Gunma Tax Newsletter Vol. 49 Page 01 - Greetings -
Dear Sir/Madam, although we have entered September, the intense heat continues. How have you been?
Now, the consolidated financial results for the June term of the nursing care division, for which I serve as representative, have been finalized. SAVING LIVES Co., Ltd. is the holding company, and I have consolidated three wholly-owned operating subsidiaries. This is our 6th term since starting the nursing care business, and we have grown to a scale of 550 million yen in consolidated sales and 90 million yen in consolidated operating profit. We currently operate 5 nursing care facilities with 168 rooms and a total of 119 employees.
When we opened 6 years ago, we had only one facility, Mikabo no Sato in Fujioka. In the June term of the first year of Reiwa (2019), we had sales of 103 million yen, operating profit of 2 million yen, 34 rooms, and 24 total employees. In the June term of the 6th year of Reiwa (2024), five years after the June term of the first year of Reiwa, our sales and number of employees have increased about fivefold, and our operating profit has increased about fortyfold. I would like to express my gratitude, as this is entirely due to your support.
For the next fiscal year, through further M&A and other means, we are planning sales of 1,088 million yen (a 98% increase from the previous term) and operating profit of 176 million yen (a 96% increase) . We have already secured 900 million yen in sales, so we are just a little bit away from the 1 billion yen mark.
We are aiming for a listing on the Tokyo Pro Market (TPM) at the beginning of 2026, and furthermore, we will continue to grow rapidly with the goal of listing on the Tokyo Stock Exchange Growth Market. We ask for your continued support and guidance.
Employees, banks, and others tell me that I don't need to rush so much and that we should proceed steadily and reliably, and I face a lot of resistance, but it is natural for a venture company to grow as rapidly as possible to its limits, so I have no intention of loosening the reins. If net assets and profit amounts are sufficiently large, you can go public, but if it is a rapidly growing company (generally a growth rate of 30% or more), it can go public even if it is small and command a high stock price, so I want to go public while our average growth rate is significantly exceeding 30%.
Actually, there is another important reason.
As a tax accountant, I have been providing management consultations to my clients for a long time, but there are many managers who do not listen well. I have often felt that the reason my clients do not grow is because they do not listen to my advice and the managers are not making an effort. Specifically, out of 100 managers, 10 listen well to my advice, and of those, 3 actually implement it. Those 3 people have the characteristic that both their sales and profit amounts are growing. Since such managers are eager to learn, they read books, visit other companies, and actively participate in industry seminars to gather various information, so I am sure they received similar advice from others besides me, but I am proud to think that I have contributed at least a little.
The reason I want to grow and list my nursing care business is that by accumulating a track record as a manager, I believe that the managers of my clients will come to recognize that this expert can handle not only accounting and tax matters but also management. If that happens, the managers of my clients will trust and rely on me more than ever before, and I hope that a positive cycle will be created where they will more actively utilize my management advice, and the client companies will grow more vigorously.
The performance of a small or medium-sized enterprise is a reflection of the president's vitality. If the president is hardworking and energetic, performance will definitely improve. A manager who blames poor performance on the economic downturn, employees, or customers is not a manager. A professional manager is one who improves performance even in a recession or with few employees. I intend to approach management with that same resolve.
Sadakazu Ichikura: 'It is the president's responsibility that the utility pole is high and the mailbox is red.'
Gunma Tax Corporation
Representative Partner Koichi Kobayashi