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Consider a UK development share, any UK development share!
It would sound like one thing a magician would ask an viewers member from the stage.
Sadly, the UK market has not been in a position to pull unimaginable development shares out of the hat lately on something like the size of US-listed shares corresponding to Nvidia or Alphabet.
However whereas the London market doesn’t supply many tech shares with massive market capitalisations, there are many different development alternatives to think about amongst smaller-scale listed companies.
New tech for outdated tech
For instance, one UK share I believe traders ought to think about is Journeo (LSE: JNEO).
With its give attention to serving to practice and bus operators run their providers, this would possibly sound like a really old-school enterprise. Sure, there may be some tech concerned – actual time scheduling shows and onboard cameras, for instance.
However that is removed from what I’d consider because the chopping fringe of tech. Nonetheless, what Journeo has accomplished nicely is establish a big market section that has ongoing wants after which construct a product and repair portfolio to assist ship towards these wants.
When it sells to some operators, that helps give it credibility to make gross sales to others. For instance, I believe its in depth work on the New York Metropolis subway is an efficient case research Journeo can lean on in its gross sales pitches.
In its most just lately reported full-year numbers, revenues have been slightly below £50m – greater than 3 times what that they had been simply three years earlier.
Its 2025 full-year numbers haven’t but been reported, however the firm expects to report 10% income development for the interval.
Huge development alternatives
An acquisition final September is anticipated so as to add an additional £17m to this yr’s income. However I additionally anticipate ongoing development from the prevailing enterprise.
The marketplace for the type of providers Journeo offers is giant and it’s only actually scratching the floor, with important room for enlargement each within the UK and Continental Europe, in addition to additional afield.
Will that appeal to extra competitors? It might do. However Journeo’s put in consumer base and provision of each services and products might help give it some safety from rivals attempting to undercut it on worth, I reckon.
Nonetheless at a horny worth
Promoting for 18 instances earnings, Journeo is priced extra like a development share than the worth share it was a few years again.
In any case, its share worth has grown 387% previously 5 years.
Nonetheless, it’s a share that many aren’t aware of. Even on the present worth, I believe traders ought to think about it.
The corporate has a market capitalisation of £76m and ended final yr with £12m of money.
It expects to report a 2025 adjusted revenue earlier than tax of near £6m. For the explanations I outlined above, I anticipate income can develop over time.
On that foundation, I see the present valuation as enticing.
Bedding in a sizeable acquisition can all the time be difficult and one danger I’m keeping track of this yr is Journeo’s integration of its September acquisition.
But when that goes easily with out interrupting the prevailing enterprise efficiency, I’m upbeat about this development share’s prospects for 2026 — and much past.
