Journeo Share Discussion Threads

[weatherman] 07/4/2021 16:13

There is as yet no obvious reason for the rise that I can see at present - although the fall after the good results was overdone.

[batham1] 07/4/2021 15:29

A rare good decision on my part...well more like following the positive outlook provided by others...either way, glad I topped up when it fell back to 90p!

[vfast] 29/3/2021 18:20

MM's are back on the bid this morning. Biding for up to 13,500 shares for up to 94.25p.

It won't take much buying to push the share price today.

[weatherman] 29/3/2021 17:38

Undemanding rating. I'll be happy with 150p

[vfast] 29/3/2021 17:23

WH Ireland 25th March 2021

MORNING COMMENT

Journeo

Full year results in line – market opportunity significantly expanding.

Journeo is a specialist provider of information systems and technical services to the transportation sector. This morning, the group has released full year results to 31 December 2020 in line with our adjusted profit and earnings expectations of £0.3m and 3.6p respectively, and despite the headwinds created by Covid through the year. Journeo’s continued investment in research and development comes at a time of significant market opportunity, not least in the UK with the £2.4bn Transforming Cities Fund and recently announced £3bn National Bus Strategy underpinning the UK Government commitment to increase the use of public transport in the UK.

Our unchanged FY2021E estimates look for a more than doubling of profit and earnings to £0.8m and 8.7p respectively putting the shares on an undemanding 13.6x, whilst we introduce FY 2022E estimates for the first time, looking for a further 70% growth in profitability. We see near-term fair value at 150p.

Sorry for the table but you should be able to work it out

Y/E Dec 2019A 2020A 2021E 2022E
Revenue (£m) 11.4 13.6 16.0 17.6
EBITDA -0.1 1.1 1.7 2.2
PBT (£m) -0.9 0.3 0.8 1.3
EPS (p) -1.1 3.6 8.7 14.5
P/E (x) n/a 32.7 13.6 8.2
EV/EBITDA -89.0 9.3 6.2 4.1
Net (debt) / cash (£m) -1.0 0.1 0.1 1.5

[kazoom] 26/3/2021 16:57

Yes vfast it does, if you look in the P&L there is an "other income" line of £305m which comprises these two items.

[adin1] 26/3/2021 15:30

SWARCO
Trapeze
Vix Technology
ITO World
R2P
Idox
Ferrograph
DPI
Init
Infotech
Clever Devices
Papercast
IBI
Icomera
Telent

All appear to be in the same markets.

Does the Furlough 38k and R&D tax Credit 267k count towards the 464k underlying profit? (Sensible replies only please)

[vfast] 26/3/2021 13:35

Spot on share price JNEO has a lot going for it and as far as I can see they are way ahead of any competition, in fact I don't think they have got any.

There back into profit and expect they will expand on that as they win more contracts.

[spaceparallax] 26/3/2021 13:15

Agreed, substantial potential. What we also need is for the Management to continue to deliver solid results; these will be necessary to garner the confidence of would be institutional investors.

[vfast] 26/3/2021 12:53

3bene, I agree with your post and there is a lot more to come here!

The share price will settle down and then I expect to hear more RNS announcements in the near future (3 months) and the share price will head back up again.

The potential is massive, I looking forward to the next 12/24 months and I'm confident we will hit the 200p level.

[3bene] 26/3/2021 08:23

Some talk about the government funding for greener buses means additional £8-10mln pa to JNEO from 2022 onwards. More than doubles size of bus tech division. HUGE.

[spaceparallax] 25/3/2021 13:41

Agreed solid results and a sea change from last year's - something to build on and a signal to the Market that we've turned the corner.

[vfast] 25/3/2021 12:19

Very respectful results considering all that has taken place over the last 12 months in regard to Covid effecting the transport sector.

Russ Singleton comment "Journeo is now positioned to capture an increasing share of a sizeable, dynamic and growing market. The combination of an increasing demand for our technologies and software with significant government funding, underpins our confidence and ambitious growth plans."

[mgsmith] 25/3/2021 10:19

Good solid results. Steady progress is what we want. I wouldn't be surprised by a bit of a pull back in the price with profit taking. I remain bullish about the long term prospects of this stock.

[weatherman] 25/3/2021 09:31

Looks like a good set of results in the lockdown period, and lots to be positive about for future trading with 5.4 bn funds to tap into.

[mgsmith] 19/3/2021 14:11

I too go back to the toad days so I share your pain! The great thing is that this is a totally transformed company. One of the weakness's of then was that they didn't seem to have IP rights on their products. Not so today so I'm very optimistic that things will go well but lets not get ahead of ourselves. I'm looking at the 2-3 year prospects which I believe to be phenomenal.

[batham1] 19/3/2021 10:04

I have been here since Toad. Just found an old citywire article from 2002...Toad slips as profits fall, but shareholders should hang in there. Well I have been. Completely different business now...back then it was car hifi and alarms etc.

[spaceparallax] 19/3/2021 09:45

C21 onwards for me.

[vfast] 19/3/2021 07:55

I've been here since C21 days and some on here go back to the Toad days but believe we will get our rewards over the next 12/24 months.

From their trading update in the last RNS there appears to be more P/O & contract wins on the way plus final figures out this month and they will move back into profit.

Sit back and enjoy the journe0!

[batham1] 18/3/2021 22:33

Certainly didn't think it was BS, just that 100p seemed a long way off when you've been bouncing along at about 40p and wondering whether the repeated good news will actually be reflected in the price. Very glad I've been proved wrong, and so quickly. Hopefully more to come as you say.

[weatherman] 18/3/2021 16:26

A company in a similar sector is Pennant - looks like a recovery play - I've bought a few.

[batham1] 18/3/2021 13:44

I thought your suggestion of 100p was wishful thinking! Now I'm a believer...200p sounds good to me! Good times.