POST FROM SIMPLY WALL STREET22 Mar 2024 21:15
Live Company Group
LVCG
New major risk - Revenue and earnings growth
Earnings have declined by 15% per year over the past 5 years.
This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes.
Currently, the following risks have been identified for the company:
Major Risks
Less than 1 year of cash runway based on free cash flow trend (-UK£917k free cash flow).
Shares are highly illiquid.
Earnings have declined by 15% per year over the past 5 years.
Minor Risk
Shareholders have been diluted in the past year (4.0% increase in shares outstanding).