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Calnex Solutions shares surge amid “favourable” telecoms market

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Calnex Solutions shares (LON: CLX) surged over 20% on Wednesday after the group revealed results for the six months ended 30 September 2020.

The group reported strong demand over the period and saw revenue grow 37% whilst pre-tax profit increased by almost 69%.

Due to the reduced travel and events costs amid the pandemic, Calnex Solutions was able to see increased profitability and cash generation from from the higher revenue.

Due to the “favourable” telecoms market conditions, the group is expecting continued growth into the second half of the year. Calnex Solutions said in a trading update that it will be ahead of current market expectations and revenue and adjusted profit will be broadly in line with the H1 update.

Tommy Cook, the chief executive and founder of Calnex, said: “We are delighted to report on another strong period of trading, delivered in the lead up to our IPO on AIM, in which we experienced continued strong demand across all our product offerings. Our successful IPO, completed in early October, has provided us with the springboard to execute on our growth strategy.

“The strength of our relationships within the telecoms sector, breadth of customer base and established market position, provide us with a strong platform for future growth. We will continue to invest in business development and R&D to capitalise on the opportunities arising from the evolution of the telecoms market and look to the future with confidence. “

Calnex Solutions shares (LON: CLX) are trading +26.43% at 91,03 (1400GMT).