Latest Business Results & Forecasts

In the current consolidated fiscal year, the construction industry, to which the Group’s main customers belong, continues to experience the persistent structural issues of aging technical employees and a shortage of young technical employees. At the Company as well, the state of orders in the technical employee dispatching business in the immediate term is trending at a level that considerably exceeds that of the previous fiscal year, In addition, under the Labor Standards Law after being amended under the “Act on the Arrangement of Related Acts to Promote Work Style Reform,” regulations on the maximum of overtime work in the construction industry have been applied since April 2024. Demand for technical employee dispatching has been progressing healthily.

In this business environment, our Group is promoting initiatives aimed at medium- to long-term growth in order to realize the Medium-Term Management Plan "COPRO Group Build the Future 2027" (FYE2023 - FYE2027) announced in May 2022.

At COPRO CONSTRUCTION. Co., Ltd., which implements the construction technician dispatching that forms a core service of the Group, in line with the application of regulations on maximum overtime work starting in April 2024, the company has adopted the establishment of a system to secure technical employees, who form the cornerstone of its business growth, as a priority challenge in order to ensure that it captures expanding demand, and promoted initiatives pertaining to the reinforcement of recruiting activities. On the recruiting front, in addition to continuing from the previous fiscal year to efficiently lower recruiting costs with aggressiveness and an emphasis on cost-effectiveness, aiming to expand the number of applications and interviews, which serve as the entryway to recruitment, the Group opened “Bscareer Construction,” an independent classified website, in March 2024, as well as introduced an application management system and tackled the reinforcement of recruiting activities, including the shortening of lead times through the automation of interview-setting. Additionally, in April 2023, the number of new graduates entering the Company was 154, an increase of 100 over the previous fiscal year’s result. The Group also promoted the establishment of recruiting channels other than mid-career professional recruitment. Consequently, the number of hires during the current consolidated fiscal year came to 2,024, an increase of 552 YoY, or 37.5%. As a result of these efforts, the number of technical employees at the end of the current consolidated fiscal year increased by 791, or by 28.5%, to 3,568 (versus 2,777 at the end of the previous consolidated fiscal year).

*As of October 1, 2023, COPRO-ENGINEERD. Co., Ltd. changed the corporate name of the suviving company to COPRO CONSTRUCTION. Co., Ltd.

In mechanical design and development engineer dispatching and contract services and SES (System Engineering Service), as of October 1 2023, ATMOS Co., Ltd. and VALUE ARK CONSULTING Co., Ltd. merged and changed their corporate name to COPRO TECHNOLOGY. Co., Ltd. in order to facilitate the unification of sales and recruiting systems and the consolidation of administrative departments into a pure holdings company. In particular, on the recruiting front, continuing from the opening of the “Bscareer IT” classified referral website for IT engineers in March 2023, the Group opened “Bscareer Mechanical and Electrical” in November 2023, and worked towards further enhancing independent recruiting websites. Additionally, as of November 30, 2023, the Group accepted the transfer of an SES business accompanied with a dispatching and quasi-mandate contract from Pacific Information Consultants, which engages in Web and software development as well as system consulting operations. As the Group has taken in highly skilled IT engineers as well as accepted the transfer of Pacific Information Consultants’ customer network, which includes prime contractor SIers, the establishment of a foundation aimed at business expansion has made forward progress. In addition, the Group opened “Semicon Techno Lab,” a semiconductor engineering training center dedicated to the development of engineers to handle semiconductor manufacturing system maintenance and inspections, in February 2024, and started making forays in new business sectors. As semiconductors are being increasingly produced domestically against the backdrop of response to economic security risk and other factors, to address the engineer shortage at semiconductor device manufacturers and semiconductor production system manufacturers, the Group will proceed to develop human capital capable of performing the likes of mechanical maintenance for semiconductor production systems and field engineering duties. Consequently, the number of technical employees at the end of the current consolidated fiscal year increased by 102, or 39.4%, to 361 (versus 259 at the end of the previous consolidated fiscal year).

As a result of these factors, in terms of business results for the current consolidated fiscal year, in addition to an increase in the number of technical employees at COPRO CONSTRUCTION. Co., Ltd., which dispatches construction technicians, COPRO TECHNOLOGY. Co., Ltd. also increased the number or technical employees. As the number of consolidated technical employees at the end of the current consolidated fiscal year increased by 893, or 29.4% YoY, to 3,929 (versus 3,036 at the end of the previous consolidated fiscal year), sales were 24,098,199 yen (a 28.2% increase YoY). In terms of profit, in addition to recruiting costs, an increase in selling, general and administrative expenses resulting from higher personnel and other expenses due to the augmentation of the sales and recruiting divisions aimed at expanding demand in April 2024 and beyond mainly in construction technician dispatching was absorbed by an increase in profit on sales that accompanied the increase in sales, bringing operating profit to 2,141,767 yen (a 62.0% increase YoY). Additionally, due to the recording of cancellation refunds for insurance contracts, ordinary profit came to 2,211,838 yen (a 67.0% increase YoY), net profit attributable to the shareholders of the parent company to 1,463,461 yen (69.3% increase YoY) and net profit per share to 77.68 yen (67.0% increase YoY).

Since the Group has only one segment, which is the technical employee dispatching business, the description for each segment is omitted.

The forward-looking statements in this document are based on information available to the Company and certain assumptions that the Company considers reasonable, and are not intended to be a promise by the Company that they will be achieved. Actual results may differ significantly due to various factors.

(Note) For an overview of the medium-term management plan, please refer to the "Notice of Medium-Term Management Plan" released on May 13, 2022.