reports
- Bob Liao
- Carl Smith
Pinewood Technologies (PINE LN) - Clear growth roadmap
Pinewood Technologies’ capital markets event gave details on the US joint venture rollout and the scale of the US market opportunity. The Group also lifted its FY27 underlying EBITDA target from £27m to £30m (which excludes the JV), demonstrating good confidence in future growth. We think this target is achievable based on Pinewood’s recent contract win and more opportunities to add users in major markets such as the UK, Japan and German-speaking countries (DACH). The increase in this target pro...
- Bob Liao
- Carl Smith
Pinewood Technologies (PINE LN) - Major UK contract win
Pinewood Technologies, a provider of automotive dealership management systems (DMS) via a SaaS model, yesterday announced a major contract win. In our view, this confirms initial success in attracting large dealer groups following the separation from Pendragon. The expected size of the contract results in an upgrade to our estimates that already showed strong earnings growth. We lift underlying PBT forecasts by 4% in FY25 to £12.6m and by 12% to £17.2m in FY26, meaning PBT now grows by 48% in FY...
- Bob Liao
- Carl Smith
Pinewood Technologies (PINE LN) - Full speed ahead
Pinewood Technologies’ H1 results, its first as a standalone SaaS business, show that the Group is putting the building blocks in place for its accelerated growth plan. New UK Lithia sites are being added, product and sales team investment is being made, and the discovery and planning stages of the US rollout are underway. Management is confident in meeting full year market expectations (£7.8m underlying PBT for the 11 month FY24 period), so our underlying P&L estimates are unchanged. We reitera...
- Bob Liao
- Carl Smith
Pinewood Technologies (PINE LN) - Strong results, growth ahead
Pinewood Technologies’ results for the 13 months to 31 January 2024 confirmed good growth in user numbers, revenue and operating profit for the continuing automotive software business. Our unchanged forecasts (see 6 March research) show strong revenue growth, high margins, and good cash generation over the period to FY26 as the Group executes its accelerated growth plan. As of Tuesday this week, Pinewood’s shares are ex-dividend and a 1-for-20 share consolidation is effective, meaning our discou...
- Carl Smith
Audio Note: Pinewood Technologies - Driving growth in automotive softw...
In this audio note, Zeus’ Carl Smith summarises the investment case for Pinewood Technologies. Pinewood’s transition to a pure-play automotive SaaS business is now largely complete. Listen to the audio note below, and read the full research here.
- Carl Smith
Pinewood Technologies (PINE LN) - Driving growth in automotive softwar...
Pinewood’s transition to a pure-play automotive SaaS business is now largely complete. Today we introduce summary forecasts out to FY26 and reiterate the investment case. We see significant opportunity for Pinewood to grow its user base in the UK and internationally whilst generating high EBITDA margins and cash conversion. With a 24.5p special dividend embedded in the current price (payable Q1/Q2), the effective price today is 12.3p. Based on the Group’s FY27 target of £27m EBITDA, we estimate ...
- Andy Hanson
- Bob Liao
- Carl Smith
- Daniel Slater
- Rachel Birkett
- Robin Byde
- Robin Savage
- Zeus Research Team
- Andy Hanson
- Bob Liao
- Carl Smith
- Daniel Slater
- Rachel Birkett
- Robin Byde
- Robin Savage
Zeus Top Picks for 2024
On 9 January last year, we set out our ten top stock picks for 2023, for what turned out to be another relatively poor twelve months for UK equities due to two wars, stubbornly high inflation and further tightening of monetary policy. This was even as other major markets, such as the US, largely recovered in the year. In the 2023 calendar year, the AIM All-Share index fell 8.2% and is still 42% off its 2021 high. From the release of our 2023 top picks note, the average total return (assuming div...
- Carl Smith
- Carl Smith
- Carl Smith
Audio Note: Pendragon - High potential in Pinewood
In this audio note, Zeus’ Carl Smith summarises the investment case for Pendragon. Earlier in the week Pendragon announced a proposed deal to dispose of its UK motor retail and leasing businesses to Lithia Motors for £250m, after which it will become a standalone, listed SaaS business with its Pinewood dealership management software (DMS) product. Listen to the audio note below, and read the full research here.
- Carl Smith
Pendragon (PDG LN) - High potential in Pinewood
Earlier in the week Pendragon announced a proposed deal to dispose of its UK motor retail and leasing businesses to Lithia Motors for £250m, after which it will become a standalone, listed SaaS business with its Pinewood dealership management software (DMS) product. On the day, we set out a high level view of the transaction and the growth and valuation implications. This note dives further into these topics, in particular the potential for the deal to significantly accelerate the growth in Pine...
- Carl Smith
Pendragon (PDG LN) - Proposed disposal and transition
Pendragon has announced a proposed deal to dispose of its motor retail and leasing businesses to Lithia Motors for £250m, after which it will become a standalone, listed SaaS business with its Pinewood dealership management software (DMS) product. The aggregate equivalent value for shareholders, including the retained stake in the continuing business, was 27.4p per share on announcement, above our 28.3p per share SOTP estimate from 17 January. Going forward, we think the disposal could focus inv...
- Carl Smith
Audio Note: Pendragon - Trading strength offsetting cost pressures
In this audio note, Zeus’ Carl Smith summarises the investment case for Pendragon. Pendragon’s H1 pre-close trading update shows a strong trading performance, with sales and gross profit growth more than offsetting underlying cost inflation and interest rate rises. Listen to the audio note below, and read the full research here.
- Carl Smith
- Mike Allen
- Mike Allen
Audio Note: Pendragon - Strong first quarter trading
In this audio note, Zeus’ Mike Allen summarises the investment case for Pendragon. Pendragon has released a trading update for the quarter to 31 March 2023 showing performance well ahead of Q1 2022. Listen to the audio note below, and read the full research here.
- Liberum Research Team
- Liberum Research Team
- Carl Smith
- Mike Allen
- Carl Smith
- Mike Allen
Zeus: Automotive Retail sector analysis - April 2023
This report provides an updated view on the key themes facing the motor retail sector in 2023. On page 4 we discuss the conclusions of our July 2022 research and compare them to what happened in H2 2022. It is clear that many of the same themes (supply shortages, high inflation, sector consolidation, etc.) still apply – here we discuss how these themes have evolved.
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