REG - Journeo PLC - Final Results
26/03/2024 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240326:nRSZ2282Ia&default-theme=true
RNS Number : 2282I Journeo PLC 26 March 2024
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.
26 March 2024
Journeo plc
("Journeo, "Company" or "the Group")
Final results for the year ended 31 December 2023
Journeo plc (AIM: JNEO), the information systems and transport technical
services group, is pleased to announce its final results for the year ended 31
December 2023.
Financial highlights
· Revenue increased 118% to £46.1m (2022: £21.1m)
· Gross profit increased 84% to £14.3m (2022: £7.8m)
· Adjusted profit before tax* increased 325% to £4.0m (2022: £1.0m)
· Profit before tax increased 312% to £3.7m (2022: £0.9m)
· Cash and cash equivalents at 31 December 2023 were £8.1m (2022:
£0.5m)
· Diluted earnings per share of 17.96 pence (2022: 9.80 pence)
Operational highlights
· Acquisitions of Infotec and MultiQ are expanding the reach of
Journeo's solutions into new markets, both domestic and international.
· Continued investment in Research and Development as a core component
of the Company's strategy.
· Investment to increase capacity at our Ashby-based Infotec
manufacturing and production facility.
· Significant new contract wins throughout the year, including £1m
award from Transport for Wales (TfW) for country-wide content management
solution.
· Extension of Arriva framework to supply CCTV and associated services
for new and retrofit vehicles.
· Retained all ISO 9001, 14001, 27001 and 45001 accreditations and
Cyber Security and ICO certification.
* Excluding acquisition costs and share-based payments
Russ Singleton, CEO of Journeo plc, said: " I am very pleased with the
progress we have made towards reaching our goal of becoming a market leader in
our field. Our strengthening intellectual property and increased barriers to
entry into our markets are helping us establish defendable market positions.
Each year, we are growing our recurring revenue base as well as our sales
order book, providing us with greater forward earnings visibility. Together
with healthy cash balances, we are able to invest further in our technologies
and business.
The acquisitions of Infotec and MultiQ have performed well since joining the
Group, extending our capabilities and geographic reach. We continue to seek
out complementary acquisitions that can provide Journeo with access to
adjacent markets or increase the services we deliver into our current markets.
As we entered 2024, we did so with momentum in our strategy, which is enabling
us to deliver valuable products, software, and services for our customers. Our
strong order book, growing sales pipeline, and increasing leadership positions
give us confidence in our ability to further grow the business."
A digital copy of this announcement will be available on the Group's website:
www.journeo.com (http://www.journeo.com) .
For further information, please contact:
Journeo plc
Russ Singleton/ Nick Lowe +44 (0) 203 651 9166
Cavendish Capital Markets Limited - Nominated Adviser and Broker
Katy Birkin/ Callum Davidson +44 (0) 207 220 0500
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 has five operating companies:
· Journeo Fleet Systems: 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: 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: design, advanced manufacture, installation, and software
management of information displays hardware for rail applications in stations,
on-platform and on-vehicle.
· MultiQ (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 £6 million 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.
Chairman's Statement
This has been a transformational and successful year for Journeo. We generated
strong organic growth in our Fleet Systems and Passenger Systems businesses,
as well as non-organic growth through the acquisitions of Infotec in January
and MultiQ in September. As a result, the Group's capabilities within its
established markets, and its ability to enter new markets and territories has
grown significantly. The Group's strategy is delivering positive results,
demonstrated by the increased adoption of our technologies and software with
new and existing clients, and our strong financial performance. The Group's
sales are increasingly based on our own intellectual property which is driving
an increase in recurring revenues from our SaaS platforms, and sales of our
specialist products and services to customers in the UK, the Nordics and the
USA.
Trading results
Group underlying profit increased by 270% to £4.3m for the year ended 31
December 2023 (2022: £1.2m). Overall sales increased by 118% to £46.1m
(2022: £21.1m) and gross profit increased by 84% to £14.3m (2022: £7.8m).
Overall sales increased by 118% to £46.1m (2022: £21.1m) and gross profit
increased by 84% to £14.3m (2022: £7.8m). Organic sales growth was 20% and
organic gross profit growth was 2%.
