REG - Journeo PLC - Final Results
25/03/2025 07:00
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RNS Number : 9553B Journeo PLC 25 March 2025
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.
25 March 2025
Journeo plc
("Journeo, "Company" or "the Group")
Final results for the year ended 31 December 2024
Journeo plc (AIM: JNEO), a leading provider of information systems and
technical services to transport operators and local authorities, is pleased to
announce its final results for the year ended 31 December 2024.
Financial headlines
· Revenue increased 8% to £49.6m (2023: £46.1m)
· Gross profit increased 24% to £17.7m (2023: £14.3m)
· Profit before tax increased 33% to £5.0m (2023: £3.7m)
· Cash and cash equivalents at 31 December 2024 were £14.3m (2023:
£8.1m)
· Diluted earnings per share was 26.29 pence (2023: 17.96 pence)
Operational headlines
· Formed the Journeo Design Centre (JDC) to build upon the work of our
R&D team, to create new, scalable, world-class products.
· Initiated organisational developments and senior leadership
appointments to support the Group in its next phase of growth.
· Worked with Transport for London (TfL) to deliver Journeo's digital
wing mirror system, as part of the transport executive's Vision Zero
programme.
· Implemented a new Group-wide HR system and employee support
programme.
· Successfully completed phase 1 of Infotec's major US contract for the
New York Subway.
· Continued integration of Infotec and Journeo A/S, with cross-selling
opportunities identified.
· Retained all ISO 9001, 14001, 27001, 45001 accreditations and cyber
security and ICO certification.
Russ Singleton, CEO of Journeo plc, said: "Journeo has delivered another
strong set of results, achieving growth in sales, profit before tax and
recurring revenues for a fifth year running. The increasing adoption of our
core IP is delivering a growing sales pipeline based on technology created and
implemented by the operating companies within the Group.
In addition to our financial performance, we have made significant operational
improvements. We have formed the Journeo Design Centre to create new
world-class products and made strategic investments for our next growth phase
with new appointments to our Senior Leadership Team. We have also made steps
forward in our ESG and carbon reporting and are progressing with a number of
potential complementary acquisitions.
We move forward into 2025 with confidence that we will continue to deliver
stakeholder value as the Group benefits from Government-backed initiatives for
the more sustainable, safer and more secure communities and transport of the
future."
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.
· Journeo 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 four 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
Introduction
I am pleased to be able to report another set of strong results to our
shareholders and other stakeholders for the financial year ended 31 December
2024. This is the fifth year in a row that we have grown revenues, recurring
revenues and profit before tax with good cash generation. This is an
excellent track record delivered by the whole Journeo team.
Whilst we did not complete any acquisitions in the year, those completed in
prior periods contributed strongly to our performance in 2024, and increasing
adoption of our solutions and systems enabled us to deliver revenue growth of
8% and PBT growth of 33%.
Our addressable market is growing and important initiatives, such as the
implementation of the Journeo Design Centre (JDC), are well underway. This
important new extension of our Research and Development capability is giving
the Group's operating companies access to new and innovative solutions and
powerful software that will enter the market over the course of 2025.
Markets
Since my last report, the UK has transitioned to a new government. This can
always be a time for speculation as priorities around public policy and public
spending shift. However, the UK's commitment to achieving Carbon Net Zero by
2050, and the promotion of public transport as a key method of reducing
emissions persists and, in some ways, has been further strengthened.
We welcome the announcement of the Better Buses Bill as an extension of the
previously announced National Bus Strategy. The new Government is clearly
signalling its commitment to putting bus services at the centre of local
transport strategy and supporting the effort to increase patronage. Local
authorities are following suit through the implementation of Bus Service
Improvement Plans.
2024 also signalled a transition year within the rail market, as Network Rail
moves from one five-year funding Control Period (CP) to the next.
Historically, transition between CPs leads to an initial dip in industry
activity with a ramp-up towards the end as budgets and programmes are
completed. The situation was further complicated as the change from CP6 to CP7
(in April 2024) coincided with the election and subsequent change in
Government.
However, I am pleased to report that we are seeing an upturn in activity as
project implementation teams assess their new funding streams and priorities.
