Negative Operating & Free Cash FlowRecurring negative operating and free cash flows impair the firm's ability to self-fund working capital and capital expenditures. Over months this forces reliance on external financing or asset sales, raising execution and refinancing risk for construction and property projects and limiting strategic optionality.
Poor Cash Conversion MetricsEarnings are not translating into cash efficiently, reflecting receivables, timing of contract cashflows, or working capital strain. Structurally weak cash conversion raises liquidity pressure, increases funding costs, and could constrain growth or delay project completions in the property/construction business.
Cyclicality & Limited Equity BufferConcentration in construction and property exposes revenue and margins to real estate cycles. A moderate equity ratio limits the balance-sheet cushion during downturns, increasing vulnerability to slower sales or project delays and potentially necessitating external capital when market conditions deteriorate.