Central Security Patrols Co (9740) Q4 2024 earnings summary

Executive summary

• FY2024 revenue and operating profit increased YoY; net income reached a record, boosted by the sale of policy-held shares.

• FY2025 guidance calls for further revenue and operating profit growth, excluding the prior-year net income boost from the share sale.

Financial highlights

• FY2024 revenue was ¥68,010 million, up ¥3,187 million YoY; operating profit was ¥4,316 million, up ¥340 million.

• Ordinary profit was ¥4,533 million, up ¥89 million YoY; net income was ¥5,381 million, up ¥2,795 million, and EPS was ¥368.77.

• Revenue exceeded the ¥67,500 million forecast by ¥510 million; operating profit exceeded forecast by ¥117 million and ordinary profit by ¥234 million.

Outlook and guidance

• FY2025 forecast: revenue ¥69,200 million, operating profit ¥4,350 million, operating margin 6.3%, ordinary profit ¥4,550 million and net income ¥2,850 million.

• Net income forecast falls 47.0% YoY, reflecting the prior-year share-sale gain; operating and ordinary profit are forecast to rise modestly.

• Planned wage and benefit improvements average 3% for the year, at a level similar to the prior year; guidance assumes profit growth despite these costs.

• Management aims to reach the FY2026 Creative 2025 targets through TAKANAWA GATEWAY CITY, redevelopment projects, M&A and business transfers; the revenue gap to the target is ~¥10 billion.