Corporate Credit Rating 2024 for START SRL - SB : B1- (First Issuance)

modefinance published the Solicited Corporate Credit Rating of START SRL on the website and the rating assigned to the entity is B1- (First issuance). The analysis revealed it is a company with an adequate economic and financial situation, capable of facing adverse economic conditions in the medium and long term.

START S.R.L. - SB, founded in 2012 by Andrea Diffido, operates in the energy sector (power and gas). Initially operating as a third- party agency, it evolved its strategy in 2021 by becoming a direct provider of energy services and launching the Rec Energy brand. Since 2023, it has also become a Benefit Company, integrating sustainable and socially responsible practices aimed at spreading best practices for energy efficiency, inclusiveness, and employee well-being. The growth path, which continued at a fast pace in 2024, projects the Company toward 2025. which it is expected to be teh decisive year also for the realization of the new corporate group.

The Company presents an adequate economic and financial situation. In 2023, the Company recorded a significant increase in sales revenue (from €1.08 million to €3.56 million), resulting in a strengthening of Ebitda margin (€330,000 vs €63,000). Perfomance in terms of operating margin appears sufficient, with an Ebitda margin of 9.26%. The management of the working capital appears efficient, as can be seen from the current ratio value (1.14), and the financial debt incurred appears sustainable. Finally, a strengthening in the capital endowment, equal to 337 thousand euros at the end of FY2023, is advisable.

In 2023, the Company recorded a significant increase in cash and cash equivalents (from 82 thousand euros to 1.09 million euros). The positive operating cash flow fully covered the outflow from investing activities, supported by effective self-financing and efficient management of networking. Although by a small amount, the inflow from financing activities was also positive due to a capital increase and borrowing facilities. 

The Company has a streamlined corporate structure. The ownership is vested in Mr. Andrea Diffido, who exercises control through an S.r.l., holding 90% of the shares in START. The remaining 10% is owned by a holding company. In turn, START holds 60% of an energy company incorporated in 2024, REC ENERGY ITALIA S.R.L..
Mr. Diffido is also the sole director of START. To date, the Company lacks of controlling bodies, but it intends to establish them as early as 2025. 

 The Company is well positioned in terms of size and profitability, due to the expansion of sales and margins recorded in 2023. In terms of solvency, it ranks below the median of the sector peer group, due to a limited capital endowment in relation to total liabilities. However, leverage is fully balanced. The benchmark peer group shows sufficient capitalization and low leverage values, coupled with proper liquidity management. Finally, profitability remains sufficient, although showing a decline in indicators.

The fundamentals of the energy industry have improved due to the stabilization of gas and energy prices, along with a reduction in their volatility compared to the peaks observed in 2022. However, significant concerns persist regarding potential negative developments within an increasingly unstable global geopolitical context. The Italian economy is projected to experience moderate growth in 2024, with more favorable prospects for the subsequent two years.

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 (preliminary 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.

Head Analyst - Elisa Graffi, Rating Analyst
elisa.graffi@modefinance.com

Responsible for Rating Approval - Pinar Dilek, Rating Process Manager
pinar.dilek@modefinance.com