REG - Journeo PLC - Half-year Report
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RNS Number : 7098A Journeo PLC 25 September 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 September 2025
Journeo plc
("Journeo, the "Company" or the "Group")
Interim results for the six months ended 30 June 2025
Journeo plc (AIM: JNEO), a leading provider of intelligent systems for
transport networks and critical national infrastructure, announces its interim
results for the six months ended 30 June 2025 ("H1 2025").
Financial headlines
· Cash balance increased to £18.0m (H1 2024: £12.9m)
· Adjusted profit before tax of £2.8m (H1 2024: £2.8m)
· Sales order intake increased by 25% to £30m (H1 2024: £24m)
providing increased visibility into H2 2025 and beyond
· Sales opportunity pipeline increased to £80m (H1 2024: £60m)
· Group revenue decreased by 4% to £24.5m (H1 2024: £25.6m) in
line with management expectations and as previously explained
o Strong organic growth within Fleet Systems and Passenger Systems with
revenue up by 46% and 17% respectively
o Infotec revenues down 58% due to phasing of the New York City subway
contract with recent purchase order revenues falling into H2
· Basic undiluted profit per share was 13.01p (H1 2024: 15.30p)
· The Board is confident in meeting full year market expectations
Operational headlines
· Achieved largest ever framework award for the Group in May 2025,
valued at £10m over three years
· Significant £4.2m order received in May 2025 in rail market for
systems based on Journeo core capabilities
· Orders from the USA totalling $5.2m received in the period as
expansion there gathers pace
· Notable contract wins for local authority display systems totalling
£2.5m
· Published Group's first Carbon Reduction Plan
· Strategy to integrate business systems and strengthen Senior
Leadership Team progressing well
· Completed acquisition of Crime and Fire Defence Systems post period
in September 2025
Russ Singleton, CEO of Journeo plc, said: "The Group continues to perform well
and in line with management expectations, keeping Journeo on track to deliver
another record year. Strong organic growth in UK revenues, driven by our Fleet
Systems and Passenger Systems businesses, is propelling the Group forward and
has almost entirely offset the US sales delivered by Infotec in H1 2024. We
are also delighted to have completed the acquisition of Crime and Fire Defence
Systems, a significant milestone that strengthens our platform for growth and
supports our strategy to reach £100m revenue and double-digit operating
profit in the medium term."
A digital copy of this announcement is 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 - Nominated Adviser and Broker +44 (0) 207 220 0500
Katy Birkin/ Callum Davidson
Notes to editors:
Journeo plc is a leading Intelligent Systems provider, delivering sustainable
solutions in towns, cities, airports, and the public transport networks that
connect them while safeguarding critical infrastructure and high-security
environments with advanced access control, intrusion detection, and
surveillance technologies.
The Group has six 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.
· Crime and Fire Defence Systems: specialise in protection of Critical
National Infrastructure sites including utilities, defence and high security
industrial and commercial applications.
· 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 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
networks and infrastructure. With an open standards approach, 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 and Chief Executive's review
Overview
The Board is pleased to report continued strong performance for Journeo.
Trading for the first six months of the year, ending 30 June 2025 ("H1 2025"),
was in line with management expectations and places us on-track to achieve
another record year. The Group is continuing to execute its M&A strategy
and completed the acquisition of Crime and Fire Defence Systems ("CFDS") post
period, in September 2025, adding depth and breadth to Journeo capabilities
in critical 'cost of failure' solutions across public transport, passenger
information and vital national infrastructure installations.
The Group achieved strong organic growth during the period in Fleet Systems
and Passenger Systems, replacing the revenue from the New York City subway
contract that was successfully completed by Infotec in 2024. Further purchase
orders were received for this customer in April and June 2025 that will
benefit H2 2025 revenue.
The Board remains focused on its medium-term goal of taking Journeo beyond
£100 million in revenue, supported by domain expertise, strong margins,
robust risk management, continued investment in talent and systems, and the
growth of our intellectual property. With a solid financial foundation and
clear direction, Journeo is well positioned to deliver long-term sustainable
value.
