SIRIUS FINANCIAL SOLUTIONS (SIR).

Investors Chronicle, August, 2005

Sirius writes software for insurance brokers, financial advisers and underwriters. In 2003, a lot of money spent on unfunded research and development hit profits, while last year a change of business model knocked around GBP2m off sales and GBP1m off profits. Until then, the company offered customers a perpetual licence paid for up front. Now, it provides term licences, typically for four years, with more scope for updates. Sirius aims to break even from service income, which accounts for just over a third of total sales. Brewin Dolphin forecasts 2005 sales of GBP24m and profits of GBP1m-GBP1.9m before goodwill.

The shares have held steady this year and should go higher. Good value.