BayCurrent, the Tokyo-listed consulting firm, has set a new medium-term plan for 2030 and a longer roadmap to 2035. On the same day it loosened its cash-reserve rule, leaving more surplus cash for buybacks and investment. The targets are management objectives; the company's own disclaimer says results may differ materially from them.
The targets. The 2030 plan calls for revenue of ¥500bn and EBITDA of ¥200bn, a 40% margin. The company's April 14 guidance for the current year is ¥190bn of revenue and ¥66.5bn of EBITDA, a 35% margin. The 2035 roadmap aims for ¥1tn of revenue, ¥450bn of EBITDA and a 45% margin. The company says it expects to broadly meet its current plan, which targeted ¥250bn of revenue and a 30% to 40% margin, about a year early, during next fiscal year. It credits AI, cybersecurity and defence demand. The presentation also changes how it labels fiscal years: "FY2026" now means the year ending February 2027.
The cash rule. BayCurrent had held back up to about 40% of forecast revenue each year: roughly 25% for operating funds and roughly 15% fixed for future growth investment. The board has now scrapped the 15% bucket. The company says it must keep only about 25% of forecast revenue, or roughly three months of working capital. Cash above that goes to growth investment, including capital expenditure, M&A for capabilities, joint ventures with major clients and overseas support, and to buybacks. The company says a fixed reserve for investments whose size and timing are hard to predict meant holding more cash than it needed.
What stays and what is open. The dividend guide is unchanged at a 40% payout ratio on an IFRS basis. For the current year the company plans a ¥65 interim and a ¥65 year-end dividend, ¥130 in total. The notice says the change has no effect on current-year consolidated results. It gives no buyback size or specific date: buybacks are to be carried out during the current year or around the year-end results disclosure, and specific investments and repurchases will be disclosed when decided.