Fees did the heavy lifting
Simplex Financial Holdings turned a modest rise in assets into a much larger jump in earnings in the year ended March 2026. Revenue rose to ¥22,512 million from ¥16,254 million, operating profit to ¥13,970 million from ¥9,337 million, and net profit attributable to owners to ¥10,631 million from ¥7,056 million. Operating margin widened to 62.1% from 57.4%, while comprehensive income rose to ¥10,991 million from ¥7,054 million.
That gap between asset growth and profit growth is the interesting part. Management said assets under management at year-end were up 2.9% from a year earlier. Base fees tied to those assets increased 17.1%, but the bigger swing factor was performance fees, which rose 53.6%. That helped lift revenue 38.5% even as operating expenses and general administrative costs climbed 23.5% to ¥8,542 million, reflecting higher commissions and trust fees plus bigger personnel costs, including bonuses.
The per-share comparison, after the split
The per-share comparison comes with a footnote, but at least it is a useful one. Simplex carried out a 20-for-1 stock split on Nov. 1, 2025, and says both current and prior-year per-share figures are calculated as if the split had been in place since the start of the previous year. On that split-adjusted basis, earnings per share were ¥317.33 versus ¥137.14 a year earlier, and net assets per share were ¥757.01 versus ¥355.78. Total assets ended the year at ¥31,773 million and net assets at ¥22,424 million, while the equity ratio slipped to 64.6% from 71.0%.
Cash is up, guidance is not
Cash and cash equivalents ended March at ¥23,610 million, up from ¥15,983 million, after operating cash flow of ¥11,694 million. The company said net assets were boosted by retained earnings and higher non-controlling interests, partly offset by ¥5,915 million spent on acquiring its own shares. Investment cash outflow was limited to ¥176 million, while financing used ¥4,171 million, mainly because of that share purchase.
What readers do not get is a forecast for the current fiscal year. Simplex said its investment management and advisory business is heavily influenced by economic conditions and market moves, so it is not providing an earnings outlook. It also left the coming year's dividend forecast undecided, and the year just ended carried no dividend.