Fleet sales increased by 31% to £16.3m (2022: £12.5m) as bus operators
continued to increase investment, backed by Government stimuli. Gross profit
increased to £3.9m (2022: £3.7m) with margins decreasing to 24% (2022: 30%)
as significant levels of hardware with a future SaaS benefit were installed
and supply chain and other cost increases impacted across the majority of the
financial year.
Passenger sales increased by 5% to £9.0m (2022: £8.6m). Margins fell
slightly to 44% (2022: 47%), as a result of cost pressures during the year.
The Infotec and MultiQ acquisitions delivered sales of £20.8m and gross
profit of £6.4m. Margins were 30% at Infotec and 48% at MultiQ.
Underlying administrative expenses increased to £10.1m (2022: £6.7m)
reflecting the significant growth in the Group. Investment was made in
Research and Development and other teams during the year and inflationary cost
pressures were felt.
Profit before tax was £3.7m (2022: £0.9m).
Diluted earnings per share (EPS) was 17.96p (2022: 9.80p). Cash and cash
equivalents at the end of the year were £8.1m (2022: £0.5m).
Markets
The goal of Carbon Net Zero emissions by 2050 remains a significant challenge
for the UK Government and many of its counterparts on the global stage. Whilst
the 2024 General Election could signal a change in transport strategy for the
UK Government, we do not anticipate a major shift from the current approach
that has seen the promotion of, and investment in, sustainable public
transport. The adoption of mass public transport is one of the keys to
delivering a Carbon Net Zero future for the UK, and we continue to develop,
implement and manage underlying technology systems that will contribute to
enabling that future. The momentum that Journeo has achieved as a technology
and solutions company, selling a mixture of software, hardware and services to
domestic and international markets, is a result of close collaborative work
with our customers, as we support them to meet new and emerging challenges.
Environmental, social and governance
Over the past two years, we have been working to formalise our approach to
sustainability and identify our key areas of focus. The integration of
recent acquisitions has required us to expand our approach to collecting
Group-wide data and we are committed to ensuring our Carbon Reduction Plan is
published within 2024.
Areas on which we targeted to take leading positions, however, have taken
significant steps forward. The introduction of an employee assistance
programme and assessment of new human resources software systems will support
our existing process and ensure that, as we grow, Journeo remains an employer
of choice for emerging talent. This, coupled with leading the market in
product developments such as the introduction of new open standards, are
markers for our commitment to the continued development of the Group.
People
Over the course of the year, the Board was strengthened with the appointment
of Barnaby Kent as an independent Non-executive Director and through an active
recruitment programme and two acquisitions, we have seen the number of people
that make Journeo a dynamic, successful and exciting place to work, grow. I am
delighted that the new team members share our values and commitment to
customers, and would like to take the opportunity to extend my thanks to
everyone at Journeo once again.
Outlook
Our strategy is to grow Journeo through a combination of close bonding with
our customers, engineering excellence and technology leadership, supported by
targeted acquisitions of businesses that share our ethos and provide a route
to market for our core capabilities.
We look to the future with a growing sense of confidence. The execution of our
strategy has momentum and is enabling us to deliver valuable products,
software and services for our customers whilst continuing to deliver strong
financial performance and growth for our shareholders. The increasing barriers
to entry into our sector are helping us to establish defendable market
positions.
Our strong cash position is allowing us to invest in the business and ensure
the long-term prosperity and profitable growth of the Group. We continue to
seek out complementary acquisitions which can provide Journeo with access to
adjacent markets or increase the services we deliver into our current markets.
Further, through deep industry insight, research and development, and close
customer relationships we are moving into leadership positions within sectors
of our target markets.
We entered 2024 with a strong order book, a growing sales opportunity
pipeline, and reduced reliance on third-party technology. This gives us the
confidence that we will continue to deliver on market expectations.
Mark Elliott
Non-Executive Chairman
26 March 2024
Chief Executive's report
Introduction
In the past year, the Group has made significant progress towards its aim of
becoming a market-leading provider of intelligent transport systems.
