Tsunagu Holdings (6551:JP), a Japan-based company offering recruitment related services, announced a downgrade to its forecast for its financial results for the year ended 30 September 2021.

The company revised its revenue forecast to 11.03 billion (USD 97.1 million), a downgrade of 11.7% from the previously announced 12.50 billion (USD 110.0 million).

The group had made its previous forecasts assuming that it would ‘hit the ground running’ and head for a recovery trend. However, the continued impact of the pandemic had an effect on its recruitment business.  This effect saw the suspension or reduction of recruitment activities of client companies as a result of more restricted economic activities.

Tsunagu added that sales have been steadily recovering since the first quarter.  Selling, general and administrative expenses due to the reduction and integration of offices decreased significantly, and operating income is on a recovery track.

The group did not report changes to its forecasted operating profit or net income.

The company had earlier reported revenue for the nine months ended 30 June 2021 of JPY 8.39 billion (USD 76.1 million), a fall of 11.4% when compared to the same period last year.

Tsunagu engages in staff support and employment placement services. It provides recruitment supporting, corporate event outsourcing, job lead media operation, recruitment training, and other services.