TIDMJNEO
RNS Number : 1366G
Journeo PLC
28 March 2022
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.
Journeo plc
("Journeo" or "the Group")
Final results for the year ended 31 December 2021
Journeo plc (AIM: JNEO), a leading provider of information
systems and technical services to transport operators and local
authorities, is pleased to announce its final results for the year
ended 31 December 2021.
Financial headlines
-- Revenue increased 15% to GBP15.6m (2020: GBP13.6m)
-- Gross profit increased 13% to GBP6.0m (2020: GBP5.3m)
-- Underlying profit before tax increased 37% to GBP0.6m (2020: GBP0.5m)
-- Profit before tax GBP0.4m (2020: GBP0.2m)
-- Profit before tax excluding share-based payments was GBP0.5m (2020: GBP0.3m)
-- Cash and cash equivalents at 31 December 2021 GBP1.1m (2020: GBP1.3m)
-- Diluted earnings per share was 4.46p (2020: 2.26p)
Operational headlines
-- Increased adoption of Journeo technologies amongst the
Group's fleet operator customers, now with over 4,000 vehicles
connected to the Journeo Portal.
-- Continued investment in Research and Development delivering
advancements in Driver Performance Monitoring and Ultra-Low Power
displays technology.
-- Launched new Fault Management System (FMS) that allows
support tickets to be automatically created from self-reporting
display systems.
-- Extensive work with our supply chain to ensure availability of key components.
-- Initiation of Group-wide online seminars from industry and
domain specialists (both internal and external) to ensure staff
engagement and broaden staff knowledge of the markets in which we
operate and technologies that we deliver.
-- Completed the first two of four phases of our Environmental,
Social and Governance (ESG) study.
-- Extension of our cyber security credentials to include Cyber
Essentials Approval, building upon our existing ISO 27001:2013
accreditation for Information Security Management. All ISO
accreditations retained.
Russ Singleton, CEO of Journeo plc, said: "Whilst 2021 proved to
be another challenging year for public transport as passenger
numbers remained significantly below pre-pandemic levels, Journeo
showed great resilience throughout, securing a number of
strategically important contracts, increasing revenues and profits,
investing in research and development, and generating a significant
and growing pipeline of opportunities.
"The cessation of the 'work from home' advice in January 2022 is
regarded as a positive step towards encouraging people back to work
and to use public transport, with both widely viewed as essential
to the UK's economic recovery. The Government recognises that the
recovery needs to support its net-zero carbon targets and is also
dependent on public transport being seen as a viable and preferable
alternative to personal-use vehicles. Key to this is improving the
overall passenger experience, facilitated by investment in
carbon-zero vehicles and technology that improves services through
real-time insights.
"The Government has put in place a number of policies to support
the revival of public transport, laying the groundwork for local
authorities and transport operators to form Enhanced Partnerships
as part of the National Bus Strategy for England, and to encourage
further use of our railways from the Williams-Shapps Plan for Rail.
Whilst funding levels may have been impacted by the COVID response,
the Government continues to invest in town and city infrastructure
and the transport networks that feed them.
"Opportunities are beginning to flow from the substantial
funding and spending that is taking place, and local authority and
fleet operator customers are re-engaging with renewed momentum. The
increasing adoption of our IP and technologies reinforces our
conviction that a customer-led, applied development strategy is the
correct one; and moreover, that it is working. We remain focused on
delivering ambitious growth plans."
For further information, please contact:
Journeo plc
Russ Singleton/ Nick Lowe +44 (0) 203 651 9166
Cenkos Securities - Nominated Adviser
and Broker
Katy Birkin/Callum Davidson +44 (0) 207 397 8900
Notes to editors:
Journeo plc is a leading information systems and technical
services business focussed on public transport and related
infrastructure within towns, cities, airports, and local
authorities. The Company works extensively with local government
departments, combined authorities, and many of the largest
multinational transport operators, supporting them as systems
converge towards a more efficient and sustainable smarter-cities
future.
The business currently comprises two segments:
-- Fleet operator solutions: 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.
-- Passenger transport infrastructure solutions: 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.
In the last 4 years, the Company has invested over GBP5 million
in research and development, enabling it to design and supply
powerful new 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
Introduction
The Group continues to make solid progress in terms of financial
performance and pace of development which is driving growth in the
adoption of its hardware, software and services.
Journeo showed great resilience throughout 2021 increasing
revenues, and profits, and has generated a significant and growing
pipeline of opportunities through its strategic business
development.
