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Think about the UK’s share of development. Think about the UK’s share of development.
It may be one thing a magician asks the viewers from the stage.
Sadly, the UK market has not been capable of unlock unbelievable development shares on the dimensions of US-listed shares in recent times. Nvidia or alphabet.
However whereas the London market would not have many high-capitalization tech shares, there are many different development alternatives for smaller listed corporations to think about.
New know-how versus previous know-how
For instance, listed below are some UK shares that I believe buyers ought to think about: Journeo (LSE:JNEO).
This may increasingly sound like a really old-school enterprise, because it focuses on serving to prepare and bus operators function their providers. Sure, there’s some know-how concerned, together with a real-time schedule show and onboard cameras.
Nonetheless, that is removed from what I think about cutting-edge know-how. However what Journeo did effectively was determine giant market segments with ongoing wants and construct a portfolio of services and products to deal with these wants.
Promoting to some operators offers you credibility to promote to others. For instance, I believe the intensive work on New York Metropolis’s subways is an effective instance for Journeo to reference in its gross sales pitch.
Probably the most not too long ago reported full-year figures confirmed income of slightly below £50m, greater than thrice as a lot as simply three years in the past.
Full-year 2025 numbers haven’t but been reported, however the firm expects gross sales to extend 10% in the identical interval.
nice development alternative
The acquisition final September is predicted so as to add an extra £17m to income this 12 months. Nonetheless, we additionally anticipate continued development in our current companies.
The marketplace for the type of providers that Journeo gives is giant and we now have solely simply scratched the floor, with important scope for enlargement throughout the UK and continental Europe, and additional afield.
Will it entice extra competitors? It may be performed. Nonetheless, I imagine that Journeo’s person base and product and repair choices each give it some safety from rivals making an attempt to drive down costs.
Nonetheless a pretty value
Promoting at a P/E ratio of 18 occasions, Journeo is priced extra like a development inventory than the worth inventory it was just a few years in the past.
In any case, the corporate’s inventory has grown 387% over the previous 5 years.
Nonetheless, this share is unfamiliar to many. Even at present costs, I believe buyers ought to think about it.
The corporate has a market capitalization of £76m and had money of £12m on the finish of final 12 months.
It expects adjusted pre-tax income to be near £6m in 2025. For the explanations outlined above, I anticipate income to extend over time.
On that foundation, we imagine the present valuation is enticing.
Bedding on giant acquisitions is all the time tough, and one of many dangers I am watching this 12 months is the combination of Journeo’s acquisition in September.
But when it goes effectively with out disrupting current efficiency, I am optimistic about this development inventory’s prospects into 2026 and past.