⚡ Flash Summary

Standard Worldwide Limited reported a loss after taxation of Rs. 1.327 million for the half-year ended June 30, 2025, compared to a loss of Rs. 0.667 million in the same period last year. The company’s accumulated losses have increased to Rs. 54.390 million, and its net equity remains negative. The auditors have raised concerns about the company’s ability to continue as a going concern, as its current liabilities exceed current assets by Rs. 55.963 million. The company is focusing on relaunching as a non-insurance enterprise, exploring opportunities in high-growth sectors, and finalizing turnaround plans.

📌 Key Takeaways

• ⚠️ Loss after taxation increased to Rs. 1.327 million in H1 2025 from Rs. 0.667 million in H1 2024.
• 📉 Accumulated losses worsened to Rs. 54.390 million as of June 30, 2025.
• 💔 Negative net equity of Rs. 44.390 million indicates significant financial distress.
• 😬 Current liabilities exceed current assets by Rs. 55.963 million, raising solvency concerns.
• 🛑 Auditor’s report highlights the company’s non-going concern status.
• 🏢 Company owns a 100-year-old heritage building with potential for redevelopment.
• 🤝 Finalized agreement with the Central Depository Company (CDC) for book-entry transactions.
• 🔄 Exploring opportunities in high-growth sectors like FMCG for strategic redirection.
• 🌱 Plans to relaunch as a non-insurance enterprise to drive economic development.
• 📅 Shareholders meeting planned to discuss turnaround strategies.
• 📜 Regulatory approvals obtained for change of name and object clause.
• ✅ Winding-up petition filed by SECP withdrawn following the Company’s appeal.
• 💼 Company changed its object clause and is now focused on real estate marketing and development.
• 🏦 Borrowings from directors of Rs 38.9 million.

🎯 Investment Thesis

Given the significant financial distress and going concern issues, a SELL recommendation is warranted. The company’s negative equity, rising losses, and liquidity crisis suggest a high risk of further value erosion. While the company is pursuing a turnaround strategy, the uncertainties surrounding its execution and the highly speculative nature of its future prospects make it an unattractive investment at this time. The price target is Rs 0.0, reflecting the high probability of insolvency and liquidation.