TIDMJNEO
RNS Number : 3774U
Journeo PLC
28 March 2023
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 March 2023
Journeo plc
("Journeo, "Company" or "the Group")
Final results for the year ended 31 December 2022 and Investor
Presentation
Journeo plc (AIM: JNEO), the information systems and transport
technical services group, is pleased to announce its final results
for the year ended 31 December 2022.
Financial headlines
-- Revenue increased 35% to GBP21.1m (2021: GBP15.6m)
-- Gross profit increased 29% to GBP7.8m (2021: GBP6.0m)
-- Underlying profit before tax doubled to GBP1.2m (2021: GBP0.6m)
-- Profit before tax GBP0.9m (2021: GBP0.4m)
-- Profit before tax excluding share-based payments was GBP1.0m (2021: GBP0.5m)
-- Cash and cash equivalents at 31 December 2022 GBP0.5m (2021: GBP1.1m)
-- Diluted earnings per share was 9.80 pence (2021: 4.46 pence)
Operational headlines
-- Strong growth in SaaS subscriptions to the Journeo Portal,
increasing connections by 150% over the period to 10,000 connected
vehicles (2021: 4,000).
-- Continued investment in Research and Development as a core component of the Company strategy.
-- Extensive work with our supply chain to ensure availability of key components.
-- Large-scale adoption of Journeo technologies including the
Group's largest ever three-year GBP9m framework agreement with
First Bus UK and largest software-led sale following a two-year
GBP1.2m agreement with Scotrail.
-- Expansion of our Airport capabilities following the GBP0.7m
award at Dublin Airport for passenger transfer solutions and
GBP0.9m order for high-precision airside telematics at Heathrow
Airport.
-- Further progress in our Environmental, Social and Governance (ESG) reporting
-- Retained all ISO 9001, 14001, 27001 and 45001 accreditations
and Cyber Security and ICO certification.
Post year end
-- Acquisition of Infotec for GBP8.7m following oversubscribed placing and retail offer
Russ Singleton, CEO of Journeo plc, said: "I am very pleased
with our performance in 2022 which saw sustained improvement in
order intake, revenues and profits. This performance was delivered
in a continuing challenging market environment coupled with
pressure on our global supply chain. It is a reflection of our
unwavering focus to execute on our strategy, which is proving
effective. The recent acquisition of Infotec, complements our
existing business and strategy well, and the enlarged group
strengthens our position further with a healthy order book and
growing sales pipeline based on our intellectual property and
expert knowledge."
Investor Presentation
The Company is pleased to announce that Russ Singleton, Chief
Executive Officer and Nick Lowe, Chief Financial Officer, will
provide a live presentation relating to the Final Results via the
Investor Meet Company platform on 5 April 2023 at 12:00pm BST.
The presentation is open to all existing and potential
shareholders. Questions can be submitted pre-event via your
Investor Meet Company dashboard up until 9am the day before the
meeting or at any time during the live presentation.
Investors can sign up to Investor Meet Company for free and add
to meet Journeo via:
https://www.investormeetcompany.com/journeo-plc/register-investor
Investors who already follow Journeo on the Investor Meet
Company platform will automatically be invited.
A digital copy of this announcement will be 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
Cenkos Securities - Nominated Adviser and Broker
K aty Birkin/ Callum Davidson +44 (0) 207 3 97 8900
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 currently has three operating companies:
-- Journeo Fleet Systems Ltd: 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 Ltd: 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 Ltd: design, advanced manufacture, installation and
software management of information displays hardware for rail
applications in stations, on-platform and on-vehicle.
In the last 4 years, the Company has invested over GBP5 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.
Chairman's Statement
I am pleased to report that the Company continues to make
excellent progress both in terms of financial performance and the
development of its solutions. Completing the acquisition of Infotec
Group Ltd in January 2023 also marked a significant move forward
for the Group.
Infotec is a business that we have tracked with interest for
several years, and we are delighted to welcome their customers
alongside the management and wider teams of Infotec as they join
the Journeo Group of companies. Infotec's expertise in the rail
market will support the Company as we execute our strategy to
further diversify our customer base and increase the potential
markets that we can reach with Journeo's core technologies.
The transport market's recovery from the pandemic is ongoing.
The UK Government's drive to improve public transport services
through a range of funding streams continues and is a core tenet of
their strategy to lead the UK to a Net Carbon Zero future, where
mass transport and active travel options are the de facto choice
for journeys over personal-use and privately owned vehicles. The
continued development of our solutions supports this goal,
providing operators with powerful new tools to help manage their
fleets, local authorities the means to supply the travelling public
with essential information and now, with the addition of Infotec,
railway operating companies the ability to distribute on-platform
information.
Trading results
Group results for the year ended 31 December 2022 show
underlying profit increased 83% to GBP1,158k (2021: GBP634k).
Overall sales increased by 35% to GBP21.1m (2021: GBP15.6m) and
gross profit increased by 30% to GBP7.8m (2021: GBP6.0m).
Fleet sales increased by 34% to GBP12.5m (2021: GBP9.3m) as bus
operators increased investment. Gross profit increased to GBP3.7m
(2021: GBP2.9m) with margins decreasing to 30% (2021: 31%) as
hardware with a future software benefit was installed.
