Linlithgow's Calnex Solutions cheers 'signs of more stable macro environment' alongside 'solid' FY results

Linlithgow-based, telecoms-focused testing firm Calnex Solutions has said it is seeing early indications of an increasingly stable macro environment as it cheered its full-year figures showing further “solid progress", including sales jumping by a quarter.

The Aim-quoted firm, which recently announced the hire of a top woman in UK tech as a director, has reported revenue in the 12 months to March 31 swelling to £27.4 million, with underlying ebitda – earnings before interest, taxes, depreciation, and amortisation – up by 26 per cent to £8m.

Flagged highlights in the year include the “encouraging” early uptake of Sentry, its network synchronisation product launched in the second half, and the full integration of iTrinegy. Calnex in April 2022 unveiled the £3.5m purchase of the developer of test networks technology for the software application and digital transformation testing market, and has now said the deal helped it boost its staff numbers by 33 over the last year to reach 155 at March 31.

Pre-tax profit increased by more than a fifth to £7.2m, with the proposed final dividend 0.62p, bringing the total for the period to 0.93p, up from 0.84p in the previous year. Additionally, its closing cash position, including fixed-term deposits, amounted to £19.1m at the end of the year, an increase from £15.4m at March 31.

Boss Tommy Cook says: 'While customer budgets remain restricted in the short term, customer engagement levels remain high.' Picture: Peter Devlin.

Tommy Cook, chief executive and founder of the firm, said: “FY23 was another year of solid progress where we executed on our strategy, increasing our addressable market, whilst successfully navigating the supply chain challenges, achieving revenue and profit growth, in line with market expectations.

“While customer budgets remain restricted in the short term, customer engagement levels remain high, and we have been encouraged to see the early signs of a more stable macro environment.”

Calnex – which last year won two Queen’s Awards for Enterprise – also said trading in the first quarter of its current financial year “has continued as anticipated, and the board is confident in delivering results for the year in line with market expectations as revised in March 2023”. Mr Cook added: “The breadth of our customer base across multiple regions, expanding product portfolio and strong balance sheet, means we look to the future with continued confidence.”