Weak And Volatile Cash GenerationMaterially negative operating and free cash flow in 2024 and prior large outflows indicate inconsistent cash conversion. This volatility constrains reinvestment, dividend/buyback sustainability and increases funding risk if market flows weaken, undermining long-term financial stability.
Volatile Revenue And Thin Net MarginsA business that shows shrinking revenue and low net margins reduces earnings resilience through economic cycles. Thin margins limit the firm's ability to absorb increased costs or pricing pressure, making profitability and dividends more sensitive to market shocks over the medium term.
Execution And Regulatory Risk From Charging ChangesImplementing a new charging structure and revising provision methodology (influenced by FCA guidance) pose multi-month execution and regulatory risks. Disruption could affect adviser behavior, client flows and future provisioning, introducing structural uncertainty into revenue and cash outcomes.