Connected systems, for connected journeys
Interim Report
for the six months ended 30 June 2021
Welcome to Journeo's 2021 interim report
Journeo plc is an information systems and technical services business focussed on delivering innovative public transport and related infrastructure solutions, contributing to smart city initiatives as transport becomes more intelligent and connected.
The Company works extensively at many levels with government organisations, local/combined authorities, and many of the largest multinational transport operators, to leverage the Internet of Things (IoT) and open data standards in order to support them as their new and legacy systems converge towards a more efficient and sustainable smarter-cities future.
In recent years, the Company has invested over £5m in research and development and has begun the release to market of powerful new and scalable solutions for public travel and freight applications which capture, process, analyse and display essential information to safely deliver connected journeys.
Financial highlights
Revenue | Gross profit | Profit before tax |
£7.2m | £2.8m | £0.2m |
(2020: £6.8m) | (2020: £2.5m) | (2020: £0.1m) |
Underlying profit | Cash and cash | Diluted earnings |
before depreciation | equivalents at | per share |
and amortisation | 30 June 2021 | £1.74p |
£0.6m | £1.3m | |
(2020: £0.5m) | (2020: £0.9m) | (2020: £1.11p) |
Invested over
£0.5m
in research and development during the period
Overview
Operational highlights
- Business continues to adapt to the impacts of the Coronavirus pandemic, providing uninterrupted essential services and support to customers throughout.
- Improved H1 performance and secured important contract wins.
Contents
Overview
Highlights | 01 |
Chairman and Chief | |
Executive's review | 02 |
- Increased SaaS-based revenue as number of connected vehicles climbs 30% to over 4,000 since the beginning of the year.
- Continued investment in research and development and new website design as central digital asset to improve communications, drive future sales and provide platform for marketing initiatives.
- First end to end deployment of our new service management software, integrated into SAP to deliver service and maintenance activity reports to customers in real time.
- Initiated Environmental, Social and Governance survey and maintained ISO 9001, 14001, 27001 and 45001 accreditations.
Financial statements
Consolidated statement of | |
comprehensive income | 06 |
Consolidated statement | |
of changes in equity | |
shareholders' funds | 07 |
Consolidated statement of | |
financial position | 08 |
Consolidated statement of | |
cash flows | 09 |
Notes to the interim financial | |
statements | 10 |
01
Chairman and Chief Executive's review
Mark Elliot
Non-executive Chairman
Russ Singleton
Chief Executive
- We are pleased to report the results for the six months ended 30 June 2021 which are in line with expectations."
Overview
We are pleased to report the results for the six months ended 30 June 2021. Overall trading has been better than the same period last year, with strong order intake as the Group executes its strategy of developing technologies, IP and engineering capabilities centred around customers and applications in target market sectors.
Revenue increased by 7% to £7.2m (H1 2020: £6.8m) and operating profits increased to £0.3m (H1 2020: £0.2m).
The Group is performing well and supports a growing customer base.
Strategic progress
During the period we continued to make good progress in delivering upon our strategic plans demonstrated by the adoption of the technologies developed in-house for both existing and new customers. Orders for displays and our Content Management Software ("CMS") totalling £2.4m, and the renewal of the framework with First UK Bus, extending the relationship to over 10 years,, were all reliant on our IoT approach to improve information systems in public transport market sectors.
In addition, the Group has increased its pre-sales technical support to help local authorities develop Bus Service Improvement Plans and Enhanced Partnerships in response to Government initiatives and the shift in their needs.
We have significantly increased investment in sales and marketing since the beginning of the year and launched a new website as the centrepiece for information, branding, messaging and communications.
This valuable digital asset will be a focal point for campaigns, demonstrating our increasing capabilities to the market. In addition, the Environmental, Social and Corporate Governance survey that we highlighted in our 2020 Annual Report is underway with preliminary findings available next year.
We have maintained all ISO 9001, 14001, 27001 and 45001 accreditations.
COVID 19
The Group has continued to provide customers with uninterrupted essential services and support throughout the Coronavirus pandemic, delivering and maintaining vital information and safety systems that are critical to their operations.
We remain vigilant of the risks that persist with the pandemic and those noted within our 2020 Annual Report. The Group has adjusted well to the various restrictions and on 19 July initiated a safe return to office work for a limited number of team members.
