S-Pool Inc. (2471:TYO), a Tokyo-based staffing provider reported revenue today of JPY 6.08 billion (USD 45.8 million), down 6.6% year over year in the three months ended 28 February, the first quarter of its fiscal year.

The group said revenue and profits decreased due to a drop in demand in the Human Resources Solution segment. Revenue in the Human Resources Solutions Segment decreased due to a drop in spot transactions for call centre services, it added.

S-Pool added that its 1Q results were in line with plans and expects significant growth from the second quarter.

Revenue by segment

Earlier this year, S-Pool issued a statement in response to reports in the Kyodo News and other newspapers criticising farming operations run by its S-Pool Plus division to provide employment opportunities for people with disabilities. The rental farms employ people with disabilities on behalf of companies that wish to recruit them. S-Pool said the media reports presented a one-sided view opposing its services.

Looking ahead, the group is forecasting revenue of JPY 28.28 billion for the full year 2023 ended 30 November 2023. Growth in net sales is projected to be limited due to the effects of a decline in the Human Resource Solutions Segment. Operating profit, on the other hand, is projected to continue to increase due to growth in the Business Solutions Segment.

S-Pool shares closed today at JPY 601.00 (USD 4.52), down 1.15% on the day and 9.07% above its 52-week low of JPY 551.00 (USD 4.15), set on 16 March 2023. The company has a market cap of JPY 48.04 billion (USD 361.42 million).