Pinewood Technologies Group (PINE) H1 2026 earnings summary

Executive summary

• Achieved strong strategic and operational progress in H1 2026, with continued growth and momentum in North America; first US Lithia dealer go-lives expected in Q4 2026.

• Announced and received shareholder approval for acquisition by Ridgeview Partners, expected to complete in October 2026, pending court sanction.

• Enhanced platform capabilities with integration of Seez AI products and launch of new AI-driven offerings.

• Key priorities included North American product development, system implementations with Lookers, Marshall Motor Group, and Porsche Japan, and expanding product suite sales.

• Negative customer churn in H1 2026, indicating increased usage and high retention from existing customers.

Financial highlights

• Underlying revenue grew 18.4% year-over-year to £23.2m, driven by new customers, upsells, and Seez acquisition.

• Underlying gross profit rose 16.5% to £19.8m; gross margin rate at 85.3%, slightly down due to Seez's lower margins.

• Underlying EBITDA increased 11.4% to £8.8m (margin 37.9%); recurring revenue at 84.5%.

• Cash at period end was £23.9m, with a net decrease of £10.4m, reflecting increased North American investment.

• Non-underlying items included £9.1m North American admin expenses, £4m amortisation, and £2.8m net fair value gain on Lookers' warrants.

Outlook and guidance

• On track to begin North American rollout with Lithia in Q4 2026, with significant growth ambitions in the U.S. and Canada.

• Board expects FY26 underlying EBITDA to be in line with previous guidance (£21m) and reaffirms FY28 target of £62m.

• Continued rollout with Lookers in the U.K. to conclude in H1 2027; Marshall Motor Group rollout to start imminently.

• Ridgeview Partners acquisition expected to accelerate growth, especially in North America, with new investment and expertise.