Negative Shareholders' EquityNegative shareholders' equity materially weakens the balance sheet and reduces financial resilience. It can restrict access to capital markets, impede bank facilities or covenants, and requires sustained profits or capital injections to restore solvency, a multi-quarter structural constraint.
Still Loss-makingAlthough margins improved, net losses persist at roughly -11%, meaning the business has not yet achieved sustainable profitability. Continued negative earnings limit retained capital accumulation and prolong the period before equity repair, leaving strategy dependent on cash flow consistency.
Revenue Decline And VolatilityRecent revenue decline and prior volatility indicate fragile demand or inconsistent customer retention. Margin gains are less durable without stable top-line growth; persistent or recurring revenue weakness undermines operating leverage and prolongs the time to rebuild equity and cash buffers.