High-potential SMEs

Egm in the X-ray: Sg Company revenues up 44.8 per cent

The events and communications company saw turnover rise to 50.1 million in 2025. Major acquisition campaign

by Valerina Novellini

26 January 2026

6' min read

Translated by AI

Versione italiana

Key points

Numbers
Income margins and debt are affected by external growth
First concrete results of subsidiary Knobs Srl

6' min read

Translated by AI

Versione italiana

If you are passionate about the journey of the Milan-Cortina 2026 Olympic flame, and in particular the events linked to the main sponsor Coca Cola (in fact, the flame has also made stops in the cities that host the US giant's Italian factories, in particular Nogara in the province of Verona, which hosts the largest plant in Europe), the credit for this goes to Sg Company.

A company of the Euronext Growth Milan (Sg stands for Sharing Growth, and has been a benefit company since 2020) active in the events and communication sector and which, like its 'rival' Casta Diva Group, has for some time been pursuing a strategy of growth by external lines, which is inevitable given the high fragmentation of the reference sector in Italy.

Also thanks to this strategy at the end of 2025, Sg Company reached a turnover of 50.1 million (+44.8% compared to 2024 and already in line with the 2026 target set out in the 2026 Business Plan). On the other hand, in 2025 the share held in the subsidiary Mission to Heart Srl was raised from 63.25% to 75.5%, a 25% stake was acquired in Core Srl (corporate communication) for 70.000 euro and 51% of K2 Capital Srl (innovative start-up company that, among other things, holds the format of the "Oscar del FinTech" event as well as the Nautica Awards Italia and the Wine Awards Italia) for 19,125 euro, 51% of Winning Srl (management of prize events, in line with the activities of the already controlled companies Fma Srl and Concreta Promotion Srl) for 985,320 euro, of which 656,880 will be paid in 2026.

In the meantime, the newco Sounds Great Srl (51% Sg Company, 49% Mde Srl), a podcast production company, was also set up, with an investment for Sg Company of 190,000 euro, 100,000 of which for trademarks. And Good Guys was established, a division of the group set up to oversee the creator economy and in particular relations with content creators.

The numbers

In addition to revenues, profit margins also rose: in H1 2025 (which did not yet include the contributions of K2 Capital Srl and Winning Srl), ebitda jumped 74.1% to EUR 2 million (and not including non-recurring expenses in both periods would have risen 64.9% to EUR 2.18 million. The ebit increased by 19.4% to EUR 742,000 and the net loss fell by 21.5% to EUR 260,600 (in fact, at the overall level, profit rose by 14% to EUR 120,000, but the separation of the portion of profit attributable to minority interests led to the aforementioned loss). Obviously, the lower part of the profit and loss account was affected by the high level of depreciation and amortisation (which more than doubled from EUR 496,600 to EUR 1.05 million) and the negative balance of financial management, which also jumped from EUR 130,400 to EUR 431,700. Which is hardly surprising in the presence of such an accentuated strategy of growth by external lines.

Earnings margins and debt are affected by external growth

As at 30/6/2025, net financial debt amounted to EUR 9.7m (compared to EUR 6.9m at the end of 2024), not only as a result of the acquisitions made in 2025 - which, as we have seen, were of a limited amount - but of the payments associated with the 2024 acquisitions, in particular Geotag Srl - which in turn signed an agreement to take over Waymedia Srl, a Rome-based media centre - and Klein Russo Srl. And then there is Knobs Srl: 51% was acquired in 2024 by Smart Capital - which in turn subsequently entered the Euronext Growth Milan, Pro segment, on 22 November 2024 - resulting in Smart Capital's entry into Sg Company, with a stake currently amounting to 5.78% of the share capital (4.02% in terms of voting rights).

However, the investment in Knobs Srl (an innovative SME specialising in web3 and blockchain solutions) was unfortunate for Sg Company (while Smart Capital's exit was for 1.5 times the original investment). In fact, the company showed losses on 30/9/2025 that resulted in a negative net worth and, as a result, the company was recapitalised (the outlay for Sg Company amounted to EUR 556,800, and its share rose from the original 51% to 97.61%).

