On the 13th, RSC Co., Ltd. <4664> released its consolidated financial results for the first quarter of the 2025 fiscal year (April-June 24). Revenue decreased by 12.8% YoY to 1.941 billion yen, operating profit decreased by 47.9% YoY to 0.074 billion yen, ordinary profit decreased by 48.9% YoY to 0.077 billion yen, and net income attributable to the parent company's shareholders in the quarter decreased by 55.1% YoY to 0.047 billion yen.

Sales revenue of building comprehensive management services was 1.693 billion yen, down 15.4% YoY. Segment profit was 0.176 billion yen, down 26.3% YoY. In the security division, security services incorporating AI security systems were launched at Sunshine City Prince Hotel, and temporary security services for outdoor events were ordered in the Marunouchi area. In the cleaning section, a new office in the Ginza area started operations, and patrol cleaning work is expanding smoothly at each sales office. In the facilities section, many temporary projects were ordered, such as the renovation of escalators and elevators at large home appliances stores, repairs of equipment at school lunch centers, remodeling of electrical equipment at office buildings, and LED conversions of pools at sports clubs. In the construction section, shutter renovation work and fire equipment renovation work at Sunshine City were ordered, but large orders for major projects such as the layout change work at an office building with high demand from the previous year by a subsidiary and the entire renewal work at government facilities and internal finishing work for facility expansion work at school facilities have been significantly affected throughout the year. Regarding profit, we focused on actively changing specifications and revising contract amounts at existing business offices, preventing employee turnover, and stable operation of business offices. For repair work, we reconsidered prices in response to increases in raw materials and labor costs, and thoroughly implemented safety and process management.

Sales revenue of the human resources service business increased by 10.0% to 0.247 billion yen. Segment profit decreased by 60.8% to 0.004 billion yen. In anticipation of a decrease in revenue due to the expiration of long-term government contracts, we received temporary contracts such as telephone switchboard operations and short-term data input operations at hospitals and large event promotions for anniversary events at companies. Regarding profit, we continued to improve the treatment of dispatch staff in parallel, reviewed the recruitment and education methods of registered staff for securing human resources, and thoroughly managed costs, but early expenses such as preparations for major event promotion work after July had a significant impact. However, it is expected to proceed as scheduled in the second quarter.

For the consolidated performance forecast for the full term of the 2025 fiscal year ending in March, sales revenue is expected to remain at the initial plan of 8.103 billion yen, an increase of 0.1% from the previous fiscal year. Operating profit is expected to decrease by 46.5% YoY to 0.152 billion yen, ordinary profit is expected to decrease by 49.3% YoY to 0.152 billion yen, and net income attributable to parent company shareholders is expected to decrease by 67.7% YoY to 0.079 billion yen.

On the other hand, the progress rate of the consolidated performance forecast for the second quarter of the 2025 fiscal year ending in March is 45.4% for sales revenue, 64.9% for operating profit, 67.0% for ordinary profit, and 74.6% for net income attributable to parent company shareholders. Profit-based progress is ahead of schedule.