Journeo – this group offers a long trip, big profits expected within the next year, shares 432p, brokers TP 602p

Mark Watson-Mitchell - 29.09.2025

A week ago, the shares of Journeo (LON:JNEO) were trading at 538p each – they are now 432p!

I have followed the company for the last two and a half years, during which time its shares have almost quadrupled, and they still offer some real upside.

So now is the time to jump in and take advantage of that price fall, especially if you, like me, can see the transport community technology services doing very well next year.

Journeo competes by being an open technology provider combining extensive market and technical knowledge to offer market-leading, cost-effective solutions.

On the face of it the shares may look expensively rated trading on 16.3 times price earnings for the current year to end-December.

However, if you take in the expected benefits to accrue from the group’s latest acquisition and its recent contract wins, then you may well agree that the business is still very much in its early-development stages, while brokers estimate that it could make almost 30% more profit next year.

If that occurs, then its shares could well be trading on only 13.0 times earnings!

The Business

The Ashby-de-la-Zouch based business is a leading Intelligent Transport Systems provider, delivering solutions in towns, cities, airports and the public transport networks that connect them.

The £74.4m capitalised company works extensively with local and combined authorities, Network Rail and many of the largest multinational transport operators, supporting them as systems converge towards a more efficient and sustainable future.

It has a full-service offering including professional installation of hardware, supporting software for capturing and visualising data to aid operational decision-making, and ongoing support and maintenance.

The group currently has five operating companies:

Journeo Fleet Systems: 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. 

It focuses on the onboard solutions for the bus and rail market, such as advanced CCTV, remote condition monitoring of vehicles, driver monitoring and other telematics.

Customers pay a software subscription fee to access real-time information through the Journeo portal. 

Journeo Passenger Systems: 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.

Passenger Information - Supplies passenger information systems to local authorities and Passenger Transport Executives They can retrofit or install new digital signage units with pollution monitoring sensors and CCTV protection to deter vandalism.

In addition, certain signs can be powered using renewable energy to access places without power supply.

Infotec: design, advanced manufacture, installation and software management of information displays hardware for rail applications in stations, on-platform and on-vehicle. Manufactures, installs and maintains digital signage, predominantly for the rail market. Acquired by Journeo in 2023.

Journeo A/S, based in Aarhus, Denmark, it is a full-service provider of Intelligent Transport Systems with customers in Denmark, Sweden and Iceland.

Journeo AB, based in Stockholm, Sweden, is a technical services provider to public transport customers in Sweden.

Last Thursday’s Interims

Just five days ago the group reported its Interim Results to end-June, showing a cash balance increase to £18.0m from £12.9m in H1 2024.

The sales order intake increased by 25% to £30m (£24m), and the sales opportunity pipeline grew to £80m(£60m), while the adjusted profit before tax remained consistent at £2.8m.

However, the revenue saw a slight 4% decrease to £24.5m (£25.6m), and the basic undiluted profit per share was 13.01p, down from 15.30p.

In the first-half year, the company also achieved its largest framework award valued at £10m over three years and received a £4.2m rail market order.

Recent Acquisition

At the start of this month Journeo completed the acquisition of Crime and Fire Defence Systems, a specialist infrastructure protection systems integrator in physical and cyber security solutions to the UK Critical National Infrastructure, Defence and Utilities markets.

The acquisition of CFDS, a recognised leader in utility Infrastructure Protection solutions aligns with the group’s strategy of taking its core capabilities into adjacent markets and strengthens its offering and broadens its reach.

This acquisition offers the group significant opportunity to unlock value and deliver enhanced integrated solutions to a broader client base.

Management Comment

CEO Russ Singleton stated that:

"The Group continues to perform well and in line with management expectations, keeping Journeo on track to deliver another record year. Strong organic growth in UK revenues, driven by our Fleet Systems and Passenger Systems businesses, is propelling the Group forward and has almost entirely offset the US sales delivered by Infotec in H1 2024.

We are also delighted to have completed the acquisition of Crime and Fire Defence Systems, a significant milestone that strengthens our platform for growth and supports our strategy to reach £100m revenue and double-digit operating profit in the medium term."

The Equity

There are some 17.23m shares in issue, with the larger holders including Charles Stanley Group (9.90%), Slater Investments (5.20%), Robert Millington (3.94%), Russ Singleton, CEO (3.70%), Canaccord Genuity Group (3.54%) and Colin Stone (3.20%).

Broker’s View

At Cavendish Capital Markets, analyst Andrew Renton considers that the shares look compelling, while his Target Price is 602p.

For the current year to end-December, he is going for £56.0m (£49.6m) revenues, with adjusted pre-tax profits of £5.6m (£5.0m), lifting earnings to 26.5p (25.0p) per share.

For the 2026 year, he goes for £72.0m sales, £7.2m profits and 33.2p in earnings.

In My View

Within the next year,

I see this group’s shares, now 432p, gradually rising back above their recent 538p High, helped by a steady flow of positive corporate news.