Journeo revenue, profits rise despite challenging conditions

The AIM-traded firm said fleet revenue increased 17% to £3.8m for the six months ended 30 June, while passenger revenue decreased slightly to £3.5m, from £3.6m a year earlier.

Gross profit was ahead £0.3m over the prior year, at £2.8m, with fleet gross profit rising to £1.2m from £0.9m, while passenger gross profit was stable at £1.6m.

Underlying profit before depreciation and amortisation increased to £0.6m from £0.5m year-on-year, while cash at period end improved to £1.3m from £1.2m a year earlier.

Journeo said it had invested more than £0.5m in research and development during the period.

“We are making good progress in our growth strategy, applying research and development and extensive end-user operational experience towards solving real-life challenges, needs and future requirements of fleet operator and transport infrastructure customers,” said chief executive officer Russ Singleton.

“Investment into sales and marketing capabilities, including a new website and unification under the Journeo brand, is amplifying our market presence and providing multiple platforms for promotion of our solutions and intellectual property to new and existing customers.”

Singleton said that, while trading conditions as a result of the pandemic remained “challenging”, presenting a degree of uncertainty around bids and project timings, the company was encouraged by its resilience and the growth in revenues and the order book in the first half.

“We are confident in our future, and we believe the powerful market drivers, including in the form of substantial government-backed initiatives, will provide the group with significant opportunity over the next few years.”

At 0900 BST, shares in Journeo were down 15.02% at 116.42p.