Trading Update

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 2024 ("H1 2024"), and current outlook.

Financial Highlights

• Group revenue increased by 17% to £25.6m (H1 2023: £21.8m)
• Adjusted profit before tax increased by 54% to £2.8m (H1 2023: £1.8m)
• Cash balance increased to £12.8m (H1 2023: £11.3m)
• Sales order intake increased by 33% to £24m (H1 2023: £18m) providing increased visibility into H2 2024 and beyond
• Sales opportunity pipeline increased to £60m

Journeo had a strong H1 2024 with total Group revenue increasing by 17% to £25.6m (H1 2023: £21.8m) and adjusted profit before tax increasing by 54% to £2.8m (H1 2023: £1.8m).

Within the Fleet Systems division, revenue increased by 16% to £9.2m (H1 2023: £7.9m) and within Passenger Systems, revenue increased by 13% to £5.2m (H1 2023: £4.6m).

Infotec and MultiQ continue to trade strongly delivering revenues of £8.5m and £2.7m respectively in the period and each has a number of significant sales opportunities in the pipeline. Sales order intake increased by 33% to £24m (H1 2023: £18m).

Infotec has been advised by its US customer that as a result of passenger ridership on the New York City subway running at 58% of pre-pandemic levels, the next phase of new subway trains will have printed advertising, rather than digital advertising screens. Wiring will however be installed such that if passenger numbers recover, digital displays can be retro-fitted.

Cash balance at 30 June 2024 was £12.8m (H1 2023: £11.3m). The Company's invoice discounting facility of £2.75m was unutilised during the period.

Outlook

Revenue for the full year is expected to be approximately £50m, marginally ahead of current market expectations, with adjusted profit before tax expected to be £0.4m ahead at £4.8m.

The Company expects revenue in H2 2024 to be broadly similar to H1 despite deliveries under the first phase of the US MTA contract completing in July. This demonstrates the resilience of the Group with a strong order book and a growing customer base for its software, products and services.

In addition to strong organic growth, Journeo continues to actively progress its stated strategy for strategic, complementary acquisitions, with an expectation to utilise the Group's excess cash reserves in this regard.

The Company will publish its interim results in September 2024.

Russ Singleton, Chief Executive of Journeo plc commented:

"The record performance in H1 2024 and the uplift in sales order intake reflect the success of Journeo's strategy to harness government-backed growth opportunities in the transport industry. There is increasing recognition by our target client base of our expertise in delivering leading-edge solutions that meet the challenges of increasing the number and quality of journeys using public transport.

We continue to listen to our customers and invest in the research and development of future technologies and software, focusing on high performance, reliability, and sustainability."

A digital copy of this announcement will be available on the Group's website: www.journeo.com.