Pinewood, a Nottingham-based SaaS company, has revised its earnings guidance upwards in anticipation of significant overseas growth. The firm, formerly known as Pendragon, is targeting expansion in the US market, which is notoriously challenging for UK businesses.
- Pinewood has adjusted its projected FY27 EBITDA to £30 million, marking a substantial increase from £27 million.
- Rebranding efforts to Pinewood.AI coincide with a new joint venture in the US market with Lithia Motors.
- The collaboration aims to integrate Pinewood software within Lithia’s systems and promote adoption among rival dealerships.
- Pinewood’s CEO emphasizes the necessity of strategic partnerships for successful market penetration.
Pinewood, initially known as Pendragon, has made a strategic decision to increase its earnings guidance, adjusting its FY27 EBITDA forecast from £27 million to £30 million. This adjustment reflects the company’s anticipation of significant future growth through overseas expansion, especially focusing on the US market.
In a recent capital markets event, Pinewood unveiled its strategic rebranding to Pinewood.AI, highlighting the move as part of its broader ambition for global growth. The rebranding aligns with its initiative to establish a joint venture in the US with the dealership group, Lithia Motors, which is listed on the New York Stock Exchange.
Lithia Motors acquired multiple dealership groups previously owned by Pendragon, including well-known names like Stratstone, Evans Halshaw, California, and Car Store, in February 2024. This acquisition paved the way for the rebranding of Pendragon to Pinewood, focusing purely on software services.
Pinewood’s strategic collaboration with Lithia Motors involves integrating Pinewood software into Lithia’s operations and aiming to extend this technological adoption across competing dealerships. CEO Bill Berman indicates that this joint venture is crucial for successfully navigating the US market, where UK firms often face challenges.
Berman likened the importance of having a major partner like Lithia to having an ‘anchor tenant’ in a large building, emphasising that without such backing, the development process would be arduous and time-consuming. The partnership is designed to expedite market entry and minimise the difficulties associated with solo efforts.
In the wake of these announcements, Pinewood’s share price rose by 1.4% to 340p, contributing to a more than 13% increase over the past week. This surge follows the announcement of a new five-year contract to supply services to the Marshall Motor Group.
Pinewood’s strategic rebranding and partnership with Lithia Motors are pivotal steps in its ambition to penetrate the competitive US market.
