S-Pool Inc. (2471:TYO), a Tokyo-based staffing provider, reported revenue decreased by 3.3% in the first nine months of its fiscal year, which ended 31 August 2023. Gross profit increased by 2.4%.

The company said due to the delayed recovery in the human resource solutions segment, the transition to higher revenues and profits ‘will be pushed back’.

Revenue in the business solutions segment increased by 25.4% over the year while the human resource solution fell by 19.7%.

Both net sales and income in the third quarter remained low due to seasonal factors, upfront investments, and postponed farm sales.

The business solutions segment includes: special needs employment services, logistics outsourcing services, wide-area administrative BPO services, environmental management support services, and employment support services.

The human resource solutions segment includes: temporary staffing services (call centers, sales support, and long-term care businesses).

Adjustments listed below include mainly management expenses, as well as group-wide system costs.

Revenue in the human resource solutions were significantly lower than expected for various reasons, including the early termination of spot transactions associated with Covid-19.

Looking ahead, the group is targeting new record highs in net sales (for the 11th consecutive year) and operating income (for the eighth consecutive year). Revenue is forecasted at JPY 28.28 billion (USD 189.58 million) for the year ended 30 November 2023. Operating profit is forecasted at JPY 3.62 billion (USD 24.26 million).

S-Pool added that progress as of Q3 has been delayed and its goal is to make up lost ground in Q4.

S-Pool shares closed at JPY 464.00 (USD 3.11), up 2.20% on the day and 5.22% above its 52-week low of JPY 441.00 (USD 2.96), set on 18 August 2023. The company has a market cap of JPY 38.00 billion (USD 254.75 million).