Passenger sales increased by 37% to GBP8.6m (2021: GBP6.3m).
Margins decreased to 47% (2021: 49%) due to a higher proportion of
new system installations, and gross profit increased to GBP4.1m
(2021: GBP3.1m).
Underlying administrative expenses increased to GBP6.7m (2021:
GBP5.6m) as expenditure returned to pre-COVID-19 levels, further
investment was made, and inflationary cost increases were felt.
Profit before tax was GBP0.9m (2021: GBP0.4m).
Diluted earnings per share (EPS) was 9.80p (2021: 4.46p).
Cash and cash equivalents closed the year at GBP0.5m (2021:
GBP1.1m).
Markets
To achieve the 2050 Carbon Net Zero goal of the UK Government,
mass adoption of public transport and active travel is needed. To
reduce the pollution caused by personal-use vehicles, a migration
to new technologies is required; to ease congestion, only
encouraging people out of their cars and on to buses, trains and
trams or to select options such as walking and cycling, will
achieve this.
Conditions in the transport market remain challenging. Changes
in people's work patterns to include a greater level of working
from home and 'hybrid' working have reduced the vitally important
commuter spend that operators rely on to achieve economic
viability. This, coupled with the safety concerns surrounding
personal space, made the COVID-19 pandemic almost the perfect storm
for public transport.
However, there are signs of recovery. Bus travel, the most
popular form of public transport, may still remain some 27% behind
pre-COVID levels of usage, but Department for Transport (DfT)
statistics for 2021/2022 show a 55% increase in bus passenger
journeys across the year, indicating that public confidence in mass
transit is returning.
Public concern over the cost-of-living crisis is also playing a
part. With energy and fuel costs soaring, selecting the more
cost-efficient and environmentally friendly option of taking the
bus or catching a train should be seen as a win-win situation for
all parties. The UK Government's introduction of the GBP2 fare cap
(January to March 2023) supports this and is an initiative that
Journeo is fully behind.
Operators' investments in new vehicles, which has maintained
historic lows in recent years, is also starting to revitalise as
bus operators seek to replace ageing fleets with electric and
hydrogen fuel cell buses, supported by the Zero Emission Bus
Regional Areas (ZEBRA) funding scheme from the UK Government.
Whilst we are yet to see a return to the previous norm of 5-7% of
vehicle fleets renewal per year, the signs are encouraging.
One of the biggest challenges for operators throughout the year
was the shortage of qualified bus drivers. During the COVID-19
pandemic, many drivers were enticed away from the industry and
elected to move to work in adjacent markets and achieved
substantively higher levels of pay, such as haulage. As the
recovery began, operators were left in the stark position where
services needed to be cut, as they simply could not put the
vehicles on the road.
Our Content Management Software (CMS) known as EPIX, has for
many years been able to alert passengers to cancellations,
curtailments and delays but is reliant on upstream systems having
the capability to produce the data. A combination of opening our
system usually reserved for local authorities, to operators and
improvements in systems earlier in the data chain, is improving the
level of information to passengers, but further work remains to
give passengers the confidence that they can rely on public
transport.
Local authorities and Transport Executives are working
continuously to promote public transport and substantive backing
from the UK Government, first through the Transforming Cities Fund
and more recently through the Bus Service Improvement Plans (BSIPs)
submitted in late 2021, is beginning to be realised. BSIP awards
totalling GBP1.2bn for local authorities and GBP5.7bn City Regional
Sustainable Transport Scheme (CRSTS) funding allocations were made
over the course of the year and parties are beginning to mobilise
to deliver the projects required to improve public transport.
As Control Period 6 (CP6) ends and Control Period 7 (CP7)
appears on the horizon of April 2024, there is still a lack of
clarity about what changes we will see in the rail market. The
future evolution of Network Rail to Great British Railways looks
set to take place and be based locally to our Ashby headquarters,
in nearby Derby, and we wait to see what improvements will be
delivered through the Williams-Shapps Review for Rail. One thing
that remains certain, however, is that inter-city travel will need
to become less costly and more efficient to encourage people away
from their cars, while providing passengers with the information
they need to plan and adapt their journeys is crucial.
Strategy
Our strategy is proving effective and the recent acquisition of
Infotec, which has historically taken a very similar approach to
ours in the rail market, complements this well. We continue to have
discussions with potential complementary acquisitions and expect
that we will be able to complete additional suitable transactions
in future.
The deep and long-lasting bonds that we build with our customers
continue to enable Journeo to identify current and future
anticipated requirements within our target markets. Focused
Research and Development in areas where we identify tasks that can
be done more cost-effectively, more efficiently or to a higher
quality allows us to build Intellectual Property (IP) and deploy
core Journeo technology to add value to our customers and give them
the tools they need to overcome their challenges.
