REG - Journeo PLC - Trading Update

JourneoAnnouncement

28/11/2023 07:00

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RNS Number : 8301U  Journeo PLC  28 November 2023

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.

28 November 2023

Journeo plc

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

 

Trading Update

 

Journeo plc (AIM: JNEO), a leading provider of information systems and
technical services to transport operators and local authorities, is pleased to
report an update on trading for the year ending 31 December 2023 ("FY 2023").

As a result of both organic and acquisitive growth and a strong second half,
the Group expects to deliver revenue for FY 2023 of approximately £46m, ahead
of market expectations.

Strong sales order intake in Journeo's core Fleet Operator Systems and
Passenger Information Systems businesses continues and has surpassed the £27m
achieved for FY 2022 giving good forward earnings visibility into FY 2024.
 Whilst no comparative numbers are available, sales activity for the recently
acquired businesses, Infotec and MultiQ, is in-line with management
expectations.

Sales of lower margin products were higher than expected in H1 2023 and, as
reported in the H1 2023 trading update announced on 1 August 2023, this has
continued throughout most of H2 2023.

As a result, the Company expects adjusted profit before tax for FY 2023 to be
ahead of current market expectations at approximately £3.9m, further
demonstrating the Company's resilience and ability to maintain its performance
despite the challenging macro-economic environment.

Margins are expected to increase in FY 2024 as the effect of component
shortages in supply chains improves, delivery of delayed rail contracts and
associated SaaS revenues commence, and the overall business mix changes as the
Group's integration programme starts to deliver consolidated products design,
unified software and integrated services to its growing international
marketplace.

Russ Singleton, Chief Executive of Journeo plc commented:

"Our continued strong performance in FY 2023 is reflective of a carefully laid
strategy to work closely with our customers to develop leading technology
products and services that encourage the use of public transport, while
reducing emissions and traffic congestion. Journeo's acquisitions in 2023 are
supporting domestic and international growth while creating more opportunities
to integrate systems across transport modes. We have an increasingly
compelling offering, which combined with continued government support and
investment in the sector is delivering our growth plans together with ever
more advanced solutions for our customers."

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
 Cavendish Capital Markets Limited - Nominated Adviser and Broker  +44 (0) 207 220 0500

Katy Birkin/ Callum Davidson

 

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.

·    21st Century AB (based in Stockholm, Sweden): technical services
provider to public transport customers in Sweden.

In the last 4 years, the Company has invested over £5 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.

 

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