Strategic progress
The continued execution of our strategy is proving to be highly effective and
is positioning us to achieve greater market share and enter new markets where
our technology can be applied. Underpinned by £6m of investment in
customer-centric Research and Development over the past four years, the Group
has delivered sustained growth through a combination of organic expansion and
targeted acquisitions.
Every acquisition is evaluated to ensure alignment with Journeo's values of
honesty and integrity, our commitment to close customer collaboration, a
culture of engineering excellence, and a passion for technology innovation.
CFDS met these criteria and opens new avenues for organic growth, building on
the momentum of our acquisitions of Infotec and Journeo A/S in 2023. Through
CFDS, we have gained domain expertise in attractive adjacent customer
segments, characterised by high barriers to entry and strong growth potential.
As the Group evolves, we are refining the way we describe our activities into
three profitable categories that better reflect the current corporate
activities and growth opportunities:
· Integrated Services: Packaged solutions combining software,
hardware, and services, supported 24/7
· Information Systems: Visual display of transit information and
infotainment
· Infrastructure Protection: Safety-focused physical and cyber
security of infrastructure
Work to integrate Group business systems to improve collaboration,
organisational capability and efficiency are key aspects of our strategy.
During the first half of the year, we commenced a programme to unify Group
software development tools and systems, which is expected to be materially
complete by the end of the year. We also strengthened our Customer
Relationship Management capabilities through a Group-wide implementation of a
single platform to manage and monitor our pipeline of sales opportunities
across all segments.
In parallel, we continue to build the Senior Leadership Team and invest in new
talent.
The Group's centralised functions continue to provide the services that
support our operating companies, delivering new technologies and solutions
that will fuel future growth. Our development teams are focused on creating
the next generation of world class products and further advancement of our
powerful suite of software solutions.
Financial results
Revenue for H1 2025 decreased by 4% to £24.5m (H1 2024: £25.6m). H1 2024
included £3.4m of revenue from the first phase of the New York City contract,
which successfully completed during 2024. H1 2025 included no revenue from
this contract.
Fleet Systems revenue of £13.5m (H1 2024: £9.3m) and Passenger Systems
revenue of £6.1m (H1 2024: £5.2m) grew by 46% and 17% respectively.
Revenue from Infotec was £3.6m (H1 2024: £8.5m) and from Journeo A/S was
£1.5m (H1 2024 £2.7m), reducing by 58% and 45% respectively.
Fleet Systems' gross profit of £3.8m (H1 2024: £2.3m) increased by £1.5m,
with an increase in overall gross margin to 28% (H1 2024: 25%).
Passenger Systems' gross profit of £2.9m (H1 2024: £2.4m) increased by
£0.5m, with an improvement in gross margin to 48% (H1 2024: 46%).
Infotec gross margin improved to 45% (H1 2024: 38%), delivering a gross profit
of £1.6m (H1 2024: £3.2m), whilst Journeo A/S produced a 61% gross margin
(H1 2024: 40%), delivering a gross profit of £0.9m (H1 2024: £1.1m).
The underlying profit before depreciation and amortisation decreased slightly
by 4% to £2.6m (H1 2024: £2.7m).
The basic undiluted profit per share was 13.01p (H1 2024: 15.30p).
Cash and cash equivalents at the end of the period increased to £18.0m (H1
2024: £12.9m).
Operational review
Fleet Systems
We are delighted that the Fleet Systems business continues to deliver
year-on-year growth. Revenue has increased by 46%, to £13.5m (H1 2024:
£9.3m) and underlying profit increased significantly, by 181% to £1.6m (H1
2024: £0.6m).
In May 2025, we announced the largest UK framework agreement that the Group
has achieved so far. The framework agreement, for the provision of Journeo
Portal SaaS for the secure movement and processing of video, vehicle gateway
and data services, CCTV system upgrades and extended field service management
to First Bus UK, is anticipated to generate £10m of revenue and will run for
three years, through to March 2028. The framework holds the provision for
extensions through to March 2030.
This agreement was swiftly followed in May 2025 by the announcement of £4.2m
of purchase orders from Alstom, a major supplier in the rail industry. The
purchase orders form part of a major refurbishment programme being undertaken
by Alstom to upgrade existing CrossCountry trains and includes the design and
supply of high-performance CCTV and Automatic Passenger Counting ("APC")
systems. The system design is underpinned by Journeo's core IP, enabling the
operator to manage operation-critical data, and demonstrates the flexibility
and robustness of our solutions, with technology originally deployed to the
bus market, now being used by our rail customers.
