Performance trends of Sparks Group <8739>.
3. Financial Condition and Management Indicators
As of March 2024, total assets were 46,112 million yen, an increase of 6,729 million yen compared to the previous year-end. This is mainly due to cash and deposits of 380 million yen in current assets, as well as an increase in investment securities of 58,520 million yen in fixed assets. Total liabilities were 146,920 million yen, an increase of 1,356 million yen compared to the previous year-end. This is mainly due to unpaid corporate taxes of 700 million yen in current liabilities, as well as an increase of 2,000 million yen in long-term borrowings in fixed liabilities. Total net assets were 31,419 million yen, an increase of 5,372 million yen, mainly due to retained earnings of 4,073 million yen and an increase of 1,489 million yen in other securities valuation differences. However, this was partially offset by a decrease of 404 million yen in capital surplus.
Regarding financial condition, the current ratio was 414.4%, the fixed ratio was 60.4%, and the self-capital ratio was 68.2%. Both current and fixed ratios are healthy, and we believe that there are no issues with short-term and long-term liquidity. The self-capital ratio is also at a high level.
4. Outlook for the 2025 Fiscal Year
As for financial estimates for the year ending March 2025, we recognize that the performance of our main business, investment advisory for investment trusts, is greatly influenced by economic conditions and market environments, making it difficult to predict future performance, and thus have not disclosed it. However, we expect that the balance return will continue to remain high, given that the month-end operating asset balance as of April 2024 was at a record high of 1,893.3 billion yen, and the market environment is expected to remain strong. The increase of the newly established 'Space Frontier 2 Fund' and 'Sparks Green Battery Storage Fund' is also expected to be a contributing factor to the operating asset balance.
We anticipate that success rewards will increase along with the steady maintenance of the stock market, and that balance returns will continue to remain steady due to strong performance by private equity.
(Written by FISCO Guest Analyst Yoichiro Shimizu)