AIM-listed Journeo plc has completed a strategic £13.7 million acquisition that significantly expands its capabilities in critical national infrastructure protection.

The transport technology specialist has acquired Crime and Fire Defence Systems Limited (CFDS), a company that specialises in protecting the UK’s most sensitive facilities from physical and cyber threats.

Journeo’s shares were 4% higher at the time of writing on Tuesday.

Strategic Expansion Into High-Security Markets

CFDS brings expertise in safeguarding critical national infrastructure including power plants, water facilities, and high-security industrial sites. The company provides cutting-edge access control systems, perimeter intrusion detection, and advanced thermal surveillance technology.

The acquisition opens exciting cross-selling opportunities with CFDS’s blue-chip client base of multinational utilities and industrial companies.

Strong Financial Performance Drives Deal

CFDS delivered attractive results for the 12 months ended April 2025, with audited revenue of £17.33 million and profit before tax of £1.36 million. The company’s net assets stood at £3.93 million.

Journeo expects the acquisition to boost current year revenue by £4 million and add £0.4 million to profit before tax in the remaining four months of FY25.

Looking ahead to FY26, the deal is projected to increase revenue by £17 million and adjusted profit before tax by £1.4 million above current market expectations.

Deal Structure and Funding

The total consideration comprises £10.7 million in cash from existing resources, £2 million in deferred payments over 24 months, and £1 million through new share issues with a minimum 24-month holding period.

With CFDS bringing over £1 million in cash, the enlarged group will have an aggregate cash balance of £9 million post-completion.

Over the past four years, Journeo has invested more than £6 million in research and development while achieving remarkable growth rates. The company has delivered a 38% compound annual growth rate in revenue and an impressive 102% CAGR in profit before tax.

Previous acquisitions of Infotec and MultiQ Denmark in 2023 have already strengthened Journeo’s market position across fleet operations and local authority sectors.

Today’s acquisition helps deliver on Journeo’s ambitious three-year goal to reach £100 million in revenue while maintaining strong profit margins.

“We are delighted to announce the acquisition of CFDS, a recognised leader in utility Infrastructure Protection solutions,” said Russ Singleton, Chief Executive Officer.

“This acquisition aligns with our strategy of taking our core capabilities into adjacent markets and strengthens our offering and broadens our reach. We look forward to working closely with the CFDS team to unlock value and deliver enhanced integrated solutions to a broader client base.”

The FTSE 100 was largely flat on Monday as investors digested the latest twist in the Trump tariff saga with US markets closed for Labor Day. BAE Systems and Babcock rose on a large order for UK warships from Norway.

We are never too far from tariff headlines despite most major economies striking deals with the US, and the latest twist will be at the front of short-term traders’ minds on Monday.

“US markets are closed for Labor Day, but headlines are anything but quiet,” said Matt Britzman, senior equity analyst, Hargreaves Lansdown.

“A federal appeals court ruled Trump’s global tariffs illegal, setting up a Supreme Court showdown before they expire in mid-October – injecting fresh uncertainty into trade policy. That backdrop, coupled with rising bets on a Fed rate cut later this month, has gold glistening near record highs as investors seek safety. All eyes now turn to this week’s labour data, which could shape the size of the Fed’s next move.”

With US markets closed, there was a lack of insight into how US stocks would react to the court ruling after a US-tech sell-off on Friday. As a result, UK investors preferred to take a wait-and-see approach, with an early rally fading as Monday’s session progressed.

“The FTSE 100 is up around a quarter of a percent early on Monday, having put in a modest gain for the month of August, with banking stocks sliding on the last day to take some shine off the performance,” said Saxo UK Investor Strategist, Neil Wilson.

“Today, BAE Systems is riding higher after the UK secured its largest ever warship deal from Norway, with the £10bn deal supporting its Glasgow shipyards for years to come. Babcock and Rolls-Royce are also getting in on the action, with all three rising over 2% on the news.”

BAE Systems was 1.8% at the time of writing. We explained in a recently published article why BAE Systems will need plenty more orders of this scale to justify its current valuation.

Gold’s rally towards $3,500 helped Endeavour Mining shares to the top of the FTSE 100 leaderboard with a 3.8% gain.

3i Group was the top faller with a 1.8% drop.

Banks, including Barclays and Lloyds, were higher as they recovered some of the losses sustained at the end of last week on the back of suggestions of a banking windfall tax.

LED lighting specialist Dialight has reaffirmed its expectations for the year ending March 2026, despite facing continued headwinds in its industrial markets.

The group, which specialises in lighting solutions for hazardous industrial environments, reported marginally lower sales for the five months to 31 August compared with the same period last year.

Sales have been dampened by tariff uncertainty, weaker macroeconomic conditions, and their impact on the company’s core hazardous location sectors.

However, Dialight are still managing to carve out profit growth. Year-to-date adjusted operating profit at the end of August is expected to significantly outpace both the six months to September 2024 ($0.9m) and the six months to March 2025 ($3.2m).

Dialight shares were only 1% higher on Monday, but the positivity surrounding rising profits appears to have already been priced in, given a 100% rally so far in 2025.

The company has benefited from a $1.4m one-off Covid credit from the US Internal Revenue Service, previously disclosed in July’s preliminary results.

Net debt continues to fall. From $17.8m at March 2025, it fell to $15.1m by July before improving further to around $13.0m by the end of August.

These improvements reflect the ongoing benefits of Dialight’s transformation plan, which has delivered margin improvements, overhead cost reductions, and enhanced cash generation.

Despite the challenging operating environment, the board maintains confidence in achieving current market forecasts of $5.7m adjusted profit before tax for the full year.