Journeo – this group’s shares fell 7.5% yesterday to 377.50p, while its broker’s TP is 470p – just what is going on?

Mark Watson-Mitchell
Jul 25
3 min read

25.07.2025

Connected systems, for connected journeys that is what Journeo (LON:JNEO) is all about.

At the end of July last year, this information systems group issued a Trading Update for the six months to end-June.

Will it do the same this year?

Its shares have been an excellent performer over the last few months, having risen from 235p in mid-March this year to 445p a week ago – an excellent 89% appreciation in price.

But why yesterday’s price fall?

Is it a warning about the contents of the imminent Trading Update?

The Business

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

The £64.1m 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 business 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.

Management Comment

At the time of announcing the group’s 2024 results, in late March this year, CEO Russ Singleton stated that:

"Journeo has delivered another strong set of results, achieving growth in sales, profit before tax and recurring revenues for a fifth year running.

The increasing adoption of our core IP is delivering a growing sales pipeline based on technology created and implemented by the operating companies within the Group.

In addition to our financial performance, we have made significant operational improvements.

We have formed the Journeo Design Centre to create new world-class products and made strategic investments for our next growth phase with new appointments to our Senior Leadership Team.

We have also made steps forward in our ESG and carbon reporting and are progressing with a number of potential complementary acquisitions.

We move forward into 2025 with confidence that we will continue to deliver stakeholder value as the Group benefits from Government-backed initiatives for the more sustainable, safer and more secure communities and transport of the future."

The Equity

There are some 16.97m shares in issue.

The larger holders include 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

Analyst Andrew Renton, at Cavendish Capital Markets, has estimates out for the current year to end-December for revenues to rise to £52.0m (£49.6m), with adjusted pre-tax profits of £5.2m (£5.0m) and a slight easing in earnings to 24.9p (25.0p) per share.

He pencils in end-year closing net cash balances of £17.5m (£14.1m).

Renton’s Target Price for the shares is a useful 470p!

In My View

Valued at £64.1m in the market, making £5m plus profits, with a growing book of business and close to £17m cash in the bank – these shares, now 377.50p, appear to be well backed.

But yesterday’s big price fall has to be noted – the question is whether the shares are still a Buy at this stage, just in front of a possible Trading Update – or is it now worth taking advantage of the weaker share price?