9:10 pm - 03/13/2012
Guess what? H!P's company isn't poor, it's just cheap!
The company that Hello!Project and Up Front Agency, Up Front Group, are under recently published their balance sheet.
A basic summary:
Up Front publishes only a balance sheet because it is not listed on the stock exchange, but based on this single balance sheet:
1. The company reduced its capital stock by 16 million yen (192,896 USD). This is usually done to cancel loss/deficit, but this can't be Up Front's reason because its current assets are close to 9 billion yen (approx 108.5 million USD). The author thinks that the company brought its capital stock down to below 100 million yen to reduce taxes, especially corporate tax.
2. Net profit is 510 million yen (approx. 6.1 million USD), probably from real estate investment profits, subcontracting, consulting, etc.
3. The company has a sound financial structure with extremely low debt. Its debt is 900 million yen (approx. 10.9 million USD), but assets are close to 30 billion yen (approx. 361.7 million USD). So, unless it has subsidiary companies upon which it pushed debt so it looks good, or has subsidiary companies that are in deficit because of business failures, for the time being, Up Front is unlikely to go bankrupt. Also, its earned surplus is close to 28 billion yen (approx. 337.6 million USD), so it seems to have plenty of money reserved.
4. So, to what use did it put this 28 billion yen surplus? Answer: fixed assets. Their assets are divided into 1 part current assets (cash) and 2 parts fixed assets (real estate). By itself, this looks healthy.
Sources: 1, 2
Not sure if this post is okay, but I thought it was interesting since people are always worried about H!P's financial status. In short, their company is actually doing well, so it's unlikely they're going anywhere anytime soon. It looks like it's less an issue of not having money to spend, and more an issue of just choosing not to spend it.