■History and performance trends

1. HISTORY

3B Co., Ltd., the predecessor of Unilita (3800)), was established in 1982 in Chuo-ku, Tokyo as a business consultancy subsidiary providing programs for human resource development and organizational development. The purpose was to sell “A-AUTO,” which was sold domestically by Software AG of Far East Co., Ltd. (1996/8, trade name changed to Beacon Information Technology Co., Ltd.), which originated as a business consultant, in the US market.

After that, the trade name was changed to BSP Co., Ltd. in 1987. The turning point for the company was that it took over the software AG of Far East's system operation-related business in 1993 and began full-scale activities as a company specializing in system operation management package software. Since then, while steadily strengthening the business infrastructure using the expansion of IT system investment as a tailwind, we have built up achievements centered on core business systems (mainframes), including financial institutions and major companies.

In 2001, BSP Solutions was established, and the consulting and solution business began in earnest. It was listed on the JASDAQ Stock Exchange in 2006 (transitioned to the standard market due to the restructuring of the Tokyo Stock Exchange market from 2022/4).

In 2014/1, by consolidating Beacon IT Co., Ltd. (registered company name: Beacon Information Technology), growth fields such as data utilization were incorporated and business structure transformation began.

In 2015/4, Beacon IT, which is a consolidated subsidiary, was absorbed and merged, and the company name was changed to Unilita Co., Ltd. The new company name contains the idea that it aims to be a company that contributes to the development of customers and society with a “unique idea” and a “spirit of altruism” in order to create value.

2. Past performance trends

Looking back on the company's performance, sales ranged from the fiscal year ending 2012/3 to the fiscal year ending 2014/3, and as the shift to open systems progressed, growth in the “system operation business (currently part of product services)” drove the company's growth. However, after the business expanded greatly due to the consolidation of beacon IT in the 2015/3 fiscal year, it can be said that sales have been sluggish for a while as we work on business structural reforms. However, when limitless acquisitions to develop the “system integration business (currently part of professional services)” in the fiscal year ending 2019/3 contributed to business expansion, the “cloud business (currently cloud service),” which we focus on from the 2020/3 fiscal year onwards, has steadily grown.

In terms of profit and loss, although there is still a high degree of profit dependency on the “mainframe business (currently part of product services),” the operating profit margin followed an upward trend as profit and loss improvements in the “product business (currently product service)” progressed, and reached a high level of 28.1% for the fiscal year ending 2014/3. Since the fiscal year ending 2015/3, operating profit margins have declined due to upfront investment etc. associated with business structural changes, but even so, it has maintained a level of around 20%. However, since the fiscal year ending 2019/3, the operating profit margin has been at a lower level compared to the past due to the impact of upfront investments with an eye on the future, such as the “cloud business,” which is a growth field, and new businesses. Going forward, it can be said that the biggest point of interest is how to cover the impact associated with the contraction of the “mainframe business” by improving profit and loss of “cloud services” and improving the added value of “professional services.”

On the financial side, the capital adequacy ratio, which indicates the stability of the financial base, declined once in the fiscal year ending 2014/3 due to Beacon IT consolidation, but rose to 80.1% in the fiscal year ending 2016/3 due to the absorption merger (change in the parent company's equity) of Beacon IT. Furthermore, the liquidity ratio, which indicates short-term solvency, has also remained at a high level (305.8% at the end of the 2024/3 fiscal year), reflecting abundant “cash and deposit” balances, and the stability of the financial base is extremely excellent. It can be said that this supports upfront investment for future growth. Meanwhile, ROE, which indicates capital efficiency, has also remained at a 2-digit level, but due to changes in business portfolios and the impact of upfront investments, it has fallen below 10% since the fiscal year ending 2018/3.

(Written by FISCO Visiting Analyst Ikuo Shibata)