Daily News

View All News

Japan – Outsourcing H1 revenue up 53% as profits jump

30 July 2021

Outsourcing Inc. (2427:TYO), a Tokyo-based global provider of staffing and outsourcing services, reported revenue increased by 53.3% in the first half of its fiscal year to 30 June 2021 supported by acquisitions.

(JPY millions) H1 2021 H1 2020 % change H1 2021 (USD millions)
Revenue      264,712       172,628 53.3%                                  2,416.4
Gross profit        49,680         31,100 59.7% 453.5
Gross margin 18.7% 18.0% -  - 
Operating profit 11,994           3,254 268.6% 109.5
Profit attributable to owners of the company               6,472               757 754.5% 59.1

Revenue by segment

(JPY millions) H1 2021 H1 2020 % change H1 2021 (USD millions)
Domestic Engineering Outsourcing Business         57,530         50,404 14.1% 525.1
Domestic Manufacturing Outsourcing Business         47,648         30,408 56.7% 434.9
Domestic Service Operations Outsourcing Business         14,170         11,854 19.5% 129.3
Overseas Engineering Outsourcing Business         62,528         18,270 242.2% 570.6
Overseas Manufacturing and Service Operations Outsourcing Business         82,807         61,636 34.3% 755.7
Other Business                 29                 56 -48.2% 0.2

During the period Outsourcing made a number of acquisitions.

  • On 28 January, Outsourcing announced it would acquire Select Staff Group and HorizonOne Recruitment
  • On 29 January, it was announced Outsourcing, through its subsidiary Outsourcing Technology, would acquire Itec Co., a company engaged in electrical telecommunications construction work and pillar construction work
  • On April 2021, the company announced that, through its subsidiary American Engineering Corporation, it will acquire California Pacific Technical Services LLC
  • Earlier this month, Outsourcing announced that its American Engineering Corp. subsidiary acquired Integrity Networks Inc., a firm based in the US

Looking ahead, the company forecasted revenue of JPY 528.0 billion (USD 4.81 billion) for the year ended 31 December 2021.

Shares in Outsourcing closed at JPY 2,081.00 (USD 18.99), down 3.52% on the day and 5.71% below its 52-week high of JPY 2,207.00 (USD 20.14), set on 5 July 2021. The company has a market cap of JPY 271.62 billion (USD 2.47 billion).