Materially Higher LeverageLeverage at ~6.3x D/E sharply raises financial risk and reduces flexibility. High fixed interest and principal obligations amplify vulnerability to revenue or margin setbacks, increase refinancing risk, and constrain the company's ability to invest or respond to prolonged industry headwinds.
Large FY2025 Net Loss And Negative ROEThe substantial FY2025 net loss meaningfully erodes equity and shareholder returns, undermining balance-sheet resilience. Persistent or repeated losses could trigger covenant issues, force asset sales or equity raises, and limit long-term capacity to fund growth or improve service quality.
Recent Revenue Decline And Thin Gross MarginsA recent topline contraction coupled with consistently thin gross margins reduces resilience to cost pressures (wages, rent). In a labor- and regulation-sensitive sector, thin gross margins make margins highly exposed to inflation and limit room to restore profitability sustainably.