Pinewood Technologies Group PLC

Good morning, everyone, and welcome to our FY25 results presentation. I'm Bill Berman, CEO, and I'm joined today by our CFO, Holly Mann. 2025 was our second year as a standalone AI-embedded automotive technology company, and I'm really proud of the progress we've made in that time. The past 12 months have been particularly significant for us due to a number of key transactions and important operational milestones. Holly will take you through the headline financial shortly, but before that, I'm going to take you through an overview of our strategic and operational progress delivered in the period. We have grown our revenue by 30% through my strong growth among new customers, successful upselling to our existing customers, and the revenue added from our SEEDS acquisition in March 2025. In July 2025, there were two events that were key to Pinewood's future. Firstly, we bought Lithia out of the share of the North American joint venture. This removed the competitive overhang that existed and risked impeding our growth prospects in the key market. Secondly, we signed a long-term $60 million contract with Lithia to implement our system in all their U.S. dealerships across the U.S. and Canada. Meanwhile, we've been carrying out testing on the system in North America, which is progressing well. The largest piece of work that we have been focusing on is the North America OEM integrations and is progressing as planned. Almost all of our OEM partners have now been engaged with and integration work is on target. Another key milestone in the period was the acquisition of Seeds, the automotive AI company, in March of this year. Since then, we have made great progress bringing Seeds into the Pinewood Group and integrating the two tech stacks has significantly enhanced our AI capabilities. The contract we signed in March 2025 with Global Auto Holdings including Looker, one of the largest auto dealer trips in the UK. The system rollout with Looker started in July 2025 and is progressing well and on schedule. It is due to complete in Q4 of 2026. I'll now hand over to Ali to take us through the financial review.

Thanks, Bill. Good morning, everyone. We delivered strong revenue growth of approximately 30% to 40.5 million pounds. This increase was due to a number of factors, including the impact from new customers, upsells for our existing customer base and the revenue added from our AI acquisition seeds. We also saw the impact of FY25 in a 12 month period and FY24 being an 11 month period. Gross profit of £34.7 million was 23% up from last year. The gross margin rate of 85.7% fell as expected and reflects Steve's gross margins being slightly lower than the legacy Pinewood business. The key profit metric that we use both internally and externally is underlying EBITDA. In 2025, this was £16.4 million, up 17.1% on FY24. Our recurring revenue of 83.2% is a key metric for us. The slight drop from last year reflects the mix with revenue from SEAS now included. Our net customer churn of 2.5% while higher than FY24 is still at a very low level and highlights how much customers value the PrimeWood platform. A new metric that we've introduced is total contract value. This is the amount of incremental annual recurring revenue from signed customers that have not yet started their PrimeWood system implementation. If a customer is part way through their implementation, the revenue included in total contract value is just the element from dealerships not yet implemented. Our total contract value of 64.5 million pounds on top of our existing revenue will deliver us the majority of our FY28 EBITDA target of 58 to 62 million pounds. On to slide seven, where I'll take you through the key movements in our cash flow during the year. During FY25 we generated £6.5 million of cash from operations. There was a significant gain of £60.8 million on the buyout of Lithia's share of the North American JV that was non-cash. Other key movements in cash included £1.1 million of bank interest received in that period and £10 million received from Lithia for the settlement of a tax debtor. The capital expenditure figure of £11.4 million in FY25 includes £10.5 million of capitalised development spend. During the year, there was a net spend on acquisitions and reseller buyouts of £13.5 million. This was made up of £26 million spent on a feed acquisition, £2.5 million spent on a South Africa reseller buyout, offset by £15 million of cash received as part of the USJD buyout. Alongside the SEAS acquisition was the equity raise that we undertook in March 2025 where we raised £34.1 million of cash. All of these movements led to an end of December 2025 cash position of £34.1 million. On slide 8 is the end of December 2025 balance sheet. There were closing shareholders funds of £204.2 million. with the main driver of the increase from the end of 2024 being a March 2025 equity raise and the July 2025 North American JV buyout. We now have goodwill at 51.5 million pounds on our balance sheet due to the buyout of Lithia's share of the North American JV, the SEAS acquisition, and the South Africa retailer buyout. The increase in our rather intangible assets from 16.3 million to 168 million pounds was driven by the North America JV buyout and the SEAS transactions. with £125 million of the year-end balance relating to the North America customer contract. The majority of the tax liability we have relates to the USJD buyout and will underline if the intangible assets are amortised. Finally, we have £34.1 million in cash. In addition to this cash, we also have a £10 million RCF facility which remains undrawn. On to slide 9, where we show the non-underlying items for FY25. There was £4.6 million of costs related to FY25 acquisitions. Most of this expense was legal fees related to the North America JV buyout and the fees acquisition. Following the buyout of Lydia's share of the North American JV in July 2025, we have incurred £4.2 million of costs in our US subsidiary. As guided previously, these costs will be treated as non-underlying until the Plymouth system is installed in 20 North American dealerships. Our share-based payment charge was £3.6 million in FY25 and there was a £4 million amortisation charge relating to intangibles arriving on acquisition. The final item to call out is that there was a one-off gain of £60.8 million that we recognised on the North American JD buyout. On slide 10, it's confirmation that our current FY28 guidance is unchanged. This is underlying EBITDA of £58 to £62 million in FY28. Approximately £50 million of this figure is covered by existing customers and signed contracts. In terms of FY26, two of the three analysts that cover us released notes following our recent business update on 25th March, 2026. The consensus of their FY26 underlying EBITDA numbers was £21.3 million. We expect underlying EBITDA for FY26 to be in line with this. I'll now hand back to Bill to run through the operating highlights and strategy.

