Linlithgow-based tech firm Calnex optimistic and eyeing M&A after 'record' full-year performance

Linlithgow-based tech firm Calnex Solutions has cheered a “record” performance, with double-digit growth in sales and profits, and coming despite challenges such as international shortages of key kit.

The business, which provides test and measurement offerings for the global telecommunications sector, said strong trading saw the group in the 12 months ended March 31 see revenue growth of just under a quarter to £22 million.

Pre-tax profit increased 18 per cent from the prior year to £6m, amid what Calnex said was further high demand. However, adjusted basic earnings per share fell by 11 per cent to 5.19 pence, with a proposed final dividend of 0.56 pence per share, making a total of 0.84 pence per share for the financial year.

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The business, which is quoted on London’s junior Alternative Investment Market after in 2020 carrying out the first Scottish stock market flotation in two years, said in April that it expected its full-year results to be slightly ahead of market expectations at the time.

It has now said it “continues to benefit from the evolutionary trends affecting the telecoms sector, notably in 5G and cloud computing”, and has hailed achievements notched up from April onwards, including securing two Queen’s Awards for Enterprise, and the completion of its £3.5m acquisition of iTrinegy, a developer of software defined test networks technology, taking headcount to 136 at present.

Further acquisition opportunities are being mulled, with Calnex also bullish about achieving another successful year of growth in the current 12-month period on the back of continued high demand and its “record” order book. It added that it remains aware of potential effects of the global semiconductor component shortage on the business, but has “successfully navigated” such challenges to date.

Calnex chief executive Tommy Cook said: “It is with great pride that we are presenting such a strong set of results for Calnex, in what has been a complicated year. To deliver record performance, exceeding market expectations, whilst dealing with the effects of a global pandemic and global semiconductor component shortages, is truly exceptional.

Calnex boss Tommy Cook cheered the firm achieving 'such a strong set of results... in what has been a complicated year'. Picture: Peter Devlin.Calnex boss Tommy Cook cheered the firm achieving 'such a strong set of results... in what has been a complicated year'. Picture: Peter Devlin.
Calnex boss Tommy Cook cheered the firm achieving 'such a strong set of results... in what has been a complicated year'. Picture: Peter Devlin.

“The transition to 5G and growth in cloud computing continues to drive demand for test instrumentation and Calnex is in a strong position to continue benefiting from these market trends. We have made good progress in executing on our strategy, paving the way for accelerated future growth.


"The recent acquisition of iTrinegy represents a move into a new adjacent market and we anticipate accelerated sales in the long term. Furthermore, we have invested in our team and resources, the continued positive response to the new product launches provides optimism with regards to the long-term demand for our offering.

“Whilst looking to the future with a degree of caution given the continuing component shortage situation, we can take confidence from the ability with which we have managed [it] to date, successfully shipping scheduled orders as planned. We move into [the current financial year] with a record order book and look to the future with a strong sense of optimism.”

Analyst Ian McInally of Cenkos Securities flagged a “buy” recommendation regarding Calnex, stating that it has seen the number and breadth of its customer base increase, and has a record order book. “Calnex remains strongly positioned to continue growth and benefit from the long-term industry drivers within the telecoms and networking markets.”



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