Pinewood Technologies reports wider H1 loss as North America investment weighs

Pinewood Technologies disclosed a wider preliminary loss for the first half of the year, citing investment in its North American expansion and costs related to acquisitions. The company reported a £7.7 million loss for the period, up from a £0.7 million loss a year earlier, while revenue climbed 16.8% to £22.9 million. Underlying revenue grew 18.4% to £23.2 million, and underlying EBITDA increased 11.4% to £8.8 million.

However, the company's underlying profit before tax decreased 13.6% to £3.8 million from £4.4 million, due to higher administrative expenses and investment in North America. Underlying administrative expenses grew 23.3% to £15.9 million, while the underlying gross-margin rate dropped to 85.3% from 86.7%, mainly due to Seez's acquisition.

The statutory result was impacted by £13.5 million of non-underlying costs, including £9.1 million in expenses at Pinewood North America, £4 million in acquisition-related amortisation, and £2.2 million in share-based payment costs. These were offset partially by a £2.8 million fair-value gain on financial instruments and a £3.2 million non-underlying tax credit.

Pinewood plans to launch two Lithia dealerships in the U.S. in the fourth quarter, with a broader rollout across Lithia's North American dealerships expected to begin in the first half of 2027 and conclude in 2028. Despite the loss, the company kept its FY26 outlook, expecting underlying EBITDA to be in line with previous projections of £21 million, and reaffirmed its £62 million FY28 underlying EBITDA target.

Pinewood is set to be acquired by Ridgeview Partners, with shareholders approving the transaction on September 25, subject to High Court sanction on October 7.