The
information contained within this announcement is deemed by the
Company to constitute inside information as stipulated under the UK
version of the EU Market Abuse Regulation (2014/596) which is part
of UK law by virtue of the European Union (Withdrawal) Act 2018, as
amended and supplemented from time to time.
30 July 2024
Journeo plc
("Journeo, "Company"
or "the Group")
Trading Update
Record first half and profit ahead of
full year market expectations
Journeo plc (AIM: JNEO), a leading provider of
information systems and technical services to transport operators
and local authorities, announces a trading update for the six
months ended 30 June 2024 ("H1 2024"), and current
outlook.
Financial
Highlights
·
Group revenue increased by 17% to £25.6m (H1 2023:
£21.8m)
·
Adjusted profit before tax increased by 54% to £2.8m (H1
2023: £1.8m)
·
Cash balance increased to £12.8m (H1 2023: £11.3m)
·
Sales order intake increased by 33% to £24m (H1 2023: £18m)
providing increased visibility into H2 2024 and beyond
·
Sales opportunity pipeline increased to £60m
Journeo had a strong H1 2024 with total Group
revenue increasing by 17% to £25.6m (H1 2023: £21.8m) and adjusted
profit before tax increasing by 54% to £2.8m (H1 2023:
£1.8m).
Within the Fleet Systems division, revenue
increased by 16% to £9.2m (H1 2023: £7.9m) and within Passenger
Systems, revenue increased by 13% to £5.2m (H1 2023:
£4.6m).
Infotec and MultiQ continue to trade strongly
delivering revenues of £8.5m and £2.7m respectively in the period
and each has a number of significant sales opportunities in the
pipeline. Sales order intake increased by 33% to £24m (H1 2023:
£18m).
Infotec has been advised by its US customer
that as a result of passenger ridership on the New York City subway
running at 58% of pre-pandemic levels, the next phase of new subway
trains will have printed advertising, rather than digital
advertising screens. Wiring will however be installed such that if
passenger numbers recover, digital displays can be
retro-fitted.
Cash balance at 30 June 2024 was £12.8m (H1
2023: £11.3m). The Company's invoice discounting facility of £2.75m
was unutilised during the period.
Outlook
Revenue for the full year is expected to be
approximately £50m, marginally ahead of current market
expectations, with adjusted profit before tax expected to be £0.4m
ahead at £4.8m.
The Company expects revenue in H2 2024 to be
broadly similar to H1 despite deliveries under the first phase of
the US MTA contract completing in July. This demonstrates the
resilience of the Group with a strong order book and a growing
customer base for its software, products and services.
In addition to strong organic growth, Journeo
continues to actively progress its stated strategy for strategic,
complementary acquisitions, with an expectation to utilise the
Group's excess cash reserves in this regard.
The Company will publish its interim results in
September 2024.
Russ Singleton, Chief Executive of
Journeo plc commented:
"The record performance in H1 2024
and the uplift in sales order intake reflect the success of
Journeo's strategy to harness government-backed growth
opportunities in the transport industry. There is increasing
recognition by our target client base of our expertise in
delivering leading-edge solutions that meet the challenges of
increasing the number and quality of journeys using public
transport.
We continue to listen to our
customers and invest in the research and development of future
technologies and software, focusing on high performance,
reliability, and sustainability."
A digital copy of this announcement
will be available on the Group's website: www.journeo.com.
For further information, please
contact:
|
Journeo plc
Russ Singleton/ Nick Lowe
|
+44 (0) 203 651
9166
|
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|
Cavendish Capital Markets
Limited - Nominated Adviser and
Broker
Katy
Birkin/ Callum Davidson
|
+44
(0) 207 220 0500
|
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Notes to editors:
Journeo plc is a leading Intelligent
Transport Systems provider, delivering solutions in towns, cities,
airports and the public transport networks that connect them. The
Company works extensively with local and combined authorities,
Network Rail and many of the largest multinational transport
operators, supporting them as systems converge towards a more
efficient and sustainable future.
The business currently has five operating
companies:
·
Journeo Fleet Systems Ltd: CCTV video surveillance
to improve passenger & driver safety, telematics for vehicle
and driver performance monitoring, real-time communications for
remote condition monitoring and automatic passenger
counting.
·
Journeo Passenger Systems Ltd: design,
manufacture, installation, and management of hardware and software
for electronic public transport information systems, in and around
towns, cities, ferry terminals and airports which includes
smart-ticketing and wayfinding.
·
Infotec Ltd: design, advanced manufacture,
installation and software management of information displays
hardware for rail applications in stations, on-platform and
on-vehicle.
· MultiQ A/S (based in Aarhus, Denmark): full-service provider
of Intelligent Transport Systems ("ITS") with customers in Denmark,
Sweden and Iceland.
· Journeo AB (based in Stockholm, Sweden): technical services
provider to public transport customers in Sweden.
In the last 4 years, the Company has
invested over £6million in research and development, enabling it to
design and supply powerful innovative solutions for customers'
complex requirements and the demands of modern public transport.
With an Internet of Things ("IoT") approach and open standards,
together with field-proven and reliable engineering, Journeo is
able to offer flexible, scalable products and services that can
integrate with existing technology while preparing for future
advancements.