Japan-based staffing firm Careerlink (6070: JP) downgraded its full-year financial forecast amid a reduction in orders for projects.

The company had expected to receive orders, but the scale was significantly lower than expected at the time of its previous earnings forecast, as well as projects related to legal revisions.

Additionally, the company said some projects for which it expected to receive orders were subject to proposal competitive bidding and noted as a result of the increase in the number of bidders as well as the increase in the number of projects, the order prices per project tended to be lower. As a result, the orders received did not reach the level expected in the previous forecast.

Although efforts were made to increase orders in the CRM-related business division and the general office business division, mainly for temporary staffing services, the number of orders received did not reach the level previously expected. The amount of orders received in the administrative human resources services business, including the BPO-related business division, was also lower than expected.

The group also reduced its forecast for the second quarter ended 30 September 2023.

Revenue for Q2 is now expected to be JPY 22.23 billion (USD 147.70 million), down from the previously forecasted JPY 25.50 billion (USD 169.44 million). Operating income is expected at JPY 1.13 billion (USD 7.5 million), down from the prior forecast of JPY 2.19 billion (USD 14.5 million). At the same time, net income was downgraded to JPY 729 million (USD 4.8 million) from JPY 1.48 billion (USD 9.8 million).

For the full year ended 31 March 2024, revenue was downgraded to JPY 47.70 billion (USD 316.96 million) from the previously forecasted JPY 62.36 billion (USD 414.38 million). Operating income was downgraded to JPY 3.17 billion (USD 21.06 million) from JPY 7.01 billion (USD 46.58 million). Net income was also downwardly revised to JPY 2.12 billion (USD 14.08 million) from JPY 4.79 billion (USD 31.83 million).

The group said it plans to work to win orders from local governments.