REG - Journeo PLC - Trading Update and Contract Win

JourneoAnnouncement

01/08/2022 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:20220801:nRSA3449Ua&default-theme=true

RNS Number : 3449U  Journeo PLC  01 August 2022

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.

1 August 2022

Journeo plc

("Journeo", "Company" or "the Group")

Trading Update and Contract Award

Strong H1 2022 performance; high growth, resilience and positive outlook

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 2022 ("H1 2022"), as well as a
new £0.9 million contract award at Heathrow Airport.

Highlights

·    Revenue growth of 23% over H1 2021 to £8.9m

·    Increase in sales orders by 36% to £12.9m, providing increased
visibility into H2 2022 and beyond

·    Number of SaaS connections increased by over 25% in H1 2022 to
approximately 5,000 and are on-track to more than double by the end of the
year

·    Results for the full year are expected to be in line with current
market expectations

·    Positive cashflow with cash balance of £1.2m after full repayment of
£0.6m prior year Covid related VAT deferral

·    Available debt facility recently increased to £2.75m

The Company will provide further details on the first half performance in its
interim results in September 2022.

Journeo had a strong H1 2022 with revenue of £8.9m (H1 2021: £7.2m), an
increase of 23% over H1 2021. Fleet Systems revenue increased by 31% to £4.9m
from £3.7m in H1 2021 and Passenger Systems revenue increased by 15% to £4m
from £3.5m in H1 2021.

Cash balances at 30 June 2022 were £1.2m (H1 2021: £1.3m) after the
repayment in full of £0.6m of VAT deferred in the prior year during the COVID
pandemic. The Company has recently increased its total invoice discounting
facilities from £1.25m to £2.75m to support continued growth.

Results for the full year are expected to be in line with current market
expectations, demonstrating the Company's resilience and ability to maintain
its performance despite the challenging macro-economic environment.

The Company continues to invest in the research and development of future
technologies and software with a focus on low-power design, where reliability
and sustainability are front and centre of the products and services road map.

The Company is pleased to announce a new £0.9m contract at London's Heathrow
Airport with Transdev Airport Services ("TAS") where Journeo's powerful, cloud
based IoT technologies and software will provide airfield tracking and remote
condition monitoring of over 300 safety assets and other mobile plant.
Approximately £0.3m of the revenue under the contract is expected to be
delivered this year with a 7-year software and services package. This new
contract is in addition to, and runs alongside, the £2.5m contract awarded
and announced on 15 September 2021.

This contract was included in management's expectations of performance for the
current 2022 financial year and adds to the Company's strong order book,
providing further future revenue visibility.

Earlier this year, the Company received an initial purchase order, as detailed
in the Exclusive Distribution Agreement announced on 25 March 2022, for the
evaluation of its mirrorless rear-view Camera Monitoring System (Journeo CMS)
in Sweden with VR Group (formerly Arriva AB, who operate 800 buses in Sweden)
on an articulated bus operating in Stockholm. The Directors believe that this
is the first installation of this type of safety system on any bus in Sweden.

This system is performing well and delivering a number of important driver,
pedestrian and operational safety benefits. On 26 ( )June 2022, the Company
received a follow on purchase order, for 5 additional systems for a wider
fleet evaluation. Whilst not currently material in financial terms, there is
the potential for a significant deployment of the Journeo CMS within Swedish
fleets, and the trial is generating interest from other fleet operators.

Russ Singleton, Chief Executive of Journeo plc commented: "The Group performed
well in H1 2022, generating significant order intake and delivered revenue
growth in both the Fleet and Passenger Systems divisions. Increased demand for
cloud-based applications, which improve productivity and reduce costs is
helping to secure new and existing customers. A strengthening order book and a
growing sales pipeline of future opportunities underpins our confidence for
2022 and beyond."

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                                          +44 (0) 203 651 9166

 Russ Singleton/ Nick Lowe

 Cenkos Securities - Nominated Adviser and Broker     +44 (0) 207 397 8900

 Katy Birkin/ Callum Davidson

Notes to editors:

Journeo plc is an information systems and technical services business focussed
on public transport and related infrastructure within towns, cities, airports,
and local authorities. The Company works extensively with local government
departments, combined authorities, and many of the largest multinational
transport operators, supporting them as systems converge towards a more
efficient and sustainable smarter-cities future.

The business currently comprises two segments:

·    Fleet operator solutions: 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.

·    Passenger transport infrastructure solutions: 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.

In the last 4 years, the Company has invested over £5m in research and
development, enabling it to design and supply the best 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.

 

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  MSCBKKBDFBKKNON