Confidence Interworks <7374> announced on June 21st the business plan and growth potential.
Since its founding in 2014, the company has been engaged in personnel dispatch business focusing on the gaming and entertainment industries. Since April 2023, it has also been handling freelancers matching services. In addition to the dispatch and consignment business it has mainly worked on, the business structure that comprehensively responds to client needs has been established by adding businesses such as Interworks, which was merged in August of last year, which includes personnel introduction, job advertisements, and hiring support.
As a growth strategy, the company aims to develop an 'industry-specific vertical personnel service' by covering customers and services in specialized business areas and stacking up 'No.1 category' in each area to accelerate its growth. In addition, it plans to actively utilize M&A to buy outstanding management teams, technology, and time, while implementing appropriate cost control and improving and executing stable profit structure in each business, in order to buy the organic growth of existing businesses.
Performance is also expanding smoothly. The settlement for 2024 expanded significantly due to the merger with Interworks in August of the previous year. Although the revenue of 7.488 billion yen increased by 44.1% compared to the previous year, it was slightly below the company's plan, but the operating profit of 1.195 billion yen increased by 28.0% and the ordinary profit of 1.142 billion yen increased by 23.2%, greatly exceeding the company's estimate, achieving a significant increase in profits. It is expected that the performance for the settlement of 2025 will continue to expand. With the full-year contribution of Interwork (the previous year's performance contribution for eight months), it is expected that revenue and profit will increase in all segments. In addition, due to the contribution of protagonist, which was consolidated into a subsidiary in February of this year, it aims to achieve both growth and profitability by aiming for further revenue expansion with a 20.2% increase in revenue and a 17.1% increase in operating profit.
The company also positions the return of profits to shareholders as one of the important issues in management. The basic policy is to continue to pay continuous and stable dividends while making internal reserves necessary for future business expansion and strengthening of its financial structure, and aiming to achieve a DOE (shareholders' capital dividend payout ratio) of 10% in the medium term. The dividend for the full year of 2024 was determined to be 55 yen, an increase of 7 yen from the previous year. For the settlement of 2025, it is expected to increase the annual dividend by another 10 yen to 65 yen.