With passenger numbers still below pre-pandemic levels, the need
to capture information on-board vehicles and provide real-time
insights to operators, network managers and passengers will be one
of the key factors in improving the overall passenger travel
experience and encouraging people back to using public
transport.
Trading results
Group results for the year ended 31 December 2021 show
underlying profit increased 36.6% to GBP634k (2020: GBP464k).
Overall sales increased by 15% to GBP15.6m (2020: GBP13.6m) and
gross profit increased 13% to GBP6.0m (2020: GBP5.3m).
Fleet sales increased by 36% to GBP9.3m (2020: GBP6.8m) despite
the lower passenger numbers continuing for the operators. Gross
profit increased to GBP2.9m (2020: GBP2.1m) with margins maintained
at 31% (2020: 31%).
Passenger sales decreased by 7% to GBP6.3m (2020: GBP6.8m).
Margins improved to 49% (2020: 47%) due to a lower proportion of
new system installations, and gross profit decreased slightly to
GBP3.1m (2020: GBP3.2m).
Underlying administrative expenses increased to GBP5.6m (2020:
GBP5.1m) as expenditure returned to pre-Covid-19 levels.
Profit before a charge for share-based payments and before tax
was GBP0.5m (2020: GBP0.3m).
Profit before tax was GBP0.4m (2020: GBP0.2m.
Diluted earnings per share was 4.46p (2020: 2.26p).
Cash and cash equivalents closed the year at GBP1.1m (2020:
GBP1.3m).
Markets
Last year proved to be another challenging year for transport as
passenger numbers remained significantly below pre-pandemic levels.
According to the DfT annual bus statistics England, in 2020/21
local bus passenger journeys fell by 61% compared with 2019/20 and
54% of all journeys occurred in London. However, cessation of the
UK Government's work from home advice in January 2022 is regarded
as a positive step towards encouraging people back to work and to
use public transport which is widely viewed as essential to the
UK's economic recovery.
It is clear however, that the recovery must be focused on
environmental benefits, where businesses and members of the public
are encouraged to support the Government's aim to achieve Net Zero
carbon by 2050. Central to this goal is the adoption of public
transport as a viable and preferable alternative to personal-use
vehicles.
The Government has put in place a number of policies to aid its
target, laying the groundwork for local authorities and transport
operators to form Enhanced Partnerships (EP) as part of the
National Bus Strategy for England and to encourage further use of
the UK's railways from the Williams-Shapps Plan for Rail.
It is encouraging to see the ongoing support from the UK
Government to invest in town and city infrastructure and the
transport networks that feed them. Whilst funding levels may have
been impacted by the Covid-19 response, opportunities are beginning
to flow from the substantial funding and spending that is taking
place.
One such Government scheme that is being well-received by our
operator customers is the Zero Emission Bus Regional Areas (ZEBRA)
scheme. Whilst we are not direct beneficiaries of the scheme, it is
reigniting the new bus sector of the market, that has been
depressed for a number of years.
There are an estimated 40,000 buses in the UK. Just over half of
the 32,000 buses on roads in England currently meet EURO VI
standards and around 2% are currently zero emission vehicles, an
indicator of the scale of investment that is needed over the coming
years if the Government is to meet its environmental ambitions.
Historically, fleet operators have been replacing their vehicles
at a rate of 5% to 7% per year. Due to the reduced passenger
numbers over the last few years, many fleet operators have chosen
to extend the life of their existing vehicles, rather than purchase
new vehicles. The Government has made commitments to 4,000 carbon
zero buses by 2024 and released 'Bus Back Better', the National Bus
Strategy for England, which requires local authorities to prepare
Bus Service Improvement Plans (BSIPs) and form Enhanced
Partnerships (EPs) with fleet operators in order to access
funding.
To move away from diesel powered buses to fleets of newer,
cleaner vehicles, requires significant investment in both new
vehicles as well as vehicle-charging infrastructure, whether
electrical, hydrogen or a combination of both by manufacturers,
local authorities and fleet operators.
A number of vehicle manufacturers are reporting significant
interest for electric and hydrogen fuel cell buses. In the medium
term this may lead to a positive cycle where reduction in
production costs leads to further demand for new vehicles, and the
products, software and services that Journeo supplies.
The Department for Transport's (DfT) unlocking of timetable and
vehicle location data through the Bus Open Data Scheme (BODS) is
also delivering new opportunities, allowing Journeo to design
systems that can enhance the overall passenger travel experience
where data was not previously available.