Further, it is anticipated that approximately £2m of additional revenue will
be generated over five years for SaaS subscriptions, once the trains go into
service.
These multi-year agreements, powered by the advanced software features of the
Journeo Portal, increase our recurring revenue and enable our teams to work
ever closer with customers, creating an environment of continuous improvement.
Passenger Systems
We are pleased with the improved performance of our Passenger Systems
business. Revenue in H1 2025 increased by 17% to £6.1m (H1 2024 £5.2m) and
underlying profit grew by 62%, to £0.6m (H1 2024: £0.4m).
H1 2025 started positively, with two notable contract wins announced in
January 2025.
The first, a £1.4m award from Stoke City Council, was for the delivery,
installation and maintenance of Journeo's double-sided Thin Film Transistor
(TFT) displays on key transport corridors within the region. Part of Stoke
City Council's Bus Service Improvement Plan (BSIP), the displays are enhancing
the passenger experience in the region, delivering real time and scheduled
information to the public and also providing an additional layer of security,
with CCTV to improve safety for lone passengers and those travelling at night.
The second award was a £1.1m purchase order from Cardiff Council to extend
its real time information refurbishment programme, replacing the last of its
legacy 3-line LED displays with TFT technology. Connected to the Transport for
Wales CMS, the displays provide the latest departure data and supplementary
information, such as disruption data, in both English and Welsh. The success
of the implementation has seen the customer expand their estate, with a
further £0.3m orders received following the initial purchase.
Local authorities in the UK continue to invest in their BSIPs and franchising
plans, underpinned by central Government investment, and the demand for
Journeo's display and industry-leading content management technology continues
to grow.
Infotec
Following the successful completion of the New York Subway project in 2024,
and the commencement of UK rail funding Control Period 7, Network Rail's
five-year plan (2024-2029) for operating, maintaining, and renewing the
mainline railway infrastructure in Great Britain, there was a reduction in
revenue from Infotec.
Revenue for H1 2025 decreased 58% year-on-year to £3.6m (H1 2024: £8.5m) and
underlying profit decreased by 79% to £0.4m (H1 2024: £1.8m), as expected.
The relationship with Outfront Media Group ("OFM") and the New York City
Metropolitan Transportation Authority ("MTA") continues to grow in strength,
with two significant orders placed in H1 2025, totalling $5.2m, that will
serve North America's largest transportation network.
In April 2025 we announced a $2.5m purchase order for hot-swap replacement
displays, built to two special configurations used by the MTA. This order
enables Journeo to support both OFM and the MTA to continue to deliver travel
information and promotional material to commuters.
A further $2.7m order was announced in June 2025 for the supply of single and
double-sided passenger information displays for installation on station
platforms. The order marks the first time Journeo IP will be used off-vehicle
in the United States and demonstrates our ability to meet the unique needs of
the New York City subway with our secure and flexible products, software and
services.
Journeo A/S
Performance of Journeo A/S in H1 2025 was broadly in line with H2 2024 but
reduced when compared to H1 2024. This is in line with management
expectations, and we continue to look forward to the opportunities that our
greater presence in the Nordic and Scandinavian markets will achieve.
Year-on-year, revenue decreased 45% to £1.5m (H1 2024: £2.7m) and underlying
profit decreased 47% to £0.1m (H1 2024: £0.2m)
The most notable contract win for Journeo A/S was achieved post period in July
2025, worth a minimum of £1.2m, with Umove, Denmark's largest privately owned
public transport operator. The order included £0.8m of engineering and
installation works for Journeo's APC, real time information, passenger
infotainment and Voice over IP solutions, and is expected to generate £0.4m
of recurring SaaS and SLA revenues during the first three years of the
contract.
ESG update
In May 2025, the Company introduced its first Carbon Reduction Plan, measuring
baseline emissions from our continuing operations. To support this, the Board
has formed a Sustainability Committee, to review and support the development
of the policy and process changes within the Group that will assist us in
achieving Carbon Net Zero by 2050, and meet our interim targets along the way.
