Telecoms-focused Calnex Solutions hails H1 results marking 'considerable step forward'

Linlithgow-headquartered technology firm Calnex Solutions has posted interim results that it says “mark another considerable step forward” for the firm as it continues to mull potential acquisitions.

The organisation, which provides test and measurement services for the global telecommunications sector, has revealed that unaudited revenue for the six months ending September 30 amounted to £9.3 million, a year-on-year jump of about a fifth, attributed to strong demand for telecoms testing equipment.

Core earnings grew by 13.2 per cent from 12 months previously to £3.9m, and pre-tax profit was up by 18.4 per cent to £2.3m, with a maiden interim dividend of 0.28 pence per ordinary share also announced.

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Calnex flagged the period seeing further robust demand for testing instrumentation, “with new product launches having been well received,” a return to pre-Covid customer spending patterns in all regions except China where demand has been in line with the previous year, and increased company staffing levels, for example. It has added 19 staff over the last 12 months, bringing total headcount to 113.

Boss Tommy Cook hails the figures being 'materially ahead of the board's expectations at the start of the year'. Picture: Peter Devlin.Boss Tommy Cook hails the figures being 'materially ahead of the board's expectations at the start of the year'. Picture: Peter Devlin.
Boss Tommy Cook hails the figures being 'materially ahead of the board's expectations at the start of the year'. Picture: Peter Devlin.
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West Lothian's Calnex Solutions tops market hopes with maiden full-year results

The business, which debuted on the Alternative Investment Market in October 2020, said strong levels of trading seen in the first half have continued into the second, and demand for telecoms testing equipment remains high – while it is monitoring the global semiconductor shortage, but is seeing “no negative impacts to date”.

It is also confident in meeting upgraded market forecasts for the year, having said in an October trading update that it expected full-year revenue and profits to considerably exceed previous expectations, after a strong performance in the first half.

As for potential deals, the firm said targeted acquisitions “remain a favourable route” to help accelerate growth. “Opportunities that the board would consider include complementary products or technologies that can enhance Calnex's existing portfolio, or where the acquisition target provides the group with access to a related or adjacent growth market.”


Founder and chief executive Tommy Cook said: ”These results mark another considerable step forward for Calnex, as we continue to capitalise on the global telecom industry’s transition to 5G and the growth of cloud computing.”

He added that the interim results are “materially” ahead of the board’s expectations at the start of the year, “and confidence levels remain high, with the early signs being that sales momentum will continue in the second half of the year”.

Mr Cook added: “We have invested in our team and resources, and the continued positive response to the new product launches provides optimism towards the long-term demand for our offering.

“The breadth of our customer base across multiple regions, combined with the ongoing successful expansion of the team, our customer relationships and industry connections, places us in a strong position to continue to benefit from the underlying market growth drivers in the telecoms market.”

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Cenkos analyst Ian McInally said: “The increasing number and breadth of the customer base around the world, combined with the successful scaling-up of the operational side of the business, places Calnex well to continue growth and benefit from the long-term strong drivers within the telecoms and networking


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