Trading Update and Contract Win

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.

For further information, please contact:

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.