Japan-based healthcare outsourcing company Nichii Gakkan (9792: TYO) downgraded its full year revenue forecast for the year ended 31 March 2018 to JPY 283.70 billion (USD 2.6 billion) from JPY 300 billion (USD 2.7 billion).

The company also downgraded its operating profit to JPY 7.60 billion (USD 69.5 million) (previous forecast JPY 9.30 billion (USD 85.1 million)) as well as its net income to JPY 800.0 million (USD 7.3 million) (prior forecast JPY 3.0 billion (USD 27.4 million)).

Nichii Gakkan stated that a delay in acquiring new customers in its medical-related business, along with its nursing care and educational business was a factor. The group’s operating profit forecast was downgraded due to a lack of a sales plan. Furthermore, its net income was downgraded with the company stating that it took more time than anticipated to monetise its Chinese operations.

Nichii Gakkan’s core business is the provision of medical support, long-term care and childcare together with a number of strategic businesses in healthcare and education.

The company recently posted revenue of JPY 212.9 billion (USD 1.9 billion) for the nine months ended 31 December, 2017 a 2.7% increase compared with the same period last year.