UT Group Co Ltd
TSE:2146
UT Group Co Ltd
UT Group Co., Ltd. engages in the support and management of its group companies that dispatches and outsources permanent employees to different industries in the fields of manufacturing, design, development, and construction. The company is headquartered in Shinagawa-Ku, Tokyo-To and currently employs 38,527 full-time employees. The company went IPO on 2007-04-01. The firm operates in three business segments. Manufacturing segment is involved in the provision of temporary staffing, contracting and human resources services for the manufacturing industry. Its main customers include domestic semiconductors, electronics, automobiles, building materials and housing equipment companies. Solution segment is involved in the provision of employment dispatch, contracting for transfer in line with structural reforms for main manufacturing companies. Its main customers are major electronics manufacturers in Japan. Engineering segment is engaged in the provision of engineer dispatch, contracting and human resources services for electro-mechanical companies. Its main customers are manufacturers and general contractors.
UT Group Co., Ltd. engages in the support and management of its group companies that dispatches and outsources permanent employees to different industries in the fields of manufacturing, design, development, and construction. The company is headquartered in Shinagawa-Ku, Tokyo-To and currently employs 38,527 full-time employees. The company went IPO on 2007-04-01. The firm operates in three business segments. Manufacturing segment is involved in the provision of temporary staffing, contracting and human resources services for the manufacturing industry. Its main customers include domestic semiconductors, electronics, automobiles, building materials and housing equipment companies. Solution segment is involved in the provision of employment dispatch, contracting for transfer in line with structural reforms for main manufacturing companies. Its main customers are major electronics manufacturers in Japan. Engineering segment is engaged in the provision of engineer dispatch, contracting and human resources services for electro-mechanical companies. Its main customers are manufacturers and general contractors.
Record EBITDA: The company achieved its highest ever quarterly EBITDA of JPY 12 billion, with a margin of 9.4%, putting it on track to exceed its full-year target ahead of schedule.
Strong Revenue Growth: Net sales rose by 12.4% year-on-year to JPY 128 billion after the third quarter, with quarterly revenue hitting a new high of JPY 43.8 billion.
EBITDA Guidance Raised: Management raised EBITDA targets to JPY 15 billion for FY '23, JPY 19 billion for FY '24, and JPY 25 billion for FY '25.
Hiring Capacity Focus: The company aims to double its hiring capacity to 2,000 workers a month, a key driver for future growth and market share.
Segment Performance: Manufacturing business rebounded with improved gross margin, while area business continued to grow and narrow the revenue gap.
SG&A Efficiency: SG&A expenses as a percentage of revenue were reduced from 13.9% to 10.9% in one year, contributing to profitability.
Shareholder Returns: Shareholder return will total 30% of net profit, with a target total return ratio around 81% if excluding stock compensation expenses.
