West Lothian tech firm Calnex Solutions bullish for full year after strong H1
Linlithgow-based technology firm Calnex Solutions has flagged in a trading update that it expects full-year revenue and profits to considerably exceed previous expectations, after a strong performance in the first half.
The business, which provides test instrumentation equipment to some of the world’s biggest telecoms companies, has forecast that further strong levels of trading in the six months to September 30 will continue through the second half.
It added that as a result of this robust performance, the board anticipates that revenue and profits for the full year will be “materially” ahead of previous expectations, with its strong cash position allowing it to bring forward planned investment in the team to increase operational capability, in line with order growth.
The Aim-quoted firm, which in 2020 became the first Scottish stock market flotation in two years, is set to report its half-year results on November 23.
Calnex also said it has seen a return to pre-Covid customer spending patterns in all regions, other than in China where demand has been in line with the previous year, and growth has been driven by the likes of a “sustained” positive response to the launch of the enhanced Paragon-Neo, Calnex’s Lab Sync Platform.
Additionally, the company stated that it has not experienced any negative impact from the ongoing global semiconductor shortage to date on its ability to manufacture and ship product, and it is confident in its ability to continue benefiting from the underlying market growth drivers in the telecoms market.
Founder and chief executive Tommy Cook said: “We have seen most of our customers return to pre-Covid spending patterns and have experienced demand from both new and existing customers for our latest product enhancements.
"Whilst we remain cautious with regards to the ongoing global semiconductor shortages, the strength in customer orders in the first half of the year provides us with confidence that the full-year revenue and profits will exceed that of the record prior year, and mark another considerable step forward for Calnex, as we continue to capitalise on the industry’s transitions to 5G and the growth of cloud computing.”
The firm’s last annual results saw revenues jump 31 per cent to £18 million, exceeding initial expectations for the year, while adjusted pre-tax profit increased by 43 per cent to £5.1m.