First concrete results of subsidiary Knobs Srl

However, Knobs Srl, whose management has been completely renewed, is not lacking in opportunities. In 2025, the company was a technical partner of the Giro Automobilistico d'Italia, whose first edition dates back to 1934 and whose rights were acquired by Sg Company for 12 years in March 2025; Knobs Srl certified the participating cars through the CertiShield platform, which creates a digital blockchain passport with the history and information of each model.

Starting in 2026, it will also implement a carbon footprint offsetting programme for the event, offering innovative tools for sustainability and ESG engagement. The 2025 edition was non-competitive, but from this year it will be a real regularity race included in the circuit of historic cars and whose route, totalling 1,189 km, will be divided into four stages from Turin to Milan (the intermediate steps include Verona, Cortina d'Ampezzo and Bormio, not coincidentally in line with the locations of the Milan-Cortina Olympics).

Furthermore, in the first half of 2025, Knobs Srl carried out research and development on the prototyping of a blockchain-based Digital Product Passport that will be indispensable for manufacturing companies (especially textiles, but not only) to fulfil the obligations of the European Espr Regulation on eco-design. And it has already launched at the Lisbon Web Summit in early November the Indid platform, a proprietary solution (also based on blockchain) capable of simplifying application and project software developers in the web3 world.

For the time being, the contributions to the group's income statement of these activities are quite futuristic, but there will be those of Winning Srl (3.4 million revenue in 2024, with positive margins) and Waymedia Srl (2.2 million revenue in 2024, with positive margins). In the coming months, Sg Company will announce the new Business Plan, but only on 27 March (the date of approval of the 2025 financial statements) will it be possible to ascertain whether the 2026 ebitda target of EUR 4.2m and the net financial debt/ EBITDA target of less than 3 times will also have been achieved in advance.

The fact is that as at 30/6/2025 the Debt/Equity ratio amounted to 1.83 times (definitely not low) and subsequently there were the disbursements for the first tranche of Winning Srl (328,440 euro) and the establishment of Sounds Great Srl (190,000 euro); 2026 will see the remaining disbursement for Winning Srl as well as that for Waymedia Srl, amounting to a total of 750,000 euro of which at least 375,000 euro will be pertaining to 2026.

Multiple voting shares are to be increased from 3 to 10 votes

Sg Company recently resolved to issue a maximum of 9,551,649 warrants to be assigned free of charge to shareholders at a ratio of 1 warrant for every 3 shares held as at 22/1/2026. These will be exercisable in July from 2026 to 2031 at the rate of 1 new Sg Company share for every warrant at EUR 0.5 per share (currently, however, the price is around EUR 0.3). A resolution was also passed to convert both ordinary shares and existing multiple-vote shares (3 votes per share) into multiple-vote shares with 10 votes per share.

There is one catch: these shares (like the current 3-vote multi-vote shares) will not be listed and consequently it can be assumed that this right will be exclusively or predominantly exercised by the current shareholders of reference. In fact, it is foreseen that in the event that these conversion requests are such that the free float is reduced below 10% (it is currently very high at 57.75%), the requests will only be partially fulfilled. In any case, the increase in multiple voting rights will at least have the effect of making a hostile takeover of the company impossible or at least unlikely.

The Board of Directors was also given the authority to issue convertible bonds (possibly cum warrants) of up to EUR 3 million, but at the moment the management does not plan to resort to this instrument, nor to carry out paid capital increases. In fact, a capital strengthening would be desirable (the 'rival' Casta Diva Group had a Debt/Equity ratio of 0.83 on 30/6/2025), especially if the group intends to continue pursuing a policy of growth through acquisitions.

From an ESG perspective, Sg Company has been drawing up a sustainability report since 2023 (from 2021 the impact report as a benefit company). It has a code of ethics and has adopted the 231 Organisational Model. It has also activated a partnership with Up2You Srl benefit company and B Corp, a greentech start-up that enables companies to reduce their environmental impact by offsetting CO2 emissions through certified solutions according to international standards.