The Journeo Portal has proved central to this as it is a highly
secure web-based SaaS application that empowers transport operators
to monitor the health and performance of their systems in real
time. Throughout 2022 we achieved our target of surpassing 10,000
vehicle connections, each generating monthly recurring revenue,
marking a 150% increase on the connections the application had at
the close of 2021. Having reached this milestone, we will,
alongside continuing connection growth, be focusing our attention
on extending the capabilities of the back-end infrastructure
required to include systems deployed through our Passenger
Transport Infrastructure Systems business within the application.
There are a number of pre-qualified opportunities on the horizon
that support the need for a single application to manage transport
networks. Managing all customers through a single solution will
additionally enable the Company to enhance and streamline services
further.
COVID-19
The Group is still feeling the impact of COVID-19, most notably
on our supply chain, and we continue to closely monitor the
situation.
Recent developments in China, the conflict in the Ukraine and
the evolution of a new variant strain of COVID-19 are areas where
we are focusing our attention, but we remain confident that having
navigated the challenges of the past few years, we have the
infrastructure and process in place to mitigate identified
risks.
Environmental, social and governance
The Group continues to leverage the expertise of external
consultants to support our work on developing a clear set of
strategies and targets for our environmental, social and governance
activities.
Throughout 2022, the Company maintained all ISO and cyber
security accreditations.
People
It brings me great pleasure to be able to both thank the
continuing dedication of our existing people and welcome new team
members into the Journeo Group.
The continuing commitment of our people is playing an important
role in building the capabilities of the Group, which in turn is
strengthening our position as an emerging market leader and
supporting our customers in moving to connected systems based upon
open standards.
I am eager to see this continue as the Company moves into a new
and exciting era that will include a wider range of customers and
the potential for an increasing amount of valuable solutions.
I would also like to take this opportunity to welcome Barnaby
Kent as Non-executive Director to the Board at an exciting time in
Journeo's development and look forward to the important input he
will be able to make as we progress our growth strategy.
Outlook
2022 can be seen as a defining point in the development of
Journeo. Over the course of the year our Fleet Systems business has
grown strongly and increased adoption of our SaaS-based solutions
to more than double the amount that we had at the close of 2021.
This is providing the Group with quality earnings and recurring
revenue.
Furthermore, we have seen our Passenger Infrastructure business
grow, capitalising on Government investment through TCF and BSIPs,
resulting in increased revenue throughout 2022 and a commitment to
bolster our current EPIX CMS software through integration into the
Journeo Portal.
Independently of the acquisition of Infotec, our Fleet Systems
and Passenger Infrastructure businesses have order books of
unprecedented strength and an increasing pipeline of opportunities.
Adding the capabilities, revenue and pipeline of Infotec into this
underpins our confidence that Journeo is moving into a period of
exciting change and growth in the next few years.
Challenges, of course, remain. Pressure on global supply chains
is likely to persist well into 2023 and beyond; the possibility of
escalating conflict in Ukraine and escalating tensions between
China and Taiwan have the potential to destabilise all businesses
and Government focus on some Far East supply partners are
continuing areas of attention for the Board. We remain vigilant in
these areas and have confidence that we have teams who retain
agility and dedication to respond to any emerging risk, creating
mitigating strategies where appropriate.
Following the acquisition of Infotec, we continue to evaluate
complementary and bolt-on acquisitions that can both support the
Group in executing its strategy and deliver enhanced value to our
shareholders.
The Board remains focused on delivering our growth plans
throughout the course of 2023 and beyond, ensuring that we continue
the current trajectory of the Group and deliver evermore of our
advanced solutions to customers in the UK and internationally.
Mark Elliott
Non-Executive Chairman
28 March 2023
Chief Executive's Statement
Introduction and strategy update
The Company is making significant progress within the UK public
transport market in its journey to be recognised as a leading
provider of intelligent transport systems.
Against a backdrop of a slowly recovering transport market,
Journeo has achieved dramatic growth in the number of connections
to our cloud-based SaaS solution, the Journeo Portal; grown the
deployment of our safety-critical digital wing mirror replacement
system; continued to support local authorities and transport
executives in making public transport more accessible; and, at the
end of the period, made strategically important inroads into the
rail market. This organic growth, which will further be supported
by the acquisition of Infotec completed just outside of the year in
January 2023, demonstrates the ongoing positive trajectory of
Journeo.
The acquisition is an important landmark for the Company,
providing us with a wider and more diverse customer base, both in
the UK and overseas, in which to embed core Journeo technology. Any
business that joins the Journeo family of companies are selected
for their existing alignment to the main principles of our
strategy. Infotec demonstrates technology leadership and domain
expertise in its target markets, achieved through close customer
bonding and engineering excellence.
Both domestically and internationally there is continued
momentum to achieve a Carbon Net Zero future, and initiatives for
mass public transportation and active travel are key to achieving
this. The solutions that Journeo provide, from the promotion and
awareness of public transport options, through to the safety and
comfort of passengers on-board vehicles, support this goal, making
them just one of the many elements required to help people choose
greener, more sustainable forms of movement over the personal-use
car.
We continue to concentrate our Research and Development with
over GBP5m invested in the last four years to ensure that, our
technologies and solutions support customers in prolonging the
operational life of legacy equipment, deliver insightful and usable
information from the systems purchased today and future-proof them
for the developments of tomorrow, leveraging available open
standards.
