Solicited Corporate Credit Rating for SCIUKER FRAMES SPA: A3- (Downgrade)
modefinance published the Solicited Corporate Credit Rating of SCIUKER FRAMES S.P.A. on the website and the rating assigned to the entity is A3- (Downgrade). The analysis revealed that the Company has a strong capacity to meet its commitment on financial obligations.
The Sciuker Group, with its parent company Sciuker Frames S.p.A., listed on the Italian Stock Exchange since 2018, is active in the production of eco-sustainable windows and frames based on patented technology. Sciuker, operating since 1999, has grown into one of the leading players in Italy in the design and production of wood/metal windows, despite operating in a fragmented market dominated by smaller companies. The Company has carved out this space by focusing on a brand identity that places social responsibility at the forefront, emphasizing care for the environment, technological innovation, and the widespread presence of its sales network across the territory.
In 2020, it entered the energy and seismic retrofitting market with its subsidiary Ecospace, followed by several acquisitions, including D&V S.r.l. and DQG S.r.l., which joined the Group. The Group now plans to focus on reshaping the business related to energy and seismic upgrades, expanding its commercial presence in the retail of windows, doors, and solar shading, enhancing its Contractor channel offering, and entering the public administration (PA) segment by leveraging SOA and ESCO qualifications.
Key Rating Assumptions
The Sciuker Group presents an economic and financial situation that, overall, reflects more than satisfactory health. Sales revenues increased by 28% YoY, reaching €165 million. However, overall economic performance was negatively impacted by changes in work-in-progress, finished, semi-finished products, which led to a contraction in the production value and ultimately resulted in a lower EBITDA (€36.67 million; -15.12% YoY). The period’s result (-€2.48 million) was further affected by higher financial expenses and extraordinary costs compared to 2022. Nevertheless, the profit margin on sales (22%) and ROI (8.65%) remained strong. Financial balance is also confirmed, although closer monitoring of tax credits management from the Superbonus program is necessary, as its weight on total assets is significant . Finally, the Group remains adequately capitalized (€72.61 million; +30.86% YoY) and has a net financial debt of €84.94 million, which, despite increasing, remains balanced in relation to equity (1.16) and EBITDA (2.31).
The main shareholder of Sciuker Frames is H. Arm S.r.l., owned by Marco Cipriano and Romina Cipriano, who also hold shares directly in Sciuker. As previously mentioned, 40.88% of the shares are freely traded on the Italian StockExchange. The Group comprises several companies that contribute to the development of its various business areas : Ecospace S.r.l. , G.C. Infissi S.r.l., Teknika S.r.l., SCK Force S.r.l., D&V Serramenti S.r.l., DMR S.r.l. and Diquigiovanni S.r.l.. The Company operates under a governance and control structure aligned with best practices, featuring collegial administration and supervisory bodies. Auditing activities are entrusted to a specialized company. Additionally, the Company has adopted the Organizational Model pursuant to Legislative Decree 231/2001, aimed at ensuring an effective and reliable control system.
With respect to the sectoral peer group, the Sciuker Group demonstrates excellent dimensional positioning, ranking among the companies with the highest turnover levels within the sample. In terms of solvency, the Company aligns with the median, unlike what its profitability, which is negatively impacted by shrinking margins and the net loss incurred. The sectoral peer group, however, confirms a sound financial balance and a positive trend in profitability indicators, which exceed 30%. Leverage is balanced and improving, although the median leverage shows slight imbalances.
Regarding the outlook for the Italian economy, analysts expect growth to remain moderate in 2024, with more favorable prospects for the following two years.
Sensitivity Analysis
In the following table, the addressing factors, actions or events that could lead to an upgrade or a downgrade are summarized:
Important
The present Corporate Credit rating is issued by modefinance under EU Regulation 1060/2009 and following amendments.
The present rating is solicited and is based on both private and public information. The rated entity and/or related third parties have provided all private information used. modefinance had access to some accounts and other relevant internal documents of the rated entity and/or related third parties. Solicited and unsolicited ratings issued by modefinance are of comparable quality, as the solicitation status has no effect on methodologies used. More comprehensive information on modefinance Corporate Credit Ratings are available at: http://cra.modefinance.com/en
The present Corporate Credit Rating is issued on MORE Methodology 2.0 and Rating Methodology 1.0. A comprehensive description of both methodologies, as well as information on modefinance Rating Scale and Mappings, is available at: http://cra.modefinance.com/en/methodologies.
For information on historical default rates of modefinance Corporate Credit Ratings please refer to ESMA Central Repository and ESMA European Rating Platform.
modefinance refers to default as a company under bankruptcy, or under liquidation status, or under administration or for which missed payments on a financial obligation are officially recorded.
The quality of the information available on the rated entity and used to determine the present rating was judged by modefinance as satisfactory. Please note that modefinance does not perform any audit activity and is not in a position to guarantee the accuracy of any information used and/or reported in the present document. As such, modefinance can accept no liability whatsoever for actions taken based on any information that may subsequently prove to be incorrect.
The present credit rating was notified to the rated entity in order to identify potential factual errors, as prescribed by the CRA Regulation.
No amendments were applied after the notification process.
The rated company purchased ancillary services from modefinance (private corporate rating). Modefinance guarantees that this purchase of ancillary activities does not constitute any conflict of interest.
The rating action issued by modefinance was performed independently. The analysts, members of the rating team involved in the process, modefinance Srl and its members and shareholders do not have any conflicts of interest in relation to the Rated Entity and/or Related Third Parties. If in the future a potential conflict of interest is identified in relation to the persons reported above, modefinance Ratings will provide the appropriate information and if necessary the rating will be withdrawn.
The present Credit Rating is an opinion of the general creditworthiness that modefinance issues on the rated entity, and should be relied upon to a limited degree. The issued rating is subject to an ongoing monitoring until withdrawal.Contacts
Head Analyst - Elisa Graffi, Rating Analyst
elisa.graffi@modefinance.com
Responsible for Rating Approval - Pinar Dilek, Rating Process Manager
pinar.dilek@modefinance.com