Corporate Credit Rating 2025 for SEMPLICE GAS & LUCE SPA: B1- (First Issuance)

modefinance has published on its website the Corporate Credit Rating (Solicited) of SEMPLICE GAS & LUCE S.P.A., assigning a rating of B1- (First issuance). The analysis highlights that the company has an adequate financial position, appearing capable of withstanding adverse economic conditions in the medium and long term.

SEMPLICE GAS & LUCE S.P.A. (hereinafter also referred to as the "Company") was founded in 2017 by a group of entrepreneurs with over ten years of experience in the energy sector. It operates in the liberalized market, providing electricity and natural gas. Initially active only as a reseller, the Company decided to focus on the residential segment, undergoing an internal consolidation process that led, in 2023, to full operational autonomy and the direct management of all activities. In 2024, it transitioned to a joint-stock company (S.p.A.), completing the shift from reseller to direct user of dispatching and distribution services, and began procuring energy through the GME (Electricity Market Operator). The goal for 2025 is to directly meet energy demand, thereby accelerating customer acquisition and launching the opening of physical branches to enhance proximity to end users.

SEMPLICE GAS & LUCE S.P.A. presents an overall adequate financial situation. In 2024, the Company increased its sales revenues (€16.66 million; +49%) and operating margins (EBITDA: €838 thousand; +38%; EBIT: €737 thousand; +36%), while maintaining solid financial equilibrium, as reflected in liquidity ratios above one (1.67) and strong cash management performance. On the solvency front, the leverage ratio improved to 5.98 compared to the previous year (7.14), although it is still not fully balanced. Net equity stands at €1.33 million (+46%), sufficient to finance 14.32% of total assets (€9.28 million). Financial indebtedness is extremely low and has decreased compared to 2023, resulting in a negative net financial position of -€3.19 million. After accounting for cash holdings (€3.33 million), this indicates a strong cash position, demonstrating the Company’s full ability to meet its obligations using available liquidity.

The Company has an administrative body composed of two members, who are also de facto shareholders through companies they control. Its ownership structure includes three shareholders: two limited liability companies (S.r.l.) and a trust. Additionally, the Company has established a Board of Statutory Auditors, though no external auditing firm has been appointed.

In comparison with the sector’s peer group, the Company is larger than the median, with an adequate and strengthened position, particularly supported by the increase in business volume observed in recent years. Profitability is also strong, positioning the Company above the 50th percentile of the analyzed peer group. However, in terms of solvency, it ranks below the median, while maintaining balanced financial leverage. Between 2021 and 2024, the peer group has shown a progressive strengthening of equity structures, evidenced by the improvement of key financial ratios. Liquidity remains solid and stable, with a current ratio at equilibrium levels. Regarding earnings, ROE and ROCE show consistent performance at adequate levels.

The fundamentals of the energy sector in Italy have improved, thanks to the stabilization of gas and energy prices, accompanied by reduced volatility compared to the record levels seen in 2022. However, the increasingly strategic role of LNG (liquefied natural gas) in the energy mix — accounting for 38% of the gas imported by the EU in 2024, up from 20% in 2021 — as a replacement for Russian pipeline gas, entails higher procurement costs and exposes Italy to the risk of potential price increases driven by global market dynamics (such as rising gas demand in Asia, changes in U.S. shale gas extraction policies, etc.).

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 a 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. 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