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Japan – Outsourcing Inc. reports growth following acquisitions

31 July 2014

Japanese staffing firm Outsourcing Inc. (2427: JP) reported revenue growth of +31% to JPY 27.1 billion (USD 264.7 million) for the six months ending 30 June 2014, up from JPY 21.4 billion (USD 209 million) last year.

The company achieved an operating income of JPY 713 million (USD 7 million) for the period, a substantial improvement against an operating income of JPY 1 million (USD 9,767) a year ago. Net income for the period also rose significantly, from JPY 29 million (USD 283,245) in H1 2013 to JPY 375 million (USD 3.7 million) this year.

In February 2014, Outsourcing Inc. announced that it had acquired a majority stake in Indian recruitment firm Alp Consulting. Outsourcing Inc. is believed to have paid USD 5 million for a 51% stake in the company. The company also acquired a Malaysian electronics company in September 2013.

The company, together with its subsidiaries, provides outsourcing services for production processes in Japan. The company offers production outsourcing services in the areas of electronics, cars, electric appliances, steel, building materials, and food products. Outsourcing Inc. also provides worker dispatching services, the local terminology for temporary workers. 

In trading yesterday, the company’s share price closed down -1.3% at JPY 1,481 (USD 14.47), an increase of +72.6% compared with a year ago. Based on its current share price, the company has a market value of JPY 23.3 billion (USD 227.6 million).