Very High LeverageA debt/equity ratio near 8x is a persistent structural risk: it raises interest burden, constrains bidding flexibility on projects, and increases refinancing vulnerability. With limited equity cushion, adverse project timing or cost overruns could strain liquidity and limit strategic optionality.
Negative Profitability Across MarginsTurning revenue into losses suggests chronic margin pressure from pricing, labor costs, or execution inefficiencies in the labour‑intensive wet trades model. Persistent negative margins undermine return on capital and make it difficult to build retained earnings to repair the balance sheet.
Negative Operating And Free Cash FlowOngoing negative operating and free cash flow reduces internal funding for working capital, capex, or strategic investments. Coupled with high leverage, weak cash generation forces reliance on external financing, heightening liquidity and solvency risks over the medium term.