Our long-term success is underpinned through our investment in developing the
technology and solutions that meet the needs of our customers today and
prepare them for the challenges of tomorrow. The strategic acquisitions of
Infotec, which has provided enhanced access to the rail market and the Group's
first US-based contracts; and MultiQ, which provides intelligent transport
system solutions to customers in Denmark, Iceland and Sweden, are extending
the reach and capability of our established businesses.
We continue on this trajectory whilst being mindful of the risks that remain
in our target market sectors. The long-term impacts that the COVID-19 pandemic
have had on the transport sector cannot be understated. A dramatic increase in
the number of people working from home, easy access to credit and the
expansion of internet shopping continues to suppress the number of people
using public transport. That being said, adoption of mass public transport
remains the only viable solution to reduce emissions generated by the movement
of people and provide a meaningful contribution to achieving Carbon Net Zero.
The investments being made by local authorities, transport network ruling
bodies and fleet operators to make public transport a more efficient, safer
and reliable way to travel is placing increased reliance on the type of
solutions that Journeo provides.
Operational review
Fleet Transport Operator Systems
I am pleased to report strong revenue growth from Fleet Transport Operator
Systems, increasing sales by 31% to £16.3m (2022: £12.5m). Margins were
lower than the prior year mainly due to the technology-mix of sales with a
future SaaS revenue benefit. There was a small improvement in margins during
the second half of the year and this improvement is expected to continue
throughout 2024.
The performance for the year was in line with management expectations and we
expect to see further improvement while we grow our brand and technology
presence in rail markets. In March o2023, we announced a £0.6m contract with
CrossCountry Rail for the upgrade of legacy systems previously installed by
Journeo in 2012. The upgraded camera systems were connected to the Journeo
Portal, providing stakeholders such as CrossCountry teams, Network Rail and
the British Transport Police with direct access to footage for rapid incident
management.
In April 2023, we announced a one-year extension to our Framework Agreement
with Arriva UK Bus, through to April 2024. Separate to Journeo's three-year
fleet-wide SaaS contract (announced in November 2021), the extension builds on
the relationship between Journeo and Arriva, that has been in place since
2010.
We continue to see progress in our Airport Passenger Transport solutions. In
March 2023 we announced a new five-year extension to our software and support
contract at Gatwick Airport, valued at £0.5m. Shortly after this we received
a purchase order from First Bus to install our software at East Midland
Airport, extracting further value from our IP-backed solutions.
With operators reliant on our solution at six major airports in the UK and
Ireland, we are looking to leverage our position to expand our presence at
home and overseas.
Passenger Transport Infrastructure Systems
The performance of our Passenger Transport Infrastructure business was in line
with management expectations, delivering a 5% growth in revenues to £9.0m
(2022: £8.6m). Margins were lower than in 2022, however, we are pleased to
see the sales progress in the business and believe it has the potential to
outstrip its current performance through changes and cost efficiencies that we
are implementing.
The acquisition of Infotec gives Journeo the power to consolidate its display
technologies, streamline supply chains and exercise greater control over
production costs. Simultaneously, Journeo is working to migrate the EPIX
Content Management System to a SaaS solution, the Journeo Portal.
Historically, local authority budgets have been directed towards capital
expenditure, and so not invested in subscription-based solutions. However,
this is starting to change as customers realise the value of the continuous
improvement that is the cornerstone of cloud-based technologies.
A notable development during the year was a £1.0m software and service
contract from Transport for Wales (TfW). This first-of-its kind contract seeks
the disaggregation of software services for Real Time Passenger Information
(RTPI) estates from the displays that are located within urban and rural
areas. Disaggregation enables local authorities to purchase displays from any
provider, as long as they operate on open industry standards. Journeo is at
the forefront of developing these standards and we expect to see the first
displays migrate to the platform within the first half of this financial year.
Since the year end Cardiff City Council and TfW has invested a further £1.6m
in Journeo displays technology to be connected to the new platform.
In September 2023, Journeo received £2.25m in purchase orders for RTPI
displays technology and associated software services from Hertfordshire County
Council. Hertfordshire County Council supported in the development of the Bus
Back Better strategy and is focussed on driving improvements within their
transport network. Journeo has enjoyed a 20-year relationship with
Hertfordshire and is working closely with the authority as they drive
improvements in their transport network. Whilst unavoidable delays to install
the technology have restricted our ability to realise the value in the
contract across 2023, the obstacles have now been overcome and will benefit
the Group in 2024.
