Pinewood Technologies Group (PINE) H2 2024 earnings summary

Executive summary

• FY24 results exceeded analyst expectations, marking a landmark year as a standalone software business after the Lithia transaction.

• Secured major contracts with Marshalls, Lookers, and Global Auto Holdings, and completed a strategic transformation including the Seez acquisition to enhance AI capabilities.

• Acquired Seez, an automotive AI platform, to accelerate product innovation and North American market entry.

• International expansion progressing, with North American pilot launch planned for H2 2025 and full rollout in 2026.

Financial highlights

• Revenue for FY24 (11 months) was £31.2m, up 15.1% year-over-year; gross profit £28.2m, up 16.5%.

• Gross margin improved from 89.3% to 90.4%.

• Recurring revenue represented 86.5% of total.

• Underlying profit before tax reached £8.5 million, exceeding analyst expectations.

• Year-end cash position was £9.3 million after a £358.4 million dividend payout.

Outlook and guidance

• FY25 focus on implementing systems for Marshalls and Global Auto Holdings, and expanding into new geographies.

• Underlying profit before tax for FY25 expected to be in line with market expectations (£11.3m for FY25).

• Upgraded FY27 underlying EBITDA guidance to mid to high £30 million range.

• Confident in recurring revenue remaining in the 85%-90% range, providing strong visibility.