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
For further information, please contact:
Journeo plc Russ Singleton/ Nick Lowe
+44 (0) 203 651 9166
Cavendish Capital Markets-Nominated Adviser and Broker Katy Birkin/ Callum Davidson
+44 (0) 207 220 0500
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 £'000
Unaudited six months ended 30 June 2024 £'000
Year ended 31 December 2024 £'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 of parent
2,239
2,520
4,520
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 £'000
Share premium £'000
Retained earnings £'000
Total equity shareholders' 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 £'000
Unaudited 30 June 2024 £'000
31 December 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 £'000
Unaudited six months ended 30 June 2024 £'000
Year ended 31 December 2024 £'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 £'000
Unaudited six months ended 30 June 2024 £'000
Year ended 31 December 2024 £'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 £'000
Unaudited six months ended 30 June 2024 £'000
Year ended 31 December 2024 £'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
Underlying profit
9,232
9,002
17,680
Fleet Systems
1,551
552
2,515
Infotec
368
1,750
2,083
Journeo Denmark
124
236
277
Passenger Systems
606
374
193
Central
2,649
2,912
5,068
(38)
(178)
(243)
Underlying profit
2,611
2,734
4,825
Reconciling to profit before interest and tax
Underlying profit/(loss) £'000
Share-based payments £'000
Operating profit/(loss) £'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 six months ended 30 June 2025 £'000
Unaudited six months ended 30 June 2024 £'000
Year ended 31 December 2024 £'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 six months ended 30 June 2025 £'000
Unaudited six months ended 30 June 2024 £'000
Year ended 31 December 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 £'000
Journeo Denmark £'000
Infotec £'000
Total £'000
Deemedcost:
At1January2024
1,345
477
2,236
4,058
At 30 June 2024
1,345
477
2,236
4,058
At31 December 2024 and1January2025
1,345
477
2,236
4,058
At30June2025
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 ended 30 June 2025 %
Unaudited six months ended 30 June 2024 %
Year ended 31 December 2024 %
PassengerSystems
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 six months ended 30 June 2025 £'000
Unaudited six months ended 30 June 2024 £'000
Year ended 31 December 2024 £'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.
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