A purchase order of £2.0m from a Northern Transport Partnership was also
received in September 2023. The project is an expansion of the partnership's
RTPI estate that, following several successful years of close collaboration,
is now one of the largest RTPI estates in the country and is comparable in
size and complexity with the system in London.
The Passenger Transport Infrastructure business enters 2024 with its strongest
ever order book and a clear strategy to improve operating margins.
Infotec
The acquisition of Infotec via a significantly over-subscribed placing and
retail offer, was an important step in Journeo's evolution. In addition to
strong revenues of £19.7m and a gross margin of 29.8%, longer-term value will
be realised across the Group through the consolidation of technologies and
efficiencies in manufacturing.
Since the acquisition we have invested £0.4m to enhance surface mount
production capacity, resulting in significantly reduced production lead times.
The investment is enabling us to keep pace with a large US-based contract
whilst also maintaining momentum for orders won in our domestic markets.
We were pleased to announce purchase orders from Network Rail and Northern
Trains totalling £2.4m. These awards reflect the market-leading position
Infotec has within the UK rail industry, supplying approximately 80% of rail
stations. The displays are recognised for their robustness and longevity, and
the continuing advancement in technology offers a high level of repeat
business.
Significant progress has been made to integrate Infotec into Journeo. By
working more closely we will leverage synergies in the technologies we
provide, with the aim of improving the margins delivered by all operating
companies in the Group.
MultiQ
The acquisition of MultiQ Denmark A/S ("MultiQ") was completed in September
2023 for a total consideration of €2.5m on a debt-free, cash-free, basis.
This provides Journeo with an established, full-service provider of
Intelligent Transport Systems (ITS) to fleet operator and local authorities in
the Nordic region. With a strong history of developing and supplying public
information systems for bus, including fleet management software and on-board
passenger infotainment, MultiQ was part of a larger group that was acquired by
the Swedish company Vertiseit AB in May 2022.
The pure ITS focus of MultiQ is a good fit for Journeo and will provide access
into Nordic and Northern European markets and the strong SaaS-based sales
approach delivers approximately 40% recurring revenue.
Central services
The Group's growth over the last 12 months has necessitated developments to
our organisational structure, and investment in our Finance and HR teams to
enhance transparency and reporting capabilities. We are assessing our business
systems where we see opportunities for consolidation and improvement.
Journeo strives to maintain its position as a trusted and responsible member
of the business community, delivering our customers solutions that can be
relied upon for quality, robustness and security. We are working closely with
our supply chain partners and system providers, monitoring the impact of
global events to maintain the supply of essential components. Throughout the
course of 2023, we maintained all ISO and cyber accreditations, demonstrating
our commitment to maintaining governance and quality systems.
Finally, we are continuing our work on ESG, with a further update available in
the sustainability section of the Company's 2023 Annual Report. We maintain
honest and open communication with our customers, and carried out an online
customer survey during the year which has provided valuable insight into why
customers place their faith in us and what we can do better, as we continue to
deliver operation-critical solutions to vehicle fleets and the wider transport
infrastructure network.
