared with a segment loss of ¥142,142 thousand in the same period of the previous year.」
Talent Solutions revenue increased, but the segment loss widened from ¥142,142 thousand to ¥162,773 thousand, quantifying the risks of continued initial investment and lower profitability. - FY2023-Q3WorsenedAnnual report
「Against the backdrop of the ongoing shortage of IT talent, companies are actively recruiting IT and digital talent. However, we currently regard this business as being in an initial investment period, and revenue was ¥93,448 thousand while segment loss was ¥129,925 thousand, compared with a segment loss of ¥77,556 thousand in the same period of the previous year.」
As initial investment continued, the segment loss widened from ¥77,556 thousand to ¥129,925 thousand year on year. - FY2023-Q2RestatedAnnual report
「Against the backdrop of the ongoing shortage of IT talent, companies are actively recruiting IT and digital talent. However, we currently regard this business as being in an initial investment period, and revenue was ¥50,766 thousand while segment loss was ¥92,029 thousand.」
Initial investment in Talent Solutions continued, with a segment loss of ¥92,029 thousand for the six months ended. - FY2022First statedAnnual report
「If circumstances differ from the initial forecast and the plan does not proceed as expected, the investment may not be recovered and the Group’s business and results may be affected.」
Talent Solutions revenue was ¥105,187 thousand and the segment loss was ¥142,142 thousand in FY2022.