Pinewood Technologies Group Plc (LON:PINE), a leading pure-play cloud-based software business providing innovative retail solutions to the automotive industry, has announced its financial results for the 6 months ended 30 June 2025.
· Acquisition of Seez enhances AI capabilities and product suite
· Full ownership of Pinewood North America LLC supports Pinewood.AI’s growth ambitions in key market
· New FY28 underlying EBITDA target of £58-62m
Group Financial Summary
| £m, unless stated | 6m period ended 30 June 2025 (H1 FY25) | 6m period ended 31 July 2024 (H1 FY24) | % Change |
| Revenue | 19.6 | 16.1 | 21.7% |
| Gross Profit | 17.0 | 14.5 | 17.2% |
| Underlying EBITDA | 7.9 | 6.9 | 14.5% |
| Underlying Profit Before Tax | 4.4 | 4.0 | 10.0% |
| Underlying Operating Profit | 4.1 | 4.0 | 2.5% |
| Cash | 30.3 | 13.0 | 133.1% |
Financial Highlights
· Revenue up 21.7% to £19.6m (H1 FY24: £16.1m), driven by increased client spend and the successful integration of the Seez AI solution.
· Recurring revenue increased to £16.8m in H1 HY25 (representing 85.7% of total revenue).
· Gross profit up 17.2% to £17.0m (H1 FY24: £14.5m), with a gross profit margin of 86.7%.
· Underlying EBITDA up 14.5% to £7.9m (H1 FY24: £6.9m), with an underlying EBITDA margin of 40.3%.
· Modest dilution of gross profit margins and EBITDA margins following the acquisition of Seez, in line with expectations.
· H1 FY25 underlying profit before tax of £4.4m up 10.0% (H1 FY24: £4.0m).
· Cash of £30.3m up from £13.0m at 31 July 2024, reflecting the oversubscribed equity placing, strong cash conversion and final settlement of tax balances arising from the sale of the motor group.
Operational Highlights
· Net user churn (excluding Lithia) remained minimal at 0.3% in H1 FY25.
· Successful phased launch of new user experience (UX) in H1 2025; early customer feedback strong.
· Acquisition of outstanding 90.9% ownership in market-leading automotive AI company, Seez, for US$42m which was announced in February 2025 and funded by an oversubscribed equity fundraise.
o The acquisition further strengthens Pinewood.AI’s expertise and product suite, particularly in the delivery of AI-powered chatbots.
· On 29 April 2025, the Company announced a five-year contract with Volkswagen Group Japan to implement the Pinewood.AI platform into all c.350 Volkswagen and Audi dealers in Japan.
· Officially entered North America in May 2025, as we extended our network of Porsche dealers with a successful installation in Canada. This was enabled by the development of new, internationally deployable, manufacturer interfaces.
· Wider North American roll-out preparation progressing well:
o Engagement with majority of OEMs represented by Lithia as well as third party layered app providers, with integration work underway
o Pinewood.AI product team continuing to enhance system for North American customer specific needs
o On track for pilot in two Lithia US stores in Q4 FY25, with the wider roll-out to Lithia US stores starting in mid-FY26
o New North American headquarters opened in Florida during June 2025, with recruitment of North America team underway
· On 6 June 2025, Pinewood.AI announced it had entered into an agreement to buy out Lithia of its 51 per cent stake in Pinewood North America LLC for $76.5m, subject to shareholder approval, which was received on 30 June 2025.
· Pinewood.AI also announced that it has entered into a five-year contract with Lithia to roll out the Pinewood.AI platform in North America. By the end of 2028, this contract is expected to generate an estimated $60m of revenue per year.
Post-Period End Updates
· On 7 July 2025, Pinewood.AI announced it had agreed to acquire key customer contracts from its South African reseller for £2.5m. The acquisition completed on 1 August 2025 and is expected to add approximately £0.5m to £0.7m of incremental annual EBITDA.
· The implementation of the Pinewood.AI platform across Lookers’ dealerships commenced on 21 July 2025 and is progressing well.
· On 31 July 2025, Pinewood.AI announced that the agreement to buy out Lithia of its 51 per cent stake in Pinewood North America LLC had completed.
· Agreement with Porsche Japan in September 2025 to commence implementation of the Pinewood system in all Porsche Centres in the country.
Outlook
· Pinewood.AI has made significant progress against the strategic priorities that were outlined at its 2024 Capital Markets Day and the size of the available opportunity remains vast.
· The Group’s priority in the UK in H2 FY25 remains to continue the system implementations with Lookers and to begin the Marshall Motor Group (“Marshall”) implementation in Q1 2026. Pinewood.AI continues to look to add more Top 100 dealer groups to our customer base in the future. In agreement with Marshall, so that we can align the timing of a rollout of a number of IT projects in Marshall’s systems, and therefore the Pinewood integration of systems, we have moved the start date for their implementation from Q4 2025 to Q1 2026.
· Outside the UK, the geographies identified at the Capital Markets Event in H2 2024 also remain the priority, namely, opportunities in North America, Central Europe, Japan and Southeast Asia and South Africa.
· The Group is capitalising on Seez’s strong regional presence to pursue growth in the Middle East. The region has been identified as a strategic priority.
Updated Guidance
· Prior to the buyout of Pinewood North America LLC, Pinewood.AI recognised 51% of software development for North America as revenue and profit. Following Pinewood.AI’s buyout of Lithia’s stake in Pinewood North America LLC, there is expected to be a short-term accounting impact of approximately £1.3m for FY25, relating to income previously recognised on development work undertaken for the North American market.
· In addition, with the timing change of the Marshall implementation, the Group now expects FY25 underlying EBITDA to be £15.5-16.0m.
· Pinewood.AI has introduced new medium-term FY28 guidance, targeting underlying EBITDA of £58-62m. This is underpinned by strong visibility from existing contracts and a significant pipeline of opportunities.
Bill Berman, Chief Executive Officer of Pinewood Technologies Group PLC, said:
“This has been another half of great progress for Pinewood.AI, delivering on our strategic objectives and positioning the business for continued accelerated growth. Our strong year-on-year performance reflects the onboarding of major new customers and increased spend across our existing customer base. During the period, we launched a new modern user experience which landed well with customers, and we are fully integrating Seez’s impressive AI tools into the Pinewood Automotive Intelligence™ Platform. Taking full ownership of Pinewood North America LLC and the contract signed with Lithia marked major achievements in our growth strategy for this key market. Preparations for the US roll-out continue at pace, and we remain on track to pilot the Pinewood Automotive Intelligence™ platform later this year.
“As a result of this positive momentum and our exciting pipeline of new customers, I am pleased that we have been able to set an ambitious new underlying EBITDA target of £58-62m for FY28. We are confident in the scale of the global opportunity in the market, and we are looking forward to delivering on this in the years ahead.”
Conference call and presentation
A presentation for sell-side analysts will be held at 9.00am (BST) today and this will be followed by a Q&A session with the management team. Please use the following link to register and to join the livestream of the presentation:
https://brrmedia.news/PINE_HY25
A webcast replay of the presentation will be made available on Pinewood’s website later in the day. The webcast will be published on: https://pinewood.ai/investors/results/