The Group has also increased its level of social value activities, supporting
the communities in which we work and where our solutions are deployed. For
example, we are supporting the next generation of Science, Technology,
Engineering and Maths ("STEM") students at Lees Brook Academy in Derby and
their 'Race to the line' challenge.
Outlook
Journeo is on track to deliver another record set of full-year results, in
line with market expectations. The organic growth of our UK systems'
businesses, coupled with the recent acquisition of CFDS in September 2025,
supports the Board's confidence that the business will continue to grow and
deliver shareholder value.
The Board is excited by the prospects the acquisition of CFDS brings, giving
the Group greater capabilities and market reach into Nationally Significant
Infrastructure Project ("NSIP") applications.
The Group retained a strong cash position of £18.0m (H1 2024: £12.9m) at the
period end. The aggregate cash position post-completion of the acquisition was
£9m, ensuring that we maintain the ability to capitalise on further
opportunities that we believe can deliver additional value to the Group.
Looking ahead, the Board remains confident in Journeo's ability to deliver
sustainable growth, underpinned by continued investment in innovation,
strategic acquisitions, and the development of intellectual property. With a
strong financial foundation, a clear strategy, and a growing portfolio of
capabilities, the Group is well positioned to achieve its longer-term
ambitions whilst creating value for shareholders, customers, and other
stakeholders.
Mark Elliott Non-executive Chairman
Russ Singleton Chief Executive
Consolidated statement of comprehensive income
for the six months ended 30 June 2025
Unaudited six months ended 30 June 2025 Unaudited six months ended 30 June 2024 Year ended 31 December 2024
£'000 £'000 £'000
Revenue (notes 4,5) 24,525 25,620 49,558
Cost of sales (15,293) (16,618) (31,878)
Gross profit 9,232 9,002 17,680
Underlying administrative expenses (6,621) (6,268) (12,855)
Underlying profit 2,611 2,734 4,825
Share-based payments (72) (9) (60)
Total administrative expenses and other income (6,693) (6,277) (12,915)
Operating profit 2,539 2,725 4,765
Net Finance income 147 57 188
Profit before taxation 2,686 2,782 4,953
Taxation charge (447) (262) (433)
Profit for the period being total comprehensive profit attributable to owners 2,239 2,520 4,520
of parent
Profit per share (note 6)
Basic 13.01p 15.30p 27.44p
Diluted 12.51p 14.76p 26.29p
Consolidated statement of changes in equity shareholders' funds
for the six months ended 30 June 2025
Share capital Share premium Retained earnings Total equity shareholders'
£'000 £'000 £'000 funds
£'000
Balance as at 1 January 2024 6,753 8,266 (2,281) 12,738
Profit and total comprehensive income for the period - - 2,520 2,520
Share-based payments - - 9 9
Balance at 30 June 2024 6,753 8,266 248 15,267
Balance at 1 January 2024 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
Profit and total comprehensive income for the period - - 2,239 2,239
Proceeds from issue of new shares 32 51 - 83
Share-based payments - - 72 72
Balance at 30 June 2025 6,785 8,317 4,610 19,712
Consolidated statement of financial position
at 30 June 2025
Unaudited 30 June 2025 Unaudited 30 June 2024 31 December
£'000 £'000 2024
£'000
Assets
Non-current assets
Goodwill (note 7) 4,058 4,058 4,058
Other intangible assets 2,663 2,722 2,647
Property, plant and equipment 1,381 1,534 1,563
Deferred Tax asset 243 269 185
Trade and other receivables 39 40 39
8,384 8,623 8,492
Current assets
Inventories 6,920 6,520 7,256
Trade and other receivables 9,302 8,369 12,084
Cash and cash equivalents 18,010 12,904 14,318
34,232 27,793 33,658
Total assets 42,616 36,416 42,150
Equity and liabilities
Shareholders' equity
Share capital 6,785 6,753 6,753
Share premium account 8,317 8,266 8,266
Retained earnings 4,610 248 2,299
Total equity 19,712 15,267 17,318
Non-current liabilities
Deferred revenue 4,354 3,874 4,501
Other payables - 82 -
Loans and borrowings 80 140 99
Lease liabilities 608 737 726
Deferred Tax 319 25 319
Provisions 1,508 2,410 2,048
6,869 7,268 7,693
Current liabilities