Thanks, Ali. I thought it would be helpful to take the opportunity to remind everyone about the fundamental strengths of Pinewood AI and what sets us apart from our competitors. Firstly, being 100% cloud-based with one code base is extremely unusual in our industry. Our customers are working on the same version of the Pinewood system, whether they're in the UK, US, Europe, Asia, or anywhere in the world. This gives us a number of big advantages. From a security point of view, it is much more secure being in a cloud-based platform than being self-hosted or using on-prem servers. Additionally, we are able to release multiple software updates a week during customer working hours with no disruption at all, which is certainly not the case for the majority of our competitors. Our customer churn is incredibly low, with customers generally only leaving due to M&A or network consolidation. The majority of our revenue is recurring, and it is generally around 85%. The main part of our revenue that is not reoccurring is implementation income. Another key differentiator from our competitors is having a fully embedded AI solution as part of our customer offering. Although having an AI offering is now standard, in most cases it is a layered app on top of a system or basic API. What we have achieved with SEEDS is very different from this. It is a fully embedded AI offering across our entire system. whether you're in vehicle sales, after sales, or back-office talent. With margins being squeezed across the auto retail industry, what we can offer with our AI-powered solution is incredibly powerful. While we continue to innovate and recruit new talent, our experienced workforce underpins what we offer. We have 40 years' experience in the automotive industry, which has made a huge difference in us developing the system we have today. Finally, our deep integrations with our OEM partners remain key to us. We remain committed to being among the best partner for OEMs through our cutting-edge technology and our ability to adapt to the ever-changing auto retail landscape. I'll now take you through the progress we've made against our strategy during 2025. In the UK and Ireland, we started their Lookers implementation in July 2025 and will continue the rollout through 2026 when we expect to be completed. The combined Pinewood and Lookers teams have done an excellent job on the rollout. At the request of Marshalls, we have moved the start date of their implementation from Q1 2026 to the second half of 2026. This is so they can align their timing of the Pinewood rollout with a number of other projects they are working on. In our international markets, the Japan Porsche implementation started successfully in December of 2025, with the first dealerships going live. We look forward to getting all the Porsche Japan dealers onto the Pinewood system and then starting the Japan Volkswagen implementation. We continue to be in discussions with a number of potential Central European groups. The buyout of our South African and Netherlands reseller is now completed, and we are delighted to welcome their team into the Pinewood team. These acquisitions enable us to fully control our sales and customer service function in these markets and put us in a stronger position to drive our continued growth in both regions. The acquisition of SEAS in March of 2025 has made a huge difference to our customer upsell offering, as well as diversifying our revenue streams. The SEAS team put a huge amount of focus into the rollout of SEAS products into the US and UK dealers, as well as growing their wider customer base. The final pillar of our strategy, North America, is comfortably the largest automotive retail market in the world. And I'll take you through our progress on this on the following slides. On slide 14, we set out our expansion plans into the North American market and the progress we have been making. With 20,000 franchise dealers in North America, this is comfortably the largest market in the world with a total addressable market of over $9 billion. We think we are in a strong position to scale across the US and Canadian market. As a reminder, we now have a significant foothold in the key market following the $60 million contract signed with Lithia to implement the Pinewood system in all the dealerships in the United States and Canada. Testing on a number of areas of the system in the U.S. is well underway, with a full rollout expected to start no later than in 2026. The largest piece