GLOBAL STANDARD TRADING LIMITED

Executive Summary

GLOBAL STANDARD TRADING LIMITED shows clear signs of financial distress, with deteriorating solvency and liquidity metrics over the last reported year. While compliance with filing requirements is maintained, the company's sustainability and operational viability appear compromised, warranting thorough further investigation before considering investment exposure.

GLOBAL STANDARD TRADING LIMITED - Analysis Report

Company Number: 12728429

Analysis Date: 2025-07-29 19:11 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, evidenced by persistent negative net assets and worsening net current liabilities. The financials indicate ongoing losses and an inability to meet short-term obligations.

2. Key Concerns:

• Negative net assets deteriorated from -£333 in 2022 to -£6,564 in 2023, signaling increasing insolvency risk.
• Net current liabilities surged from a positive £237 in 2022 to negative £5,994 in 2023, highlighting liquidity stress.
• Minimal share capital (£1) and only one director who also holds full ownership, concentrating control and financial risk without evident external support or capital injection.

3. Positive Indicators:

• Company is current with statutory filings; no overdue accounts or confirmation statements, indicating compliance with regulatory deadlines.
• The business has been active since 2020, showing some operational continuity.
• Micro-entity accounting and exemption from audit reduce administrative burdens and costs.

4. Due Diligence Notes:

• Investigate causes behind the sharp decline in net assets and current asset base reduction, including trading losses or creditor pressures.
• Review cash flow statements and bank reconciliations for evidence of ongoing liquidity management or reliance on director loans.
• Assess business model viability in sectors classified as IT services and internet retail, including client contracts or revenue streams.
• Verify background and financial standing of the sole director and shareholder, including any related party transactions or contingent liabilities.
• Confirm absence of any pending legal or tax claims that may exacerbate financial difficulties.