Operational review
Passenger Transport Infrastructure Systems
I am pleased to report that Passenger Systems performed in line
with our expectations and delivered revenue growth of 37% across
the year with revenues increasing to GBP8.6m (2021: GBP6.3m).
In March 2022, we announced a GBP2.1m purchase order for
displays technology from City of Edinburgh Council. Whilst this
formed part of spending indicated in a previously announced
framework agreement (December 2019), the achievement of securing
this order was by no means a foregone conclusion. Enhanced
requirements from the original award required intensive work from
our development teams to design new displays technology that is
able to operate at lower power consumption rates and still offer
the same level of functionality. I am delighted that through the
ingenuity and dedication of our development teams, we were able to
rise to meet this challenge, and Scotland's capital city will soon
be in receipt of new optically bonded TFT displays that deliver
higher contrast, lower reflection levels and increased readability,
even in full sunlight, at a lower power consumption.
One important industry development over the course of 2022 has
been the introduction of a new Content Management System to
Passenger Information Display (CMS to PID) interface standard that
defines the communication protocols between back-end software
systems and displays. Whilst system-to-system communication has
been defined for many years by industry-wide adoption of CEN
(European Committee for Standardisation) standard interfaces, the
final link in the data chain between a CMS and a display has not
had the same attention and most usually relied upon proprietary
standards.
The Real Time Information Group (RTIG) embarked on a project to
change this. Funded by Transport for Wales (TfW), RTIG sought to
introduce a standard protocol that could be used for TFT, LED and
low-power displays. Journeo has played an active role in creating
this standard and has participated in the Working Groups to define
it, providing our deep industry knowledge to its creation. Some
parts of the standard remain in draft form, but it continues to
progress well.
This new standard has been welcomed by local authority
customers, who so often have been locked to existing suppliers when
selecting technology for deployment within their information
estate. As such, adoption or future adoption of this protocol is
beginning to become a standard requirement in tender specifications
and in June 2022 we announced a contracts award totalling GBP1.7m
with Nottingham City Council for solutions that will rely upon this
development.
The larger of the contracts, valued at GBP1.4m, will see Journeo
upgrade 1,600 legacy displays away from radio-based solutions to
operate on 4G and 5G technology, communicating exclusively on the
new protocol. The balance of GBP0.3m is for the delivery of a new
intelligent messaging platform that will enable the authority to
automate messaging from multiple sources, both human and
machine-based, for delivery to displays. The second award, whilst
smaller in value, has significant strategic benefits for Journeo as
we look to integrate the EPIX CMS into the Journeo Portal
platform.
The success of the business continued across the year, with
multiple awards for a Northern Transport Partnership and purchase
orders for displays technology of GBP0.6m in July 2022, GBP0.7m in
early December 2022 and a further GBP0.5m just before the year
end.
The partnership's continued investment in Journeo technology is
a fundamental part of their plan to improve the level of
information provided to travellers at bus stations, interchanges,
travel hubs and along key transit corridors.
The development of our Passenger Transport Infrastructure
Systems business is quite impressive since its formation following
the acquisition of Region Services in 2015. At the outset, it was
clear that there were significant barriers to entry that prevented
us from accessing new customers. Contractual and technological
lock-ins were also preventing the business from reaching its
potential and we have worked hard to overcome or remove many of the
obstacles. In addition to the new RTIG CMS to PID standard, we have
created new procurement routes for our customers. We have been
listed on the Crown Commercial Service's Transport Technology and
Associated Services (TTAS) framework since late 2021 and were
accepted on to the Smart Applications Management (SAM) displays
framework in June 2022. Whilst no monetary value is yet attached to
this framework, it is expected to play a central role in the
redevelopment of real-time information estate in Wales and across
the United Kingdom. I am encouraged that as we apply more of our
development resource to the business across the course of 2023, we
have the procurement routes and technical agility to further
develop the business.
Fleet Transport Operator Systems
Our Fleet Transport Operator Systems business has performed well
over the course of 2022 with revenues increasing 34% to GBP12.5m
(2021: GBP9.3m); in part due to the increase in investment of bus
operators. However, the impact our core technology and exclusive
supply agreements from our partners have had in securing orders and
framework agreements cannot be underestimated.
A key aspect of our success, during the extended period of
suppressed vehicle orders has been the implementation of the
Journeo Camera Monitoring System, also known as our digital wing
mirror system. A safety-critical solution that formed part of the
Transport for London (TfL) Vision Zero specification, the solution
replaces traditional wing mirrors with high-definition analogue
cameras and internal monitors that improve visibility of the
surrounding road conditions for the driver.
Since introduction in 2018 we have supplied and installed these
solutions on over 1,000 buses and in March 2022 secured an
agreement for a three-year extension to our exclusive supply
agreement which includes the UK bus market and Scandinavia, where
trials of the system were deployed across the course of the year.
This market-leading solution continues to gain interest and in the
year we achieved our first retrofit system trials, which may
significantly extend the number of vehicles that can now access
this safety-critical system. We continue to develop the solution
with the OEMs and demonstrated prototype technology at the Euro Bus
2022 exhibition at the NEC in November 2022.