of the development work that we have for North America is integrating our system into all the U.S. and Canadian OEMs. We have now engaged with the majority of the OEMs that Lithia represents, and integration work is well-progressed with a number of these. We are targeting to have the majority of the North American OEM integrations completed by the end of 2026. Having now bought Lithia out of their share of the North American JV, we are well-placed to now find further customers in the U.S. and Canada and have a number of leads on our official U.S. launch at the February 2026 NADA conference that we are now currently working through. Moving on to slide 15, an update to our recent UK system implementation. Our team have done a brilliant job so far on the LOCERS implementations, working alongside the LOCERS team to ensure the Pinewood platform will go as smoothly as possible. It started in mid-2025 and will continue through 2026. We are pleased that the LitV UK team are seeing the benefits of having Pinewood AI in all the dealerships, and we continue to work with them to help drive their business forward. We are looking forward to starting the Marshalls implementation in the second half of 2026. The Marshall and Pinewood teams have worked together extremely well in the planning phase of this project. We continue to expand our range of products and offer all of these for existing customers to help them drive their business forward by both increasing productivity as well as increasing efficiencies by using the Pinewood products. On slide 16, we set our progress in our priority growth markets outside the UK and the US. We set out some key geographies in our strategy at our Capital Markets Day in 2024. Japan and Southeast Asia, Central Europe, and South Africa. The Porsche Japan rollout started well in December 2025, and we were working well with the Japanese Porsche dealers to work through the rest of the implementations during 2026. Once the Porsche dealers are completed, we will move to the Volkswagen dealers in Japan. We have ongoing discussions with a number of European customers, most of which are based in Central Europe. We have fully integrated our South African business into the group, following the buyout of our South African reseller in mid-2025, and we are looking at different ways to grow our revenue stream in South Africa. We bought out our final reseller in the Netherlands in February of 2026, and we're currently in the process of integrating the team into Pinewood. To wrap things up on the operating highlights, I just want to repeat some of the characteristics that make our market so compelling. All car dealerships need not only a DMS, but also layered apps associated with it. At Pinewood, we offer all of this, and we are in a position to offer car retailers all the software they need. Our average customer tenure is of 15 to 20 years is a testament to how embedded our system is within our customer's workstream. Switching DMS is a long process and works in our favor for existing customers, but for potential new customers, we offer something no one else does. Being part of an auto retail group for over 25 years has given us a competitive advantage over everyone else, something that no amount of money or investment can replicate. In addition, our now fully embedded AI features differentiate us from everyone else. We are in a unique position to help our valued customers navigate a time of increasing demanding environment from a security and compliance viewpoint. Time with AI offers something no one else is capable of providing. Finally, on to slide 19, in the UK, we will continue to work closely with the Lookers team to manage the rollout through completion in Q4. We are also looking forward to starting the Marshalls rollout later this year. As we've talked through, we have made significant progress in North America on both volume integration and on testing the system in the US. The opportunity in North America is considerably larger than any other part in the world, so scaling here as quickly as possible remains a top priority for us. Finally, our FY28 guidance is unchanged at an underlying EBITDA of 58 to 62 million pounds, which is underpinned by our strong visibility from existing contracts, including the $6 million contract with Lithia North America, as well as a number of other signed contracts. Thank you all members of the Pinewood team for driving us forward as a group. Thank you for joining us today. We welcome any questions.