It is also encouraging to see a return of international travel.
Having delivered solutions to London Gatwick Airport and London
Stansted Airport, we were delighted to welcome London Heathrow
Airport to the list of major international travel hubs that rely on
our Passenger Transfer solutions. In 2020, prior to the pandemic,
Heathrow was the third busiest airport in the world by
international passenger traffic . The project is now underway and,
on completion will allow us to showcase our powerful airport
bussing and passenger information solution a to an international
audience. In the meantime, our airport solutions are gaining
industry recognition for improvements to passenger travel
experience and in supporting Airport Authorities meet their own
service level agreements.
Strategy
Our strategy is to seek, identify and solve current or
anticipated future requirements within our target markets. We form
deep and long-lasting bonds in supply chains and with customers to
understand where to apply research and development to build
Intellectual Property (IP) that has real value to our customers and
that may also scale worldwide.
Bids and tenders involving, or built around, our own IP and
know-how, are a key differentiator that gives us a high-success
rate in sales conversions and purchase orders.
We invest in developing a broad range of solutions around our
core technology that customers need now and that we anticipate they
may need in the future.
The Journeo Portal is a highly secure web-based application
launched to the market in late 2019. Journeo Portal saw the number
of vehicles connected increase by 33% from 3,000 to 4,000 during
2021. Other orders and the three-year SaaS award from Arriva
announced in November 2022 indicates that we will surpass the
10,000 connections milestone during 2022, where each connection is
a bus, coach or train generating recurring income every month. This
demonstrates that we have an attractive and commercially viable
cloud-based offering, but also meaningful market penetration in
CCTV and on-board IoT technology.
In addition to strong organic growth targets, the Company also
maintains an active interest in seeking bolt-on acquisitions where
the target businesses provide access to markets for our core
technologies and capabilities.
Brexit and Covid-19
The Group has had to adjust to the changes brought about by
major external events sequentially; first the pandemic and the
subsequent resulting impacts on global supply chains.
The largest direct impacts have been in our ability to reliably
source high quality semiconductors and display components that are
vital to building our solutions. Extended delivery timescales,
rising costs in raw materials and labour continue to pose
challenges for manufacture, assembly and installation
engineering.
Where possible, we have mitigated against many of these risks
through advanced purchase and stock holding, innovative design
changes to avoid single source components, diverse procurement and
strong supply chain relationships.
Environmental, Social and Governance
The Group is committed to being a responsible member of the
corporate community and has, over the course of the year, engaged
with external consultants to set strategies and targets for our
environmental, social and governance activities. Our initial
findings are included in the sustainability section of the 2021
annual report. Throughout the course of 2021, the Company
maintained all ISO accreditations.
People
Throughout the pandemic, we followed the prevailing Government
advice to help ensure the safety of all our people, who have shown
great flexibility and dedication to ensure the continued support of
our customers throughout.
Everyone in the Group has played an important role in building
the capabilities that are positioning Journeo as an industry sector
leader and help capture an increasing share of a market that is
transitioning from proprietary or closed hybrid systems to open,
standards-based, IoT solutions.
I would like to take this opportunity to thank everyone for
their commitment and attention to detail and look forward to
working with them as we enter an exciting and successful period for
the Group over the next few years.
Outlook
The performance of the Group through a time of unprecedented
global challenges has been admirable and we continue to make solid
progress. Journeo showed great resilience throughout 2021 and local
authority and fleet operator customers are re-engaging with renewed
momentum.
Indications are that many of the issues affecting global supply
chains, particularly microprocessor and displays manufacture
continue to pose challenges, however. projects that were
temporarily suspended or delayed are restarting, such as the
GBP2.1m second phase of the City of Edinburgh real time project
announced in March 2022.
The increasing adoption of our IP and technologies from flagship
customers in the last 18 months reinforces our conviction that a
customer-led, applied development strategy is the correct one; and
moreover, that it is working. Strong performance from our factory
and delivery teams in Q4 2021 has been bolstered in Q1 2022 by good
order intake and a significant pipeline of future sales
opportunities into 2023 and beyond.
Public transport continues to be a major focus for the UK
Government, and we look forward to learning more in the anticipated
announcements of the successful bidders for key funding streams
such as ZEBRA and the National Bus Strategy for England later this
year.
Over the last 12 months, the Group has managed to mitigate many
of the component supply chain issues and continues to meet customer
expectations for delivery. However, the situation may be
exacerbated by the conflict in Ukraine, and is an area where we
remain particularly vigilant.
