Why fast growth left DALEKOVOD NUF with less cash despite a bigger profit

DALEKOVOD NUF, a foreign business registered in Norway, lifted revenue to NOK 634m in 2025 from NOK 256m a year earlier, a rise of 147.4%. Net profit rose to NOK 30.6m from NOK 8.8m, and the operating margin edged up to 6.6% from 5.7%. Cash moved the other way. It stood at NOK 16.1m at the end of 2025, against NOK 27.1m a year before, a fall of 40.7%. A company that earns this much and ends the year with less cash has put the money somewhere else.

Growth usually costs cash before it brings any in. Customers pay weeks after delivery, stock is bought ahead of sales and new capacity is paid for up front, while profit is booked the moment the sale is made. The equity ratio eased to 38.0% from 40.2%, so the balance sheet grew a little faster than the equity under it. The accounts do not show how much of the cash went into receivables or stock. I would watch the cash line. Profit is booked at the sale, but cash arrives when the customer decides.