Colombo, 30 September 2026 – Standard Capital PLC (CSE: STAC) today announced a significant turnaround in its financial performance, reporting a profit for the financial year ended 31st March 2026, alongside a strategic realignment aimed at enhancing shareholder value and future growth. The company’s Annual Report for 2025/26, released to the Colombo Stock Exchange (CSE), details a period of transition marked by portfolio adjustments and a clear vision for new business ventures.
Stronger Financial Performance Reflects Strategic Shifts
For the financial year ended 31st March 2026, Standard Capital PLC recorded a profit before tax of Rs. 7,975,879, a notable improvement from the loss of Rs. 4,991,905 reported in the previous year. The profit after tax also mirrored this positive trend, standing at Rs. 7,975,879 compared to a loss of Rs. 10,404,277 in FY 2024/25. Total comprehensive income for the year reached Rs. 7,953,879, reversing a prior year loss of Rs. 4,989,904.
A key contributor to this financial recovery was a fair value gain on its investment property, which amounted to Rs. 13,000,000 for the year, building on a gain of Rs. 11,901,000 in the previous period. Despite these positive movements, the Group continues to carry accumulated losses of Rs. 121,865,708 and its current liabilities exceeded current assets by Rs. 66,506,548. However, the Board remains confident in the company’s ability to continue as a going concern, citing strategic initiatives and ongoing financial support.
Divestment of Standard Paints Ltd and Future Growth Avenues
The Chairman’s Review highlighted a period of strategic realignment, primarily focusing on protecting shareholder value and preparing the Group for its next phase of growth. A significant development during the fiscal year involved Standard Paints Ltd, in which Standard Capital PLC held a 65% stake. Following an assessment of adverse market conditions in the paint manufacturing sector, Standard Paints Ltd successfully liquidated its remaining assets as per shareholder-approved valuations during the last fiscal year.
Crucially, the Annual Report also discloses a significant post-reporting date event: the Group disposed of its investment in the subsidiary, Standard Paints Ltd, on 28th September 2026, as part of its ongoing restructuring process. This divestment is expected to further streamline the Group’s operations and improve its financial position by reducing associated burdens.
Standard Capital PLC’s investment property continues to provide a steady stream of recurring income, being fully rented out. Looking ahead, the company is actively seeking strategic investment partners to co-launch a new business venture. This initiative is designed to align with current market demands and leverage the Group’s existing capital and corporate infrastructure to deliver long-term sustainable returns.
Corporate Governance and Auditor’s Perspective
The Annual Report underscores Standard Capital PLC’s commitment to robust corporate governance, confirming compliance with the Listing Rules of the Colombo Stock Exchange. Details on the Board of Directors, which saw some changes during the year with new appointments and resignations, and the composition and activities of its sub-committees (Audit, Remuneration, Related Party Transactions Review, and Nominations and Governance Committees) are comprehensively provided.
Kreston MNS & Co., Chartered Accountants, provided an unmodified opinion on the financial statements, affirming a true and fair view of the company’s and Group’s financial position as at 31st March 2026. The auditor’s report highlighted two key audit matters: the assessment of the fair value of investment property, which represents 98% of total assets, and the Group’s going concern assessment, particularly in light of accumulated losses and current liabilities exceeding assets. The auditors acknowledge the management’s mitigating factors, including the proposed strategic investment and ongoing financial support from a related company, Standard Industries (Pvt) Ltd.
The Board of Directors concluded that, given the improved financial performance, the proposed strategic investment plan, and continued financial support, the Group possesses sufficient resources to sustain operations for the foreseeable future, maintaining the going concern basis of accounting.
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