Journeo plc Expands Infrastructure Protection Capabilities with CFDS Acquisition

Journeo plc, a provider of information systems and technical services, has completed the acquisition of Crime and Fire Defence Systems Limited (CFDS), a specialist in physical and cyber security solutions for critical national infrastructure. The move aims to bolster Journeo's presence in high-security sectors and unlock cross-selling opportunities.

The total consideration for CFDS comprises approximately £10.7 million in cash, £2 million in deferred cash payments, and £1 million through the issuance of new ordinary shares. CFDS is expected to have over £1 million of cash on completion, resulting in a group cash balance of £9 million. The consideration shares are subject to a 24-month minimum holding period.

CFDS specializes in protecting critical national infrastructure sites, offering solutions such as access control systems, perimeter intrusion detection, and surveillance systems. The company has experienced strong growth in recent years, serving large multinational clients within the utilities and industrial sectors.

For the year ended April 30, 2025, CFDS reported revenue of £17.33 million, profit before tax (PBT) of £1.36 million, and net assets of £3.93 million. The acquisition, which received approval under the National Security and Investment Act, is expected to contribute £4 million in revenue and £0.4 million in PBT to Journeo's current fiscal year 2025 expectations.

The acquisition is projected to significantly impact fiscal year 2026, with revenue expected to increase by £17 million and adjusted PBT by £1.4 million, surpassing current market expectations of £55 million and £5.8 million, respectively. These figures prudently account for integration costs.

Journeo's acquisition of CFDS aligns with its strategy of expanding into adjacent markets with high barriers to entry and significant growth potential. The company has invested over £6 million in research and development over the past four years. Prior acquisitions of Infotec and MultiQ Denmark in 2023 have bolstered a revenue CAGR of 38% and a PBT CAGR of 102%.

The company is refining its operational categories to better reflect its growth opportunities into: Integrated Services, Information Systems, and Infrastructure Protection. Journeo's strategic goal is to achieve £100 million in revenue with strong margins, emphasizing domain expertise and intellectual property.

Application has been made for the 255,366 Consideration Shares to be admitted to trading on AIM, expected on September 5, 2025. Following Admission, the Company will have 17,225,794 Ordinary Shares in issue.

If you AskTraders:
The acquisition of CFDS is a strategic move by Journeo to diversify its offerings and strengthen its position in the critical infrastructure protection market. The expected revenue and profit boost in FY26 could act as a catalyst for further share price appreciation, with JNEO moving 4.9% higher today, contributing towards a 49% YTD growth.

CEO Russ Singleton commented, “We are delighted to announce the acquisition of CFDS…This acquisition aligns with our strategy of taking our core capabilities into adjacent markets and strengthens our offering and broadens our reach.”