Calnex revenue rises 23% to £22m on successful product launches

Calnex shares were down 3.2% to 161.6p in late afternoon trading on Tuesday, after the company announced a 23% rise in revenue to £22 million in FY 2022 compared to £17.9 million the last year.

The telecommunications solutions group reported a 16% EBITDA rise to £6.3 million against £5.4 million, alongside an adjusted pre-tax pre-tax profit jump of 18% to £5.9 million compared to £5 million.

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Calnex attributed its profits growth to strong demand for test instrumentation, with a series of well-received product launches driving customer interest.

The company also mentioned its completed acquisition of iTrinegy Limited in April 2022, marking the group’s move into the Software Defined Networks technology for software application and digital transformation testing market.

“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 benefitting from these market trends,” said Calnex CEO Tommy Cook.

“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.”

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“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.”

So far, the company has reportedly navigated semi-conductor shortages across the international supply chain with success, and the group said it remained optimistic for its 2023 business prospects.

The software manufacturer commented that its business continued to benefit from evolutionary trends in the telecoms sector, especially cloud computing and 5G, driving the firm into 2023 with a record order book as a result of strong demand for test equipment.

“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 the situation to date, successfully shipping scheduled orders as planned,” said Cook.

“We move into FY23 with a record order book and look to the future with a strong sense of optimism.”

Calnex confirmed an adjusted EPS drop of 11% to 5.1p against 5.8p and a proposed final dividend of 0.5p per share, bringing the total payout to 0.8p per share over FY 2022.

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