Japan-based staffing firm Careerlink (6070: JP) downgraded its full-year financial forecast as it reviews its BPO business.

The company lowered its full year revenue forecast from JPY 47.70 billion (USD 304.3 million) to JPY 43.79 billion (USD 279.4 million). Despite the lowering of its revenue forecast, the group upgraded its operating profit forecast to JPY 3.27 billion (USD 20.8 million) as well as its net profit forecast to JPY 2.20 billion (USD 14.0 million).

In the fiscal year ending March 2024, the group said it will continue to reduce its business operations in the BPO-related business division, which is its mainstay administrative human resources services business.

“We will review our processes and make them more efficient, and at the same time expand the number of local governments we do business with and expand the scope of work that we can accept orders for,” the group stated.

“However, for some economic stimulus-related projects for which orders were expected to be received, the winning bid prices are expected to be lower,” the group stated. “As a result, we have changed our policy to not bidding on projects where we do not expect to be able to secure the expected gross profit.”

“As a result, when it comes to sales development, which involves cultivating new business areas, we place emphasis on the continuity and profitability of order-receiving operations,” Careerlink added.

The group added that it has been able to further strengthen its trading base with regard to new business areas for which it have received orders.

“In terms of profits, both the administrative human resources services business and the manufacturing human resources services business are based on income and expenditure management of orders received,” the company stated. “We have made efforts to reduce selling, general and administrative expenses while hiring and investing in personnel to strengthen our business and strengthen our competitiveness.”

Careerlink shares closed today at JPY 2,450.00 (USD 15.63), up 0.70% on the day and 26.42% above the 52 week low of JPY 1,938.00 (USD 12.36) set on 6 November 2023. The company has a market cap of JPY 30.65 billion (USD 195.58 million).