5.2 Financial performance For the financial year under review, Denel recorded a net profit of R41 million, and generated R210 million cash. The profit was impacted by R125 million interest paid on the Denel's debt of R1.85 billion. Denel applied for recapitalisation of R2.7 billion and R700 million allocated in support of Denel Aerostructures, but the entity had not yet received the funds. Solvency was at R695 million, and was very low for an organisation the size of Denel. The entity received an unqualified audit report with a going concern matter of emphasis. 5.3 Performance against shareholder compact