Journeo PLC (AIM:JNEO) saw its shares climb 5.6% to 161.50p after the information systems and transport technical services group announced a doubling of profits for 2022 and the award of two contracts worth £1.6mln for passenger information systems in Wales.
The first contract, valued at £1mln, is from the City of Cardiff for the replacement of legacy 3-line LED displays with Journeo's latest TFT LCD in-shelter displays, while the second order, worth £0.6mln, is for Transport for Wales (TfW) where a variety of TFT LCD displays technology is to be installed in Cardiff's new flagship bus station.
Journeo said it expects £1mln of the contract revenue will be recognised in the 2023 financial year.
In a separate statement, the company reported results for the 12 months to 31 December 2022, which showed underlying profit doubling to £1.2mln from £0.6mln the year before, on revenue up 35% at £21.1mln.
Journeo ended 2022 with cash and cash equivalents £0.5mln, down from £1.1mln a year earlier.
Commenting on the results, Journeo CEO Russ Singleton said: "I am very pleased with our performance in 2022 which saw sustained improvement in order intake, revenues and profits. This performance was delivered in a continuing challenging market environment coupled with pressure on our global supply chain.”
He added that the recent acquisition of Infotec for £8.7mln “complements our existing business and strategy well, and the enlarged group strengthens our position further with a healthy order book and growing sales pipeline based on our intellectual property and expert knowledge".