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magazineJourneo travels to new heights as earnings show rapid progress
Transport technology specialist Journeo (JNEO:AIM) is seeing the momentum behind its earnings feed into a strong share price performance. The stock market minnow is up more than 34% over the last six months.
On 28 March Journeo, which provides a range of technical and data-related solutions to rail, bus and coach operators, reported underlying profit up 100% to £1.2 million on revenue up 35% to £21.1 million. The company also announced two new contracts to provide passenger information displays to Transport for Wales for a combined £1.6 million.
Consensus earnings per share forecasts for 2023 imply a price to earnings ratio of 9.3 and earnings growth of 76.5%. Estimates have been consistently revised higher over the last 12 months.
The company is looking to transition to a SaaS (software as a service) model, a software licensing and delivery blueprint in which software is used on a subscription basis and is centrally hosted.
Cenkos analyst Andrew Renton comments: ‘Journeo has gone from strength-to-strength over recent years, consistently growing revenues and profits whilst building the foundations of a high margin SaaS business model.’
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