Thank you very much, sir. Ladies and gentlemen, if you'd like to ask an audio question, please press star 1 on your keyboard keypad. Star 1 for questions. Just make sure that your line is unmuted until you reach your question. We'll give you just a moment to signal for questions. Our first question this morning is coming from Oliver Tipping, calling from PL Hunt. Please go ahead, Oliver. Your line is open.

Hello, guys. Can you hear me? Perfect. Yeah. Perfect. Okay, cool. I've got sort of three different questions. The first one relates to, I think you said Lithia was going to sort of go live in terms of revenue at some point in 2026. So I just wanted to understand exactly how far through the cap investment being made to make that product sort of fit for market in North America we are and how we expect sort of CapEx to move over the next two or three years. And are there any tools internally you're using that's improving your development efficiency? The second question is the broader my understanding is the US is built on a per rooftop basis. In the UK, there's a larger per user element. So I was just wondering what the rough split was for the Lookers and Marshers deal between per rooftop and per user. And then lastly, I noticed that there was a court case. It wasn't involving you guys, but Asprey and CDK went to court about their switch to Techion, and they won that court case. Techion and Asprey won that court case. Did you think that precedent will make it easier for you to win share in the US in the future from the sort of incumbent North American side?

So Ali, I'll kind of go in reverse order. So we really can't comment on somebody else's lawsuits and stuff like that. What I can tell you about that is, and obviously I do assume the ruling is, you know, they're going to go at it again. So they're going to appeal it. But at the end of the day, the dealer owns their data. We manage our dealerships that way as well. So in our case, dealerships' data is their data do what they want. and we allow them to facilitate whatever they need to do on that piece. As far as being able to open it up, you know, just because you have open access to the data doesn't necessarily mean it's in an easily digestible way to move over. We have created technology more specifically through our AI offerings to be able to facilitate that in real time. whether we're pulling from a dealer group's data cloud on their own data stack or directly from a different core system GMS provider. But I do think going forward, you're going to see, you know, more and more open, you know, data stacks and such. On the pricing models, obviously, it varies greatly by which part of the world you're in. Europe still goes primarily off of SaaS-based pricing. All of our pricing is going to be going to a rooftop and other basis over time. And there's multiple, you know, positive reasons for that. Some things are just specific to our brand, and there's no way to actually charge it out on a per-user basis, only integrations, you know, certain updates, certain facets of it. A lot of AI functionality wouldn't be charged in a typical SaaS pricing, so it would have to be a rooftop charge. And one of the key metrics that are key that we bring into the marketplace is being able to help dealers reduce the cost and oftentimes that is by automating certain non-revenue generally non-customer facing processes and it is such lowing per user count and it would be counterintuitive to sit here and continue with a per user basis when one of your key tenants is to try to reduce the number of users that exist that way. As far as, you know, we're not disclosing the exact amount that we spend in one market for development. But I'll just keep in mind that we are on a single code base. And oftentimes, things we do for one market transition and go into another market. and or it can just improve the current functionality to the system that exists today. So, we found some great accounting platforms and different things that we've used that we found up in the Nordic countries and that we use in different places of the world, dynamic accounting and such. There's lots of different tech solutions in North America and the ways of doing business. that we could, we would think would help other parts of the world. And we would like to, you know, bring that over. Obviously, going into North America is a big endeavor. So, our CapEx has grown. You know, to us, you know, we've just re-platformed over the last, you know, 24 months. We've now put hyperscaling in. We've got all the certifications in progress with the USOEM. That would be something specifically that would, you know, represent North America. But to save that piece, I think our CapEx is going to be pretty much where it is with the exception of being opportunities to go into new markets. and or investments into new and more dynamic products as we go forward. Gotcha. Thank you.

