Volatile Revenue And EarningsEarnings and revenue volatility reduce predictability of future cash flows and complicate strategic planning. Persistent swings, including a material loss, weaken stakeholder confidence, make budgeting and capital allocation harder, and increase the risk of earnings disappointments over the medium term.
Weak Operating Cash Flow ConversionInability to consistently convert accounting profits into operating cash undermines sustainable funding for operations, dividends, or growth investments. It raises reliance on external financing, increases vulnerability during market stress, and questions underlying earnings quality.
Limited Scale And Concentration RiskA very small employee base suggests limited operational scale and capacity to diversify products or client segments. Over the medium term this can constrain revenue expansion, increase single-client or staff-keyperson risk, and limit ability to absorb regulatory or market demands common in capital markets.