Pinewood accelerates growth with launch of Lithia, international expansion plans progress

Automotive retail software provider Pinewood has reported significant progress, rolling out its system to Lithia UK dealers in the first half of 2024 and expanding internationally.

While approximately 85% of its revenue comes from repeat business, the company’s efforts have led to a 3.6% increase in users, which now stands at around 34,300. The growth was driven by new users on Lithia UK as well as an increase in both UK and international markets.

In the six months ending 31 July 2024, group revenue rose 11% to £16.1 million, while gross profit rose 12.4% to £14.5 million.

Pinewood’s strategic partnership with Lithia, which includes a £10 million joint venture, supports the business in entering the lucrative North American market.

Exploration and planning phases aimed at entering this market have been initiated in collaboration with Lithia; This will mean restructuring the UK sales team to maximize market access.

A significant development was Pinewood’s $4.2 million investment in automotive AI company Seez, securing exclusive distribution rights for Seez 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 positioned to grow our business in our key markets such as the UK, Northern Europe, Asia Pacific and North America – the largest dealer in North America Our position is strengthened thanks to our partnership with Lithia group.

“Our North America plan is going well,” the CEO said. “We are already engaging with OEMs in the US to create significant integrations for FY24 and the second half of FY25. “We are excited about the growth opportunities in North America and are confident that our system will scale efficiently across the region.”

The company has also made significant investments in new system functionality as well as platform architecture and cybersecurity to support expansion in Europe and Asia Pacific. “Our platform is constantly evolving and we are committed to providing our customers with a robust and secure system,” the CEO added.

As Pinewood expands globally, its cloud-based system powered by Microsoft Azure continues to gain traction. The company’s software, used in 21 countries, is used throughout dealership operations, from front office and sales teams to service technicians and back-office accounting.

Pinewood noted its long-standing partnerships and strong customer loyalty with 50 OEM brands worldwide. The company employs 263 people, with 149 developers based in the UK and sales teams operating in Sweden and Japan.

Pinewood said it remains optimistic about the future despite broader economic challenges. “We are in advanced discussions with many new potential customers, both in the UK and internationally. Although we consider the economic situation, the board is confident that we will meet the market’s pre-tax profit expectations by the end of the year.”