Central Security Patrols Co (9740) investor relations material

Executive summary

• Revenue increased 10.3% year-over-year to ¥78,745 million, with operating profit up 3.9% to ¥4,499 million and recurring profit up 3.0% to ¥4,701 million.

• Net income attributable to shareholders declined 22.5% year-over-year to ¥2,503 million due to special losses from litigation settlement and goodwill impairment, despite gains from policy share sales.

• The company advanced its mid-term plan, expanded through M&A, and launched new services and technology initiatives, including AI-based security and drone business.

Financial highlights

• Operating margin was 5.7%, recurring margin 6.0%, and ROE 6.2% for the period.

• Comprehensive income rose 27.3% year-over-year to ¥4,506 million.

• Cash and equivalents at year-end were ¥16,211 million, down ¥1,337 million from the previous year.

• Dividend per share was maintained at ¥60, with a payout ratio of 34.3%.

Outlook and guidance

• FY2027 forecast: revenue ¥78,000 million (down 0.9%), operating profit ¥3,500 million (down 22.2%), recurring profit ¥3,600 million (down 23.4%), net income ¥2,300 million (down 8.1%).

• The company expects continued cost pressures from wage increases and a challenging business environment, but will focus on transformation and next-generation security services.