SAKURASAKU PLUS（7097 TSE Growth）
＋English Summary on This Page
SAKURASAKU PLUS handles the management of its two consolidated subsidiaries: SAKURASAKU MIRAI, which operates nursery schools, and SAKURASAKU POWERS, which handles the real estate brokerage and consulting businesses focused on nursery school properties. SAKURASAKU PLUS also has two affiliated companies accounted for by the equity method: AKARUI MIRAI ASSET, which conducts the real estate management business, and Hana TED., JSC which operates the nursery school business in Vietnam. Over 90% of net sales are generated by SAKURASAKU MIRAI.
As of the end of the fiscal year ended July 2020, the group operates 58 authorized nursery schools, one authorized small-sized nursery school in Saitama Prefecture and one nursery school certified by the Tokyo Metropolitan Government.
Authorized nursery schools are facilities approved by local governments based on the Child Welfare Act. As of the end of July, the company operates 53 authorized nursery schools in the 23 wards of Tokyo, one each in Chiba Prefecture and Saitama Prefecture, and three in Osaka Prefecture.
Authorized small-sized nursery schools are businesses approved by municipalities based on the Act on Child and Childcare Support that have a capacity of six to 19 children that are two years old or under. Nursery schools certified by the Tokyo Metropolitan Government are part of a system unique to the Tokyo Metropolitan Government.
Authorized nursery schools and authorized small-sized nursery schools provide nursery services to users (guardians, etc.). However, fees are paid by the users to the respective local governments and the local governments pay outsourcing expenses, etc. to the company (users bear a partial burden at authorized small-sized nursery schools). For nursery schools certified by the Tokyo Metropolitan Government, the company receives subsidies for operation fees from the local government and nursery fees from the users.
Other than posting outsourcing expenses and subsidies, etc. to be received from local governments according to the number of enrolled children as net sales, the company posts subsidies from local governments for part of the expenditures for interior work, etc. when opening a new nursery school as subsidy income which is posted under non-operating income. On the other hand, part of the expenditures for new openings are recorded as pre-operating expenses under non-operating expenses. Therefore, it can be said that the ordinary profit more appropriately indicates the actual management status of the group.
Business Results for Fiscal Year ended July 2020
Net sales for the fiscal year ended July 2020 marked a 48.0% increase year-on-year to 7,629 million yen and ordinary profit was a 7.1% increase year-on-year to 1,494 million yen. For non-operating items, subsidy income decreased 7.3% year-on-year to 1,928 million yen and pre-operating expenses decreased 8.0% year-on-year to 632 million yen.
As for the impact of the COVID-19 pandemic, the ratio of school attendance declined to around 30% in April and May, but it recovered to around 70% in June and is close to 100% at present according to the company. As outsourcing expenses, etc. are paid according to the number of enrolled children, the impact on sales was minimal.
Corporate Plan for Fiscal Year ending July 2021
For the fiscal year ending July 2021, the group expects net sales of 9,613 million yen (26.0% year-on-year increase) and ordinary profit of 1,683 million yen (12.7% year-on-year increase). As for new facilities, it plans to open 14 facilities in the 23 wards of Tokyo.