Trade and other payables 4,858 5,500 7,513
Deferred revenue 8,078 5,850 6,677
Loans and borrowings 72 16 119
Lease liabilities 293 219 299
Tax liabilities 1,867 1,424 1,826
Provisions 867 872 705
16,035 13,881 17,139
Total equity and liabilities 42,616 36,416 42,150
Consolidated statement of cash flows
for the six months ended 30 June 2025
Unaudited six months ended 30 June 2025 Unaudited six months Year ended 31 December
£'000 ended 30 June 2024 2024
£'000 £'000
Net cash from operating activities (note 8) 4,397 5,550 7,591
Cash flows from investing activities
Purchases of property, plant and equipment (69) (78) (170)
Purchases / generation of intangible assets (485) (520) (910)
Net cash from investing activities (554) (598) (1,080)
Financing activities
Cash flow from financing activities - - 40
Principal element of lease repayments (165) (138) (299)
Issue of shares 83 - -
Repayment of loans (69) (24) (50)
Net cash from financing activities (151) (162) (309)
Net increase in cash and cash equivalents 3,692 4,790 6,202
Cash and cash equivalents at beginning of period 14,318 8,116 8,116
Effect of foreign exchange rate changes - (2) -
Cash and cash equivalents at end of period 18,010 12,904 14,318
Notes to the interim financial statements
for the six months ended 30 June 2025
1. Basis of preparation and approval of interim statement
The financial information for the six months ended 30 June 2025 and for the
six months ended 30 June 2024 is unaudited.
The interim financial statement for the six months to 30 June 2025 does not
include all of the information required for full annual financial statements
and should be read in conjunction with the consolidated financial statements
for the year ended 31 December 2024.
The financial information has been prepared on the basis of UK adopted
international accounting standards (IFRSs) that the Directors expect to be
applicable as at 31 December 2025.
The accounting policies adopted in the preparation of the interim financial
statements are consistent with those set out in the Group's Annual Report and
Financial Statements 2024, which were prepared in accordance with IFRSs.
This interim financial statement does not comprise statutory accounts within
the meaning of Section 435 of the Companies Act 2006. Statutory accounts for
the year ended 31 December 2024 were approved by the Board on 25 March 2025
and delivered to the Registrar of Companies. The report of the auditor on
those accounts was unqualified, did not contain an emphasis of matter
paragraph and did not contain any statement under Section 498(2) or Section
498(3) of the Companies Act 2006.
AIM-quoted companies are not required to comply with IAS 34 'Interim Financial
Reporting' and accordingly the Company has not applied this standard in
preparing this report.
The interim financial statement was approved by the Board of Directors on 25
September 2025.
2. International Financial Reporting Standards
The Group follows the standards and interpretations issued by the
International Accounting Standards Board (IASB) and the International
Financial Reporting Interpretations Committee of the IASB and endorsed by the
UK that are relevant to its operations.
3. Going concern
The Group's business activities together with factors likely to affect its
future development, performance and position were set out in the Strategic
Report and Chairman's Statement of the 2024 Annual Report and the principal
risks and uncertainties were set out in the Strategic Report. The Directors
have reviewed the cash flow forecasts for the period up to and including 31
December 2026.
Based on the above, 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 twelve months from the date of the report.
For this reason the Directors continue to adopt the going concern basis in
preparing the financial statements.
4. Revenue
The revenue split between goods and services is:
Unaudited six months ended 30 June 2025 Unaudited six months Year ended 31 December
£'000 ended 30 June 2024 2024
£'000 £'000
Revenue
Goods 19,352 20,550 38,661
Services 5,173 5,070 10,897
24,525 25,620 49,558
Construction contracts included in goods 4,674 4,131 7,171
5. 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.
