Dains Corporate Finance provides due diligence services for Frontier Development Capital on Sirius A refinancing

Deal summary

The Dains Corporate Finance team has recently performed financial due diligence on Sirius A Corporation (Sirius) for the purpose of the £5.5m refinancing of this company by Frontier Development Capital (FDC).

Sirius, which now employs 160 staff at six locations, was founded in the 1970s when it made one of the first laser cutting machines in the UK. The business has grown steadily over the years as a result of increasing demand for low volume, high precision components used in industries such as cleantech, aerospace and non-automotive vehicle electrification.

Simon Kelsall, Investment Director at FDC, said “The flexible funding package FDC has provided will enable Sirius A to double down on its capital expenditure plans and create additional capacity and capability across the group so it can continue to deliver excellent service and product to its 2,000 customers.

“Whilst the UK funding market has tightened, capital remains available for strong management teams in growth sectors with clearly articulated strategies. Sirius fulfils all these requirements and we are delighted to have provided a funding solution that allows the business to continue on its growth journey. I look forward to working with them.”

Our Role

Roy Farmer and Rob Wilson undertook financial due diligence on Sirius.

Our work included a review of the historic and forecast financial performance, as well as a quality of earnings review, normalised working capital, and surplus cash/net debt calculations.

The review included a detailed review of four trading entities, as well as the consolidated group position.