Structural Unprofitability And Deeper 2025 LossesPersistent and worsening net losses erode retained earnings and limit the firm's ability to fund operations internally. Over several months this undermines investment capacity, increases reliance on external financing, and raises the probability that operational issues or one-off charges will continue to impair returns.
Inconsistent Cash Generation; Recent Cash BurnNegative operating and free cash flow in recent years means the business is not self-funding its operations. This structural cash burn forces dependence on external capital, increases liquidity risk, and constrains the company’s ability to invest in maintenance, growth, or absorb further margin pressure.
Balance Sheet Weakened; Equity Fell Sharply In 2025A sharp decline in equity and assets reduces the company’s financial buffer against shocks and limits borrowing capacity. Over the medium term this deterioration raises the risk of further write-downs, creditor constraints, or dilution if the firm must raise capital to stabilize operations.