Daily News
View All NewsOpen Up Group H1 revenue rises 13.5% as profits climb
Japanese technical staffing firm Open Up Group (2154: JP) reported revenue of JPY 85.05 billion (USD 569.21 million) for the six months ended 31 December 2023, an increase of 13.5% over the prior year period.
In November 2023, the company announced that it decided to transfer shares of BeNEXT Partners Inc., its consolidated subsidiary, and classified businesses and operations conducted by the company as discontinued operations for the preparation of the condensed quarterly consolidated statements.
Therefore, revenue, gross profit, operating profit and profit before tax reflect the continuing operations excluding the discontinued operations. In addition, the quarterly results for the same period of the previous year have been restated in the same way to enable year-on-year percent change to be calculated.
The 13.5% increase in revenue is largely attributable to growth in the number of employees in the machinery, electronics and IT software, construction, and manufacturing segments combined with consistently high utilisation rates.
Profit improved overall in the absence of one-off costs such as PPA (purchase price allocation) amortisation of intangible assets in the previous fiscal year in addition to improvement in hourly rates and higher utilization rates, all of which offset higher recruiting expenses.
| (JPY millions) | H1 2023 | H1 2022 | Change | H1 2023 (USD millions) |
| Revenue | 85,053 | 74,952 | 13.5% | 569.2 |
| Gross Profit | 20,515 | 18,421 | 11.3% | 137.3 |
| Gross Margin | 24.1% | 24.5% | - | - |
| Operating Income | 7,911 | 7,305 | 8.3% | 52.9 |
| Profit before Tax | 7,868 | 7,270 | 8.2% | 52.6 |
| Profit attributable to owners of parent | 5,351 | 5,264 | 1.6% | 35.8 |
Revenue in the construction segment increased by 8.9% over the year. Revenue in the manufacturing segment increased by 0.4% over the year.
The Overseas segment, which includes temporary staffing and contracting for engineering and manufacturing sectors and human resource services, such as paid job introduction, outside of Japan, saw revenue climb by 19.8% over the prior year.
The Others segment includes Samurai Inc., an online programming learning service, whilst BeNext With Inc., a special subsidiary of the group, employs persons with disabilities to provide various types of services within the group. Revenue in this segment increased by 34.1%.
Looking ahead the company forecasted revenue of JPY 172.00 billion (USD 1.15 billion) for the year ended 30 June 2024.
Open Up Group shares closed today at JPY 2,337.00 (USD 15.64), up 0.13% on the day and 3.67% below its 52-week high of JPY 2,426.00 (USD 16.24), set on 5 February 2024. The company has a market cap of JPY 212.32 billion (USD 1.42 billion).