In the USA, we continued to successfully deliver our large order of the
initial phase of displays technology for 535 Metropolitan Transportation
Authority subway cars with our customer, OutFront Media. Whilst plans to push
forward with media screens for the second phase are on hold due to suppressed
ridership on the New York Subway, newly elected President Trump is committed
to returning people to work in their offices, potentially increasing passenger
footfall. Further opportunities are arising through our relationships and our
engagement in the US market.
Strategy
We continue to seek out and target complementary acquisitions that can support
the Group with its growth ambitions. Both recent acquisitions, initially
Infotec and more recently, Journeo A/S (previously MultiQ in Denmark), have
proved to be valuable additions to the Group. On top of access to customers,
markets and opportunities, both have brought significant insight and expertise
that is assisting the Group to refine its solutions and offerings.
All parts of the Group focus on the importance of building deep, long-lasting
bonds with customers. It is these strong relationships that have and
continue to enable Journeo to target Research and Development where valuable
intellectual property can be created for the Group. This supports our
customers for their current and future needs and in turn enables the Company
to technically differentiate itself and support our organic growth.
When assessing new organisations as potential acquisitions, it is important
that they share a customer-centric approach. We have identified several
targets that we are pursuing with interest and I look forward to updating you
further, in due course.
Environmental, social and governance
The Group has continued its work on ESG and will shortly be releasing its
first Carbon Reduction Plan. A full update on our activities will be available
in our 2024 Annual Report.
People
The Group continues to invest in attracting talented individuals to join us at
many levels throughout the organisation. In recent years, and as we grow, it
is important to retain the people that helped make the businesses in the Group
successful and attractive acquisition targets in the first place. To achieve
this, we are supporting our teams with personal development through training
and the introduction of new talent.
As a result, I am delighted to welcome some new appointments to the Senior
Leadership Team; Richard Webb and Scott Cannon. Richard joined the Group in
November 2024 as Group Sales Director and Scott recently joined as Group Head
of Software in March 2025. Both bring with them a wealth of experience in
establishing and nurturing teams in growing technology businesses.
We will continue to develop the Senior Leadership Team over the course of 2025
as we ready ourselves for future growth stages of the business.
I would like to take the opportunity to thank all those that helped make 2024
a successful year and underscore the Board's commitment to supporting them as
we continue to develop and grow.
Outlook
The Group strategy is working and as part of this we are now executing the
next stage of the Group's evolution to generate further growth and increasing
value to our customers, shareholders and people. To achieve this we are
increasing our investment to develop the environment from which we can grow;
creating new systems and solutions, strengthening our management teams and
targeting acquisitions that align with our strategy and fuel our growth.
The development and innovation of next generation solutions has always been,
and remains, absolutely fundamental to the future prosperity of the Group. We
invest in our Research and Development to ensure that we can support our
customers with their legacy systems and prepare them for the transition to
their new systems. The introduction of the JDC and similar initiatives within
the Group is rapidly creating synergies within our product development and we
will see several of these solutions come to market during 2025.
The strong cash position of the Group and the availability of debt enables us
to finance complementary acquisitions and we have well-developed criteria to
assess the suitability of target companies. We have identified a number of
organisations that will provide new routes to market for Journeo technology,
deepen our capabilities or are in adjacent markets.
The Group is now well-positioned to benefit from the transition to the
sustainable communities and transport of the future. We have a strong
orderbook and an unprecedented sales opportunity pipeline, centred around our
own core IP, giving the Board confidence that we will continue to grow and
deliver increasing stakeholder value.
Mark Elliott
Non-executive Chairman
25 March 2025
Chief Executive's report
Introduction and strategic update
Throughout last year we generated increased sales, profits and cash as we
focused on the continued development of the Group and further consolidation of
the acquired businesses. We are making significant progress in establishing
Journeo as a market leader in Intelligent Transport Systems.
In January 2024, we formed the Journeo Design Centre (JDC), to build upon the
work of our Research and Development teams to deliver new products and
solutions that can scale for worldwide sales.
Strategic Group-level appointments in sales and procurement have also been
made to drive growth. Further appointments will be made in 2025 as we
rationalise the supply chain and introduce high-performance procedures and
processes across the Group.
Cumulatively, these actions provide the capabilities that we need to ensure
Journeo can scale alongside the increasing adoption of our solutions,
maintaining the customer-focused approach that is the cornerstone of our
business.
