TOKYO, Oct. 18, 2021 /PRNewswire/ -- Both sales and
profit grew substantially during the six months ended August 31, 2021. Results were strong in the core
Consulting business, and the Company reported large growth in
performance from management consulting services and platform
services.
Summary of results
During the six months ended August 31,
2021, the economic environment in Japan continued to be unforgiving due to
impact from the COVID-19 pandemic. However, the market is
demonstrating strong need for improvement in organizational
productivity achieved through means such as results-based employee
management and rule-oriented organizational management that
generates results regardless of the workplace being utilized.
Accordingly, demand for the Company's services remains robust.
Under its corporate philosophy of "Disseminate Shikigaku and
maximize people's potential," the Shikigaku Group provides services
that facilitate the permeation of its "Shikigaku" organizational
management theory within client organizations. Additionally,
through its Sports Entertainment business, the Company has been
actively conducting sales activities aimed at acquiring sponsors in
preparation for the start of the 2021–2022 season of the B.LEAGUE
professional basketball organization. In the VC Fund business,
Aidma Holdings, Inc., the first company in which SHIKIGAKU No. 1
Investment Limited Partnership invested, successfully listed shares
on the TSE Mothers Index. With this listing, two investee companies
of SHIKIGAKU No. 1 Investment Limited Partnership have conducted
IPOs within the year and a half since its establishment. The
Company considers these results to be proof that the Shikigaku
organization consulting method supports organizational management
aimed at achieving public listings.
For the six months ended August 31,
2021, the Company reported net sales of JPY1,801,483,000 (+86.4% YoY), EBITDA (operating
profit + depreciation + amortization of goodwill + amortization of
leasehold deposits) of JPY236,142,000
(+7,588.7% YoY), operating profit of JPY201,292,000 (versus operating loss of
JPY24,381,000 for the six months
ended August 31, 2020), ordinary
profit of JPY197,270,000 (versus
ordinary loss of JPY25,918,000 for
the six months ended August 31,
2020), and JPY120,333,000 in
net income attributable to owners of parent (versus JPY105,132,000 in net loss for the six months
ended August 31, 2020).
The Company has five reporting segments: the Organization
Consulting business, the Sports Entertainment business, the
Contract development business, the VC Fund business, and the
Hands-On Support Fund Business.
Through its Organization Consulting business, the Company
provides management consulting services and platform
services.
The COVID-19 pandemic impacted management consulting services
during the six months ended August 31,
2021. However, the Company continued to conduct investment
supported by vigorous marketing activities to facilitate active
recruitment of consultants and expansion in its customer base.
Consequently, its consultant count increased to 65, up 11 compared
to the February 28, 2021. As of
August 31, 2021, the Company reported
that it had formed management consulting service contracts with a
cumulative total of 2,571 companies. Its management consulting
services generated JPY1,070,358,000
in sales over the six months ended August
31, 2021 (+36.5% YoY).
During the period under review, in the category of platform
services, the Company focused on expanding sales of its SHIKIGAKU
Basic Services, which provide ongoing operational support until
organizational management grounded in its Shikigaku theory
(corresponding service launched in September
2020) take hold. The diagnoses that accompany these services
clarify organizational issues and enable support for their eventual
resolution. Accordingly, the Company has been striving to improve
customer satisfaction associated with its SHIKIGAKU Basic Services.
As of August 31, 2021, the Company
had SHIKIGAKU Basic Service agreements in place with 379 companies
(versus 167 as of February 28, 2021)
while also reporting 157 SHIKIGAKU Cloud agreements (versus 229 as
of February 28, 2021) and 340
Shikigaku Member clients (versus 479 as of February 28, 2021). Platform services generated
JPY487,545,000 in sales over the six
months ended August 31, 2021 (+210.5%
YoY).
As a result of these factors, sales in the Organization
Consulting business amounted to JPY1,558,103,000 (+65.5% YoY) while operating
profit came to JPY294,660,000
(+3,997.2% YoY).
In the Sports Entertainment business, the Company fulfilled its
function as a community-based club by conducting initiatives aimed
at stimulating and expanding interest in local sports while also
striving to facilitate team strengthening in pursuit of promotion
to the B1 League level. During the three months ended August 31, 2021, the Company expanded sales
activities aimed at acquiring sponsors for the 2021–2022 season,
increased the scope of its sales personnel recruitment, and
strengthened its collaboration with local governments to raise tax
payments made under the corporate version of Japan's hometown tax system, which has become
a new revenue base. Due in part to these efforts, sponsorship
orders were strong, increasing to JPY9,397,000 (+75.8% YoY). However, costs took
precedent over profit in during the period under review as the
Company continued to invest in operation aimed at achieving team
strengthening.
Consequently, sales generated through the Sports Entertainment
business amounted to JPY91,784,000
while operating loss in the business came to JPY75,255,000.
In the Contract Development business, the Company leveraged its
engineer sources and the extensive expertise it cultivated while
handling numerous and diverse development projects as it conducted
development operations associated with the platform services of its
own corporate group and contracted development related to
e-learning systems linked to certification courses. In March 2021, the Company released Work Experience
DX, a recruitment matching service that allows users to simulate
the experience of joining participating companies, thereby gaining
knowledge of the work they do and an understanding of how
compatible they are with these companies.
As a result of these factors, sales generated through the
Contract Development business amounted to JPY151,595,000 while corresponding operating loss
came to JPY13,752,000.
In the VC Fund business, the Company conducted investment
focused on establishing and expanding organizational power and
becoming a growth-generating organization. Meanwhile, it also
operated venture capital funds that support growth by facilitating
organizational improvements at companies in which they invest by
implementing the Company's Shikigaku theory. In June 2021, the Company established the SHIKIGAKU
No. 2 Investment Limited Partnership, converted it into a
subsidiary, and began including its performance in consolidated
financial results. In June and July
2021, the Company sold a portion of the shares held by
SHIKIGAKU No. 1 Investment Limited Partnership and booked a
JPY167 million gain on sales of
investment securities, categorizing this gain as extraordinary
income because it was generated by investment conducted on or prior
to June 29, 2021.
Consequently, operating loss in the VC Fund business amounted to
JPY13,113,000.
In the Hands-On Support Fund business, the Company operated
hands-on support funds that provide organizational improvement and
finance support and draw income from capital gains generated
through investment exit (IPO, M&A, etc.). In June 2021, the Company established Shinsei
Shikigaku Growth Support I Investment Limited Partnership and
converted it into an equity-method affiliate. The goal of this fund
is to invest in companies that are expected to grow, provide
hands-on support aimed at improving their financial performance and
facilitating this growth, and raise investment capital through
their subsequent sale.
As a result spending associated with these efforts, the Hands-On
Support Fund business generated an operating loss of JPY990,000.
The Company has made no changes to its earnings forecast for the
fiscal year ending February 28, 2022,
which projects sales of JPY3,798
million (+51.6% YoY), EBITDA of JPY470 million (+136.2% YoY), operating profit of
JPY400mn (+191.2% YoY), and ordinary
profit of JPY353mn (+77.4% YoY).
Shikigaku Co., Ltd. (7049, TSE
Mothers) https://corp.shikigaku.jp/
Please visit the following URL for a summary of consolidated
financial results for the six months ended August 31, 2021
→https://global-assets.irdirect.jp/pdf/tdnet/batch/140120210929404217.pdf
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SOURCE SHIKIGAKU Co., LTD.