Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. The Company assumes no responsibility for this translation or for direct, indirect or any other forms of damages arising from the translation.
August 12, 2022
Consolidated Financial Results Announcement
for the First Half of the Fiscal Year Ending December 31, 2022 [Japanese Standards] (Consolidated)
Company name: | Fullcast Holdings Co., Ltd. |
Stock exchange listing: | TSE Prime Market |
Stock code: | 4848 |
URL: | https://www.fullcastholdings.co.jp |
Representative: | Kazuki Sakamaki, President, Representative Director and CEO |
Contact: | Yasuomi Tomotake, General Manager of the IR and Finance Department |
Telephone: | +81-3-4530-4830 |
Date of submission of quarterly report (Planned): | August 12, 2022 |
Date of commencements of dividend payments (Planned): | September 5, 2022 |
Preparation of supplementary references regarding financial results: | Yes (shown on our website) |
Briefing for quarterly results: | Yes (for institutional investors and analysts) |
(Figures are rounded to the nearest million yen) |
1. Consolidated Financial Results for the First Half of the Fiscal Year Ending December 31, 2022 (January 1 to June 30, 2022)
(1) Consolidated Business Results | (% = year-on-year change) | ||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | ||||||
owners of parent | |||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | ||
1H FY12/22 (June 30, 2022) | 30,802 | 29.9 | 4,838 | 35.5 | 4,903 | 36.8 | 3,319 | 40.7 | |
1H FY12/21 (June 30, 2021) | 23,717 | 10.6 | 3,570 | 8.8 | 3,585 | 8.5 | 2,359 | 4.6 | |
(Note) Comprehensive income: 3,499 million yen (36.2%) as of June 30, 2022 2,569 million yen (34.6%) as of June 30, 2021
Basic earnings per share | Diluted earnings per share | |
Yen | Yen | |
1H FY12/22 (June 30, 2022) | 91.61 | 91.13 |
1H FY12/21 (June 30, 2021) | 64.59 | 64.22 |
(2) Consolidated Financial Conditions
Total assets | Net assets | Equity-to-asset ratio | ||
Million yen | Million yen | % | ||
1H FY12/22 End (June 30, 2022) | 30,103 | 22,350 | 70.5 | |
FY12/21 End | 29,484 | 20,579 | 66.2 | |
(Reference) Equity: 21,237 million yen as of June 30, 2022 | 19,526 million yen as of December 31, 2021 |
2. Dividend Status
Dividend per share (Yen) | |||||
1Q End | 1H End | 3Q End | FY End | Annual | |
Yen | Yen | Yen | Yen | Yen | |
FY12/21 | - | 21.00 | - | 23.00 | 44.00 |
FY12/22 | - | 23.00 | |||
FY12/22 Forecast | - | 32.00 | 55.00 |
(Note) Revision of dividends forecast during the current first half: Yes
3. Consolidated Business Forecasts for the Fiscal Year Ending December 31, 2022 (January 1 to December 31, 2022)
(% = year-on-year change) | |||||||||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | Basic earnings per | |||||||||||||
owners of parent | share | ||||||||||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | |||||||||
Full year | 61,000 | 16.5 | 9,200 | 21.2 | 9,260 | 21.5 | 6,173 | 23.2 | 170.70 | ||||||||
(Note) Revision of consolidated business forecasts in the current first half: Yes | |||||||||||||||||
* Notes | |||||||||||||||||
(1) Important changes of subsidiaries during the current first half: | None | ||||||||||||||||
(Changes in specific subsidiaries involving changes in the scope of consolidation) | |||||||||||||||||
(2) Application of special accounting treatment in the production of quarterly consolidated financial statements: | None | ||||||||||||||||
(3) Changes in accounting principles, accounting estimates, and re-presentation of changes | |||||||||||||||||
1) | Changes in accounting policies associated with revisions of accounting principles and others: | Yes | |||||||||||||||
2) | Changes in accounting policies other than those mentioned in 1) above: | None | |||||||||||||||
3) | Changes in accounting estimates: | None | |||||||||||||||
4) | Re-presentation of changes: | None | |||||||||||||||
(4) Number of issued shares (Ordinary shares) | |||||||||||||||||
1) | Number of issued shares at the term end (Including treasury shares) | ||||||||||||||||
2Q FY12/22 | 37,486,400 | FY12/21 | 37,486,400 | ||||||||||||||
2) | Number of treasury shares at the term end | ||||||||||||||||
2Q FY12/22 | 1,392,307 | FY12/21 | 1,015,666 | ||||||||||||||
3) | Average number of shares outstanding during the current term | ||||||||||||||||
2Q FY12/22 | 36,225,861 | 2Q FY12/21 | 36,523,277 | ||||||||||||||
* Quarterly financial results are not subject to quarterly review by a certified public accountant or auditing firm.
