Performance trend of Signpost (3996)

3. Financial situation

From a financial perspective, total assets at the end of February 2024 increased by JPY 205 million from the previous year-end to JPY 2,601 million. Mainly due to an increase in cash and deposits of JPY 64 million, an increase in accounts receivable of JPY 34 million, an increase in contract assets of JPY 45 million, and the recognition of deferred tax assets of JPY 56 million. Total liabilities increased by JPY 76 million to JPY 1,055 million. The balance of interest-bearing debt (total of short-term and long-term borrowings and corporate bonds) was JPY 484 million, an increase of JPY 45 million. Total net assets increased by JPY 129 million due to increases in retained earnings, etc., to JPY 1,545 million. As a result, the equity ratio increased by 0.3 points to 59.4%. On February 29, 2024, the company reduced its capital stock and legal reserve and transferred the remaining surplus to retained earnings. This is a transfer between accounts and has no impact on the increase or decrease of net assets.

In December 2023, we issued the 5th unsecured corporate bond "SDGs Promotion Private Placement Bond" (total amount: JPY 200 million) with Resona Bank as the underwriter. The purpose of the bond issuance is to support the achievement of SDGs by donating a portion of the fees paid to Resona Bank to SDGs-related organizations. This is the third fund raising. By raising long-term fixed funds, we aim to enhance the resilience of management and contribute to the realization of a sustainable society. Although the operating cash flow has turned positive for the first time in four periods, we believe that there are no major concerns about the financial soundness of our company.

(Authored by FISCO guest analyst Masanobu Mizuta)