Unaudited six months ended 30 June 2025 Unaudited six months Year ended 31 December
£'000 ended 30 June 2024 2024
£'000 £'000
Revenue
Fleet Systems 13,494 9,250 23,692
Infotec 3,567 8,486 12,421
Journeo Denmark 1,489 2,732 4,033
Passenger Systems 6,080 5,199 9,503
Intersegment Sales (105) (47) (91)
24,525 25,620 49,558
Gross profit
Fleet Systems 3,785 2,297 6,688
Infotec 1,613 3,205 4,617
Journeo Denmark 912 1,090 1,937
Passenger Systems 2,922 2,410 4,438
9,232 9,002 17,680
Underlying profit
Fleet Systems 1,551 552 2,515
Infotec 368 1,750 2,083
Journeo Denmark 124 236 277
Passenger Systems 606 374 193
2,649 2,912 5,068
Central
(38) (178) (243)
Underlying profit 2,611 2,734 4,825
Reconciling to profit before interest and tax
Underlying profit/(loss) Share-based payments Operating profit/(loss)
£'000 £'000 £'000
Fleet Systems 1,551 (23) 1,528
Infotec 368 (24) 344
Journeo Denmark 124 (18) 106
Passenger Systems 606 (7) 599
2,649 (72) 2,577
Central (38) - (38)
Total 2,611 (72) 2,539
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.
Unaudited Unaudited Year ended
six months
six months
31 December
ended 30 June 2025 ended 30 June 2024
2024
£'000 £'000
£'000
Assets
Fleet Systems 8,515 7,894 13,488
Infotec 3,947 4,364 3,120
Journeo Denmark 2,430 1,960 2,083
Passenger Systems 5,500 5,155 5,032
20,392 19,373 23,723
Goodwill 4,058 4,058 4,058
Cash and borrowings 18,010 12,904 14,318
Unallocated 156 81 51
42,616 36,416 41,150
Liabilities
Fleet Systems (5,672) (2,971) (8,031)
Infotec (4,164) (5,503) (4,584)
Journeo Denmark (532) (744) (404)
Passenger Systems (11,752) (11,605) (11,313)
(22,120) (20,823) (24,332)
Cash and borrowings (644) (156) (218)
Unallocated (140) (170) (282)
(22,904) (21,149) (24,832)
Net assets / (liabilities)
Fleet Systems 2,843 4,923 5,457
Infotec (217) (1,139) (1,464)
Journeo Denmark 1,898 1,216 1,679
Passenger Systems (6,252) (6,450) (6,281)
(1,728) (1,450) (609)
Goodwill 4,058 4,058 4,058
Cash and borrowings 17,366 12,748 14,100
Unallocated 16 (89) (231)
19,712 15,267 17,318
6. Profit per Ordinary Share
Details of the weighted average number of Ordinary Shares used as the
denominator in calculating the basic and diluted earnings per Ordinary Share
are given below:
Unaudited Unaudited
six months six months Year ended
ended 30 June 2025 ended 30 June 2024 31 December
£'000 £'000 2024
£'000
Basic weighted average number of shares 16,891 16,475 16,475
Dilutive potential Ordinary Shares 670 594 716
17,561 17,069 17,191
7. Goodwill
Goodwill acquired in a business combination is allocated at acquisition to the
cash-generating unit (CGU) that is expected to benefit from that business
combination. The Group has four CGUs which are its four operating segments,
Fleet Systems, Passenger Systems, Journeo Denmark and Infotec. The carrying
amount of goodwill has been allocated to the CGUs as follows.
Journeo Passenger Systems Limited Infotec Total
£'000 Journeo Denmark £'000 £'000
£'000
Deemed cost:
At 1 January 2024 1,345 477 2,236 4,058
At 30 June 2024 1,345 477 2,236 4,058
At 31 December 2024 and 1 January 2025 1,345 477 2,236 4,058
At 30 June 2025 1,345 477 2,236 4,058
The Group tests goodwill annually for impairment as at 31 December, or more
frequently if there are indications that goodwill might be impaired.
The recoverable amounts of the CGUs are determined based on a value-in-use
calculation which uses cash flow projections based on financial budgets and
business plans approved by the Directors covering a five-year period. Cash
flows beyond that period have been extrapolated in perpetuity assuming no
growth, which the Directors consider to be a conservative approach.
The key assumptions for the value-in-use calculations are those regarding
discount rates and sales forecasts.
