Metroline Manchester Selects Journeo for New Bus Fleet Technology
Journeo (LSE:JNEO) has been awarded £1.3 million of purchase orders from Metroline Manchester to provide advanced onboard safety and connectivity systems for a new fleet of Wrightbus Electroliner vehicles.
The contract includes the deployment of Journeo’s latest digital CCTV technology and digital wing mirror systems, designed to improve operational safety and support fleet management requirements.
The agreement strengthens Journeo’s presence within the UK public transport sector and further expands its installed base of connected vehicle technologies.
Cloud-Connected Platform Enhances Fleet Operations
Each vehicle delivered under the contract will be equipped with a Journeo Edge gateway connected to the company’s cloud-based Journeo Portal platform.
The integrated system enables authorised users to securely access video footage for incident investigations while also providing engineering teams with remote monitoring and diagnostic capabilities.
Management believes the combination of onboard hardware and cloud-based software offers transport operators greater visibility, improved safety oversight and more efficient fleet maintenance.
Long-Term SaaS Revenue Opportunity
In addition to the hardware deployment, Metroline Manchester will become a user of Journeo’s high-security software-as-a-service platform.
The arrangement is expected to generate recurring licence and support revenues extending through 2027 and beyond, increasing the proportion of predictable software income within the group’s revenue mix.
Management continues to focus on expanding recurring revenue streams as part of its broader strategy to enhance earnings visibility and improve long-term margins.
Contract Strengthens Position in UK Bus Market
Metroline Manchester operates more than 400 buses across four Bee Network franchises in Greater Manchester and forms part of the international transport group ComfortDelGro.
Winning the contract reinforces Journeo’s position as a preferred supplier of integrated safety, connectivity and information systems for public transport operators.
The company believes growing demand for digital safety technologies, connected vehicle platforms and data-driven fleet management solutions continues to create attractive opportunities across the UK transport sector.
Hardware Revenue to Support Near-Term Performance
Most of the hardware-related revenue associated with the contract is expected to be recognised during the current financial year.
The project therefore provides both near-term revenue visibility and a longer-term stream of recurring software income, supporting the company’s transition towards a more subscription-based business model.
Management sees the combination of upfront hardware sales and ongoing SaaS revenues as an increasingly important driver of shareholder value.
Outlook Supported by Growth and Recurring Revenue Expansion
Journeo’s outlook continues to benefit from strong underlying business fundamentals, including revenue growth, improving profitability, lower leverage and stronger recent cash generation.
The company’s growing base of recurring software revenues provides additional support to future earnings visibility and margin potential.
While technical indicators remain weak and the shares continue to trade below key moving averages, management believes operational momentum and continued contract wins demonstrate the strength of the business.
Valuation remains supportive, with the company trading on a relatively modest earnings multiple compared with its growth profile.
More about Journeo
Journeo plc is a UK-based provider of intelligent transport systems, connected vehicle technologies and critical infrastructure solutions.
The company supplies digital CCTV, telematics, passenger information systems, fleet connectivity platforms and infrastructure security solutions to customers across the bus, rail, airport and critical national infrastructure sectors. Through its cloud-based SaaS and IoT-enabled technologies, Journeo helps transport operators improve safety, operational efficiency and passenger experience while generating recurring software and support revenues.
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