Journeo (AIM:JNEO), the AIM-listed provider of intelligent systems for transport networks and critical national infrastructure, reported group revenue up 53% to £37.6m for the six months to 30 June, against £24.5m a year earlier.
Gross profit rose 57% to £14.5m, while adjusted pre-tax profit increased 10% to £3m and diluted earnings per share climbed 9% to 13.60p.
Cash and cash equivalents fell to £12.6m from £18m, after the £10.7m acquisition of Crime and Fire Defence Systems completed in September 2025.
The new Infrastructure Protection segment, formed from that acquisition, contributed £10.6m of revenue in its first full half-year within the group at a 45% gross margin, the strongest of Journeo's three divisions.
Information Systems revenue grew 40% to £13.9m, though gross margin fell to 38% from 48% on weaker UK rail activity and lower-margin new product launches; management expects margins to recover in the second half.
Integrated Services revenue slipped 2% to £14.4m as delayed bus orders and supply-chain constraints pushed work into the second half, cutting underlying segment profit 26% to £1.2m.
The group's sales opportunity pipeline expanded to £200m from £80m a year earlier.
"With a strong financial position and a £200 million sales opportunity pipeline, we have a clear platform for growth in attractive transport and critical infrastructure markets," said chief executive Russ Singleton.
Journeo said it is on track for another record full year, in line with market expectations, with improved second-half performance expected from Integrated Services and Information Systems.
News Intelligence what this means for the company
Journeo reported H1 revenue of £37.6m, up 53% year-on-year, with gross profit rising 57% to £14.5m. The newly acquired Infrastructure Protection unit (Crime and Fire Defence Systems, bought for £10.7m in September 2025) contributed £10.6m revenue at a 45% gross margin—the group's strongest. However, cash fell to £12.6m from £18m post-acquisition, and two of three divisions faced headwinds: Information Systems margins compressed to 38% from 48% on weak UK rail activity, while Integrated Services revenue slipped 2% due to delayed bus orders. Management expects recovery in H2 and reaffirmed full-year guidance, anchoring confidence on a £200m sales pipeline—up from £80m a year earlier.
The acquisition has delivered immediate revenue scale and margin uplift, but organic growth in core divisions has stalled or weakened, raising questions about whether the Infrastructure Protection unit masks underlying momentum loss. Cash position of £12.6m is modest relative to the £37.6m half-year revenue run rate, leaving limited dry powder for further M&A or downturns; recovery in H2 is now critical to validate full-year guidance and the acquisition thesis.
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