* Explanation of the proper use of financial and business forecasts and other important notes.
Of all plans, business forecasts, strategies and other information provided within this document, those which are not historical facts are future outlooks based upon certain conditions and our management's judgments based upon currently available data. Therefore, we warn against relying solely upon these outlooks in assessing our business results, corporate value and other factors. Please also be informed that actual financial results may vary widely from our business forecasts due to various factors. Important factors that may have an impact upon our actual financial results include: (1) economic and financial conditions surrounding our Company and changes in the employment situation, (2) damages to infrastructure arising from disasters including earthquakes, and (3) changes in the relevant laws, including the Labor Standards Act and the Worker Dispatching Act, and in interpretations of these Acts. However, factors that affect our financial results are not limited to only these. Furthermore, please note that we may choose not to reexamine our business forecasts in response to new data, future events or other factors. For assumptions underlying our business forecasts and related issues, please refer to page 4 "1-(3) Explanation of Consolidated Business Forecasts" of the "Appendix".
Fullcast Holdings Co., Ltd. (4848) Financial Statement and Results for the First Half of the FY 2022
―1―1. Qualitative Information Concerning Performance for the Current Quarter................................................................. | 2 | |
(1) | Explanation of Consolidated Operating Results............................................................................................... | 2 |
(2) | Explanation of Consolidated Financial Position............................................................................................... | 3 |
(3) | Explanation of Consolidated Business Forecasts............................................................................................. | 4 |
2. Quarterly Consolidated Financial Statements and Primary Notes…………………………………………………... | 5 | |
(1) | Quarterly Consolidated Balance Sheet............................................................................................................. | 5 |
(2) | Quarterly Consolidated Statement of Income and Consolidated Statement of Comprehensive Income......... | 7 |
(3) | Quarterly Consolidated Statement of Cash Flows…………………………………………………………… | 9 |
(4) | Notes on Quarterly Consolidated Financial Statements.................................................................................... | 11 |
(Notes on Going Concern Assumption).......................................................................................... ................. | 11 | |
(Notes on Significant Change of Shareholders' Equity)................................................................................ .. | 11 | |
(Changes in Accounting Policies)……………........................................................................................ ........ | 11 | |
(Additional Information)……………………............................................................................................. ..... | 11 | |
(Segment Information and Others)................................................................................................................... | 12 |
Fullcast Holdings Co., Ltd. (4848) Financial Statement and Results for the First Half of the FY 2022
1. Qualitative Information Concerning Performance for the Current Quarter
- Explanation of Consolidated Operating Results
During the first half of the current fiscal year, Japan's economy continued to undergo a recovery trend due to an overall improvement in corporate earnings despite weaknesses in some industries and a recovery in personal consumption and capital investments. However, there was also weakness in some areas of the economy on account of, among other things, a stalled recovery in production and business sentiment. Economic conditions are expected to continue to recover given the effects of various government policies and as socioeconomic activities, return to normal due to exhaustive efforts to stop the spread of COVID-19. However, the economic horizon remains clouded due to a number of uncertainties including rising raw material prices, supply-side constraints amid concerns about the prolonged situation in Ukraine, and the impact of restraints on economic activity in China. At the same time, there is a need to closely monitor the potential of negative risks arising from fluctuations in financial and capital markets.
As for the current operating environment surrounding the staffing service industry, the employment situation is showing signs of a recovery. This is indicated by the continuing decline in the number of unemployed and the improvement in the number of new job offers and the jobs offers-to-applicants ratio. Also, the current forecasts call for the operating environment will continue to recover.
Against this backdrop, in the first half of the current fiscal year, the Fullcast Group implemented group management activities to achieve our goal of "Under a client first approach, aim for greater business growth and expansion of peripheral services." Our Group also carried out marketing activities focused on boosting overall profitability of the Fullcast Group, particularly in the mainstay "Placement" (Note 1) and "BPO" (Note 2) services. In addition, our Company worked to further expand its business while maximizing profits by continuing to increase productivity and promote operational efficiencies across the entire Group.
Even as the COVID-19 pandemic raged on, consolidated net sales increased by 30,802 million yen (29.9% year- on-year) during the first half of the fiscal year. This was mainly due to growth of the "Short-Term Operational Support Business", which was supported by a number of factors including the acquisition of projects in excess of pre-COVID-19 pandemic short-term staffing demand levels, as well as the continued acquisition of public sector projects related to COVID-19-related operations.
