Journeo (JNEO) , a transport technology specialist, announced a £2m purchase order from Northern Transport Partnership.
The order builds on previously announced orders for Journeo's thin-film transistor (TFT) and liquid cystal display (LCD) technologies connected to its content management software. Journeo said the order was already within its financial forecast for FY23 and FY24.
It added that the order would enable Northern Transport Partnership to provide "powerful and usable supplementary information to passengers using [its] transport network, such as complex and advanced disruption information".
Russ Singleton, CEO, further commented: "We are delighted to continue this strong working relationship with a customer that has a clear vision to enhance and improve the provision of transport information across the region, for the benefit of the travelling public."
Separately, 2 days ago Journeo announced the acquisition of MultiQ for a cash consideration of €2.5m. MultiQ is a full-service provider of intelligent transport systems (ITS) with customers in Denmark, Sweden, and Iceland. The company is a leader in developing and supplying public information systems for bus travel, such as fleet management software and on-board passenger infotainment, indoor and outdoor real-time display systems.
The consideration for the shares is €1.7m after the repayment of an intercompany balance of €0.8m. The acquired net assets are €1.1m, with goodwill expected to be €0.6m. Journeo expects MultiQ's revenue for the current fiscal year to be c. €3.3m with an operating profit of €260k, representing an acquisition multiple of 2.3x.
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Journeo adds another significant contract to its order book, something investors have become used to seeing this year as the company's shares have rocketed 50% year-to-date. The string of orders recorded so far in the fiscal year provides Journeo with good revenue visibility into FY24 and stronger presence in the growing transport information systems market.
Regarding the acquisition of MultiQ, the move should give Journeo more cross-selling opportunities for its technologies and software, and further strengthen its presence in the Nordic market where it already operates in Stockholm. MultiQ has a robust SaaS-based sales approach with c. 40% recurring revenue that will nicely complement Journeo's offering and bring further scale to its cloud-based business.
The cash consideration of €2.5m is being satisfied through the payment of €2.1m on completion of the deal, with two deferred payments of €0.2m at 12 months and 24 months, all funded from Journeo's existing cash resources.
In a recent interim update to June 30 2023, Journeo reported a 145% revenue increase to £21.8m with 41% growth in core business revenue. £9.3m of revenue was reported from Infotec, which Journeo acquired in January after a successful £7.35m fundraising. Profit before tax increased to £1.7m, and orderbook carried into H2 2023 was £27m, with a further sales opportunity pipeline of £55m. Its cash balance was a comfortable £11.3m, including advance payments from customers of £3.5m.
Journeo expects to achieve £42m in revenues in FY24, and is targeting £50m in FY25 with improved net profit margins on the back of its strong FY23 orderbook. Full H1 financial results are expected before the end of September 2023.
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