More widely within the industry, there remain challenges with ridership and
the volume of users of public transport services. However, the need to
develop a sustainable public transport network to meet Carbon Net Zero goals
and to efficiently move people, goods and services to create the communities
of the future is essential.
As such we were encouraged, both by the announcement in September 2024 from
the new UK Government that they will be introducing the Better Buses Bill that
aims to deliver faster, cheaper and improved bus networks, and early market
indications towards the end of the year that the conventional hiatus of
activity in the rail markets during Control Period transition (Control Period
7 commenced in April 2024) is beginning to alleviate.
These strong market drivers, backed by defined Government funding, align with
our strategy; and we are accelerating the development of products, services
and solutions to capitalise on the opportunities emerging. As a result, we
expect to deliver continued organic growth and intend to capture adjacent
market opportunities through carefully targeted acquisitions.
Operational review
Fleet Systems
The performance of our Fleet Systems business has been exceptionally good,
finishing the year slightly ahead of management expectations. The continued
adoption of our systems across the year resulted in strong revenue growth of
45% to £23.7m (2023: £16.3m). This has been achieved whilst also
generating a 4% margin improvement across the year.
In March 2024, we announced two significant purchase order awards valued at
£1.9m and £1.1m respectively. Both awards were for retrofit programmes of
Journeo's market-leading Camera Monitoring System (CMS) digital wing mirrors,
for bus operator customers operating within the Transport for London (TfL)
fleet. The solution is a core tenet of TfL's Vision Zero strategy, which
aims to remove all deaths and serious injuries from London's transport network
by 2041 and the retrofit programmes, spread across several large operators
including Stagecoach, Metroline, Arriva and Transport UK (formerly Abellio)
has seen installations across multiple vehicle types including London's iconic
New Route Master to stringent United Nations R46 Standards. The purchase
order values were increased significantly to include systems support for the
remainder of the vehicles' operating life in London of up to five years.
The business is also growing its presence in the rail market, with sales
direct to vehicle owning Rolling Stock Companies (ROSCOs) that are somewhat
independent of Network Rail control periods. In July, £3.0m of technology
solutions contracts were secured with Porterbrook and Arriva Train Care, split
across two Train Operating Companies (TOCs) . The rail market is complex
with long sales cycles and the award signals the beginning of a greater
adoption of our solutions in this market. Built upon core technologies
developed in our Bus and Airport solutions, the contracts are for the delivery
of on-board CCTV and Automatic Passenger Counting (APC) systems. In addition
to providing hardware, system design and first fitment support, all systems
are securely connected to the Journeo Portal via existing train-to-shore
communication platforms delivering valuable recurring SaaS revenues.
Also, in July of the year, the Fleet Systems business increased its presence
in the North-West of the UK, following purchase orders of £2.1m from
Metroline Manchester. A subsidiary of ComfortDelGro, Metroline Manchester has
successfully won four franchise awards from Transport for Greater Manchester
(TfGM) part of Greater Manchester Combined Authority (GMCA). Journeo Fleet
Systems was engaged to install safety critical CCTV systems prior to the end
of December 2024 and was selected based upon successful completion of prior
projects and our secure and easy to use Journeo Portal platform, with the
order including the first years' SaaS subscriptions. The project was
successfully delivered in time for the launch of the newly franchised Bee
Network routes and we look forward to further increasing our presence in both
Metroline and the region, with Journeo CCTV and CMS systems specified on all
new vehicles entering the fleet.
In November, purchase orders totalling £1.7m were received for further
installations of Journeo's CMS digital wing mirror solution, for RATP buses
operating within TfL, increasing the dominant position Journeo's solution has
in the market, beyond competitor systems and providing valuable future
visibility of earnings for the business.
The Fleet Systems business achieved record order intake in the year and
entered 2025 with a strong orderbook and a growing pipeline of opportunities.
Passenger Systems
The Passenger Systems business continues to perform in line with management
expectations, delivering a 5% growth in revenues to £9.5m (2023: £9.0m).
Margins have improved by 3% across the year.
In February 2024, we announced the award of a framework agreement with a
Northern Transport Partnership, with an expected value of £5.0m through to
January 2028. Part of a longstanding relationship, the framework provides
the Partnership with access to Journeo's latest high-definition TFT,
ultra-bright LED and low-power E-ink display solutions, that communicate using
the latest industry open standards. Orders have already been placed on the
framework as the Partnership looks to evolve into a more consolidated combined
authority, with greater transport powers.
