Performance Trends of Flares <7062>

2. Financial condition and performance indicators.

Total assets at the end of March 2024 increased by JPY 166 million compared to the previous year-end, reaching JPY 619 million, and the asset size expanded. The increase in current assets by JPY 527 million was mainly due to the increase in advance payments of JPY 280 million and the increase in cash and deposits of JPY 155 million. Fixed assets increased by JPY 1,133 million, mainly due to the increase in tangible fixed assets, including lease assets, which increased by JPY 1,174 million.

Total liabilities increased by JPY 161.8 million compared to the previous year-end to JPY 442.2 million. The increase in current liabilities by JPY 610 million was mainly due to the increase in short-term borrowings and long-term borrowings due within one year. Fixed liabilities increased by JPY 1,008 million, mainly due to the increase in lease obligations. Interest-bearing debt increased by JPY 221 million to JPY 1,758 million, and funding was smooth. Total net assets increased by JPY 4.1 million to JPY 176.7 million. This was mainly due to the posting of JPY 58 million in net income attributable to the parent company's shareholders and the payment of JPY 24 million in surplus dividends. In terms of management indicators, the current ratio is 221.8%, which exceeds the safety indicator of 200%, indicating no short-term safety concerns. The self-capital ratio is close to the industry average (around 30% for service industry in the Tokyo Stock Exchange Growth Market) at 28.4%. In terms of efficiency and profitability, ROE (return on equity) improved to 3.3% (1.8% in the previous year), and ROA (return on assets) improved to 2.0% (1.8% in the previous year). However, as it is in the early investment phase, there is still a lot of room for improvement.

Performance Trends of Flares <7062>

(Written by FISCO Guest Analyst, Hideo Kakuta)