West Lothian tech firm Calnex overcomes chip shortage to build record order book

Watch more of our videos on ShotsTV.com 
and on Freeview 262 or Freely 565
Visit Shots! now
Calnex Solutions, the West Lothian technology business that in 2020 became the first Scottish stock market flotation in two years, has given a bullish outlook, flagging a record order book and bumper results for the year ahead.

In a trading update to investors, the firm said the strong levels of trading experienced in the first six months of the current financial year, to the end of this month, have continued. As a result, the group’s performance for the full year will be in line with market expectations.

Hide Ad
Hide Ad

The Linlithgow-based company will begin the new financial year, to the end of March 2023, with a record order book across all product lines and it is anticipated that revenue and operating profit for the coming year will be “materially ahead of market expectations”.

Bosses noted that the business has “successfully managed the challenges of ongoing global semiconductor shortages” to minimise the impact on its ability to manufacture and ship products.

Tommy Cook, chief executive of Linlithgow-based Calnex Solutions: 'We are highly encouraged by the record level of orders we have received across our customer base.' Picture: Peter DevlinTommy Cook, chief executive of Linlithgow-based Calnex Solutions: 'We are highly encouraged by the record level of orders we have received across our customer base.' Picture: Peter Devlin
Tommy Cook, chief executive of Linlithgow-based Calnex Solutions: 'We are highly encouraged by the record level of orders we have received across our customer base.' Picture: Peter Devlin

However, the company has experienced reduced availability of certain components in the final quarter of the current year, partly as a result of the level of orders Calnex is being asked to fulfil.

Hide Ad
Hide Ad

The bumper order book is said to include a “significant” order from a large data centre customer for delivery of a new, emerging market application in 2022/23. The board is currently assessing the opportunities this may create for Calnex within the data centre market.

Founder and chief executive Tommy Cook said: “We are highly encouraged by the record level of orders we have received across our customer base, demonstrating the quality of our solutions and their applicability.

“We anticipate next year will see revenue and profits considerably ahead of initial forecasts, with the potential for further growth should the supply chain issues ease and we are able to capitalise on the significant opportunities within our markets.

Hide Ad
Hide Ad

“We remain highly profitable and cash generative and will continue to invest in our offering and people to ensure we are well positioned to continue to capitalise on the growth in the telecoms and cloud computing markets,” he added.

The firm is due to release results for the year to the end of March 2022 in May.

Calnex provides test instrumentation equipment to some of the world’s biggest telecoms companies.

Hide Ad
Hide Ad

In January, the group bolstered its board with the appointment of two highly experienced directors.

Margaret Rice-Jones and Stephen Davidson joined the firm as non-executive directors with immediate effect.

Rice-Jones has more than 20 years’ experience at board level in public and private software and technology companies. Her current roles include acting as senior independent director at banknote maker De La Rue.

Hide Ad
Hide Ad

Davidson is described as an “accomplished director of both public and private companies”, with more than two decades of PLC-board experience.

George Elliott, chairman of Calnex, said: “I am very pleased to welcome Margaret and Stephen to the board of the Company. They join us at what is an exciting time for Calnex, as we seek to capitalise on the telecoms industry’s ongoing transition to 5G alongside the growth of cloud computing.”

Read More
West Lothian tech outfit Calnex Solutions hires high-profile directors including...

A message from the Editor:

Thank you for reading this article. We’re more reliant on your support than ever as the shift in consumer habits brought about by coronavirus impacts our advertisers. If you haven’t already, please consider supporting our trusted, fact-checked journalism by taking out a digital subscription: www.scotsman.com/subscriptions

Comment Guidelines

National World encourages reader discussion on our stories. User feedback, insights and back-and-forth exchanges add a rich layer of context to reporting. Please review our Community Guidelines before commenting.