Weak Cash ConversionDeeply negative FCF growth and an OCF-to-net-income ratio near 0.04 indicate structural cash conversion issues. Poor conversion limits self-funding capacity for working capital and capex, increasing reliance on external financing and constraining durable scaling of operations.
Seasonal, Lumpy Revenue And Project DelaysSeasonal and lumpy demand, plus project timing shifts, create persistent volatility in quarterly results and working capital needs. This structural variability complicates forecasting, resource allocation, and can pressure margins if fixed costs must be retained through slow periods.
Historical Leverage VolatilityAlthough current leverage is low, prior swings in debt levels show the balance sheet can deteriorate under stress or growth pushes. This raises governance and refinancing risk over the medium term if cash conversion remains weak or capital requirements rise.