Historical Earnings & Cash VolatilityPrior multi-year losses and episodes of negative operating/free cash flow show earnings are not yet consistently stable. This volatility can force reactive cost moves, hamper long-term hiring/planning, and raise the risk of capital raises or margin compression during weaker procurement cycles.
Modest Profitability & MarginsDespite recovery, low net and EBITDA margins limit the firm's capacity to absorb price competition, invest in productisation, or scale managed services without diluting profitability. In a services market with competitive tendering, modest margins reduce the buffer for wage inflation or cost overruns on fixed-price work.
Concentration In UK Public SectorHeavy reliance on UK public-sector clients and procurement frameworks concentrates revenue risk around government budgets and tender cycles. This reliance can amplify revenue cyclicality, leave growth tied to domestic policy/award timing, and limit diversification into less-cyclical or higher-margin markets.