Relaunch the FY2027 plan based on Q1 actuals after the irregular 8-month fiscal period

The fiscal year ended June 2026 was a transitional period following a change in the fiscal year-end from 31 October to 30 June, resulting in an 8-month fiscal period from 1 November 2025 to 30 June 2026. Results were revenue of ¥1,923 million, operating income of ¥25 million, ordinary income of ¥18 million and a net loss attributable to owners of the parent of ¥11 million. A simple year-on-year comparison with the previous 12-month period has not been disclosed. Accordingly, in evaluating FY2027 Q1, the focus should be on the quarter's absolute revenue and profit figures and progress against the full-year plan, rather than mechanically applying growth rates against previous first-quarter results.

The company's FY2027 plan calls for revenue of ¥3,290 million, operating income of ¥24 million, ordinary income of ¥22 million and net income attributable to owners of the parent of ¥15 million. This corresponds to an operating margin of approximately 0.73%, with planned operating income slightly below the ¥25 million recorded in the 8-month FY2026 period. However, FY2026 covered 8 months, while FY2027 is expected to return to a normal operating year following the change in fiscal year-end. It would therefore be inappropriate to interpret operating income of ¥24 million versus ¥25 million simply as a decline or flat performance. It will be important to see whether the earnings release clearly explains the planning period and comparability of the figures.

For FY2026, the company secured operating and ordinary income, but the recognition of corporate, inhabitant and enterprise taxes resulted in a final loss of ¥11 million. It also recorded a ¥4.538 million loss on the sale of fixed assets and a ¥0.071 million loss on the disposal of fixed assets. Since FY2027 includes a planned final profit of ¥15 million, Q1 should be assessed not only for operating profitability but also for whether the conversion from income before income taxes and other adjustments to net income attributable to owners of the parent is tracking the plan.

Specifically, the points to verify are whether Q1 revenue is presented as progress against the full-year plan of ¥3,290 million, whether the company can remain profitable against the ¥24 million operating income plan, and whether it explains the assumptions for taxes and extraordinary items underlying ordinary income of ¥22 million and final profit of ¥15 million. The review should also determine whether the company can disclose the assumptions for new contracts, fixed costs, and investments in personnel and service development embedded in the FY2027 plan, rather than a forecast obtained simply by extrapolating 12 months from the 8-month FY2026 results.