Recognition of an Impairment Loss and Revisions to the Earnings Forecast and Year-End Dividend Forecast
INES Corporation (filing company)
System standardization project primarily for comprehensive welfare customers in the public sector, and investments already made in development
Delays in the system standardization project in the public sector, primarily for comprehensive welfare customers
The Company expects to recognize an impairment loss of approximately ¥1 billion on investments already made in development in the fiscal year ending March 2026. The operating profit forecast has been revised due to an approximately ¥1 billion increase in related costs. Under the revised forecast, net sales are ¥38,000 million, operating loss is ¥500 million, ordinary loss is ¥400 million, and net loss attributable to owners of the parent is ¥1,500 million.
Fiscal year ending March 2026 (1 April 2025 to 31 March 2026)
The full-year consolidated earnings forecast for the fiscal year ending March 2026 has been revised. Net sales are ¥38,000 million, operating loss is ¥500 million, ordinary loss is ¥400 million, net loss attributable to owners of the parent is ¥1,500 million, and net loss per share is ¥72.07. The year-end dividend forecast has been revised from ¥30 to ¥25, with an annual dividend of ¥50 planned.
The Company plans to report a profit for the fiscal year ending March 2027. A new medium-term management plan is currently being prepared and is scheduled to be announced at an appropriate time after it has been finalized.
The new medium-term management plan is scheduled to be announced at an appropriate time after it has been finalized.
| Item | Details |
|---|---|
| Event name | Recognition of an Impairment Loss and Revisions to the Earnings Forecast and Year-End Dividend Forecast |
| Subject Entity | INES Corporation (filing company) |
| Target Locations / Products | System standardization project primarily for comprehensive welfare customers in the public sector, and investments already made in development |
| Cause | Delays in the system standardization project in the public sector, primarily for comprehensive welfare customers |
| Amount of Impact on Business Performance | The Company expects to recognize an impairment loss of approximately ¥1 billion on investments already made in development in the fiscal year ending March 2026. The operating profit forecast has been revised due to an approximately ¥1 billion increase in related costs. Under the revised forecast, net sales are ¥38,000 million, operating loss is ¥500 million, ordinary loss is ¥400 million, and net loss attributable to owners of the parent is ¥1,500 million. |
| Accounting period in which recognized | Fiscal year ending March 2026 (1 April 2025 to 31 March 2026) |
| Impact on Earnings Forecast | The full-year consolidated earnings forecast for the fiscal year ending March 2026 has been revised. Net sales are ¥38,000 million, operating loss is ¥500 million, ordinary loss is ¥400 million, net loss attributable to owners of the parent is ¥1,500 million, and net loss per share is ¥72.07. The year-end dividend forecast has been revised from ¥30 to ¥25, with an annual dividend of ¥50 planned. |
| Outlook | The Company plans to report a profit for the fiscal year ending March 2027. A new medium-term management plan is currently being prepared and is scheduled to be announced at an appropriate time after it has been finalized. |
| Planned follow-up disclosure | The new medium-term management plan is scheduled to be announced at an appropriate time after it has been finalized. |
Items this document does not state (16)
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.In the public sector, plans for the system standardization project, primarily for comprehensive welfare customers, have been delayed. Following a review of the plans based on results from the organizations that began operations from January 2026 onward, the Company expects an approximately ¥1 billion increase in related costs for operations at more than 60 organizations, which are expected to peak in the fiscal year ending March 2027, as well as an impairment loss of approximately ¥1 billion on investments already made in development in the fiscal year ending March 2026.