Journeo (JNEO) H1 2026 earnings summary

Executive summary

• Revenue increased 53% year-over-year to £37.6m, with gross profit up 57% to £14.5m and adjusted profit before tax up 10% to £3.0m.

• Diluted EPS rose to 13.60p from 12.51p year-over-year.

• Strong cash generation, with operational inflow supporting ongoing investment and M&A strategy.

• Management team strengthened and acquisition pipeline in place, including the acquisition of Crime and Fire Defence Systems.

• Sales opportunity pipeline grew 150% to £200m, supporting future growth.

Financial highlights

• Gross margin improved to 39% from 38% year-over-year, with overall gross profit up 57%.

• Cash and cash equivalents at £12.6m after £10.7m acquisition payment.

• R&D investment exceeded £1m in the period, mostly expensed.

• Annual recurring revenue (ARR) increased 6% to £8.5m; SaaS is 40% of recurring revenue.

• True cash from operations increased by £5.3m year-on-year.

Outlook and guidance

• Targeting revenue above £150m with double-digit operating margins by 2027.

• Confident in H2 outperformance due to margin recovery and revenue timing in core segments.

• Plans to expand in North America and adjacent markets, with new contracts in Boston, New York, and Denmark.

• Recurring revenue and SaaS to drive scalability and earnings visibility.

• Sales opportunity pipeline increased to £200m, supporting future growth.