Automotive retail software provider Pinewood has reported significant progress in the first half of 2024 through executing a roll-out of its system into Lithia UK dealers and expanding internationally.
While around 85% of its revenue is generated from repeat business, the company’s efforts have led to a 3.6% increase in user numbers, now standing at around 34,300. The growth has been driven by new Lithia UK users as well as an increase in both the UK and international markets.
For the six months ending 31 July 2024, the group’s revenue increased by 11% to £16.1 million, while gross profit rose by 12.4% to £14.5m.
Pinewood’s strategic partnership with Lithia, which includes a £10m joint venture, is supporting the business to tap into the lucrative North American market.
Discovery and planning phases in a bid to break in to that market have been launched, in collaboration with Lithia, which will mean restructuring its UK sales team to maximise market reach.
A key development has been Pinewood’s $4.2m investment in automotive AI company Seez, securing exclusive distribution rights to Seez’s products in the US market.
Bill Berman, CEO of Pinewood Technologies, said: “The global market for Dealer Management Software is fragmented, and we believe we are well placed to grow our business in our key markets of the UK, Northern Europe, Asia Pacific, and North America – where our position is strengthened by our partnership with Lithia, the largest dealer group in North America.
“Our North American plan is well underway,” said the CEO. “We are already engaging with OEMs in the US to build key integrations for the second half of FY24 and FY25. We’re excited about the growth opportunities in North America and are confident that our system will scale efficiently across the region.”
The company also made significant investments in platform architecture and cyber security, as well as new system functionalities to support its expansion into Europe and Asia Pacific. “Our platform is constantly evolving, and we’re committed to delivering a robust and secure system for our customers,” the CEO added.
As Pinewood expands globally, its cloud-based system, powered by Microsoft Azure, continues to gain traction. The company’s software, deployed in 21 countries, is used across dealership operations, from front-of-house reception and sales teams to service technicians and back-office accounting.
Pinewood noted its long-standing partnerships with 50 OEM brands worldwide and strong customer retention. The company employs 263 associates, with 149 developers based in the UK, and sales teams operating in Sweden and Japan.
Despite broader economic challenges, Pinewood said it remains optimistic about the future. “We’re in advanced discussions with several new potential customers, both in the UK and internationally. While we are mindful of the economic landscape, the board is confident that we will meet market expectations for profit before tax by the end of the year.”