Cowboys are looking for investors again.

The initial observation in the annual financial report is that equity continued to decline from -EUR 8.4 million in 2022 to -EUR 22.4 million at the end of 2023. This is despite a capital increase of EUR 7.8 million.

“Based on current expectations, management anticipates that additional financing may become necessary by the end of 2024, for working capital in the coming year, and to ensure that the company is on track to achieve sustainable profitability.”

“Based on preliminary discussions with credit institutions and other potential investors, management is confident that funding will be available for Cowboy’s future growth ambitions,” the annual report said.

to retreat

Another note is that Cowboy saw its sales volume decline for the first time in 2023, from €41 million in 2022 to €33.7 million. But the annual report notes that the 2022 figure was exceptionally high, as pre-order deliveries from the end of 2021 only started then.

In addition, the model lineup has been revised in 2023, with the Cowboy C3 discontinued and the Cowboy Cruiser launched. Finally, Cowboy has strategically focused on its core markets in Europe, and on increasing margins and profitability, rather than focusing on volume.

Cowboy’s transformation, where the company abandoned its strategy of selling bikes online only and arranging maintenance itself, resulted in a net loss in 2023 of -21.7 million euros, compared to -32.1 million in 2022. It rose from 10.3% in 2022 to 17.9% in 2023.

Black numbers

in the timewhich actually reported its annual numbers on Friday morning, says co-founder Adrian Rose that those numbers are “already outdated.” “We’re on track to hit a 40 percent gross margin this year,” Rose says.

“We have been supplying bikes with these profit margins since the second half of this year, which means I can also say that we will break even in the last six months of this year. Next year the gross profit margin will rise to about 50 percent and we will effectively write the black numbers.”