Nevertheless, we continue to monitor the situation closely and follow the prevailing recommendations of Government, placing the health and safety of our people, suppliers, contractors, customers and the travelling public in a position of paramount importance.
Financial Results
Revenue for H1 was up nearly £0.5m to £7.2m (H1 2020: £6.8m), an increase of 7% due to an increase in Fleet Systems revenue to £3.7m (H1 2020: £3.2m), while Passenger Systems revenue decreased slightly to £3.5m (H1 2020: £3.6m).
Passenger Systems gross profit of £1.6m (H1 2020: £1.6m) remained static, with margin increasing to 46% (H1 2020: 45%).
Fleet Systems gross profit of £1.2m
(H1 2020: £0.9m) increased by £0.3m, with an increase in overall margin to 33% (H1 2020: 28%) as Software as a Service ("SaaS") income increased.
Overall gross profit increased by £0.3m to £2.8m (H1 2020: £2.5m), while gross margin increased by 2% to 39%, resulting from the SaaS income referred to above. An operating profit of £0.3m was achieved, compared with £0.2m in H1 2020. Our expenditure on R&D resulted in a tax credit claim of £0.2m being received during the period.
02 | Journeo plc Interim Report and Accounts 2021 |
The underlying profit before depreciation and amortisation was £0.6m
(H1 2020: £0.5m).
The basic undiluted profit per share was 1.81p (H1 2020: 1.11p).
Tight controls over cash management, and the profit achieved have contributed to an increased cash position at the period end of £1.3m (30 June 2020: £1.2m).
Research and
Development
Our team of developers, designers and engineers provide an agile and responsive innovation capability. This is a core part of our strategy that underpins our growth plans. An increasing proportion of the sales pipeline is based on our own technologies, designed to deliver better solutions for customers whilst, at the same time, improve the visibility and quality of our earnings, through SaaS, where the number of connections has risen 30% to 4,000 since the beginning of the year, and multi-year support contracts.
Notable wins announced just after the period end, with Abellio and Metroline are based upon the benefits brought by our Intellectual Property ("IP"), enabling these important London transport operators to uplift the functionality of their legacy systems at the same time as deploying the latest safety-oriented products into their fleets.
We work closely with industry thought- leaders and customers to inform our roadmaps and develop the technologies that will be needed in the years to come. One example during the first half of the year has led to the development and first sales of a new ultra-low power display that is fully integrated into our EPIX CMS. This outdoor display can be operated continuously off-grid for many years using small solar panels, wind turbines or via its own internal rechargeable batteries. Our sustainable design ethos appeals to many businesses and local authorities with commitments to reducing carbon footprint or achieving Net Zero status within their infrastructure.
Passenger Infrastructure Systems
The year started positively for Passenger Infrastructure Systems. Our broad range of displays built around a core technology and powered by EPIX is being deployed as part of local authority and Transport Executives' delivery of Transforming Cities Funding and a number of other schemes throughout the UK.
In January this year, we announced further orders from a Northern Transport Partnership. At a value of £1.3m, this has increased their investment in our displays and associated CMS technology to over £3m in the past two years, demonstrating significant confidence in the systems that we provide as they expand what is already one of the largest passenger information display signage estates in the UK.
Further orders, totalling £1.1m in March for displays and CMS, were achieved through a customer that has previously not had a real time passenger information estate. With a goal to achieve a Net Zero impact within their infrastructure they selected our low- power displays technology. We have recently extended this offering with a new range of ultra-low power displays released to market just before the end of the period.
- An increasing proportion of the sales pipeline is based on our own technologies, designed to deliver better solutions for customers."
Completing transport infrastructure work during a time of travel restrictions has presented a number of challenges, and progress on some contracts, which require bus, coach, rail or airport services to be running have been delayed. The situation has eased since we moved into the second half of the year, in particular with the ability to travel more freely in Wales and Scotland. Completion of the initial phase of the £4.8m City of Edinburgh Council contract is due shortly, enabling progress to commence on the substantially larger second phase.
Overview
journeo.com | 03 |
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Disclaimer
Journeo plc published this content on 26 September 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 September 2021 17:31:07 UTC.