Corporate Credit Rating 2025 for START SRL SB: B1 (Upgrade)

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

The Company START S.R.L., founded in 2012 by Andrea Diffido, operates in the energy sector (power and gas). Initially operating as a third-party agency, the Company 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 to promote energy efficiency, inclusiveness, and employee well-being. The growth trajectory, which continued at a fast pace in 2024, positions the Company for 2025, which is expected to be a decisive year for the establishment of the new corporate group.

START S.R.L. – SB confirms an adequate economic and financial standing. In 2024, the Company recorded a significant increase in sales revenues (from €3.56 million to €23.93 million), which strengthened operating margins (EBITDA increased from €330 thousand to €2.40 million) and net profit (€1.42 million vs. €169 thousand). The management of current assets and liabilities appears sufficiently balanced, as does the sustainability of financial debt, as evidenced by the net financial position showing a positive cash balance (-€2.28 million). A further strengthening of equity would be desirable to improve the solidity of the capital structure.

In 2024, the Company further improved its cash flow management, reporting a significant increase in operating cash flow, which fully covered the cash outflows from investing activities. The generation of operating cash flow was supported by self-financing and, even more so, by efficient working capital management. Although limited in absolute value, financing cash flow was also positive, supported by a capital increase and additional financial debt.

The Company has a streamlined corporate structure, with ownership concentrated in Mr. Andrea Diffido, who exercises control through an S.r.l. holding 90% of START’s share capital. The remaining 10% is held by Mr. Aldo Broegg through an S.r.l. under his ownership. Mr. Diffido also serves as the sole director of START. No control bodies are currently in place. START, in turn, controls three subsidiaries operating in the energy sector.

The Company benefits from a solid market position, which has been further strengthened by the revenue expansion in 2024, from which profitability also improved. In terms of profitability, START ranks well above the industry median. However, its limited capitalisation adversely affects solvency, placing the Company below the 50th percentile of the sector. That said, financial leverage remains fully balanced from a stand-alone perspective. Over the 2021–2024 period, the sector sample analysed shows a gradual strengthening of capital structures, as indicated by improving financial ratios. Liquidity remains solid and stable, with the current ratio at balanced levels. On the profitability side, ROE and ROCE have shown consistent stability at appropriate levels.

The fundamentals of the Italian energy sector have improved thanks to the stabilization of gas and electricity prices, along with reduced volatility compared to the peaks of 2022. However, the increasingly strategic role of LNG (liquefied natural gas) in the energy mix – accounting for 42% of EU gas imports in 2023, up from 20% in 2021 – as a substitute for Russian pipeline gas, entails higher procurement costs and exposes Italy to potential price increases driven by global market dynamics (such as rising gas demand in Asia or shifts in U.S. shale gas extraction policies).

At the macroeconomic level, GDP growth in 2024 remained modest, due to tight financial conditions (with interest rates still high in the euro area), inflation of around 2% weighing on household spending and investment, and global economic growth facing potential headwinds from heightened geopolitical tensions stricter U.S. trade policies.

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

Assistant Analyst - Azzurra Nicchi, Rating Analyst
azzurra.nicchi@modefinance.com

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