Thank you much, sir. Next, we'll go to Demindu Jayawira of PL Hunt. Please go ahead. Your line is open, sir.

Thanks, guys. Sorry. The thing I wanted to ask you, Bill, is that obviously I think you guys have done the right thing by making that fees acquisition at the right time. It's interesting to see Keyloop also making or trying to make a similar acquisition or have done so in MotorTech AI. Obviously, everybody's kind of trying to move toward AI, embed AI. I was listening to your Full Throttle podcast when you were over in the U.S. for the NADA conference. In there, obviously, you were kind of reiterating the fact that you don't want to do what everybody else is doing, which is just putting chatbots on top. And the AI has to be embedded deeply. And when you look at your product page, I saw there was a nice video about how Swiss DNA is going to permeate through the full product stack. The thing that slightly kind of confused me, not listening to you, but listening to Jay at Techion, is And there, at the conference, it almost felt like he was playing down kind of whiz-bang AI functionality, and he was trying to talk to the core of the single truth, the security layer, trying to move from a, you know, trying to preserve the importance of system of record. I know I'm kind of rambling, but I'm just trying to get to how you are trying to position Pinewood when you are talking to, you know, potential target opportunities, when everybody's just talking AI, AI, AI all the time, from next lane to, you know, even the constellation assets. Yeah.

Yeah, so I can't really comment what, you know, any of our competitors would say out there. I can say this, the one thing in automotive, whether it's on the retail side, the tech side, or the OEM side, you know, often things, you know, the best of ideas are often replicated. You know, I will say this with Jay, I completely agree on system of record and the core data stack that goes along with that and the importance of that. to the statement that you made maybe are different things here. I look at AI being able to utilize that core data stack and then being able to do new and exciting things with it. So the one thing with a platform like ours is without having to have plus or minus layered apps and disjointed data stacks, and distorted functionality and, you know, having 20 windows open simultaneously and to the best state possible having the fewest number of non-OEM integrations to be able to facilitate a smooth and easy transaction for both the customer and the dealer I think is a real differentiator. Where I see AI coming into it is AI is going to be able to do things like, you know, a system of record, a core, you know, enterprise level accounting platform, even as simple as ours is to operate, they still can be very complex. And, you know, we've already embedded our AI into that, and now the AI can answer questions for a user and be able to show you how to use the system. Where I see, I'm trying to use AI being able to do predictive indexing, being able to help a customer be able to schedule an appointment to maybe get the car service, but be able to do it in a way where not only does the shop have the availability on the side individual writing up the service advisor and such, but also being able to, you know, make sure that we have a technician that's available to have the appropriate skill set to work on that car. Oftentimes, appointments are made because there's, you know, an hour open in the day, but that technician might not have the qualifications to work on an electric vehicle, for example. I was trying to do things like that. Do predictive indexing to engage with a customer when their car is going to need their next servicing or being able to engage directly when it comes to recalls and the such without having to use phone rooms and operators and humans to see here and try to facilitate things like that. I can see it being able to seek here and assist the customer journey, but at the end of the day, that core data stack, that system of record, that enterprise level accounting platform with full integration into the OEMs, is the nucleus for everything. And any AI is only going to be as good as the data that has access to. And to your earlier point, that's why I'm not quite big of a fan of the layered apps approach in sitting on top like a chatbot, because, you know, at the end of the day, they're pretty similar and they're accessed from the same data stream. When you have a data set like we have and the plethora of information that goes along with that, it really changes the operations and the value proposition that AI can bring. But AI is going to be additive. I do think it'll be transformative. And I think you're going to be pretty wowed by what's going to come out over the next 12 to 18 months when it represents that with the time we're going to see.

