Elevated LeverageThe company’s higher gearing and recent £500m debt raise materially increase leverage and interest obligations. Elevated leverage reduces financial flexibility to absorb shocks, limits room for further organic investment without more financing, and increases sensitivity to rate moves over the medium term.
Negative Free Cash FlowNegative free cash flow driven by higher capex and reduced operating cash generation constrains the ability to self-fund investment and dividends. Persistent FCF deficits force reliance on external financing, risking margin pressure from higher funding costs and weaker balance-sheet resilience.
Operational Performance PenaltiesNet ODI penalties and increased network failures signal ongoing operational risks that directly reduce allowed returns. Recurring performance shortfalls can trigger higher compliance spend, regulatory scrutiny and reduced incentive payments, creating sustained pressure on profitability and cash generation.