In terms of profits, consolidated operating profit increased by 35.5% year-on-year to 4,838 million yen, with consolidated ordinary profit rising by 36.8% year-on-year to 4,903 million yen, driven mainly by the ongoing recovery in client demand and increased sales of the "Short-Term Operational Support Business."
Profit attributable to owners of parent for the first half of the current fiscal year increased by 40.7% year-on-year to 3,319 million yen, on the back of the 69 million yen in gain on sale of investment securities booked as an extraordinary income following the divestment of investment securities held.
Furthermore, our Company applied "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) from the first quarter of the current fiscal year. Although the application of the Accounting Standard for Revenue Recognition is subject to the transitional handling stipulated in the proviso to Paragraph 84 of the Accounting Standard for Revenue Recognition, there is no impact on the balance of retained earnings at the beginning of period nor on profit and loss for the first half of the current fiscal year.
Furthermore, our Group acquired shares of Hayfield inc. on May 31, 2022, making it a consolidated subsidiary. As such, it has been included in the scope of consolidation from the second quarter of the current fiscal year.
Notes: 1. The mainstay "Part-Time Worker Placement" service and Hayfield inc. staffing service specializing in the real estate industry services are referred to as "Placement."
2. The mainstay "Part-Time Work Payroll Management" services, as well as other personnel and labor-related business process outsourcing (BPO) services such as the "My Number Management" service, and the back office BPO services of BOD Group are referred to as "BPO."
―2―
Fullcast Holdings Co., Ltd. (4848) Financial Statement and Results for the First Half of the FY 2022
The results for each of our operating business segments are as follows.
1) Short-Term Operational Support Business
Even as the COVID-19 pandemic raged on, net sales increased by 36.9% year-on-year to 28,133 million yen during the first half of the fiscal year. This was due to factors including the acquisition of projects in excess of pre- COVID-19 pandemic short-term staffing demand levels, as well the continued acquisition of public sector projects related to COVID-19-related operations.
In terms of profits, segment profit (operating profit) increased by 38.3% year-on-year to 5,199 million yen driven mainly by the ongoing recovery in client demand and increased sales.
2) Sales Support Business
Net sales of the "Sales Support Business" declined by 24.1% year-on-year to 1,540 million yen due to the downturn in sales of telecommunications products in the sale of Internet access, which is a mainstay business.
In terms of profits, segment profit (operating profit) declined by 49.8% year-on-year to 43 million yen due primarily to the decline in net sales.
3) Security, Other Businesses
Net sales of "Security, Other Businesses" declined 0.5% year-on-year to 1,129 million yen, nearly the same level as the previous first half, due to a slowdown in the number of new temporary and permanent security projects.
In terms of profits, segment profit (operating profit) declined by 15.6% year-on-year to 126 million yen, due to the decline in net sales.
- Explanation of Consolidated Financial Position
- Assets, Liabilities and Net Assets
At the end of the first half, total assets increased by 619 million yen from the end of the previous fiscal year to 30,103 million yen. Equity increased by 1,711 to 21,237 million yen (equity-to-asset ratio of 70.5%), and net assets grew by 1,772 to 22,350 million yen.
Details of major changes in assets and liabilities are described as follows.
With regards to assets, current assets decreased by 230 million yen from the end of the previous fiscal year to 24,585 million yen. This decrease is attributed mainly to a decline in cash and deposits by 1,049 to 16,361 million yen while notes and accounts receivable rose by 766 to 7,856 million yen.
Non-current assets increased by 849 million yen from the end of the previous fiscal year to 5,518 million yen. This increase is attributed mainly to an increase in goodwill of 790 to 1,397 million yen and an increase in investment securities of 79 to 2,093 million yen.
With regard to liabilities, current liabilities decreased by 1,201 million yen from the end of the previous fiscal year to 6,760 million yen. This decrease is attributed mainly to a decrease in accrued consumption taxes of 585 to 1,157 million yen as well as a decrease in income taxes payable of 477 to 929 million yen.
Non-current liabilities increased by 48 million yen from the end of the previous fiscal year to 993 million yen. This increase is attributed mainly to an increase in long-term borrowings of 35 to 35 million yen and a rise in retirement benefit liability of 23 to 770 million yen.
2) Cash Flows
Outstanding cash and cash equivalents (Hereinafter referred to as "funds") at the end of the first half decreased by 1,049 million yen from the end of the previous fiscal year to 16,361 million yen (compared with an increase of 96 million yen in the previous fiscal year).
―3―
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Fullcast Holdings Co. Ltd. published this content on 16 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 August 2022 15:53:37 UTC.