Russ Singleton
Chief Executive
26 March 2024
Consolidated statement of comprehensive income for the year ended 31 December
2023
Notes 2023 2022
£'000 £'000
Revenue 2,3 46,092 21,123
Cost of sales (31,782) (13,354)
Gross profit 3 14,310 7,769
Underlying administrative expenses (10,075) (6,730)
Other income 49 119
Underlying profit 4,284 1,158
Acquisition costs (289) -
Share-based payments (22) (45)
Total administrative expenses and other income (10,337) (6,656)
Operating profit 3,973 1,113
Net finance expense (240) (207)
Profit before taxation 3,733 906
Taxation charge 4 (760) (3)
Profit for the year being total comprehensive income attributable to owners of 2,973 903
the parent
Profit per share 5
Basic 18.64p 10.33p
Diluted 17.96p 9.80p
Consolidated statement of changes in equity for the year ended 31 December
2023
Share Share Retained Total equity
capital premium earnings shareholders'
£'000 account £'000 funds
£'000 £'000
Balance at 1 January 2022 6,250 1,174 (6,224) 1,200
Profit and total comprehensive income for the year - - 903 903
Share-based payments - - 45 45
Balance at 31 December 2022 6,250 1,174 (5,276) 2,148
Profit and total comprehensive income for the year - - 2,973 2,973
Proceeds from issue of new shares 503 7,092 - 7,595
Share-based payments - - 22 22
Balance at 31 December 2023 6,753 8,266 (2,281) 12,738
Consolidated statement of financial position at 31 December 2023
2023 2022
£'000 £'000
Assets
Non-current assets
Goodwill 4,058 1,345
Other intangible assets 2,685 1,300
Property, plant and equipment 1,585 504
Deferred tax asset 189 -
Trade and other receivables 40 41
8,557 3,190
Current assets
Inventories4 6,868 3,455
Trade and other receivables 12,212 8,130
Cash and cash equivalents 8,116 533
27,196 12,118
Total assets 35,753 15,308
Equity and liabilities
Shareholders' equity
Share capital 6,753 6,250
Share premium account 8,266 1,174
Retained earnings (2,281) (5,276)
Total equity 12,738 2,148
Non-current liabilities
Deferred revenue 2,841 2,304
Other payables 207 -
Loans and borrowings 163 40
Deferred tax liability 25 -
Lease liabilities 756 225
Provisions 2,234 271
6,226 2,840
Current liabilities
Trade and other payables 9,921 5,796
Deferred revenue 5,831 1,552
Loans and borrowings 64 2,616
Lease liabilities 195 121
Provisions 778 235
16,789 10,320
Total equity and liabilities 35,753 15,308
Consolidated statement of cash flows for the year ended 31 December 2023
Notes 2023 2022
£'000 £'000
Net cash flows from operating activities 6 1,664 (587)
Cash flows from investing activities
Purchases of property, plant and equipment (434) (58)
Purchases / generation of intangible assets (789) (628)
Acquisition costs (289) -
Net cash inflow on acquisitions 3,030 -
Net cash flows from investing activities 1,518 (686)
Cash flows from financing activities
Cash flows from issue of new loans 215 891
Principal element of lease repayments (266) (170)
Repayment of loans (2,643) (15)
Issue of shares 7,095 -
Net cash flows from financing activities 4,401 706
Net increase / (decrease) in cash and cash equivalents 7,583 (567)
Cash and cash equivalents at beginning of year 533 1,096
Effect of foreign exchange rate changes - 4
Cash and cash equivalents at end of year 8,116 533
Notes to the consolidated financial statements for the year ended 31 December
2023
1. Basis of preparation
The Group financial statements are prepared in accordance with International
Financial Reporting Standards and IFRIC interpretations issued and effective
(or adopted early) and endorsed by the United Kingdom at the time of preparing
these financial statements and with those parts of the Companies Act 2006
applicable to companies reporting under IFRS. The financial statements have
been prepared under the historical cost convention, except financial
instruments and share-based payments, which are prepared in accordance with
IFRS 9 and IFRS 2 respectively. A summary of the more important Group
accounting policies is set out below.
The individual financial statements of each Group entity are presented in the
currency of the primary economic environment in which the entity operates (its
functional currency). For the purpose of the consolidated financial
statements, the results and financial position of each Group entity are
expressed in Sterling (£), which is the presentation currency for the
consolidated financial statements. The numbers in the financial statements are
rounded in £'000 for presentation purposes for year ended 31 December 2023
with prior year comparatives being for the year ended 31 December 2022.
Going concern
The Group's business activities, together with factors likely to affect its
future development, performance and position, are set out in the Strategic
Report along with the principal risks and uncertainties.
The Group's net underlying profit for the year was £4,284k (2022: £1,158k).
As at 31 December 2023 the Group had net current assets of £10,407k (2022:
£1,798k) and net cash reserves of £8,116k (2022: £533k).
The Directors have prepared Group cash flow projections for the period to 30
June 2025 based on latest forecasts that show that the Group will be able to
operate within the Group current funding resources with significant headroom.