We continue to evaluate complementary or bolt on acquisitions
where our technologies, software and core capabilities, that we
continue to invest in, can add value. The Board remains focused on
delivering ambitious growth plans and, the significant Government
funding, plus increased adoption of our technologies and software
underpin our confidence in meeting these objectives.
Mark Elliott
Non-Executive Chairman
Chief Executive's Report
Introduction and strategy update
The continued adoption of our technologies and software
solutions by flagship customers demonstrates the significant
progress we are making.
The transport sector has faced many challenges in recent years,
where the number of new bus registrations were lower than the
historic norm, even before the global pandemic as a result of the
reduction in passenger numbers.
The collective impact of these and other industry-specific
events has been partially responsible for creating the
circumstances for our software and services to thrive. For example,
where fleet operators' have been seeking to prolong the life of
their vehicles, Journeo has been able to provide a solution to
increase system availability on legacy fleets through Remote
Condition Monitoring. Whilst the global pandemic limited fleet
operators ability to access CCTV images directly from vehicles,
Journeo delivered secure, cloud-based access to vital evidence. And
whilst the reduction in passenger numbers reduced fleet operator
margins, Journeo has delivered innovative camera monitoring systems
that improve safety and further reduce fleet operating costs.
The deep and trusted customer bonds and our technical agility
enable us to pivot our core technology quickly to resolve customer
needs, and our engineering excellence ensures that we can deliver
solutions that are crucial to operators and infrastructure managers
in challenging operating environments.
During the year we secured a number of strategically important
wins, including a three-year contract with Arriva to connect 4,700
of their UK buses, which is the largest single deployment of our
SaaS-based solutions to date. Further penetration into airports was
gained with the win at Heathrow, the third busiest airport in the
world by international passenger traffic , and we expanded our
passenger information systems along key transport corridors
throughout Wales.
Over the last four years we have invested over GBP5m into
R&D and this run-rate will continue, fueled by increased
customer interest in our technology and significant market drivers
to encourage sustainable and carbon zero transport solutions.
Operational review
Passenger Infrastructure Systems
Local authorities have been delivered one of their biggest
challenges in recent times by the UK Government. The National Bus
Strategy for England (Bus Back Better published March 2021) paved
the way for Enhanced Partnerships (EP) with operators and access to
greater levels of funding from central Government to meet these
ambitious plans. However, to achieve this, local authorities and
transport executives were required to complete extensive Bus
Service Improvement Plans (BSIPs) to access new funding.
One side-effect from this was the delay in some expected
projects taking place as customers worked to complete and submit
their BSIPs. As a result, we experienced a 7% fall in revenues to
GBP6.3m (2020: GBP6.8m) which is disappointing as it masks the
significant groundwork that was laid with customers in support of
their BSIPs and the future projects that are expected to emerge.
The sales process for infrastructure projects can be protracted and
difficult to predict, but the early signs in 2022 are that we will
see a return to growth in the coming year.
The announcement made in January for a GBP1.3m award from a
northern transport partnership demonstrated the interest in our
real time information displays and content management software.
Part of a tranche 2 order from the GBP2.4bn Transforming Cities
Fund (TCF), our solution forms part of a continuing commitment by
the customer to enhance their passenger information solutions which
we anticipate will continue to grow in future. Our accurate and
intuitive systems have been well received and we will shortly be
expanding the features and capabilities to include disruption
messaging and up-to-the-moment travel information to
passengers.
In November 2021, we completed the site acceptance testing and
handover of City of Edinburgh Bus Station. The project had
experienced delays due to regional travel restrictions but was
completed shortly after these were lifted. This milestone is a
gateway for the Edinburgh team to access the second phase, referred
to as Lot 2 of the contract where we will deliver our latest high
contrast optically bonded display technology throughout Scotland's
capital city. We were delighted to be able to announce our first
orders under Lot 2 in March 2022, valued at GBP2.1m.
Ensuring that our solutions support customers' aims to achieve
carbon neutrality is a major focus in our product development. In
March 2021, we announced an award valued at GBP1.1m, for
solar-powered displays in key transport corridors in Wales. Since
then, we have developed lower power solutions. We currently have
trials taking place of our next generation ultra-low power
solutions, that have the potential of a 7-year running time without
intervention, or extended indefinitely by the addition of solar
energy and wind turbine, with recyclable battery technology. The
expansion of our systems into key transport corridors in Wales has
continued, and a further contract award of GBP0.8m was announced in
December 2021, positioning Journeo well for future opportunities
with Transport for Wales (TfW).