In April 2022 we were delighted to announce a three-year, GBP9m
framework with First Bus UK. The framework also has the potential
for a further two-year extension, which would take the agreement
through to March 2027. Based upon our core technology and SaaS
Journeo Portal product, the framework is the largest ever achieved
by Journeo and enables us to provide tracking, video management and
remote condition monitoring services of on-vehicle systems across
the entirety of the operator's 4,500-strong fleet of vehicles.
This widescale adoption of Journeo technology is a demonstration
of the close bond that we hold with our customers, which enables us
to better understand their needs and adapt our technology to
deliver solutions that improve operational efficiency at lower
cost. Between its launch in October 2019 and the close of the year
in December 2022, the Journeo Portal has grown exponentially and
now has over 10,000 vehicle connections, with more expected over
the course of 2023. Our Fleet Transport Operator Systems business
has undoubtedly been a benefactor of our technology advancements
and a ratification of the need for our continued investment in
Research and Development.
In September 2022 our Airport Passenger Transfer solutions
experienced further success with the GBP0.7m award for systems to
be deployed for Aircoach at Dublin Airport, marking the first
deployment of our solutions outside of the UK. The powerful
operation management software supports the operator in running an
efficient and timely service transporting passengers to the
terminal buildings and will join London Gatwick, London Stansted,
London Heathrow and Bristol airports in running on Journeo
technology.
Whilst we have historically focused on solutions for bus, we
have maintained a small and dynamic team to address the rail market
and their work this year has been rewarded with two major awards.
The first, in January 2022 was for a GBP0.7m award for the supply
and support of high-definition Forward-Facing CCTV (FFCCTV) systems
to GBRf. The systems are also connected to our SaaS platform, the
Journeo Portal, demonstrating the adaptability of our core
technology to adjacent markets.
The second and more significant award was achieved at the end of
the year, in December 2022, where Network Rail awarded Journeo with
a GBP1.2m contract to connect third-party systems to our Journeo
Portal, on behalf of ScotRail. The two-year licensing agreement is
the first major software-led contract that the Company has secured
and demonstrates the confidence in the cyber-security employed to
enable image-sharing between Network Rail, a Train Operating
Company (TOC) and the British Transport Police (BTP). Additionally,
the award also includes our new Track Incursion Monitoring (TIM)
application, that will enable the parties to be alerted to foliage
creep and track obstruction using the existing legacy cameras.
The developments in our rail applications are cause for optimism
and, following the acquisition of Infotec in January 2023, we
expect to see a growing ability within the Company to cross-sell
solutions across the rail industry.
Central Services
Following the end of Work from Home instructions in January
2022, the Company adopted a primarily hybrid working model. Whilst
our Sales Teams have always worked remotely, this signalled a shift
in approach to the central services of Development, Finance,
Marketing and Project Management. This decision has been welcomed
by our team members, enabling both the interaction with colleagues
needed to create the spark for innovation alongside the quiet focus
time required to deliver it. The only areas that do not adopt this
model are areas of the business where we feel office or site
attendance is essential; such as in production and customer
support.
We continue to work closely with our supply chain partners and
monitor the impacts of global events on our ability to source the
essential components such as semiconductors, microprocessors and
display panels.
Whilst our work on ESG is ongoing, and we are focusing on
developing the framework to achieve Level 1 and Level 2 carbon
emissions reporting, we are aware that there will be a need to
develop Level 3 reporting in the future and are making necessary
adjustments to monitor such a change.
In situations where specific risks are identified that may
affect pricing, availability or quality of component supplies we
take corrective action to try to mitigate the effects through
advance purchasing of core components and source alternatives that
can be substituted if required.
Throughout 2022, we maintained all ISO and Cyber accreditations
which not only provides us with information security, governance
and traceable quality systems, it demonstrates to our passenger
infrastructure and fleet operator customers that Journeo are the
right people in which to place their trust, and deliver the vital
products, software and support services.