As with all businesses there are particular times of the year where our
working capital requirements are at their peak. The Group is well placed to
manage these business risks effectively and the Board reviews the Group's
performance against budgets and forecasts on a regular basis to ensure action
is taken where needed. The Directors also monitor a rolling cash flow
forecast, and key management review working capital movements and requirements
on a daily basis.
The projections, taking account of reasonably possible changes in trading
performance, indicate that the Group will operate within available facilities
throughout the projection period and therefore, based on these projections,
the Directors have a reasonable expectation that the Group has adequate
resources to continue in operational existence for the foreseeable future and
for at least 12 months from the date of these financial statements. The
Directors therefore continue to adopt the going concern basis in preparing the
financial statements.
2. Revenue and other income
The revenue split between good and services is:
2023 2022
£'000 £'000
Goods 38,402 15,621
Services 7,690 5,502
46,092 21,123
Contract works included in goods 6,994 7,599
3. Segmental reporting
IFRS 8 requires operating segments to be determined on the basis of those
segments whose operating results are regularly reviewed by the Board of
Directors (the Chief Operating Decision Maker as defined by IFRS 8) to make
strategic decisions.
As the Board of Directors reviews revenue, gross profit and operating loss on
the same basis as set out in the consolidated statement of comprehensive
income, no further reconciliation is considered to be necessary.
Revenue and gross profit
Revenue Gross profit Revenue Gross profit
2023 2023 2022 2022
£'000 £'000 £'000 £'000
Fleet Systems 16,332 3,949 12,494 3,711
Infotec 19,669 5,862 - -
MultiQ 1,139 542 - -
Passenger Systems 9,045 3,957 8,629 4,058
Intersegment sales (93) - - -
Total 46,092 14,310 21,123 7,769
Major customers
In the year, one customer within each of the Fleet Systems and Infotec
segments accounted for over 10% of Group revenue at 11% and 17% respectively.
In the prior year, there was one Fleet Systems customer that accounted for
over 10% of revenue at 16%.
Underlying profit
2023 2022
£'000 £'000
Fleet Systems 583 690
Infotec 3,697 -
MultiQ 153 -
Passenger Systems 115 740
4,548 1,430
Central (264) (272)
Underlying profit 4,284 1,158
Reconciling to profit / (loss) before interest and tax
2023 Underlying Acquisition costs Share-based Operating profit / (loss) Profit / (loss)
operating £'000 payments £'000 before interest
profit / (loss) £'000 and tax
£'000 £'000
Fleet Systems 583 - (11) 572 572
Infotec 3,697 - - 3,697 3,697
MultiQ 153 - - 153 153
Passenger Systems 115 - (11) 104 104
4,548 - (22) 4,526 4,526
Central (264) (289) - (553) (553)
4,284 (289) (22) 3,973 3,973
2022 Underlying Share-based Operating Profit / (loss)
operating payments profit / (loss) before interest
profit / (loss) £'000 £'000 and tax
£'000 £'000
Fleet Systems 690 (23) 667 667
Passenger Systems 740 (22) 718 718
1,430 (45) 1,385 1,385
Central (272) - (272) (272)
1,158 (45) 1,113 1,113
Net assets
Net assets attributed to each business segment represent the net external
operating assets of that segment, excluding goodwill, bank balances and
borrowings, which are shown as unallocated amounts, together with central
assets and liabilities.