Estimates for the level of funding available as part of the
National Bus Strategy for England have been revised down since its
initial announcement, as a result of funding the Covid-19 Bus
Service Support Grant (CBSSG) and its replacement Bus Recovery
Grants (BRG) schemes to support networks throughout the Covid-19
pandemic (initial estimates c. GBP3bn vs. current estimates c.
GBP1.4bn), but there is still cause for optimism. A green and
sustainable recovery to meet the Governments' Net Zero carbon goals
will be reliant on encouraging the mass movement of people away
from personal-use vehicles and on to clean and efficient public
transport. This will undoubtedly require investment in transport
infrastructure projects that have underpinned our success and we
expect this will increase in the coming years.
Fleet Transport Operator Systems
Last year proved to be a significant year for our Fleet
Transport Operator Systems business with revenue increasing by 36%
to GBP9.3m (2020: GBP6.8m). The increased level of SaaS-based
subscriptions within the business mix helped increase the
underlying profit to GBP0.7m (2020: GBP0.1m), demonstrating the
value that our innovative solutions are delivering to our
customers.
In our Annual Report for 2020 we included reference to a
200-system trial of our IoT technology with Abellio London. We were
delighted in July 2021 to announce the trial was a success with a
three-year GBP0.5m SaaS framework. The cost of the solution is
being funded through operational savings and efficiencies which
further underscores the attractive Return On Investment (ROI) that
Journeo's agile software and cloud-based solutions provide.
Abellio's decision to adopt our technology fleet wide on around
900 buses was our largest single deployment in London. This was
swiftly followed by an announcement that Journeo will be the
preferred supplier for legacy and new CCTV systems for Metroline,
with a fleet of 1,500 buses that form part of ComfortDelGro,
further extending our presence within London, where approximately
one third of all buses in England operate.
In November 2021, we announced a three-year SaaS contract award
from Arriva UK Bus, adding an additional 4,700 connections to our
cloud-based platforms. The roll-out and installation of our
complementary IoT technology will complete during 2022 and will
take the number of vehicles connected to our platform to over
10,000 by the end of 2022. Since its launch in November 2019,
Journeo Portal is gaining popularity and we look forward to further
adoption as a number of other operators are currently evaluating
the application.
This success is not limited to bus and coach, however. Whilst
announced just after the financial year end in January 2022 , the
achievement of our small, dedicated rail team in introducing our
solution into the rail market demonstrates the opportunities in
adjacent and complementary markets for our solutions. The GBP0.7m
framework services award with GB Railfreight for fleet wide
deployment of our Forward-Facing CCTV system also includes the
provision of secure access to Journeo Portal for Network Rail and
British Transport Police, further enhancing the value of our
software in highly regulated environments.
Interest in Journeo's car park bussing and inter-terminal
mobility systems in airports also continues to grow. In September
2021 we announced the award of a five-year contract at Heathrow
Airport, valued initially at GBP2.5m, with Transdev Airport
Services where we will deliver vital operational management, Real
Time Information and on-vehicle technology services. With a growing
market share in airport mobility, Transdev are leaders in the
airport shuttle segment in the USA and have been providing mobility
solutions at airports in the UK for over 50 years.
Work has already begun to deliver our technology and services to
Transdev for existing vehicles with new vehicles expected to be
delivered later this year. We have also started the work to connect
the existing car park and terminal displays into our management
platform. This will allow Transdev to provide accurate real-time
information to passengers and staff travelling to terminals and on
connecting services.
Central Services
Most of our people continued to work from home throughout 2021,
as we adopted a hybrid working model when Covid-19 restrictions
permitted. Particular attention was paid to team member engagement
to prevent isolation issues through a series of daily, weekly and
monthly departmental virtual meetings and regular on-line seminars
that were open to everyone in the Company. These interactive events
included presentations on the latest developments in transport
applications. The sessions proved to be very popular so are being
continued and now form part of our formal ISO workforce
communication plan for 2022.
We also worked hard to maintain relationships with our supply
chain partners to ensure that where possible, we were able to
access vital components and maintain adequate stock levels required
to meet our commitments.
2021 also provided the soft launch of our new Fault Management
System, allowing our systems to automatically raise support tickets
should they require an engineering visit. Initially rolled out to
our flagship customer, the City of Edinburgh, this new system
enables our operations team to track system performance down to
component level, allowing them to identify trends and work with our
technical teams to mitigate future incidents. The system is now
gradually being rolled out to all customers.
