8th Sep 2025 13:59
(Alliance News) - Journeo PLC on Monday said that its newly-acquired subsidiary has secured a GBP5 million contracted with an unnamed UK utility company.
Based in Ashby-de-la-Zouch, Leicestershire, Journeo provides information systems and technical services to transport operators and local authorities. Last Monday, the firm completed its acquistion of Crime and Fire Defence Systems Ltd, which Journeo described as an integrator of physical and cyber security for the UK's infrastructure, defence and utilities sectors.
CFDS has a four-year framework agreement for "infrastructure protection services across multiple sites", Journeo noted, with a total value up to GBP5 million.
Journeo is paying GBP10.7 million cash for CFDS, plus GBP2 million in two equal deferred payments, due 12 and 24 months after completion. A further GBP1 million is being paid via the issue of new Journeo shares at 6.5p each, giving CFDS more than GBP1 million in cash on completion, Journeo estimated.
CFDS made a GBP1.4 million pretax profit in the year that ended April 30, on revenue of GBP17.3 million. Journeo expects its new subsidiary to add GBP4 million in revenue and GBP400,000 in pretax profit to full-year earnings.
Journo Chief Executive Russ Singleton commented on CFDS: "This award provides strong early validation of the strategic rationale for the transaction and demonstrates the value of their specialist expertise in physical and cyber security. The four-year programme provides a solid foundation for growth and reflects the confidence that major utilities place in the Group's ability to deliver robust, innovative solutions."
Journeo shares were up 8.3% at 497.00 pence on Monday afternoon in London.
By Holly Munks, Alliance News reporter
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