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Journeo (JNEO) Shares Rally After Securing First Bus Extension

Sam Boughedda trader
Updated 22 Jul 2021

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Journeo plc (LON: JNEO)

Advanced information systems and technical services firm Journeo plc (LON: JNEO) announced that it has secured a one-year extension to a framework agreement with First Bus UK.

The extension will see the current contract continue to March 2022 and is expected to generate £1.8 million in revenue and includes the provision of systems and services for new and existing vehicles, along with a further 800 connections into Journeo's Software-as-a-Service application.

First Bus are of UK's largest bus operators with approximately 5,200 buses serving 40 of the UK's largest towns and cities. In 2020 they provided 500 million passenger journeys and operated around 20% of local bus services in the £4.2 billion deregulated market outside of London.

Journeo has been working with First Bus through a framework agreement since 2010, providing CCTV and related onboard and depot-based IT sub-systems.

The previous five-year contract was announced on the 19th of August 2016, and over that time approximately 1,000 systems have been installed on new buses and over 2,000 vehicles are connected to Journeo's cloud-based SaaS applications.

“We are delighted to be continuing the long-standing relationship as technical services provider with First Bus through this framework contract extension, where we will be supplying CCTV and associated onboard IT sub-systems and Smart-Vision digital wing-mirror technology,” commented Russ Singleton, CEO of Journeo.

“In addition, a further 800 buses are to be connected into the Journeo cloud-based SaaS application, placing First Bus amongst the market leaders in real-time remote condition monitoring and cloud-based video management,” added Singleton.

Journeo shares are trading 27.89% higher midday on Monday, priced at 73p after closing Friday at 57p.

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Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.