Japanese staffing firm TwoStone & Son (7352: TYO), previously known as Branding Engineer, announced it upgraded its consolidated financial forecast figures for the full year ending August 2024.

The company revised its forecasted revenue from JPY 13.22 billion (USD 87.8 million) to JPY 13.88 billion (USD 92.1 million). The group expects revenue to increase from the previous forecast as the number of employees in the Midworks business is expected to be higher than originally estimated.

Despite the upgraded forecast, operating income was downgraded from the expected JPY 449 million (USD 2.9 million) to JPY 202 million (USD 1.3 million). Net income was also downgraded from the previously expected JPY 240 million (USD 1.6 million) to JPY 63 million (USD 0.4 million).

The company said the impact of introducing the invoice system on gross profit was significantly greater than initially estimated.

TwoStone & Son said it needs to accelerate the pace of strengthening its sales organisation and increase the amount of investment.

The group said, "to further accelerate the speed of growth in the future, we need to integrate everything from strategy formulation to development sites."

The initial plan was to spend JPY 1.84 billion (USD 12.2 million) on personnel expenses and recruitment-related investments to strengthen personnel and the organisational structure. However, it expects to actively make additional investments of approximately JPY 214 million (USD 1.42 million). Total selling, general and administrative expenses increased by JPY 230 million (USD 1.52 million) from the initial plan of JPY 3.328 million (USD 22.1 million) due to investments in improving the efficiency of internal systems, etc., the group added. This is now expected to be JPY 3.558 million (USD 23.6 million).

According to the company, this investment will further accelerate the speed of growth and help it achieve sustainable growth over the medium to long term.