I just have a follow-up question. So obviously, your biggest opportunity is the U.S. But I'm also really interested in the European opportunity you have. I think you've always talked about the fragmented nature of the European market. There are a bunch of products that are coming to end of life. But now... As you described, AI is actually making use of these tools a little bit more easier. So the learning curve of adopting a new piece of software might be easier. On top, in the last couple of months, obviously, people are seeing scary headlines about cybersecurity. So do you feel like the ability for you to probably run harder into the European market is now stronger than it was 12 months ago. I mean, you obviously bought in the Dutch distributor, and I know you have hiring plans in place from Germany. Just some commentary around kind of competitive landscape and if it's become easier in your heads to crack the European opportunity.

A lot of us say easier, but the demand coming out of Europe, Asia, Africa, and South America, is growing exponentially day by day. OEMs are looking to go about things in a different way. Several franchises that are, sorry, several OEMs that we've engaged with have talked where they have upwards of 200 different OEM integrations and it's just impossible to manage all those effectively. OEMs want fewer, you know, integrations in the DMS systems, and they want more advanced, you know, systems that are out there, you know, cloud-based systems like ours are definitely appealing to them. So they want fewer. They want people that can sit there and operate on a worldwide basis. And to your point about can we call it a system built into our system where you can really just ask the system how to operate itself is a big differentiator. Our system is also language agnostic, so you can work multiple languages within a single dealer group. even within a single store. So yeah, I do think that. I think into the example that you bring, the European market is very fragmented. You have lots of local players in there that solutions are built specifically for a geography. And I just don't think those are gonna stand the test of time. And I think you're gonna need, kind of like you've seen with consolidation within the retail network within dealers. I think you're gonna continue to see consolidation within the tech stacks that the OEMs are gonna be willing to integrate with. And ultimately, I think that'll help drive opportunities for platforms like Pinewood AI to be able to engage into there. And, you know, more specifically within Europe, you're right, there are several, you know, burning platforms, end of life, unsupported systems out there. And I think that gives us a huge opportunity. Now, that said, North America by far is the biggest, you know, automotive retail market, especially on the technology side. So it's going to be a key focus. But, you know, we're never going to forget. our roots and the geography we already operate in. And in a perfect world, we want to continue to grow in our key markets close to our head office and opportunities in North America. But then they'd be able to continue to grow in Africa and Europe, Asia, and, you know, maybe even with the timing right, maybe even into South America.

Thanks. Well done on what you've achieved over the last two years. It's great to see a vertical software actually company thrive in the age of AI. Cheers.

Appreciate you saying that. The team has done an absolutely wonderful job. So, you know, all I get to stand up front, but there's 400 people that are doing the heavy lifting. So, no, appreciate the kind words.

Yeah, thanks, Mindy. Appreciate it.

Thank you. What's your question, sir? Ladies and gentlemen, as a reminder, if you have any questions or follow-up questions, please press star 1 at this time. We'll now go to Andrew Wade calling from Jefferies. Please go ahead.

Morning, guys. A quick one from me. You talk about sort of competitive moat versus generic AIs in your R&S there. Just be interested if you could flesh that in particular. You sort of talk about the benefits of 20 plus years of experience, and you talk about the challenges of integrating with the OEMs. So, if you could just talk a bit about more about why that is as a chat perhaps to reference some of the, some of what you had to go through in the U.S. to get it done to the extent you have out there.