Assets Liabilities Net assets Assets Liabilities Net assets
2023 2023 2023 2022 2022 2022
£'000 £'000 £'000 £'000 £'000 £'000
Fleet Systems 8,754 (3,736) 5,018 8,134 (3,627) 4,507
Infotec 6,477 (8,999) (2,522) - - -
MultiQ 2,645 (534) 2,111 - - -
Passenger Systems 5,679 (7,774) (2,095) 5,156 (6,744) (1,588)
23,555 (21,043) 2,512 13,290 (10,371) 2,919
Goodwill 4,058 - 4,058 1,345 - 1,345
Cash and borrowings 8,116 (641) 7,475 533 (2,656) (2,123)
Unallocated 24 (1,331) (1,307) 140 (133) 7
Total 35,753 (23,015) 12,738 15,308 (13,160) 2,148
Geographical segments
Revenue Gross profit Revenue Gross profit
2023 2023 2022 2022
£'000 £'000 £'000 £'000
UK 36,739 9,840 20,538 7,316
International
- Scandinavia 1,507 458
- Other EU 8 38
- Non-EU 7,838 89
Total international 9,353 4,470 4,470 453
Total 46,092 14,310 14,310 7,769
Assets and liabilities by location
2023 2022
£'000 £'000
Assets
UK 32,948 14,662
International 2,805 12
Total assets 35,753 14,674
Liabilities
UK (22,467) (12,508)
International (548) (19)
Total liabilities (23,015) (12,527)
4. Taxation
(a) Analysis of charge in year:
2023 2022
£'000 £'000
Current tax
UK corporation tax on the profit for the year (19% and 25%) 704 -
Swedish corporation tax on the profit for the year (22%) 7 3
Danish corporation tax on the profit for the year (22%) 49 -
Total tax charge for the year 760 3
(b) Factors affecting the total tax charge for the year
The tax assessed for the year differs from the standard rate of corporation
tax in the UK at 23% (2022: 19%). The differences are explained below:
2023 2022
£'000 £'000
Profit before tax 3,733 905
Profit multiplied by standard rate of
corporation tax in the UK of 23% (2022: 19%)
859 172
Effects of:
Expenses not deductible for tax purposes (305) (150)
Change in unrecognised deferred tax assets 217 4
Income not taxable (11) (23)
Total tax charge for the year 760 3
(c) Deferred tax asset / (liability)
The unrecognised and recognised deferred tax assets / (liability) comprise the
following:
Group Unrecognised Recognised
2023 2022 2023 2022
£'000 £'000 £'000 £'000
Tax losses 1,138 724 189 -
Accelerated capital allowances (350) (94) (25) -
788 630 164 -
The Group has £4,552,000 of unutilised tax losses (2022: £3,813,000) which
may be carried forward indefinitely.
5. Profit per Ordinary Share
Basic earnings per share (EPS) is calculated by dividing the earnings
attributable to Ordinary Shareholders by the weighted average number of
Ordinary Shares in issue during the year.
For diluted earnings, the weighted average number of Ordinary Shares in issue
is adjusted to assume conversion of all dilutive potential Ordinary Shares.
Group 2023 2022
Profit Per share Profit Per share
£'000 amount £'000 amount
Pence Pence
Basic EPS
Profit attributable to Ordinary Shareholders 2,973 18.64p 903 10.33p
Diluted EPS
Profit attributable to Ordinary Shareholders 2,973 17.96p 903 9.80p
Details of the weighted average number of Ordinary Shares used as the
denominator in calculating the earnings per Ordinary Share are given below:
2023 2022
'000 '000
Basic weighted average number of shares 15,945 8,741
Dilutive potential Ordinary Shares 605 470
Diluted weighted average number of shares 16,550 9,211
6. Reconciliation of operating profit to net cash inflow from operating
activities
2023 2022
£'000 £'000
Profit for the year 2,973 903
Adjustments for:
- Finance expense 240 207
- Depreciation of property, plant and equipment 378 224
- Amortisation of intangible fixed assets 753 494
- Share-based payment expense 22 45
- Foreign exchange rate (13) -
- Acquisition costs 289 -
- Increase / (decrease) in provisions 2,506 (34)
Operating cash flows before movement in working capital 7,148 1,839
Decrease / (increase) in inventories 295 (1,846)
Decrease / (increase) in receivables 1,609 (1,564)
Increase / (decrease) in payables (6,560) 1,166
Cash inflow / (outflow) from operations 2,492 (405)
Income taxes paid (658) (3)
Interest paid (170) (179)
Net cash inflow / (outflow) from operating activities 1,664 (587)
7. Businesses Acquired - Infotec Group of Companies
On 18 January 2023, the Group acquired 100% of the equity of IGL Limited,
together with its subsidiaries ("IGL" or "Infotec"), all UK-based businesses.
