Serendip Holdings <7318> announced its consolidated financial results for the first quarter of the fiscal year ending in March 2025 (April to June 24th). Sales increased by 4.6% to 4.804 billion yen compared to the same period of the previous year, operating profit increased by 20.9% to 0.144 billion yen, ordinary profit increased by 17.8% to 0.198 billion yen, and net income attributable to the parent company's shareholders for the quarter decreased by 37.0% to 0.105 billion yen.

Sales of the manufacturing business increased by 2.4% to 4.44 billion yen compared to the same period of the previous year, and segment profit decreased by 17.7% to 0.137 billion yen. The 'Automotive Supplier (manufacture of automotive interior and exterior parts, manufacture of automotive precision parts)' was affected by the production and shipment stoppage of some vehicle models, although domestic production of auto manufacturers continued at a high level. 'FA equipment manufacturing' has not yet seen a significant recovery in equipment investment by major customers, resulting in delays in order confirmation. 'Prototype production' is making steady progress due to expansion of sales channels through group synergy. 'Beauty Tech' acquired all shares of Ladybird on March 25, 2024, and consolidated it as a subsidiary, incorporating it from the beginning of the first quarter.

Sales of the Professional Solution business increased by 38.6% to 0.461 billion yen, and the segment loss was 0.008 billion yen (compared to a loss of 0.044 billion yen in the same period of the previous year). 'Consulting' has a social background of increasing mid-sized and small businesses facing succession and management issues, leading to an increase in the number of M&A and business revitalization projects brought to our company by mid-sized and small manufacturing companies. In addition, the increase in demand for IT consulting due to the increase in reconstruction needs of core systems of mid-sized and small businesses, and the recording of sales for the implementation of collaborative robot introduction consulting led to an 86.4% increase in sales for the company's consulting department compared to the previous period, contributing to the growth of the segment. On the other hand, we continue to actively recruit personnel to further contribute to the resolution and growth of management issues faced by mid-sized and small businesses. 'Engineer dispatch and contract development' focuses on developing new IoT solutions through collaboration with the consulting department of the same company in order to support the growth of mid-sized and small businesses, strengthen the management foundation, and enhance the re-skilling of engineers. The cost of acquiring Sarendip Robo Cross Marketing was recorded in this segment during the cumulative period of the first quarter.

Sales of the Investment business increased by 74.5% to 0.055 billion yen, and segment profit was 0.014 billion yen (compared to a loss of 0.003 billion yen in the same period of the previous year). We have been actively engaged in the exploration and development of projects to flexibly respond to succession issues. We actively promote business succession support services for manufacturing companies and corporate management support such as financial advisory services, and the increase in financial advisory sales has contributed to increased revenue and profit. In addition, we received compensation for management services associated with the management of the Japan Manufacturing Business Succession Fund No. 1 Investment Limited Liability Partnership, which was established in February 2023.

The consolidated performance forecast for the fiscal year ending in March 2025 maintains the initial plan with a 10.2% increase in sales to 21.8 billion yen compared to the previous year, a 67.4% increase in operating profit to 0.8 billion yen, a 23.3% increase in ordinary profit to 0.735 billion yen, and a 5.2% increase in net income attributable to the parent company's shareholders to 0.546 billion yen.