Severe Balance Sheet WeaknessNegative equity and very high leverage create sustained solvency and refinancing risk. This structural capital weakness constrains strategic investment, increases funding costs, and raises the probability of covenant pressures or forced deleveraging over the coming months.
Negative Operating ProfitabilityA negative EBIT margin signals persistent operational inefficiencies or cost base problems that reduce core earnings power. Without consistent EBIT improvement, reliance on non-operating items to report net profit undermines sustainable cash generation and long-term margin resilience.
Historic Revenue And Cash Flow VolatilityMaterial volatility in revenue and cash flows limits forecasting accuracy and capital allocation. For a services business dependent on SME budgets, unstable cash generation raises the risk that shortfalls could interrupt investment, customer retention programs, or debt servicing over several quarters.