Corporate Credit Rating 2025 for GROUP UP SRL: B1- (First Issuance)

modefinance published the Solicited Corporate Credit Rating of GROUP UP S.R.L. on the website and the rating assigned to the entity is B1- (First issuance). The analysis revealed that the company has an adequate economic-financial situation with average capability of repaying financial obligations and it is little affected by adverse economic scenarios.

GROUP UP, headquartered in Milan and established in 2020, operates as an operational holding company, providing managerial, administrative, and strategic coordination services to its subsidiaries. The controlled companies engage in integrated activities across the technical, consulting, and digital sectors, with a focus on the condominium and real estate markets. Services range from energy supply to document management, from plant maintenance to technical and organizational consulting, and include the development of software solutions for condominium management. The offering is further enhanced by services in the areas of safety, GDPR compliance, insurance, tax, environmental, and energy consulting, as well as representation and brokerage activities.

In 2024, GROUP UP demonstrates a solid capital structure, with a low leverage ratio (0.39) and shareholders’ equity of €5.91 million (+31.64%), covering 72.01% of total assets (€8.20 million, +55.17%). Financial fixed assets amount to €3.23 million (+23.82%), consisting mainly of equity investments, in line with the company’s role as a holding. The fixed asset coverage ratio stands at 1.71, indicating adequate and improving coverage.

Total liabilities increased to €2.29 million (+€1.49 million), primarily due to cash pooling arrangements with subsidiaries. However, the company carries no financial debt. The net financial position is €-2.73 million, entirely composed of cash and cash equivalents (+86.29%).

Cash flow analysis shows an improvement in liquidity generation compared to 2023, supported by strong self-financing capacity. Operating activities contributed to a cash increase, further boosted by a positive trend in net working capital (NWC), driven by higher payables to subsidiaries resulting from cash pooling. Investments made during the year were fully funded by internally generated resources, with no cash flows from financing activities.

Current assets total €4.72 million (+82.31%), mainly consisting of receivables from subsidiaries (€1.89 million) and cash. The current ratio stands at 2.08 (compared to 3.28 in 2023), confirming a sound financial position.

The Company’s profitability, closely tied to the performance of its subsidiaries, remains strong: in 2024, financial income amounted to €1.55 million, up 29.16% year-over-year, contributing to a net profit of €1.42 million (+17.76%) and a ROE of 24.03%, slightly lower than the previous year but still robust.

The shareholder structure consists of two individuals: Mr. Marco Mazzocchi (who also serves as sole director) and Ms. Valeria Mazzocchi. The administrative body is supported by a statutory auditor. As a holding company, GROUP UP acts as the parent company of several subsidiaries, four of which are wholly owned.

Within its peer group, the Company shows a strong position in terms of invested assets and a sound profitability profile, supported by a solid return on equity. Solvency levels are in line with the median of the peer group, which shows a gradual improvement in solvency ratios over the period under review and a stable financial position, sustained by efficient working capital management. However, return on equity across the group is generally modest, partly due to high capitalization levels.

At the macroeconomic level, GDP growth remained modest in 2024 due to tight financial conditions - with interest rates still high in the Eurozone – and inflation hovering around 2%, which weighs on household spending and investment. Global growth is also potentially affected by heightened geopolitical tensions and the tightening of U.S. trade policy.

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. 

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.

Modefinance provides ancillary services to the entity (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