Journeo (JNEO) H2 2024 earnings summary

Executive summary

• Achieved strong growth in revenue, profit, and cash, with a robust sales pipeline increasing from GBP 50 million in 2023 to over GBP 75 million in 2024.

• Expanded senior leadership and invested in CRM and HR systems to support further growth and avoid bottlenecks.

• Developed an active M&A program, targeting businesses with established relationships.

• Focused on providing tailored IT solutions for fleet and passenger systems, supporting public transport efficiency and sustainability.

Financial highlights

• Revenue up 8% year-over-year to GBP 49.6 million.

• Gross margin increased by 5% to 36%, driving a 24% rise in gross profit to GBP 17.7 million.

• Profit before tax up 33% to GBP 5 million; EPS rose 46% to 26.29p, aided by a low effective tax rate.

• Cash position improved by GBP 6.2 million to GBP 14.3 million, with strong operational cash flow.

• R&D spend was just over GBP 1.5 million, fully expensed.

Outlook and guidance

• Confident in achieving consensus revenue forecast of GBP 52 million for FY 2025.

• Anticipates potential for H2 weighting in results, though not as pronounced as in previous years.

• Targeting to double revenues to surpass GBP 100 million within two to three years through organic growth and acquisitions.

• Recurring revenue growth and expansion into adjacent markets are key strategic priorities.