In March 2024, our Passenger Systems business was awarded a £1.5m purchase
order from Swansea Council, for a range of Real Time Information (RTI)
technology that further extends the presence of Journeo technology in Wales.
The order included the delivery, installation and maintenance of TFT and
interactive totem technology, and more than a third of the technology to be
delivered will operate entirely on solar power, assisting the authority in
meeting its Carbon Net Zero targets. Furthermore, the order also included
the provision for Journeo's innovative new 'RTI anywhere' QR code solution for
500 bus stops. All data will be sourced from the Transport for Wales (TfW)
new nationwide content management system, also provided by Journeo and
announced in previous reports.
In December 2024, we announced a four-year contract extension with City of
Edinburgh Council. The extension is expected to generate over £1.5m revenue
over the extension period and will focus on delivering continuous improvement
and expansion of the RTI display network, following successful completion of
phase 1 and 2 of the initial contract. Work will include improving the dynamic
provision of information to alert passengers to delays, diversions and service
changes, further promoting the use of public transport.
Key business development initiatives were commenced in 2024 and we have begun
to see their impact, with £2.5m of orders secured in January 2025, just after
the year end. With substantial Government funding being invested in the
development of our towns, cities and sustainable transport networks, this
remains a highly attractive market sector for Journeo.
Infotec
Infotec had another good year which was in line with management expectations.
Revenue decreased to £12.4m (2023: £19.7m), however, we entered the year
knowing that the transition between Control Periods and the successful
completion of the first phase of the Metropolitan Transportation Authority
(MTA) of New York/OutFront Media contract would lead to a reduction in
revenues. Overall, the business performed very well and delivered a 7%
margin improvement across the period.
The installation of on-board digital advertising within the next phase of 640
subway cars for the MTA has been postponed while ridership numbers remain
suppressed compared to pre-pandemic levels. However, the customer
relationships are good and further opportunities are presenting themselves.
The work that the business is undertaking to consolidate technology platforms
and deliver next generation products certified for sale worldwide will benefit
our customers and the Group. We have recently invested in additional
business development resources to drive Infotec's future growth, in domestic
and international markets.
Journeo A/S
The performance of Journeo A/S (formerly MultiQ) in its first full year of
trading was ahead of management expectations, delivering revenues of £4.0m
and 0.4% margin improvement on the prior year. We are excited by the
opportunities our increased presence in the Scandinavian and Nordic markets
present and look forward to developing our activities in the region further.
The business was rebranded to Journeo A/S in September 2024, as part of the
ongoing integration process into the Group and to increase the Journeo brand
presence in the region.
In April 2024, we announced a contract for the provision of display hardware,
installation and technical support services, for a period of up to six years,
with Grassfish AB, who have been appointed by Skånetrafiken. The contract
will be serviced by Journeo's Stockholm-based engineering team and provides
valuable customer access to the regional transport authority in the Skåne
county region, where Skånetrafiken operates more than 1,000 buses.
Journeo A/S has also sold one of the modules of our airport passenger transfer
software application to Copenhagen airport in Denmark. The system was
deployed within a month, demonstrating the adaptability and flexibility of
Journeo's core technology and the potential to sell our airport solutions
throughout the Nordic region.
In October, Journeo A/S was also awarded a contract from Umove, for up to
£0.5m, to provide Intelligent Transport Systems and services to 58 buses.
The initial contract is for six years to 2031, with two potential four-year
extensions through to 2039. Umove was founded in 2013 and has already become
Denmark's largest privately owned public transport operator, with 650 buses.
The contract provides valuable SaaS revenues and extends Journeo's activity
with the operator, with our Danish subsidiary already providing services on
over 430 of Umove's vehicles.
Central services
Throughout 2024, we made important improvements to our central services.
Procurement and supply chain management is being unified following the
appointment in October 2024 of a new Group Head of Purchasing.
Innovation and our Research and Development continues to underpin the Group's
strategy and, in January 2024, we established the Journeo Design Centre (JDC).
Comprising team members from the Group's operating companies, the JDC is
leading the enhancement of our products and solutions that will fuel future
growth in all business areas. Several new products are in development, which
are scheduled to come to market in 2025.
