Margin CompressionMargins have deteriorated since 2021, with a notable net income decline in 2024. In labor‑intensive facilities management, squeezed margins reduce the firm's buffer against wage inflation and input cost shocks, limit reinvestment capacity into technology and services, and make earnings more sensitive to contract pricing dynamics.
Rising Leverage And Weaker Balance-sheet FlexibilityDebt has increased while equity has fallen, producing a more debt-heavy capital structure. Higher leverage reduces financial flexibility to pursue large IFM bids, invest in strategic initiatives or absorb downturns. It also raises interest cost sensitivity and refinancing risk if rates remain elevated, constraining long-term optionality.
Volatile Free Cash Flow And Cash ConversionFree cash flow has been inconsistent, with a pronounced 2024 decline. For a services company reliant on steady contract cash collection and project timing, such volatility hampers reliable dividend funding, deleveraging and sustained investment in process digitalization. Persistent swings raise execution risk over medium term.