Receipt of Purchase Orders and Trading Update

RNS Number : 8113T

Journeo PLC

23 July 2020

 

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 ("MAR").

23 July 2020

Journeo plc

("Journeo" , the "Company" or the "Group")

West Midlands Combined Authority (WMCA) purchase orders and trading update.

Journeo plc (AIM: JNEO), the information systems and transport technical services Group, is pleased to provide an update on current trading with the Group returning to profitability despite the impact of Covid-19, as it announces new purchase orders totalling £0.8m for transport infrastructure upgrades from West Midlands Combined Authority (WMCA).

WMCA Purchase orders:

The Company has received purchase orders from WMCA under the Enhanced Infrastructure Framework Agreement, announced in July 2019, totalling £0.6m. £0.4 million is to provide the Group's  latest high-definition passenger information display systems for the first of the new Sprint Bus Rapid Transit (BRT) corridors. A further £0.2 million is to supply Journeo's situational awareness systems to enhance public safety in and around a number of regional bus shelters.

An additional award of £0.2m has been received to upgrade bus station passenger information systems in Coventry as it prepares for Coventry City of Culture 2021.

Trading:

Overall trading in H1 has been better than the same period last year, the Group having benefitted from its strategy to diversify its customer base by supporting national transport infrastructure plans and airport bussing. Group revenues increased by 18% to £6.8m, and cash balances at 30 June 2020 remain strong at £1.2m (31 December 2019: £0.7m).

Fleet Systems revenues at £3.2m were similar to last year (2019: £3.2m) with growth held back by the shut-down of bus manufacturers in April and May and many bus, rail and coach operators temporarily scaling back services.

Passenger Systems revenues increased by 41% to £3.6m (2019: £2.5m) as engineering and project teams continued to deliver transport infrastructure installations during the Covid-19 lockdown.

Despite the Covid-19 challenges, the business has performed well and continues to support its growing customer base whilst investing in the development of its next generation technologies. The revenues and margins from software-based recurring revenues and a growing sales pipeline of future opportunities position the Group for further progress in the year and beyond.

 A further, more detailed update will be provided in the Group's interim report in September.

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

For further information, please contact:

Journeo plc Russ Singleton/ Nick Lowe	[phone]
WH Ireland  - Nominated Adviser and Broker Mike Coe/ Chris Savidge  (Corporate Finance) Jasper Berry   (Corporate Broking)	[phone]
Communications Portfolio Ariane Comstive	[phone]

Notes to editors:

Journeo plc, formerly 21st Century Technology plc, is the specialist provider of advanced information systems and transit related technical services to towns, cities, and local authorities.  The Company works with many of the UK's largest multinational public transport operators, supporting them towards the creation of smarter-cities.

The business comprises two segments:

· Fleet Systems solutions, including CCTV video surveillance to improve passenger & driver safety, vehicle and driver performance monitoring, real-time on-board IT subsystems management and automatic passenger counting; and

· Passenger Systems solutions, including design, manufacture, installation, and management of all the hardware and software for electronic passenger information systems, smart-ticketing and wayfinding.

In the last few years, the Company has invested heavily in research and development, enabling it to design and supply the very best solutions in order to meet 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 and scalable products and services that can integrate with existing technology while preparing for future advancements.

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