Journeo (JNEO) , a transport technology specialist, announced the award of a new framework agreement with Northern Transport Partnership, following a competitive tender process.
Continuing the long-standing relationship between Journeo and the Partnership, the new agreement provides for the supply and support of Journeo's advanced real-time passenger information systems in the Partnership's network. The contract is expected to generate £5m in revenues through to January 2028.
Journeo said it will supply its latest high-definition TFT ultra-bright LED and low-power e-ink solutions. Communications will be driven by the latest open standards between on-street infrastructure and back-office content management software provided by the cloud-based Journeo Portal.
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Journeo adds a £5m contract to its growing order book, building on its existing relationship with the Northern Transport Partnership. The agreement follows a FY23 of significant growth in contract awards and purchase orders, reflected in the company's share price, up 104% in the past year.
The latest contract with Northern Transport Partnership will see Journeo supply its latest technology to enhance the Partnership customers' travel experience. Revenues under the agreement are already included in management's expectations for FY24, providing good future revenue visibility.
Journeo's technology is generating strong demand in the growing transport information systems market. In its most recent trading update for the year to December 31 2023, the group reported a 118% revenue increase to £46m, in line with expectations. Cash at year-end was £8.1m, up from £0.5m in FY22, with an unutilised invoice discounting facility of £2.75m.
Momentum is strong in both the Fleet Systems and Passenger Systems divisions, together delivering 20% organic revenue growth to £25m in FY23, with an order intake growth of 11% to £30m. Journeo's recently acquired businesses Infotec and MultiQ have also performed well since joining the group, contributing £21m to revenues in FY23.
Overall, the company entered FY24 with a strong recurring revenue base and a growing order book, providing good forward earnings visibility. The much improved cash balance should facilitate further growth in FY24 as JNEO aims for £42m in revenues in FY24 and £50m in FY25.
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