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Japan – Acquisitions and tight economy negatively impact J-Com’s results

11 July 2014

Japanese recruitment firm J-Com Holdings Ltd (2462: JP) reported revenue for the year ending 31 May 2014 of JPY 15 billion (USD 147.9 million), a fall of -1.6% compared with JPY 15.2 billion (USD 149.9 million) a year ago.

The company reported an operating profit of JPY 303 million (USD 3 million), a substantial fall of -62% from JPY 798 million (USD 7.9 million) for the year ending 31 May 2013. Net profit for the year also fell substantially, from JPY 599 million (USD 5.9 million) in 2013 to JPY 259 million (USD 2.6 million) this year, equating to a year-on-year decline of -57%. 

In its half yearly statement, J-Com advised that the tight domestic economy has impaired the company’s results. It had been optimistic that the climate would improve during the second half of the financial year. The company’s performance, however, weakened further during the second half of the year. 

The company incurred greater costs during the year, compared with a year ago, associated with the acquisition and integration of nursing care home Sunrise Inc. and the Contract Food Co. during the second quarter.

J-Com Holdings offers temporary staffing, outsourcing staffing, recruitment, and education support services for mobile phone sales industry in Japan. It also provides general worker dispatching and employment placement services.

In trading today, the company’s share price fell marginally by -0.1% to JPY 739 (USD 7.29), an increase of +3.2% compared with a year ago. Based on its current share price, the company has a market value of JPY 7.2 billion (USD 71 million).