Russ Singleton
Chief Executive
28 March 2023
Consolidated statement of comprehensive income for the year
ended 31 December 2022
Notes 2022 2021
GBP'000 GBP'000
----------------------------------------------- ----- -------- --------
Revenue
Cost of sales 2, 3 21,123 15,592
-----------------------------------------------
(13,354) (9,569)
---------------------------------------------- ----- -------- --------
Gross profit 3 7,769 6,023
Underlying administrative expenses (6,730) (5,557)
Other income 119 168
---------------------------------------------- ----- -------- --------
Underlying profit 1,158 634
Share-based payments (45) (49)
---------------------------------------------- ----- -------- --------
Total administrative expenses and other
income (6,656) (5,438)
---------------------------------------------- ----- -------- --------
Operating profit 1,113 585
Finance expense (207) (176)
---------------------------------------------- ----- -------- --------
Profit before taxation
Taxation charge 906 409
-----------------------------------------------
5 (3) (2)
---------------------------------------------- ----- -------- --------
Profit for the year being total comprehensive
income attributable to owners of the
parent 903 407
---------------------------------------------- ----- -------- --------
Profit per share
Basic 6 10.33p 4.65p
----------------------------------------------- ----- -------- --------
Diluted 9.80p 4.46p
---------------------------------------------- ----- -------- --------
Consolidated statement of changes in equity for the year ended
31 December 2022
Share Share Retained Total
capital premium earnings equity
GBP'000 account GBP'000 shareholders'
GBP'000 funds
GBP'000
-------------------------------- --------- --------- ---------- ---------------
Balance at 1 January 2021 6,250 1,174 (6,680) 744
Profit and total comprehensive
income for the year - - 407 407
Share-based payments - - 49 49
-------------------------------- --------- --------- ---------- ---------------
Balance at 31 December 2021 6,250 1,174 (6,224) 1,200
-------------------------------- --------- --------- ---------- ---------------
Profit and total comprehensive
income for the year - - 903 903
Share-based payments - - 45 45
-------------------------------- --------- --------- ---------- ---------------
Balance at 31 December 2022 6,250 1,174 (5,276) 2,148
-------------------------------- --------- --------- ---------- ---------------
Consolidated statement of financial position at 31 December
2022
2022 2021
GBP'000 GBP'000
As restated
------------------------------ -------- ------------
Assets
Non-current assets
Goodwill 1,345 1,345
Other intangible assets 1,300 1,166
Property, plant and equipment 504 565
Trade and other receivables 41 43
------------------------------- -------- ------------
3,190 3,119
------------------------------ -------- ------------
Current assets
Inventories 3,455 1,609
Trade and other receivables 8,130 5,047
Cash and cash equivalents 533 1,096
------------------------------- -------- ------------
12,118 7,752
------------------------------ -------- ------------
Total assets 15,308 10,871
------------------------------- -------- ------------
Equity and Liabilities
Shareholders' equity
Share capital 6,250 6,250
Share premium account 1,174 1,174
Retained earnings (5,276) (6,224)
------------------------------- -------- ------------
Total equity 2,148 1,200
------------------------------- -------- ------------
Non-current liabilities
Deferred revenue 2,304 947
Loans and borrowings 40 604
Lease liabilities 225 261
Provisions 271 313
------------------------------- -------- ------------
2,840 2,125
------------------------------ -------- ------------
Current liabilities
Trade and other payables 5,796 3,499
Deferred revenue 1.552 2,524
Loans and borrowings 2,616 1,175
Lease liabilities 121 121
Provisions 235 227
------------------------------- -------- ------------
10,320 7,546
------------------------------ -------- ------------
Total equity and liabilities 15,308 10,871
------------------------------- -------- ------------
Consolidated statement of cash flows for the year ended 31
December 2022
2022 2021
Notes GBP'000 GBP'000
-------------------------------------------- ----- -------- --------
Net cash flows from operating activities 6 (587) 2
-------------------------------------------- ----- -------- --------
Cash flows from investing activities
Purchases of property, plant and equipment (58) (165)
Purchases / generation of intangible assets (628) (460)
-------------------------------------------- ----- -------- --------
Net cash flows from investing activities (686) (625)
-------------------------------------------- ----- -------- --------
Cash flows from financing activities
Cash flows from financing activities 891 642
Principal element of lease repayments (170) (148)
Repayment of loans (15) (22)
-------------------------------------------- ----- -------- --------
Net cash flows from financing activities 706 472
-------------------------------------------- ----- -------- --------
Net decrease in cash and cash equivalents (567) (151)
Cash and cash equivalents at beginning
of year 1,096 1,254
Effect of foreign exchange rate changes 4 (7)
-------------------------------------------- ----- -------- --------
Cash and cash equivalents at end of year 533 1,096
-------------------------------------------- ----- -------- --------
Notes to the consolidated financial statements for the year
ended 31 December 2022
1. Basis of preparation
The Group financial statements are prepared in accordance with
International Financial Reporting Standards and IFRIC
interpretations issued and effective (or adopted early) and
endorsed by the United Kingdom at the time of preparing these
financial statements and with those parts of the Companies Act 2006
applicable to companies reporting under IFRS. The financial
statements have been prepared under the historical cost convention,
except financial instruments and share-based payments, which are
prepared in accordance with IFRS 9 and IFRS 2 respectively. A
summary of the more important Group accounting policies is set out
below.
The individual financial statements of each Group entity are
presented in the currency of the primary economic environment in
which the entity operates (its functional currency). For the
purpose of the consolidated financial statements, the results and
financial position of each Group entity are expressed in Sterling
(GBP), which is the presentation currency for the consolidated
financial statements. The numbers in the financial statements are
rounded in GBP'000 for presentation purposes.
Going concern
The Group's business activities, together with factors likely to
affect its future development, performance and position, are set
out in the Strategic Report along with the principal risks and
uncertainties.
The Group's net underlying profit for the year was GBP903k
(2021: GBP634k). As at 31 December 2022 the Group had net current
assets of GBP1,798k (2021: GBP206k) and net cash reserves of
GBP533k (2021: GBP1,096k).
On 16 January 2023, the 2016 Loan Notes and the 2018 Loan Notes
were repaid.
The Directors have prepared Group cash flow projections for the
period to 30 June 2024 based on latest forecasts that show that the
Group will be able to operate within the Group current funding
resources with significant headroom.
