Journeo plc (LON:JNEO) is the topic of conversation with Co-fund manager, Gervais Williams of Miton UK Microcap Trust plc as part of a wide-ranging interview on small-cap investments in his UK investment trust.
DirectorsTalk asked:
Journeo plc delivered an incredible full-year trading update in November last year with revenues and profit ahead of market expectations, driven by organic growth and acquisitions. Now, its share price has increased over 500% in 5 years of listing, do you see this trend continuing?
Gervais Williams of Premier Miton commented:
Yes, it’s been interesting this company because it did a major acquisition back in December 2022, raised some money at GBP 105. It has not just been successful, it’s been very, very successful.
I think the combined businesses are better than the individual businesses standing alone.
So, coming back to that, what we’ve seen is really they’ve won more contracts, they’ve got bigger contracts, they’ve got manufacturing plants as well as the ability to deliver services. I think all of that has led to a real kind of virtuous spiral for the business.
Its market cap has come up quite a long way now: it’s £48 million market cap now but specifically, it’s got plenty of orders coming through and plenty of tenders going forward.
Really, what’s interesting about these kind of companies as they get more recognition, as they become larger, of course, then they get on more tender lists but ultimately, they become on the radar of a lot more investors. So, people who wouldn’t look at the company, for example at £10 million market cap, can look at a company of £50 million market cap, so you actually bring in more investors and that drives the share price on as well.
As I say, the acquisition really was terrific back in December 2022 and they’ve taken full advantage of that, which is wonderful.
Journeo plc (LON:JNEO) provides integrated transport systems to fleet operators; our market-leading solutions seamlessly combine software, hardware and nationwide support.
