SIRIUS FARM LIMITED

Executive Summary

Sirius Farm Limited presents a growing and profitable micro-entity with improving financial strength and liquidity. The management has demonstrated effective control over costs and working capital, supporting the company’s ability to service credit facilities. Approval is recommended with ongoing monitoring of key financial metrics and sector conditions to mitigate risks associated with its small size.

SIRIUS FARM LIMITED - Analysis Report

Company Number: 13604442

Analysis Date: 2025-07-29 12:41 UTC

1. Credit Opinion: APPROVE with monitoring
   Sirius Farm Limited demonstrates a positive financial trajectory with increasing turnover and net assets over the last few years. The company operates in the business and domestic software development sector, which generally has low fixed asset requirements and good scalability potential. The profitability in the latest year (£45,859 profit) indicates sound operational management and capacity to generate cash flows to service debt. However, as a micro-entity with a relatively small asset base and only 3 employees, caution is advisable regarding exposure size and covenant structuring. Overall, the financial stewardship appears competent, with no overdue filings or director misconduct concerns.

2. Financial Strength:

• Turnover grew from £58.9k (2021) to £243.3k (2024), a fourfold increase indicating growth momentum.
• Net assets improved substantially from £2.1k (2021) to £22.1k (2024), reflecting retained earnings and balance sheet strengthening.
• Fixed assets remain minimal (£1.7k), consistent with a software business model.
• Current assets increased from £913 (2021) to £24.4k (2024), predominantly cash or receivables, enhancing liquidity.
• Provisions for liabilities have decreased from £6.8k to £4.0k, indicating reduced contingent obligations or better risk management.

3. Cash Flow Assessment:

• Net current assets of £24.4k show a comfortable working capital buffer relative to the company’s scale.
• Staff costs are the major expense (£190.5k), consistent with a knowledge-based business.
• Profitability and positive working capital suggest the company can meet short-term liabilities and potential loan repayments.
• No off-balance sheet liabilities disclosed, reducing hidden risks.
• The company’s micro-entity status means limited external financing; internal cash generation is critical and appears sufficient currently.

4. Monitoring Points:

• Track turnover and profit trends to ensure sustained growth and margin stability.
• Monitor working capital levels, especially accounts receivable aging and cash balances, to prevent liquidity strain.
• Review any increase in provisions or liabilities that could impact net assets.
• Confirm ongoing compliance with filing deadlines and absence of director issues.
• Evaluate market conditions in the software development sector that may affect demand or pricing.