■Performance Trends of Intertex <8940>

3. Financial Condition and Management Indicators

As of the end of May 2024, the total assets decreased by 4,919 million yen to 40,710 million yen compared to the previous period. Looking at the main reasons for the increase and decrease, in current assets, cash and deposits increased by 14 million yen, advance payments increased by 208 million yen, while sales properties decreased by 5,442 million yen. In fixed assets, tangible fixed assets increased by 405 million yen, investment securities increased by 237 million yen, and leasehold decreased by 464 million yen. Due to the promotion of the sale of long-term vacant properties, the year-end balance of income-generating properties (sales properties + long-term retained income properties) decreased by 4.4 billion yen to 31.4 billion yen, marking the third consecutive decrease.

Total liabilities decreased by 5,017 million yen from the previous period to 28,838 million yen. The main reason for this was the decrease of 5,416 million yen in interest-bearing debt due to using the proceeds from the sale of income-generating properties to repay borrowings. Total net assets increased by 98 million yen from the previous period to 11,872 million yen. This was due to dividend payments of 150 million yen, share repurchases of 199 million yen, and recording net income attributable to parent company shareholders of 414 million yen.

Looking at the financial indicators, the decrease in assets and interest-bearing debt due to the sale of income-generating properties led to an increase in the equity ratio from 25.8% in the previous period to 29.1% and a decrease in the interest-bearing debt ratio from 264.4% to 216.5%, indicating an improvement in financial health. As a weak financial position could make borrowing from financial institutions more challenging, the policy going forward is to continue expanding the business while being conscious of these financial indicators.

(Written by FISCO guest analyst, Jo Sato)