Pinewood Technologies (LSE:PINE) reported a wider preliminary loss for the first half of 2026 as costs associated with its North American expansion and acquisitions increased, while revenue and underlying EBITDA rose.
The automotive technology company recorded a loss of £7.7 million for the period, compared with a £0.7 million loss a year earlier.
Revenue increased 16.8% to £22.9 million, while underlying revenue rose 18.4% to £23.2 million. Underlying EBITDA increased 11.4% to £8.8 million.
Underlying Profit Before Tax Falls to £3.8 Million
Despite higher revenue, underlying profit before tax declined 13.6% to £3.8 million from £4.4 million a year earlier.
Underlying administrative expenses increased 23.3% to £15.9 million, reflecting spending associated with Pinewood’s expansion in North America.
The underlying gross margin declined to 85.3% from 86.7%, primarily reflecting the contribution from Seez following its acquisition.
Non-Underlying Costs Reach £13.5 Million
Pinewood recorded £13.5 million of non-underlying costs during the first half.
These included £9.1 million of expenses relating to Pinewood North America, £4.0 million of acquisition-related amortisation and £2.2 million of share-based payment costs.
The impact was partly offset by a £2.8 million fair-value gain on financial instruments and a £3.2 million non-underlying tax credit.
Lithia Rollout Expected to Begin in 2027
Pinewood said two Lithia dealerships in the US are scheduled to go live with its technology during the fourth quarter of 2026.
A broader rollout across Lithia’s North American dealership network is expected to begin during the first half of 2027, with completion planned for 2028.
Pinewood maintained its outlook for the current financial year, with underlying EBITDA expected to be in line with its previous expectation of £21 million.
The company also reaffirmed its target of £62 million in underlying EBITDA for the 2028 financial year.
Ridgeview Partners Acquisition Awaits Court Approval
The results come as Pinewood prepares for its proposed acquisition by Ridgeview Partners.
Shareholders approved the transaction on 25 September. The £4.48-per-share cash offer remains subject to sanction by the High Court, with a hearing scheduled for 7 October.
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