Throughout the year, we have maintained all ISO accreditations
and have now added the Cyber Essentials accreditation, giving
further assurance to our customers that they are placing their data
within a safe and secure environment.
Russ Singleton
Chief Executive
Consolidated statement of comprehensive income for the year
ended 31 December 2021
2021 2020
Notes GBP'000 GBP'000
-------------------------------------------------- ----- -------- --------
Revenue 2,3 15,592 13,605
Cost of sales (9,569) (8,304)
-------------------------------------------------- ----- -------- --------
Gross profit 3 6,023 5,301
Underlying administrative expenses (5,557) (5,142)
Other income 2 168 305
-------------------------------------------------- ----- -------- --------
Underlying profit 634 464
Share-based payments (49) (116)
-------------------------------------------------- ----- -------- --------
Total administrative expenses and other income (5,438) (4,953)
-------------------------------------------------- ----- -------- --------
Operating profit 585 348
Finance expense (176) (155)
-------------------------------------------------- ----- -------- --------
Profit before taxation from continuing operations 409 193
Taxation (charge) / credit 4 (2) 2
-------------------------------------------------- ----- -------- --------
Profit for the year being total comprehensive
income attributable to owners of the parent 407 195
-------------------------------------------------- ----- -------- --------
Profit per share 5
Basic 4.65p 2.27p
-------------------------------------------------- ----- -------- --------
Diluted 4.46p 2.26p
-------------------------------------------------- ----- -------- --------
Consolidated statement of changes in equity for the year ended
31 December 2021
Share Total equity
Share premium Retained shareholders'
capital account earnings funds
GBP'000 GBP'000 GBP'000 GBP'000
------------------------------------------ -------- -------- --------- --------------
Balance at 1 January 2020 6,217 958 (6,991) 184
Profit and total comprehensive income for
the year - - 195 195
Proceeds from issue of new shares 33 216 - 249
Share-based payments - - 116 116
------------------------------------------ -------- -------- --------- --------------
Balance at 31 December 2020 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
------------------------------------------ -------- -------- --------- --------------
Consolidated statement of financial position at 31 December
2021
2021 2020
Notes GBP'000 GBP'000
------------------------------ ------ -------- --------
Assets
Non-current assets
Goodwill 1,345 1,345
Other intangible assets 1,166 1,144
Property, plant and equipment 565 619
Trade and other receivables 43 43
-------------------------------------- -------- --------
3,119 3,151
------------------------------------- -------- --------
Current assets
Inventories 1,609 1,675
Trade and other receivables 5,931 4,207
Cash and cash equivalents 1,096 1,254
-------------------------------------- -------- --------
8,636 7,136
------------------------------------- -------- --------
Total assets 11,755 10,287
-------------------------------------- -------- --------
Equity and Liabilities
Shareholders' equity
Share capital 6,250 6,250
Share premium account 1,174 1,174
Retained earnings (6,224) (6,680)
-------------------------------------- -------- --------
Total equity 1,200 744
-------------------------------------- -------- --------
Non-current liabilities
Deferred revenue 947 957
Other payables - 80
Loans and borrowings 604 564
Lease liabilities 261 358
Provisions 313 278
-------------------------------------- -------- --------
2,125 2,237
------------------------------------- -------- --------
Current liabilities
Trade and other payables 3,499 3,332
Deferred revenue 3,408 3,061
Loans and borrowings 1,175 595
Lease liabilities 121 135
Provisions 227 183
-------------------------------------- -------- --------
8,430 7,306
------------------------------------- -------- --------
Total equity and liabilities 11,755 10,287
-------------------------------------- -------- --------
Consolidated statement of cash flows for the year ended 31
December 2021
2021 2020
Notes GBP'000 GBP'000
------------------------------------------------------- ----- -------- --------
Net cash flows from operating activities 6 2 1,574
------------------------------------------------------- ----- -------- --------
Cash flows from investing activities
Purchases of property, plant and equipment (165) (55)
Purchases / generation of intangible assets (460) (519)
------------------------------------------------------- ----- -------- --------
Net cash flows from investing activities (625) (574)
------------------------------------------------------- ----- -------- --------
Cash flows from financing activities
Cash flows from financing activities 642 (546)
Principal element of lease repayments (148) (168)
Repayment of loans (22) (6)
Issue of Shares - 249
------------------------------------------------------- ----- -------- --------
Net cash flows from financing activities 472 (471)
------------------------------------------------------- ----- -------- --------
Net (decrease) / increase in cash and cash equivalents (151) 529
Cash and cash equivalents at beginning of year 1,254 725
Effect of foreign exchange rate changes (7) -
Cash and cash equivalents at end of year 1,096 1,254
------------------------------------------------------- ----- -------- --------
Notes to the consolidated financial statements for the year
ended 31 December 2021
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 GBP634k
(2020: GBP464k). As at 31 December 2021 the Group had net current
assets of GBP206k (2020: GBP170k liability) and net cash reserves
of GBP1,096k (2020: GBP1,254k).
