This little known UK growth share is up 387% in five years. Time to buy?
Think of a UK growth share, any UK growth share!
It might sound like something a magician would ask an audience member from the stage.
Unfortunately, the UK market has not been able to pull incredible growth shares out of the hat in recent years on anything like the scale of US-listed stocks such as Nvidia or Alphabet.
But while the London market does not offer many tech shares with big market capitalisations, there are plenty of other growth opportunities to consider among smaller-scale listed businesses.
New tech for old tech
As an example, one UK share I think investors should consider is Journeo (LSE: JNEO).
With its focus on helping train and bus operators run their services, this might sound like a very old-school business. Yes, there is some tech involved â real time scheduling displays and onboard cameras, for example.
But this is far from what I would think of as the cutting edge of tech. However, what Journeo has done well is identify a large market segment that has ongoing needs and then build a product and service portfolio to help deliver against those needs.
When it sells to some operators, that helps give it credibility to make sales to others. For example, I think its extensive work on the New York City subway is a good case study Journeo can lean on in its sales pitches.
In its most recently reported full-year numbers, revenues were just under £50m â more than three times what they had been just three years earlier.
Its 2025 full-year numbers have not yet been reported, but the company expects to report 10% revenue growth for the period.
Massive growth opportunities
An acquisition last September is expected to add a further £17m to this yearâs revenue. But I also expect ongoing growth from the existing business.
The market for the sort of services Journeo provides is large and it is only really scratching the surface, with significant room for expansion both in the UK and Continental Europe, as well as further afield.
Will that attract more competition? It could do. But Journeoâs installed user base and provision of both products and services can help give it some protection from rivals trying to undercut it on price, I reckon.
Still at an attractive price
Selling for 18 times earnings, Journeo is priced more like a growth share than the value share it was a couple of years back.
After all, its share price has grown 387% in the past five years.
Still, it is a share that many are not familiar with. Even at the current price, I think investors ought to consider it.
The company has a market capitalisation of £76m and ended last year with £12m of cash.
It expects to report a 2025 adjusted profit before tax of close to £6m. For the reasons I outlined above, I expect profits can grow over time.
On that basis, I see the current valuation as attractive.
Bedding in a sizeable acquisition can always be tricky and one risk I am keeping an eye on this year is Journeoâs integration of its September acquisition.
But if that goes smoothly without interrupting the existing business performance, I am upbeat about this growth share’s prospects for 2026 — and far beyond.
The post This little known UK growth share is up 387% in five years. Time to buy? appeared first on The Motley Fool UK.
Should you invest £1,000 in Journeo right now?
When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.
And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Journeo made the list?
More reading
- Why does the FTSE 100 keep outperforming the S&P 500?
- £1,000 buys 11,500 shares in this red hot healthcare penny stock thatâs smashing GSK
- Hereâs how long it might take 100 National Grid shares to pay for themselves with dividends
- Under £5 now, are Barclays shares a screaming bargain following excellent 2025 results?
- Just a £5,000 holding in BP shares could generate £1,807 in annual income for investors over time!
C Ruane has no position in any of the shares mentioned. The Motley Fool UK has recommended Alphabet and Nvidia. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
