Pinewood Technologies has landed a significant five-year contract with Lookers owner Global Auto Holdings to implement its Automotive Intelligence platform across its entire dealership network in the UK, North America, and Scandinavia.
With over 155 franchise dealership locations and an extensive distribution division, Global Auto Holdings, which bought Lookers in 2023, represents the largest non-affiliated major dealership group to adopt Pinewood’s platform.
The contract is expected to generate substantial revenue and aligns with Pinewood’s strategic goal of signing a major UK top 20 automotive retailer by the end of 2025. Implementation and revenue generation are projected to start in the UK by 2026.
Pinewood Technologies has landed a significant five-year contract with Lookers owner Global Auto Holdings to implement its Automotive Intelligence platform across its entire dealership network in the UK, North America, and Scandinavia.
With over 155 franchise dealership locations and an extensive distribution division, Global Auto Holdings, which bought Lookers in 2023, represents the largest non-affiliated major dealership group to adopt Pinewood’s platform.
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The contract is expected to generate substantial revenue and aligns with Pinewood’s strategic goal of signing a major UK top 20 automotive retailer by the end of 2025. Implementation and revenue generation are projected to start in the UK by 2026.
As part of the agreement, Pinewood has issued warrants to an affiliate of Global Auto Holdings for up to 6,098,093 ordinary shares, equivalent to 7% of Pinewood’s current issued share capital.
These warrants will be exercisable in tranches based on the successful deployment of the platform in each region: 5% for the UK, 1% for North America, and 1% for Scandinavia, at a strike price of 330.0p per share, based on Pinewood’s closing share price on February 13.
In a trading update, Pinewood said its momentum has remained strong following its interim results in October. The company has successfully rolled out its Automotive Intelligence platform in the UK and secured a major contract with Marshall Motor Group.
Additionally, in December, Pinewood completed the first phase of its strategic partnership with Lithia Motors, integrating its platform across the dealership group’s UK dealership network, which includes the former Pendragon sites which have used Pinewood’s systems for years.
Pinewood now expects an underlying profit before tax for the 11-month financial period ending December 31, 2024, to reach approximately £8.3 million, exceeding analyst consensus forecasts by £500,000. Implementation of the system for recently signed large customers is expected to be weighted more toward 2026 to meet client requirements.
Bill Berman, Pinewood Technologies chief executive, commented: “We are thrilled to welcome Global Auto Holdings as a key partner and customer. Our innovative Pinewood Intelligence Platform will support their dealership network’s growth and revenue generation.
“Securing two of the UK and Ireland’s top 20 auto retail groups ahead of schedule marks a significant milestone in our expansion strategy. Our strong FY24 performance, which exceeds consensus forecasts, reflects the dedication of our employees and our commitment to delivering top-tier service globally.
“We look forward to another year of strategic and operational progress.”
Roy Cui, executive vice president of Global Auto Holdings, added: “We are excited about this partnership with Pinewood, which aligns seamlessly with our mission to become the leading consumer-facing global automotive company. The collaboration will enhance operational efficiencies and optimise processes, benefiting all our stakeholders.”
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