Journeo confident in outlook after year of growth

Transport information systems and technology provider Journeo reported a 15% improvement in revenue in its final results on Monday, to £15.6m.

The AIM-traded firm said its gross profit was ahead 13% for the year ended 31 December, to £6m, while its underlying profit before tax was 37% firmer at £0.6m.

Profit before tax totalled £0.4m, rising from £0.2m in 2020, while profit before tax excluding share-based payments increased to £0.5m from £0.3m.

Cash and cash equivalents at year-end on 31 December totalled £1.1m, down from the £1.3m it recorded at the end of the prior year.

Diluted earnings per share totalled 4.46p, up from 2.26p in 2020.

“Whilst 2021 proved to be another challenging year for public transport as passenger numbers remained significantly below pre-pandemic levels, Journeo showed great resilience throughout, securing a number of strategically important contracts, increasing revenues and profits, investing in research and development, and generating a significant and growing pipeline of opportunities,” said chief executive officer Russ Singleton.

“The cessation of the 'work from home' advice in January 2022 is regarded as a positive step towards encouraging people back to work and to use public transport, with both widely viewed as essential to the UK's economic recovery.

“The government recognises that the recovery needs to support its net-zero carbon targets and is also dependent on public transport being seen as a viable and preferable alternative to personal-use vehicles.”

Singleton said key to that was improving the overall passenger experience, facilitated by investment in carbon-zero vehicles and technology, improving services through real-time insights.

“The government has put in place a number of policies to support the revival of public transport, laying the groundwork for local authorities and transport operators to form ‘Enhanced Partnerships’ as part of the National Bus Strategy for England, and to encourage further use of our railways from the Williams-Shapps Plan for Rail.

“Whilst funding levels may have been impacted by the Covid-19 response, the government continues to invest in town and city infrastructure and the transport networks that feed them.”

Opportunities were beginning to flow from the “substantial funding and spending” that was taking place, Russ Singleton said, with local authority and fleet operator customers re-engaging with renewed momentum.

“The increasing adoption of our IP and technologies reinforces our conviction that a customer-led, applied development strategy is the correct one; and moreover, that it is working.

“We remain focused on delivering ambitious growth plans.”

At 1002 BST, shares in Journeo were down 0.88% at 101.6p.