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.

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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.