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MIDAS SHARE TIPS: Car sales software firm Pinewood plots global expansion Firm's tech aims to make process of buying a new motor go more smoothly By Joanne Hart Updated: 23:00, 26 October 2024 e-mail View comments In the early 1950s, Britain was the world’s largest exporter of cars, vans and lorries. Even as production soared in America, UK manufacturers retained a prime position in the motor trade. Today, we are primarily known for top-of-the-range models, from Bentley and Rolls-Royce to Aston Martin and McLaren.
But the wider industry still contributes billions of pounds to the economy and employs more than 750,000 people. Most work in around 4,600 car dealerships, selling new and used vehicles across the country. Buying a car should be a pleasurable experience.
Too often, though, it is time-consuming and tedious – too much paperwork, too much sales patter, too much faff. Cut the sales patter: Pinewood's software aims to change the way cars are sold and serviced Pinewood Technologies strives to make the process smoother and more agreeable for sales staff and their customers. Working across the motor industry, Pinewood specialises in software to facilitate the way cars are sold, serviced and repaired.
Shares are £3.38 and should move much higher as chief executive Bill Berman rolls out his strategy here and overseas. RELATED ARTICLES Previous 1 Next MIDAS SHARE TIPS: Coleen Rooney-backed Applied Nutrition has.
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.. Share this article Share HOW THIS IS MONEY CAN HELP How to choose the best (and cheapest) stocks and shares Isa and the right DIY investing account For many years, Pinewood was part of Pendragon, the car dealership firm behind brands such as Evans Halshaw and Stratstone.
Widely regarded as a hidden gem, Pinewood developed state-of-the-art technology but growth was constrained as Pendragon’s rivals were reluctant to buy software from a competitor. In February this year, however, Pendragon’s retail arm was acquired by one of America’s largest car dealership groups, Lithia. The firm has more than 300 sites across the US and Canada and annual sales of about 100,000 vehicles.
The deal left Pinewood as an independent entity, still providing technology to Pendragon but no longer tied to its former parent’s apron strings. Berman has signed many new contracts since then but most have been relatively small. Last week, however, the group announced a deal with Marshall Motor Group, one of the UK’s largest car retailers with some 143 dealerships, selling cars, vans, trucks and motorbikes for marques from Jaguar to Skoda.
Pinewood will now be working with more than 1,600 showrooms not just in the UK but in Eastern Europe, Asia and South Africa too. But for Berman, this is just the beginning. Born and raised in California, he spent 21 years at America’s largest car dealer, AutoNation, rising through the ranks to become president of the business.
In 2019, he joined Pendragon as a non-executive director but swiftly stepped up to chief executive after the incumbent quit. Interested in IT from his student days, Berman spotted Pinewood’s potential from the start. Covid delayed plans to make the business independent – now it is all systems go.
A special meeting with large investors last week highlighted the scale of Berman’s ambition, across four key pillars. First, win more business in Britain, much like the Marshalls contract. Second, drive growth in Europe, Asia and southern Africa.
Third, develop new products, such as AI chatbots and data analysis for businesses. Fourth, and perhaps most importantly, move into America. Setting up shop across the Atlantic can seem like a daunting task.
But Berman has Lithia at his side. The US firm has a 25 per cent stake in Pinewood and the duo intend to work together, developing, testing and rolling out British technology across the US. Rivals exist, both here and there, but most offer products that are clunky, limited in scope or both.
Pinewood’s software is offered as a service and covers every aspect of car ownership, linking manufacturers to dealers to consumers. Not only can purchases be completed more efficiently, but upkeep and repairs become significantly less hassle for customers and mechanics. When a car is serviced, Pinewood’s technology allows owners to track the process throughout.
If new parts are needed, workers can upload videos so customers can see what is wrong and approve repairs online. And if households own more than one car, that is clear too, avoiding repetitive calls from over-eager dealers. Importantly too, Pinewood’s kit works for all vehicles, from trucks and lorries to electric cars.
City brokers have high hopes for the business, forecasting a 61 per cent surge in profits to £12.6 million in 2025 and £17 million the year after. Midas verdict: The UK was once a big cheese in car manufacturing.
Now Berman wants make Pinewood a world leader too – as a provider of top software for dealerships across the globe. An experienced hand at the tiller, he is determined to succeed and the shares should go far, if he does. At £3.
38 they make a good long-term punt. DIY INVESTING PLATFORMS AJ Bell AJ Bell Easy investing and ready-made portfolios Learn More Learn More Hargreaves Lansdown Hargreaves Lansdown Free fund dealing and investment ideas Learn More Learn More interactive investor interactive investor Flat-fee investing from £4.99 per month Learn More Learn More Saxo Saxo Get £200 back in trading fees Learn More Learn More Trading 212 Trading 212 Free dealing and no account fee Learn More Learn More Affiliate links: If you take out a product This is Money may earn a commission.
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