(Alliance News) - Journeo PLC on Thursday reported a swing to loss for 2019 on challenging trading conditions and increased costs.
The stock was untraded on Thursday afternoon in London, last quoted at 50.00 pence each.
The information systems and transport technical services provider said revenue for the period was lower at GBP11.4 million from GBP12.6 million reported for 2018. Although passenger sales increased to GBP4.8 million from 4.4 million, fleet sales fell 19% to GBP6.6 million from GBP8.2 million the year prior.
Journeo said the fall in fleet sales reflected the problems that bus operators faced with falling passenger numbers, changing technology to carbon-zero vehicles, reduced UK government subsidies and regulatory changes.
The company swung to a pretax loss of GBP900,000 from pretax profit of GBP100,000 the previous year. Administrative expenses during the period were GBP5.7 million, up from GBP4.6 million. Gross margins were "broadly in-line with the previous year" at 29%.
Looking ahead, Journeo noted it has raised gross proceeds of GBP1.2 million in a share placing in December, has a "record" order book and a strong balance sheet. However, it said the Covid-19 outbreak may hurt it supply chains, engineering teams and end-user or customer site operations.
At the end of 2019, the company had cash of GBP700,000. In 2019, it was awarded contracts worth around GBP9.0 million for delivery in 2020 and beyond, including projects for Stansted Airport, City of Edinburgh Council, and a northern transport partnership.
"Whilst a significant degree of operational uncertainty has been introduced, the need for public transport and the contracts we currently have, give us confidence that we will navigate this crisis successfully," said Chair Mark Elliott.
By Ife Taiwo; ifetaiwo@alliancenews.com
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Journeo (JNEO)