FAQ (Search categories)

FY08/23_Q1

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• Are there still impact from unprofitable projects?

  Results of Q1, FY08/23 was partially affected. As of January 12, 2023, we believe that it is unlikely that the impact will remain until after Q2, FY08/23, as prospects for the termination of unprofitable projects have been made visible.

• It seems that recruiting expenses are considerably higher than that of Q1, FY08/22

  In Q1, FY08/23, compared to Q1, FY08/22, we managed to recruite high-priced personnel (79 → 157 employees) and the agent fee ratio is gradually rising. As a result, the ratio of recruiting expenses to net sales was high.
  This reflects the fact: that in FY08/22 it had a large seasonality in the recruitment environment, which resulted in a high ratio of recruiting expenses in Q3, FY08/22 and a low one in Q1, FY08/22: the ratio of recruitment expenses ratio to net sales in Q1, FY08/23 appears to be high due to our strategic and aggressive recruitment in Q1.

• About the future recruiting expenses

  For the full fiscal year, the ratio of recruitment expenses to net sales is expected to be roughly on par with the usual trend. In light of the seasonality of the recruitment environment and the recruitment status of our competitors, we strategically manage recruitment expenses for the full year by controlling our investments on a quarterly basis.

• Are there any changes in customer industry situations?

  There is no significant change. Net sales in roughly all industries are growing steadily. The SHIFT Group believes that it is relatively unlikely to be affected by the macroeconomic environment because of its customers in a wide range of industries.

• Some people say that there will be a recession. Are you facing any changes in demand environment?

  There is no major change in the demand environment at present. Looking at our customer industries, the demand environment continued to expand steadily.

• How do you feel performances of Q1 is progressing compared to the forecast?

  We believe that we are making progress as planned. Q1, FY08/23 achieved the highest level of net sales toward the target ever. As targeted at the beginning of FY08/23, aggressive recruitment activities are expected to put a slight strain on operating income in the first half of FY08/23 compared to the first half of FY08/22. However, the gross profit margin is recovering.

• Are recruitment activities progressing smoothly?

  We are making steady progress toward our full-year recriting targets. For Q1, FY08/23, we recruited 157 highly skilled engineers by reinforcing our agent-related measures (Q1, FY08/22 result: 79 engineers).

• Unit price for engineer seems to be flat for the past few quarters.

  Unit price for engineer on a consolidated basis tends to be affected by group companies that have newly participated in the SHIFT Group through M&A and other means. In Q1, FY08/23, it was partially impacted by the new group companies, DeMiA and Kronos.

  For unit price for engineer on a parent basis, a temporary decline in the utilization rate due to accelerated recruiting may have a temporary impact on unit price for engineers. As for the utilization rate, we grasp it by visualizing the situation, and improved 2pt in Q1, FY08/23.

• What is Careersystems?

  Careersystems provides a wide range of services, building, maintaining, and operating foundations and developing applications. As the SHIFT Group, SHIFT recognizes that this area has strong demand, and it believes that the Group needs to further strengthen its ability to provide services.
  In addition, SHIFT appreciates the strong technological capabilities of Careersystems. After participating in the SHIFT Group, Careersystems will work to improve the unit price of engineers and to improve the working environment, by not only executing existing projects, but also collaborating sales activities to acquire new projects that are closer to the end-user.
  SHIFT also plans to collaborate and strengthen Careersystems’ management base by leveraging the knowledge that SHIFT has developed in collaboration with various Group companies.

  https://en.shiftinc.jp/news_en/announcement-of-acquisition-of-careersystems-inc/
  https://en.shiftinc.jp/news_en/corrections-announcement-of-acquisition-of-careersystems-inc/