Haidemenos Integrated Printing Services (ATH:HAIDE) Has Debt But No Earnings; Should You Worry?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously said that 'Volatility is far from synonymous with risk.' So it seems the smart money knows that debt - which is usually involved in bankruptcies - is a very important factor, when you assess how risky a company is. We can see that Haidemenos Integrated Printing Services S.A. (ATH:HAIDE) does use debt in its business. But is this debt a concern to shareholders?

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Why Does Debt Bring Risk?

Debt is a tool to help businesses grow, but if a business is incapable of paying off its lenders, then it exists at their mercy. Ultimately, if the company can't fulfill its legal obligations to repay debt, shareholders could walk away with nothing. However, a more frequent (but still costly) occurrence is where a company must issue shares at bargain-basement prices, permanently diluting shareholders, just to shore up its balance sheet. Having said that, the most common situation is where a company manages its debt reasonably well - and to its own advantage. When we examine debt levels, we first consider both cash and debt levels, together.

What Is Haidemenos Integrated Printing Services's Debt?

You can click the graphic below for the historical numbers, but it shows that as of June 2025 Haidemenos Integrated Printing Services had €9.09m of debt, an increase on €7.08m, over one year. However, it also had €2.29m in cash, and so its net debt is €6.80m.

A Look At Haidemenos Integrated Printing Services' Liabilities

The latest balance sheet data shows that Haidemenos Integrated Printing Services had liabilities of €11.0m due within a year, and liabilities of €1.97m falling due after that. Offsetting these obligations, it had cash of €2.29m as well as receivables valued at €4.81m due within 12 months. So its liabilities total €5.91m more than the combination of its cash and short-term receivables.

This is a mountain of leverage relative to its market capitalization of €6.88m. This suggests shareholders would be heavily diluted if the company needed to shore up its balance sheet in a hurry. There's no doubt that we learn most about debt from the balance sheet. But it is Haidemenos Integrated Printing Services's earnings that will influence how the balance sheet holds up in the future. So when considering debt, it's definitely worth looking at the earnings trend. Click here for an interactive snapshot.

Check out our latest analysis for Haidemenos Integrated Printing Services

In the last year Haidemenos Integrated Printing Services had a loss before interest and tax, and actually shrunk its revenue by 9.9%, to €16m. That's not what we would hope to see.

Caveat Emptor

Over the last twelve months Haidemenos Integrated Printing Services produced an earnings before interest and tax (EBIT) loss. Indeed, it lost a very considerable €1.5m at the EBIT level. When we look at that and recall the liabilities on its balance sheet, relative to cash, it seems unwise to us for the company to have any debt. Quite frankly we think the balance sheet is far from match-fit, although it could be improved with time. Another cause for caution is that is bled €1.8m in negative free cash flow over the last twelve months. So in short it's a really risky stock. The balance sheet is clearly the area to focus on when you are analysing debt. But ultimately, every company can contain risks that exist outside of the balance sheet. Be aware that Haidemenos Integrated Printing Services is showing 3 warning signs in our investment analysis , you should know about...

If you're interested in investing in businesses that can grow profits without the burden of debt, then check out this free list of growing businesses that have net cash on the balance sheet.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.