Pendragon PLC

Underlying revenue increased 18.4% year over year to GBP 23.2 million in H1 FY26. Underlying gross profit rose 16.5% to GBP 19.8 million, with gross margin at 85.3%, slightly down as expected. Underlying EBITDA grew 11.4% to GBP 8.8 million. Cash generated from operations was GBP 1.9 million versus GBP 8.5 million in H1 FY25, and capital expenditure was GBP 8 million, including GBP 6.4 million of capitalized development spend. End-of-June cash was GBP 23.9 million, after a GBP 10.4 million net cash decrease; the company also had a GBP 10 million undrawn RCF. Looking ahead, management said Lithia U.S. dealer live rollout remains on track to begin in Q4 2026, Lookers is expected to conclude in the first half of 2027, and Marshalls rollout is expected to start imminently. The Ridgeview acquisition is expected to complete between 9 and 23 October.

Bill Berman struck a positive but transitional tone, emphasizing strong strategic and operational progress despite the pending change of control. He highlighted progress in North America, where the company is working closely with Lithia to launch live U.S. stores in Q4 2026, and pointed to negative churn and rising usage as proof that customers value the platform. He also stressed that the company’s cloud architecture, AI products, OEM integrations, and experienced team are key competitive advantages.

Ollie Mann focused on the quality of growth and the investment profile behind it. He cited the 18.4% revenue increase to GBP 23.2 million, 16.5% gross profit growth to GBP 19.8 million, 85.3% gross margin, and 11.4% EBITDA growth to GBP 8.8 million. He explained that operating cash fell to GBP 1.9 million largely because of increased North American investment, noted GBP 8 million of capex including GBP 6.4 million of capitalized development, and said cash ended at GBP 23.9 million with a GBP 10 million undrawn RCF. He also called out GBP 9.1 million of non-underlying North American administrative expenses, which should begin to be offset as U.S. implementations ramp.

Analysts asked for feedback from Lookers and U.S. pilot stores, and for any new conversations with future U.S. partners after the JV buyout. Management said the Lithia testing in sandbox and live stores has been very positive, with the U.S. team seeing the same benefits already seen by Lithia U.K. and earlier Jardine stores. On Lookers, Berman said the rollout has gone very well, that dealers are liking the products and are looking to add AI products later this year and into next year, and that Lookers leadership showed support by rolling warrants into equity in NewCo. He also said Pinewood has had many conversations with large and mid-sized North American groups and saw strong interest at NADA.