Thin Net MarginsModest net and operating margins (net ~4%, EBIT/EBITDA ~6%) leave limited buffer against cost inflation or pricing pressure. In labor‑intensive services, small margin headroom increases sensitivity of earnings to wage and input cost increases, constraining long‑term margin expansion potential.
Project Revenue VolatilityWhile recurring contracts provide a baseline, reliance on project‑based work introduces lumpy revenue and utilization swings. Episodic large projects can create planning challenges and quarter‑to‑quarter earnings variability, complicating capacity management and forecasting for medium‑term cash flows.
Limited ScaleA relatively small workforce limits the company’s capacity to bid for very large, multisite or geographically dispersed contracts compared with larger competitors. Limited scale can reduce pricing leverage, slow national expansion, and constrain operational synergies over the medium term.