In December 2021, the 2016 Loan Notes and the 2018 Loan Notes
maturity dates were extended to 31 March 2023.
The Directors have prepared Group cash flow projections for the
period to 30 June 2023 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 twelve 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
The revenue split between goods and services is:
2021 2020
GBP'000 GBP'000
--------------------------------- -------- --------
Goods 10,615 9,417
Services 4,977 4,188
--------------------------------- -------- --------
15,592 13,605
--------------------------------- -------- --------
Contract works included in goods 5,520 5,332
--------------------------------- -------- --------
The other income is split as follows:
2021 2020
GBP'000 GBP'000
---------------- -------- --------
R&D Tax credit 168 267
---------------- -------- --------
Furlough Income - 38
---------------- -------- --------
168 305
---------------- -------- --------
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
Revenue Gross profit Revenue Gross profit
2021 2021 2020 2020
GBP'000 GBP'000 GBP'000 GBP'000
------------------ -------- ------------ -------- ------------
Fleet Systems 9,290 2,919 6,827 2,147
Passenger Systems 6,302 3,104 6,778 3,154
------------------ -------- ------------ -------- ------------
Total 15,592 6,023 13,605 5,301
------------------ -------- ------------ -------- ------------
Major customers
In the year, one customer within the Fleet Systems segment
accounted for over 10% of Group revenue at 13% and no customers
within the Passenger Systems segment. In the prior year, there was
one Passenger Systems customer that accounted for over 10% of
revenue at 10% and no major customers within the Fleet Systems
segment.
Underlying profit
2021 2020
GBP'000 GBP'000
------------------ -------- --------
Fleet Systems 698 81
Passenger Systems 339 634
------------------ -------- --------
1,037 715
Central (403) (251)
------------------ -------- --------
Underlying profit 634 464
------------------ -------- --------
Reconciling to profit / (loss) before interest and tax
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
------------------ ---------- ----------- --------- ---------
Underlying Profit/(loss)
operating Operating before
profit Share-based profit interest
/ (loss) payments / (loss) and tax
2020 GBP'000 GBP'000 GBP'000 GBP'000
------------------ ---------- ----------- --------- -------------
Fleet Systems 81 (58) 23 23
Passenger Systems 634 (58) 576 576
------------------ ---------- ----------- --------- -------------
715 (116) 599 599
Central (251) - (251) (251)
------------------ ---------- ----------- --------- -------------
464 (116) 348 348
------------------ ---------- ----------- --------- -------------
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
2021 2021 2021 2020 2020 2020
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------- -------- ----------- ---------- -------- ----------- ----------
Fleet Systems 5,193 (3,216) 1,977 3,599 (2,932) 667
Passenger Systems 4,109 (5,449) (1,340) 4,077 (5,372) (1,295)
-------------------- -------- ----------- ---------- -------- ----------- ----------
9,302 (8,665) 637 7,676 (8,304) (628)
Goodwill 1,345 - 1,345 1,345 - 1,345
Cash and borrowings 1,096 (1,779) (683) 1,254 (1,159) 95
Unallocated 12 (111) (99) 12 (80) (68)
-------------------- -------- ----------- ---------- -------- ----------- ----------
Total 11, 755 (10,555) 1,200 10,287 (9,543) 744
-------------------- -------- ----------- ---------- -------- ----------- ----------
Geographical segments
Revenue Gross profit Revenue Gross profit
2021 2021 2020 2020
GBP'000 GBP'000 GBP'000 GBP'000
-------------------- -------- ------------ -------- ------------
UK 15,070 5,602 13,025 4,923
-------------------- -------- ------------ -------- ------------
International
- Scandinavia 457 520
- Other EU 43 52
- Non-EU 22 8
-------------------- -------- ------------ -------- ------------
Total international 522 421 580 378
-------------------- -------- ------------ -------- ------------
Total 15,592 6,023 13,605 5,301
-------------------- -------- ------------ -------- ------------
Assets and liabilities by location
2021 2020
GBP'000 GBP'000
------------------ -------- --------
Assets
UK 11,720 10,265
International 35 22
------------------ -------- --------
Total assets 11,755 10,287
------------------ -------- --------
Liabilities
UK (10,532) (9,533)
International (23) (10)
------------------ -------- --------
Total liabilities (10,555) (9,543)
------------------ -------- --------
All non-current assets are located within the United
Kingdom.