The discount rates needed to equate the net present value from these cash
flows to the carrying value of goodwill are compared to the required rate of
return from the CGU based upon an assessment of the time value of money,
prevailing interest rates and the risks specific to the CGU. If this discount
rate is in excess of the required rate of return then it is assumed that no
impairment has occurred to the carrying value of goodwill.
The discount rates are as follows:
Unaudited six months Unaudited six months Year ended
ended 30 June 2025 ended 30 June 2024 31 December 2024
% % %
Passenger Systems 13 13 13
Journeo Denmark 13 13 13
Infotec 13 13 13
The discount rates used are based on the Board's judgement considering
macroeconomic factors and reflecting specific risks in each segment such as
the nature of the market served, the concentration of customers, cost profiles
and barriers to entry.
Passenger Systems also has intangible assets, which are considered in the same
value-in-use calculations as goodwill.
The Passenger Systems cash flow projections used to determine value in use are
based upon assumptions of sales, margins and cost bases. Of these assumptions,
the value in use is most sensitive to the level of sales. Margins are fixed in
the forecast based upon past experience; the cost base is similarly based upon
past experience and will vary depending upon the level of sales. In accordance
with the requirements of IAS 36 our value-in-use calculations do not include
cash flows from restructurings to which the Group is not yet committed.
The level of sales is the key assumption used in the cash flow forecast. Sales
have been determined by management using estimates based upon past experience
and future performance with reference to market position and the sales
pipeline. The macroeconomic environment has improved and there continues to be
an increase in the number and size of contracts available.
Sensitivity analysis has been performed on the pre-tax discount rates, which
shows that a pre-tax discount rate of 38.9% (Passenger Systems), 16.7%
(Infotec) or 31.2% (Journeo Denmark) would be required in order to eliminate
the headroom which exists in these CGUs. The Directors consider that the
discount rates used, which are already risk adjusted to capture the Directors'
view of the extent to which each CGU is exposed to macroeconomic factors,
represent a balanced view.
A sensitivity analysis has been performed on the impairment test. The
Directors consider that an absolute change in the key sales assumption is
possible and a reduction in the sales forecast in 2025 of 5% would result in
headroom remaining in the current carrying value of goodwill. If sales
forecasts were down 10% across the whole period and overheads remained
unchanged then headroom would still remain.
The Directors believe that, based on the sensitivity analysis and stress
testing performed, any reasonably possible change in the key assumptions on
which the recoverable amounts are based would not cause the carrying amounts
to exceed the recoverable amounts.
The value in use for the Group exceeds the carrying value of the assets.
In view of this, the Directors consider that no impairment of goodwill or
intangible assets is required.
8. Cash generated from operations
Unaudited Unaudited Year ended
six months
six months
31 December
ended 30 June 2025 ended 30 June 2024
2024
£'000 £'000
£'000
Profit for the period 2,239 2,520 4,520
Adjustments for:
- Finance income (147) (57) (188)
- Deferred tax (58) - 299
- Depreciation of property, plant and equipment 253 240 464
- Amortisation of intangible fixed assets 469 484 966
- Share-based payment expense 72 9 60
- Loss on disposal of fixed assets - (6) -
- (Decrease) / increase in provisions (377) 270 (259)
- Foreign exchange rate - - (30)
Operating cash flows before movement in working capital 2,451 3,460 5,832
Decrease / (increase) in inventories 336 348 (388)
Decrease in receivables 2,828 5,300 126
(Decrease) / increase in payables (1,360) (3,919) 2,221
Cash inflow from operations 4,255 5,189 7,791
Income taxes (paid) / received (46) 260 (471)
Net interest earned 188 101 271
Net cash inflow from operating activities 4,397 5,550 7,591
9. Post balance sheet events
On 2 September 2025, Journeo plc acquired 100% of the share capital of Crime
and Fire Defence Systems Limited ("CFDS"). CFDS is a specialist infrastructure
protection systems integrator in physical and cyber security solutions to the
UK Critical National Infrastructure, Defence and Utilities markets.
Due to the short timeframe between completion of the acquisition and approval
of these financial statements, it was not possible to reliably estimate the
fair values of assets and liabilities, or the goodwill associated with the
acquisition.
On 5 September 2025 225,366 new Ordinary Shares were issued and admitted to
trading on AIM.
- Ends -
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