Highly Leveraged Balance SheetNegative shareholders’ equity and a debt-to-equity ratio of -3.57 indicate structural solvency stress. This constrains strategic flexibility, increases refinancing and covenant risk, and raises borrowing costs, making durable recovery dependent on large-scale deleveraging or asset disposals.
Declining Revenue And Sustained LossesPersisting revenue declines and deeply negative net margins show the business is not currently covering operating and financing costs. Structural demand weakness and margin erosion mean profitability recovery will require meaningful volume or pricing improvements plus sustained cost reductions.
Negative Operating Cash Flow And Cash InstabilityNegative operating cash flow, despite better free cash flow metrics, undermines the company’s ability to service ~GBP1bn net debt and fund necessary capex. Continued OCF deficits force reliance on refinancing or asset actions, threatening the sustainability of turnaround plans.