Yeah. So, Andy, good morning. So, it's a good question. So, the weird thing is you would think that if you integrate with, you know, a certain OEM, that that integration would work anywhere in the world. And what you find is that's the farthest thing from the truth. You can be in parts of Central Europe and have four countries touching each other and have five different integration levels with a single OEM. And so, what you find is, like, going into North America, you know, we're going to probably end up running nearly 1,000 different integrations to get all of the, you know, key OEMs fully integrated. Now, lots of them have multiple integrations. So, it's not 1,000 different OEMs, obviously, but it can be quite, you know, complex. And there is a huge differentiation, even in some cases, between Canada and the U.S. So, it's not the difficulty of doing it. It's just the sheer volume of work. Currently, we're pacing to have by the end of this year, you know, 90 plus percent of the volume that exists within North America have to be fully integrated on the OEM side and already have the certifications. And that really opens up the pathway for us to be able to stand outside of the lithium deal and add additional U.S. dealers on in, you know, in a relatively short period of time. You talk about the most, and I'm glad you brought that up because obviously everyone saw kind of the Southrop Talks February 4th with Enthropic and Cloud coming out there and kind of disrupting some of the legal platforms that exist out there. You know, a platform like ours puts us in a really unique position. You talked about the OEM integration. You know, that's one of those things where as big of an advocate I am in the company is for AI. You know, I don't see how AI is going to be able to sit here and build, you know, OEM integrations, you know, if it's 1,000 integrations for the U.S. to replicate that on scale worldwide. Also, don't see the OEMs open source being there or letting, you know, AI agents come in and start doing the integration work. You know, having an enterprise-level accounting platform that has the integrations with the OEMs that is multi-jurisdictional in the, you know, 40 plus countries and be able to do it that way. These are things that, at least in the, you know, near to midterm future, there's just things that, you know, an agent, an AI agent just isn't going to be able to do. And we have quite a few moats that kind of work around us and protect us on that piece of it. But they're also competitive advantages as we engage with new potential customers, as we continue to work with IOM partners, and we continue to expand our footprint worldwide.

Excellent stuff. Thanks, Bill.

Thanks, Andy. Have a good day. Thank you. We do have another question that just came in. It will be coming from Alex Short calling from Barenburg. Go ahead, Alex. Morning, guys.

Two questions from me. First one, obviously some really useful new disclosures to help us understand how much of that £60 million target is already underpinned. My question is around and how much time would it have around parents' future implementations? So on one side, has the delay to Marshalls made things tighter in FY27, or conversely, has that allowed you to get ahead on Lookers and in North America? And on the other side, there's obviously a lot more potential market share out there currently held by legacy peers. Would the company have the implementation capacity in the event of a new contract win, say in a new region where you need new OAN integrations?

Good morning, Alex. So it's a good question. You know, not specifically within Marshallville Lookers, our implementation team that's based in the UK for, at least for the UK, we're able to flex our capacity and the ability to stay here and put additional dealer groups on. So while the delay in Marshall doesn't really change that much, yeah, it might free up a little bit of resource to sit here and go a little bit quicker with the lookers. But we have other contracts, obviously, besides Marshall lookers going on. So it just opens up capacity on that end. Normally the biggest thing that limits the speed that we can do an implementation is normally on the customer side and working around their other timelines. In the UK, for example, you normally don't do integrations in March and September because they're big retail months. So in that case, you might take some of that resourcing in the UK and maybe move it into Central Europe to help with implementations on that site. I'd say the one thing as we go forward and we continue to grow our business and our capabilities and our tech stack, is how we started to use AI to help simplify the implementation. So the biggest piece of the location is actually transferring the personnel is laying out the accounting stack that the current group is working on. There are certain nuances to every group and the way they operate. And while not every group has a bespoke a platform that we help build for them. But then at the end of the day, there are nuances. But the biggest piece is extracting the data out of their current system or systems and then putting it in. We've just now sort of utilized AI to do something that used to take a couple of weeks to do to get it down to taking a couple of minutes to do. I talked to you about, on the call at least, about using assist or AI agent that's embedded in the platform that's able to help you operate the system where you can ask it a question, how do I stock in this car? And it will give you a detailed pathway to be able to go do that. And in the relatively near future, that same capability, the system will be able to do it for you with a handful of prompts, be able to do it that way. So it really reduces the training time down significantly. on new implementations, as well as the way the system has been designed. It's very intuitive. It's all menu driven. And if you've, you know, used any Microsoft products in the past, and can read using a mouse and use a menu, you can operate our system in a pretty short period of time. So, we're using, you know, our experience, our current tech stack, some of the innovative things we're able to do with the C tech stack and get it where our implementation can move very, very quickly. Great. Thanks, Bill.