Throughout the year, we maintained all ISO and cyber accreditations as we
continue to focus on demonstrating our commitment to quality and governance.
The Group also completed its second annual customer survey, to further engage
with our customers and gain an understanding of how they feel about our
products and services. We strive to maintain open and transparent
communication channels with our customers to ensure that we continue to
develop close customer relationships and the outcome of these surveys
determines changes we make within the business to ensure continuous
improvement.
Across 2025, we will continue to invest in the Senior Leadership Team and the
development and training of our people as we prepare the Group for further
organic and acquisitive growth. This will complement the appointments made in
2024. We have ambitious plans and want to ensure that we continue to deliver
a high-quality experience for our customers and reinforce the longevity of our
hard-earned successes to date.
Russ Singleton
Chief Executive
25 March 2025
Chief Financial Officer's report
Group performance
Group results for the year ended 31 December 2024 show underlying profit
increased by 13% to £4.8m (2023: £4.3m).
Overall sales increased by 8% to £49.6m (2023: £46.1m) and gross profit
increased by 24% to £17.7m (2023: £14.3m). The gross profit growth was
driven by a combination of the sales uplift and a significant increase in
gross profit margins.
Gross margin increased by 5% to 36% (2023: 31%), as the increase in Group
purchasing power, easing of supply chain restraints and a changing revenue mix
came together to reduce cost of sales.
Group recurring revenue increased by 40% to £7.0m (2023: £5.0m).
Underlying administrative expenses increased to £12.9m (2023: £10.1m),
reflecting the full year impact of the acquired businesses, inflationary cost
pressure, and investment into multiple teams including Research and
Development and sales.
Profit before tax was up by 33% to £5.0m (2023: £3.7m).
Diluted earnings per share grew strongly to 26.29p (2023: 17.96p), reflecting
the strong Group profit performance and a low tax charge.
Cash and cash equivalents at the year end were £14.3m (2023: £8.1m), with a
net cash flow from operations of £7.6m.
Operating company performance
Fleet sales increased by 45% to £23.7m (2023: £16.3m) as bus operators
increased their spend on new vehicles, supported by government stimuli. In
addition, a number of new customers, such as Metroline Manchester, announced
in July 2024, and other industry initiatives, including the mandating of
digital wing mirror Camera Monitor Systems by TfL, first announced in March
2024, contributed to the growth.
Gross profit increased to £6.7m (2023: £3.9m) with margins increasing by 4%
to 28% (2023: 24%). This was due to two key factors, with prior year
installations contributing to recurring revenue and the group margin gains
mentioned above.
Passenger sales increased by 5% to £9.5m (2023: £9.0m). Margins improved by
3% to 47% (2023: 44%), generating a gross profit of £4.4m (2023: £4.0m),
primarily due to improved Group purchasing, including forward purchasing, and
the easing of the global supply chain.
Infotec revenue decreased to £12.4m (2023: £19.7m) with the last deliveries
on the first phase of the MTA contract during the year. Gross margins
improved strongly to 37% (2023: 30%), contributing to a gross profit of £4.6m
(2023: £5.9m).
Journeo A/S (formerly MultiQ) revenue increased to £4.0m (2023: £1.1m) with
it being part of the Group for the full year. Margins remained strong at 48%
(2023: 48%), delivering a gross profit of £2.0m (2023: £0.6m).