4. Taxation
(a) Analysis of charge / (credit) in year:
2021 2020
GBP'000 GBP'000
--------------------------------------------------------- -------- --------
Current tax
UK corporation tax on the loss for the year (19%) - -
Swedish corporation tax on the profit for the year (22%) - -
Prior year under provision 2 7
Deferred tax credit
- Temporary differences on acquisition - (9)
--------------------------------------------------------- -------- --------
Total tax charge / (credit) for the year 2 (2)
--------------------------------------------------------- -------- --------
(b) Factors affecting the total tax charge / (credit) for the
year
The tax assessed for the year differs from the standard rate of
corporation tax in the UK at 19% (2020: 19%). The differences are
explained below:
2021 2020
GBP'000 GBP'000
---------------------------------------------------------- -------- --------
Profit on ordinary activities before tax 409 193
---------------------------------------------------------- -------- --------
Profit on ordinary activities multiplied by standard rate
of
corporation tax in the UK of 19% (2020: 19%) 78 37
Effects of:
Expenses not deductible for tax purposes (139) (4)
Change in unrecognised deferred tax assets 93 15
Income not taxable (32) (57)
Prior year under provision 2 7
---------------------------------------------------------- -------- --------
Total tax charge / (credit) for the year 2 (2)
---------------------------------------------------------- -------- --------
(c) Deferred tax asset / (liability)
The unrecognised and recognised deferred tax assets /
(liability) comprise the following:
Unrecognised Recognised
------------------------------- ------------------ ------------------
2021 2020 2021 2020
Group GBP'000 GBP'000 GBP'000 GBP'000
------------------------------- -------- -------- -------- --------
Tax losses 1,116 841 - -
Accelerated capital allowances (91) (47) - -
1,025 794 - -
------------------------------- -------- -------- -------- --------
The Group has GBP4,466,000 of unutilised tax losses (2020:
GBP4,425,000) 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.
2021 2020
--------------------------------------------- ------------------- -------------------
Per share Per share
Profit amount Profit amount
Group GBP'000 Pence GBP'000 Pence
--------------------------------------------- -------- --------- -------- ---------
Basic EPS
Profit attributable to Ordinary Shareholders 407 4.65p 195 2.27p
--------------------------------------------- -------- --------- -------- ---------
Diluted EPS
Profit attributable to Ordinary Shareholders 407 4.46p 195 2.26p
--------------------------------------------- -------- --------- -------- ---------
Details of the weighted average number of Ordinary Shares used
as the denominator in calculating the earnings per Ordinary Share
are given below:
2021 2020
'000 '000
------------------------------------------ ----- -----
Basic weighted average number of shares 8,741 8,610
Dilutive potential Ordinary Shares 370 29
------------------------------------------ ----- -----
Diluted weighted average number of shares 9,111 8,639
------------------------------------------ ----- -----
6. Reconciliation of operating profit to net cash inflow from
operating activities
2021 2020
GBP'000 GBP'000
-------------------------------------------------------- -------- --------
Profit for the year 407 195
Adjustments for:
- Finance expense 176 155
- Deferred tax credit - (9)
- Depreciation of property, plant and equipment 218 209
- Amortisation of intangible fixed assets 438 429
- Share-based payment expense 49 116
- Foreign exchange rate (15) 17
- Increase / (decrease) in provisions 79 (34)
-------------------------------------------------------- -------- --------
Operating cash flows before movement in working capital 1,352 1,078
(Increase) / decrease in inventories 66 (404)
Increase in receivables (1,724) (280)
Increase in payables 450 1,317
-------------------------------------------------------- -------- --------
Cash inflow from operations 144 1,711
Income taxes paid (2) (7)
Interest paid (140) (130)
-------------------------------------------------------- -------- --------
Net cash inflow from operating activities 2 1,574
-------------------------------------------------------- -------- --------
7. Availability of audited accounts:
Copies of the 2021 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 in due
course.
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END
FR FLFVDVLIEFIF
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March 28, 2022 02:00 ET (06:00 GMT)
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