Maybe one more, if you don't mind, perhaps, Raleigh. We have to have clarity around the FY28 target, but maybe you could run through in a bit more detail your expectations for how cash margins trend through to 28 and the sort of capex and working capital dynamics around that. Appreciate you don't want to get too specific on the capex side.

No, no, that's fine, Alex. Yeah, morning. Good to hear from you. So, yeah, from working capital point of view, I think we've As we grow our customer base, we do get an advantage from this because we invoice our customers quarterly in advance. This is for the recurring revenue and the majority of our revenue is recurring, so we will get a benefit from that. So as we get into FY27 and FY28, there will be a significant working capital benefit. So in FY28, you know, we're talking 12, 13 million pounds of benefit there in that year. From a CapEx point of view, I think Bill touched on this, the underlying CapEx or standard CapEx is very much being one code base as is. There is an exiting this year. We have been doing the OEM integration work with the US, which we're in a good place with. you know, mentioned that we're anticipating having the majority of that done during 2026 or by the end of 2026, which is great. And it allows us to effectively sign any US customer. So we're in a good place with that. So they will, you know, once we annualise the capex, there'll be a slight tick up for 26 and 27. But the net impact of those movements is of the 58 to 62 million pound underlying EBITDA, we expect sort of high 40s of that to drop through from the net cash position. So we're talking 45 to 50 million in cash. in FY20, Eddie.

Thanks very much and well done on a lot of progress. Thanks, Alex.

Thank you. What's your question, sir? As we have no further audio questions, I'll take a call over to Henry Waller to take any questions submitted by web guests. Thank you.

Thanks, Audrey. We've got two questions from Investec with regards to total contract value. So, Roger said, thanks for the total contract value metric disclosure. What's the assumption being made on average customer lifetime, please? Presumably this can end up being many years, if not decades. So what is the cutoff being used? And then the second question on TCV is, broadly speaking, what's the subdivision of total contract value number between subscription maintenance type businesses and implementation slash service business?

Yeah, thanks Roger for those questions. Yeah, just going in reverse order. So in terms of the split between recurring and implementation revenue, it's all recurring revenue. So we don't put any implementation revenue into that figure. So it's from the contracts, the customers that we've signed and they're not implemented. It's just the recurring element of that revenue. And in terms of a cutoff or lifetime, the assumption is we haven't put a lifetime on it. And the reason being for that is The only time we really lose a customer is generally through M&A activities. So if we've got a customer with, say, five dealerships and they get bought out by someone else with 50 dealers who are on a different competitor system, that tends to be the only time that we lose a customer. So we're working on the assumption that most of these customers in the total contract value are big enterprise-size level customers, the majority. So the assumption is that they're sort of lifetime customers and they're in the cutoff. We haven't put a 10- or 15-year lifespan on. Hopefully, that makes sense and answers the questions.

I think that's it, Bill. So, good to go.

Perfect. Listen, thanks, everybody. Kind of like I said earlier when I was talking to Andy. I want to give, you know, a reminder that even though Ollie and I get to sit here and take the lead here, this is all a testament to the hard work of the 400 plus employees that we have worldwide. And, you know, this is probably the oldest startup ever. And, you know, we look forward to even better performance in the half years and the years to come. Thanks, everybody.