Nick Lowe
Chief Financial Officer
25 March 2025
Consolidated statement of comprehensive income for the year ended 31 December
2024
Notes 2024 2023
£'000 £'000
Revenue 2,3 49,558 46,092
Cost of sales (31,878) (31,782)
Gross profit 3 17,680 14,310
Underlying administrative expenses (12,855) (10,075)
Other income - 49
Underlying profit 4,825 4,284
Acquisition costs - (289)
Share-based payments (60) (22)
Total administrative expenses and other income (12,915) (10,337)
Operating profit 4,765 3,973
Net finance expense 188 (240)
Profit before taxation 4,953 3,733
Taxation charge 4 (433) (760)
Profit for the year being total comprehensive income attributable to owners of 4,520 2,973
the parent
Profit per share 5
Basic 27.44p 18.64p
Diluted 26.29p 17.96p
Consolidated statement of changes in equity for the year ended 31 December
2024
Share Share Retained Total equity
capital premium earnings shareholders'
£'000 account £'000 funds
£'000 £'000
Balance at 1 January 2023 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
Profit and total comprehensive income for the year - - 4,520 4,520
Share-based payments - - 60 60
Balance at 31 December 2024 6,753 8,266 2,299 17,318
Consolidated statement of financial position at 31 December 2024
2024 2023
£'000 £'000
Assets
Non-current assets
Goodwill 4,058 4,058
Other intangible assets 2,647 2,685
Property, plant and equipment 1,563 1,585
Deferred tax asset 185 189
Trade and other receivables 39 40
8,492 8,557
Current assets
Inventories 7,256 6,868
Trade and other receivables 12,084 12,212
Cash and cash equivalents 14,318 8,116
33,658 27,196
Total assets 42,150 35,753
Equity and Liabilities
Shareholders' equity
Share capital 6,753 6,753
Share premium account 8,266 8,266
Retained earnings 2,299 (2,281)
Total equity 17,318 12,738
Non-current liabilities
Deferred revenue 4,501 2,841
Other Payables - 207
Loans and borrowings 99 163
Deferred tax liability 319 25
Lease liabilities 726 756
Provisions 2,048 2,234
7,693 6,226
Current liabilities
Trade and other payables 9,339 9,921
Deferred revenue 6,677 5,831
Loans and borrowings 119 64
Lease liabilities 299 195
Provisions 705 778
17,139 16,789
Total equity and liabilities 42,150 35,753
Consolidated statement of cash flows for the year ended 31 December 2024
Notes 2024 2023
£'000 £'000
Net cash flows from operating activities 6 7,591 1,664
Cash flows from investing activities
Purchases of property, plant and equipment (170) (434)
Purchases / generation of intangible assets (910) (789)
Acquisition costs - (289)
Net cash inflow on acquisitions - 3,030
Net cash flows from investing activities (1,080) 1,518
Cash flows from financing activities
Cash flows from issue of new loans 40 215
Principal element of lease repayments (299) (266)
Repayment of loans (50) (2,643)
Issue of Shares - 7,095
Net cash flows from financing activities (309) 4,401
Net decrease in cash and cash equivalents 6,202 7,583
Cash and cash equivalents at beginning of year 8,116 533
Effect of foreign exchange rate changes - -
Cash and cash equivalents at end of year 14,318 8,116
Notes to the consolidated financial statements for the year ended 31 December
2024
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 2024
with prior year comparatives being for the year ended 31 December 2023.
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 £4,825k (2023: £4,284k).
As at 31 December 2024, the Group had net current assets of £16,519k (2023:
£10,407k) and net cash reserves of £14,318k (2023: £8,116k).
The Directors have prepared Group cash flow projections for the period to 30
June 2026 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 goods and services is:
2024 2023
£'000 £'000
Goods 38,661 38,402
Services 10,897 7,690
49,558 46,092
Contract works included in goods 7,171 6,994
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
2024 2024 2023 2023
£'000 £'000 £'000 £'000
Fleet Systems 23,692 6,688 16,332 3,949
Infotec 12,421 4,617 19,669 5,862
Journeo A/S 4,033 1,937 1,139 542
Passenger Systems 9,503 4,438 9,045 3,957
Intersegment sales (91) - (93) -
Total 49,558 17,680 46,092 14,310
Major customers
In the year, no customer accounted for over 10% of Group revenue. In the prior
year, one customer within each of the Fleet Systems and Infotec segments
accounted for over 10% of Group revenue at 11% and 17% respectively.
