Not sure how you see conversion of the performance shares as...

Not sure how you see conversion of the performance shares as soaking up profits. The instos will be well aware of the capital structure, and will strip this out of costs to give a meaningful profit projection figure

They were issued up front in the RTO and have converted to ordinary shares as milestones are hit.
At best you can argue dilution of shares and eventually dividends
They are part of the price paid to the vendors of the company. Although a value is shown in the accounts nothing is spent.
Companies should always be valued against their fully diluted capital, so the performance shares have always been in the calculations.
With regard to FCF, it is entirely normal to incur start up costs in advance of receipts and so declining cash position is predictable in the start up phase. They cant sell a service until they have created one.