As with all businesses there are particular times of the year
where our working capital requirements are at their peak. The Group
is well placed to manage these business risks effectively and the
Board reviews the Group's performance against budgets and forecasts
on a regular basis to ensure action is taken where needed. The
Directors also monitor a rolling cash flow forecast, and key
management review working capital movements and requirements on a
daily basis.
The projections, taking account of reasonably possible changes
in trading performance, indicate that the Group will operate within
available facilities throughout the projection period and
therefore, based on these projections, 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 12 months from the date of these financial statements.
The Directors, therefore continue to adopt the going concern basis
in preparing the financial statements.
2. Revenue and other income
The revenue split between good and services is:
2022 2021
GBP'000 GBP'000
--------------------------------- -------- --------
Goods 15,621 10,615
Services 5,502 4,977
--------------------------------- -------- --------
21,123 15,592
--------------------------------- -------- --------
Contract works included in goods 7,599 5,520
--------------------------------- -------- --------
3. 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.
As the Board of Directors reviews revenue, gross profit and
operating loss on the same basis as set out in the consolidated
statement of comprehensive income, no further reconciliation is
considered to be necessary.
Revenue and gross profit
Gross Gross
Revenue profit Revenue profit
2022 2022 2021 2021
GBP'000 GBP'000 GBP'000 GBP'000
------------------ --------------- ----------- -------------- -----------
Fleet Systems 12,494 3,711 9,290 2,919
Passenger Systems 8,629 4,058 6,302 3,104
------------------ --------------- ----------- -------------- -----------
Total 21,123 7,769 15,592 6,023
------------------ --------------- ----------- -------------- -----------
Major customers
In the year, one customer within the Fleet Systems segment
accounted for over 16% of Group revenue and no customers within the
Passenger Systems segment. In the prior year, there was one Fleet
Systems customer that accounted for over 10% of revenue at 10% and
no major customers within the Fleet Systems segment.
Underlying profit
2022 2021
GBP'000 GBP'000
------------------ --------------- --------
Fleet Systems 690 698
Passenger Systems 740 339
------------------ --------------- --------
1,430 1,037
Central (272) (403)
------------------ --------------- --------
Underlying profit 1,158 634
------------------ --------------- --------
Reconciling to profit / (loss) before interest and tax
Underlying Profit/(loss)
operating Operating before
profit Share-based profit interest
/ (loss) payments / (loss) and tax
2022 GBP'000 GBP'000 GBP'000 GBP'000
------------------ ---------- ----------- --------- -------------
Fleet Systems 690 (23) 667 667
Passenger Systems 740 (22) 718 718
------------------ ---------- ----------- --------- -------------
1,430 (45) 1,385 1,385
------------------ ---------- ----------- --------- -------------
Central (272) - (272) (272)
------------------ ---------- ----------- --------- -------------
1,158 (45) 1,113 1,113
------------------ ---------- ----------- --------- -------------
Profit
Underlying / (loss)
operating Operating before
profit Share-based profit interest
/ (loss) payments / (loss) and tax
2021 GBP'000 GBP'000 GBP'000 GBP'000
------------------ ---------- ----------- --------- ---------
Fleet Systems 698 (24) 674 674
Passenger Systems 339 (25) 314 314
------------------ ---------- ----------- --------- ---------
1,037 (49) 988 988
------------------ ---------- ----------- --------- ---------
Central (403) - (403) (403)
------------------ ---------- ----------- --------- ---------
634 (49) 585 585
------------------ ---------- ----------- --------- ---------
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.
Net assets
Assets Liabilities Net assets Assets Liabilities Net assets
2022 2022 2022 2021 2021 2021
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------- -------- ----------- ---------- -------- ----------- ----------
Fleet Systems 8,134 (3,627) 4,507 5,193 (3,216) 1,977
Passenger Systems 5,156 (6,744) (1,588) 4,109 (5,449) (1,340)
-------------------- -------- ----------- ---------- -------- ----------- ----------
13,290 (10,371) 2,919 9,302 (8,665) 637
Goodwill 1,345 - 1,345 1,345 - 1,345
Cash and borrowings 533 (2,656) (2,123) 1,096 (1,779) (683)
Unallocated 139 (134) 5 12 (111) (99)
-------------------- -------- ----------- ---------- -------- ----------- ----------
Total 15,307 (13,161) 2,146 11,755 (10,555) 1,200
-------------------- -------- ----------- ---------- -------- ----------- ----------
Geographical segments
Gross Gross
Revenue profit Revenue profit
2022 2022 2021 202
GBP'000 GBP'000 GBP'000 GBP'000
-------------------- -------- -------- -------- --------
UK 20,538 7,316 15,070 5,602
-------------------- -------- -------- -------- --------
International
- Scandinavia 458 457
- Other EU 38 43
- Non-EU 89 22
-------------------- -------- -------- -------- --------
Total international 585 453 522 421
-------------------- -------- -------- -------- --------
Total 21,123 7,769 15,592 6,023
-------------------- -------- -------- -------- --------
Assets and liabilities by location
2022 2021
GBP'000 GBP'000
------------------ -------- --------
Assets
UK 14,662 11,720
International 12 35
------------------ -------- --------
Total assets 14,674 11,755
------------------ -------- --------
Liabilities
UK (12,508) (10,532)
International (19) (23)
------------------ -------- --------
Total liabilities (12,527) (10,555)
------------------ -------- --------
All non-current assets are located within the United
Kingdom.
