Severe Revenue CollapseA structural collapse in revenue, including a reported -100% in FY2025, erodes scale, destroys pricing leverage, and undermines the revenue base needed to cover fixed costs. This materially reduces margin recovery prospects and increases the difficulty of restoring sustainable earnings.
Negative EquityTwo consecutive years of negative equity signal accumulated losses and impaired capital cushions. This constrains financial flexibility, limits borrowing capacity, may trigger covenant risks, and increases insolvency risk, making operational recovery and strategic investment harder over time.
Worsening Cash Flow TrendOperating and free cash flow turning negative and deteriorating increases reliance on external funding or asset sales. Persistently weak cash generation stresses liquidity, forces cutbacks or restructuring, and raises the probability of distressed capital actions over the medium term.