Cherry raises €10.1M and names permanent CEO to fund turnaround
What's the deal? German keyboard specialist Cherry has raised €10.1 million through a fully subscribed capital increase, placing 9.72 million new shares at €1.04 each. Major shareholder Argand PartnersDealroom has a profile for this one. Try Dealroom → exercised all of its subscription rights. The company also confirmed Rogier Volmer as permanent chief executive, ending his stint as interim boss.
Why now? The proceeds are a cornerstone of Cherry's restructuring program, dubbed "Project Blossom." The capital increase lifts share capital to €15.795 million and strengthens the balance sheet as the company works through a turnaround.
By the numbers: Preliminary first-half results show revenue fell to €40.0 million from €45.5 million a year earlier. But cost-cutting narrowed the adjusted EBITDA loss to €4.0 million from €10.2 million, and the gross margin widened by 12.3 percentage points. Project Blossom has trimmed roughly €7.0 million from the cost base.
What's the endgame? Volmer's target model envisions breakeven on an EBIT basis at about €85 million in annual revenue and a 44% gross margin — a steep climb from the current run rate.
What could go wrong? Cherry can improve margins by cutting costs, but it cannot reach sustainable profitability unless demand recovers in its core office and components markets. It has also yet to complete its audited 2025 financials, delaying the half-year report that was due in August. No new date has been set.
The signal: Research house MontegaDealroom has a profile for this one. Try Dealroom → maintains a "Hold" rating, noting the capital injection buys time but not a turnaround. Cherry has secured funding and a permanent leader; proving Project Blossom is more than a cost-cutting exercise starts now.
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Image credit: karlhols