Underlying profit
2024 2023
£'000 £'000
Fleet Systems 2,515 583
Infotec 2,083 3,697
Journeo A/S 277 153
Passenger Systems 193 115
5,068 4,548
Central (243) (264)
Underlying profit 4,825 4,284
Reconciling to profit / (loss) before interest and tax
2024 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 2,515 - (28) 2,487 2,487
Infotec 2,083 - (20) 2,063 2,063
Journeo A/S 277 - (7) 270 270
Passenger Systems 193 - (25) 168 168
5,068 - (80) 4,988 4,988
Central (243) - 20 (223) (223)
4,825 - (60) 4,765 4,765
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
Journeo A/S 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
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
2024 2024 2024 2023 2023 2023
£'000 £'000 £'000 £'000 £'000 £'000
Fleet Systems 13,488 (8,031) 5,457 8,754 (3,736) 5,018
Infotec 3,120 (4,584) (1,464) 6,477 (8,999) (2,522)
Journeo A/S 2,083 (404) 1,679 2,645 (534) 2,111
Passenger Systems 5,032 (11,313) (6,281) 5,679 (7,774) (2,095)
23,723 (24,332) (609) 23,555 (21,043) 2,512
Goodwill 4,058 - 4,058 4,058 - 4,058
Cash and borrowings 14,318 (218) 14,100 8,116 (641) 7,475
Unallocated 51 (282) (231) 24 (1,331) (1,307)
Total 42,150 (24,832) 17,318 35,753 (23,015) 12,738
Geographical segments
Revenue Gross profit Revenue Gross profit
2024 2024 2023 2023
£'000 £'000 £'000 £'000
UK 39,189 12,560 36,739 9,840
International
- Scandinavia 4,473 1,507
- Other EU 507 8
- Non-EU 5,389 7,838
Total international 10,369 5,120 9,353 4,470
Total 49,558 17,680 46,092 14,310
Assets and liabilities by location
2024 2023
£'000 £'000
Assets
UK 39,085 32,948
International 3,065 2,805
Total assets 42,150 35,753
Liabilities
UK (24,505) (22,467)
International (327) (548)
Total liabilities (24,832) (23,015)
4. Taxation
(a) Analysis of charge in year:
2024 2023
£'000 £'000
Current tax
UK corporation tax on the profit for the year (25%) 718 704
Swedish corporation tax on the profit for the year (22%) - 7
Danish corporation tax on the profit for the year (22%) - 49
Adjustments in respect of prior periods (641) -
Deferred tax charge 356 -
Total tax charge for the year 433 760
(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 25% (2023: 23%). The differences are explained below:
2024 2023
£'000 £'000
Profit before tax 4,953 3,733
Profit multiplied by standard rate of
corporation tax in the UK of 25% (2023: 23%)
1,238 859
Effects of:
Expenses not deductible for tax purposes 25 (305)
Additional deduction for R&D expenditure (324) -
Prior year (over)/under provision (487) -
Change in unrecognised deferred tax assets (19) 217
Income not taxable - (11)
Total tax charge for the year 433 760
(c) Deferred tax asset / (liability)
The unrecognised and recognised deferred tax assets/(liability) comprise the
following:
Group Unrecognised Recognised
2024 2023 2024 2023
£'000 £'000 £'000 £'000
Tax losses 309 1,138 185 189
Short-term timing differences 10 - - -
Accelerated capital allowances - (350) (318) (25)
319 788 (133) 164
The Group has £1,275,000 of unutilised tax losses (2023: £4,552,000) 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 2024 2023
Profit Per share Profit Per share
£'000 amount £'000 amount
Pence Pence
Basic EPS
Profit attributable to Ordinary Shareholders 4,520 27.44 2,973 18.64
Diluted EPS
Profit attributable to Ordinary Shareholders 4,520 26.29 2,973 17.96
Details of the weighted average number of Ordinary Shares used as the
denominator in calculating the earnings per Ordinary Share are given below:
2024 2023
'000 '000
Basic weighted average number of shares 16,475 15,945
Dilutive potential Ordinary Shares 716 605
Diluted weighted average number of shares 17,191 16,550
6. Reconciliation of operating profit to net cash inflow from operating
activities
2024 2023
£'000 £'000
Profit for the year 4,520 2,973
Adjustments for:
- Finance (income)/expense (188) 240
- Deferred tax 299 -
- Depreciation of property, plant and equipment 464 378
- Amortisation of intangible fixed assets 966 753
- Share-based payment expense 60 22
- Foreign exchange rate (30) (13)
- Acquisition costs - 289
- (Decrease)/increase in provisions (259) 2,506
Operating cash flows before movement in working capital 5,832 7,148
(Decrease)/increase in inventories (388) 295
Decrease in receivables 126 1,609
Increase/(decrease) in payables 2,221 (6,560)
Cash inflow from operations 7,791 2,492
Income taxes paid (471) (658)
Interest paid 271 (170)
Net cash inflow from operating activities 7,591 1,664
9. Availability of audited accounts
Copies of the 2024 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
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