4. Taxation
(a) Analysis of charge in year:
2022 2021
GBP'000 GBP'000
---------------------------------------------- -------- --------
Current tax
UK corporation tax on the profit for the year - -
(19%)
Swedish corporation tax on the profit for the
year (22%) 3 -
Prior year under provision - 2
---------------------------------------------- -------- --------
Total tax charge for the year 3 2
---------------------------------------------- -------- --------
(b) Factors affecting the total tax charge for the year
The tax assessed for the year differs from the standard rate of
corporation tax in the UK at 19% (2021: 19%). The differences are
explained below:
2022 2021
GBP'000 GBP'000
---------------------------------------------- -------- --------
Profit before tax 905 409
---------------------------------------------- -------- --------
Profit multiplied by standard rate of
corporation tax in the UK of 19% (2021: 19%) 172 78
Effects of:
Expenses not deductible for tax purposes (150) (139)
Change in unrecognised deferred tax assets 4 93
Income not taxable (23) (32)
Prior year under provision - 2
---------------------------------------------- -------- --------
Total tax charge for the year 3 2
---------------------------------------------- -------- --------
(c) Deferred tax asset / (liability)
The unrecognised and recognised deferred tax assets /
(liability) comprise the following:
Unrecognised Recognised
------------------------------- ------------------ ------------------
2022 2021 2022 2021
Group GBP'000 GBP'000 GBP'000 GBP'000
------------------------------- -------- -------- -------- --------
Tax losses 724 1,116 - -
Accelerated capital allowances (94) (91) - -
630 1,025 - -
------------------------------- -------- -------- -------- --------
The Group has GBP3,813,000 of unutilised tax losses (2021:
GBP4,466,000) which may be carried forward indefinitely. On 3 March
2021, the Chancellor of the Exchequer announced that the
corporation tax rate would increase to a maximum of 25% from 1
April 2023.
5. Profit per Ordinary Share
Basic earnings per share (EPS) is calculated by dividing the
earnings attributable to Ordinary Shareholders by the weighted
average number of Ordinary Shares in issue during the year.
For diluted earnings, the weighted average number of Ordinary
Shares in issue is adjusted to assume conversion of all dilutive
potential Ordinary Shares.
2022 2021
-------------------------------- ------------------- -------------------
Per share Per share
Profit amount Profit amount
Group GBP'000 Pence GBP'000 Pence
-------------------------------- -------- --------- -------- ---------
Basic EPS
Profit attributable to Ordinary
Shareholders 903 10.33p 407 4.65p
-------------------------------- -------- --------- -------- ---------
Diluted EPS
Profit attributable to Ordinary
Shareholders 903 9.80p 407 4.46p
-------------------------------- -------- --------- -------- ---------
Details of the weighted average number of Ordinary Shares used
as the denominator in calculating the earnings per Ordinary Share
are given below:
2022 2021
'000 '000
------------------------------------------ ----- -----
Basic weighted average number of shares 8,741 8,741
Dilutive potential Ordinary Shares 470 370
------------------------------------------ ----- -----
Diluted weighted average number of shares 9,211 9,111
------------------------------------------ ----- -----
6. Reconciliation of operating profit to net cash inflow from
operating activities
2021
2022 GBP'000
GBP'000 As restated
------------------------------------------------------ -------- ------------
Profit for the year 903 407
Adjustments for:
- Finance expense 207 176
- Depreciation of property, plant and equipment 224 218
- Amortisation of intangible fixed assets 494 438
- Share-based payment expense 45 49
- Foreign exchange rate - (15)
- (Decrease) / increase in provisions (34) 79
------------------------------------------------------ -------- ------------
Operating cash flows before movement in working
capital 1,839 1,352
(Increase) / decrease in inventories (1,846) 66
Increase in receivables (1,564) (840)
Increase in payables 1,166 1,334
------------------------------------------------------ -------- ------------
Cash (outflow) / inflow from operations (405) 144
Income taxes paid (3) (2)
Interest paid (179) (140)
------------------------------------------------------ -------- ------------
Net cash (outflow) / inflow from operating activities (587) 2
------------------------------------------------------ -------- ------------
7. Availability of audited accounts
Copies of the 2022 audited accounts will be made available
following the announcement of the date of our AGM. They will also
be available on the Group's website ( www.journeo.com ) for the
purposes of AIM Rule 26 and will be posted to shareholders
shortly.
S
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END
FR FLFVDVVIDFIV
(END) Dow Jones Newswires
March 28, 2023 02:00 ET (06:00 GMT)
Journeo (LSE:JNEO)
過去 株価チャート
から 11 2024 まで 12 2024
Journeo (LSE:JNEO)
過去 株価チャート
から 12 2023 まで 12 2024