Infotec is a leading provider of innovative display solutions and is the UK's
leading rail passenger information equipment provider, with over 15,000
displays in operation. Infotec services approximately 80 per cent. of the UK's
rail network
The details of the business combination are as follows:
£'000
Fair value of consideration
Amount Settled in Cash 7,218
Deferred Consideration 1,000
Consideration Shares 500
Total Consideration 8,718
Identifiable net assets (recognised at fair value):
Other intangibles 1,301
Property, plant and equipment 264
Inventories 3,047
Trade and other receivables 3,980
Cash 12,641
Total assets 21,233
Equity and liabilities
Trade and other payables (5,422)
Deferred revenue (6,883)
Tax liabilities (446)
Provisions (2,000)
Total Liabilities (14,751)
Net Assets 6,482
Goodwill on Acquisition 2,236
Consideration settled in cash 8,218
Cash and cash equivalents acquired 12,641
Net cash inflow on acquisition 4,423
Consideration transferred
The acquisition of Infotec was settled in cash amounting to £8,218k
(including deferred consideration of £1,000k). Acquisition-related costs
amounting to £132k were incurred.
Identifiable net assets
The fair value of identifiable net assets acquired as part of the business
combination amounted to £6,482k.
Separable intangible assets
One separable intangible asset was identified at acquisition, being the
acquired customer relationships. The acquired customer list was valued by
assessing a discounted cashflow based on expected customer attrition rates and
using the Group discount factor of 13%. The useful life has been estimated at
5 years.
Goodwill
Goodwill is primarily related to the core growth expectations that are
expected from combining Infotec and Journeo technologies and upselling this to
existing customers.
Infotec contribution to the Group results
Infotec generated an underlying profit of £3,697k for the period from 18
January 2023 to the reporting date. Revenue for the period to the reporting
date was £19,669k. In the twelve months to 30(th) December 2022 Infotec sales
were approximately £16,520k with profit before tax of £2,646k
8. Businesses Acquired - MultiQ Denmark A/S
On 19 September 2023, the Group acquired 100% of the equity of MultiQ Denmark
A/S ("MultiQ"), a Denmark based business.
MultiQ is a leading full-service provider of Intelligent Transport Systems
("ITS") with customers in Denmark, Sweden and Iceland.
The details of the business combination are as follows:
£'000
Fair value of consideration
Amount Settled in Cash 1,089
Deferred Consideration 413
Total Consideration 1,502
Identifiable net assets (recognised at fair value):
Property, plant and equipment 573
Tax Assets 267
Inventories 660
Trade and other receivables 1,084
Cash 110
Total assets 2,694
Equity and liabilities
Trade and other payables (1,450)
Deferred revenue (81)
Tax liabilities (138)
Total Liabilities (1,669)
Net Assets 1,025
Goodwill on Acquisition 477
Consideration settled in cash 1,502
Cash and cash equivalents acquired 110
Net cash outflow on acquisition (1,392)
Consideration transferred
The acquisition of MultiQ was settled in cash amounting to £1,502k (including
deferred consideration of £413k). Acquisition-related costs amounting to
£157k were incurred.
Identifiable net assets
The fair value of identifiable net assets acquired as part of the business
combination amounted to £1,026k.
Goodwill
Goodwill is primarily related to the core growth expectations that are
expected from combining MultiQ and Journeo technologies and upselling this to
existing customers.
MultiQ contribution to the Group results
MultiQ generated an underlying profit of £153k for the period from 20
September 2023 to the reporting date. Revenue for the period to the reporting
date was £1,139k. In the twelve months to 30 December 2022 MultiQ sales were
approximately £4,425k with a loss before tax of £32k.
9. Availability of audited accounts
Copies of the 2023 audited accounts will be made available following the
announcement of the date of our AGM. They will also be available on the
Group's website (www.journeo.com (http://www.journeo.com/) ) for the purposes
of AIM Rule 26 and will be posted to shareholders in due course.
ENDS
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END FR FLFEDVVIEFISRecent news on Journeo
See all newsREG - Journeo PLC - Director/PDMR Shareholding
AnnouncementREG - Journeo PLC - Result of AGM
AnnouncementRCS - Journeo PLC - Service and support contract in Sweden
AnnouncementREG - Journeo PLC - Purchase Order
AnnouncementREG - Journeo PLC - Director Share Purchases
Announcement