Pinewood Technologies Group (PINE) H2 2024 earnings summary

Executive summary

• Results exceeded analyst expectations, marking a landmark year following the transition to a standalone software business after the Lithia transaction.

• Strategic transformation completed, with a focus on building strong foundations, major new customer wins, and the Seez acquisition to enhance AI capabilities.

• International expansion progressing, with North American pilot launch on track for H2 2025.

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% year-over-year.

• Recurring revenue represented 86.5% of total.

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

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

Outlook and guidance

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

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

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

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