REG - Calnex Solutions PLC - Final Results
Today 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20260526:nRSZ5411Fa&default-theme=true
RNS Number : 5411F Calnex Solutions PLC 26 May 2026
26 May 2026
Calnex Solutions plc
("Calnex", the "Company" or the "Group")
Final Results
Calnex Solutions plc (AIM: CLX), a leading provider of test and measurement
solutions for global telecommunications, digital infrastructure and
government & defence markets, announces its Final Results for the year
ended 31 March 2026 ("FY26" or the "Year").
Highlights
£000 FY26 FY25 YOY % change
Audited Audited
Revenue 21,875 18,386 19%
Gross profit 16,584 13,763 20%
Gross margin % 76% 75%
Underlying EBITDA(1) 1,756 1,151 53%
Profit before tax 1,244 720 73%
Basic EPS (pence) 0.83 0.38 118%
Diluted EPS (pence) 0.80 0.36 122%
Closing cash 9,306 10,912 (15%)
(1) Refer to note 32 for explanation of the alternative performance measures
calculations. A full reconciliation between Underlying EBITDA and profit
before tax is also shown in the Financial Review below.
Financial Highlights
· Revenue growth of 19% to £21.9m (FY25: £18.4m) reflecting strong operational
execution and growing momentum across adjacent end markets.
· Improved profitability driven by revenue growth, disciplined cost control and
sustained gross margins, with PBT increasing to £1.2m (FY25: £0.7m).
· Strong balance sheet with cash of £9.3m at year end (31 March 2025: £10.9m),
providing flexibility to invest in product innovation, people and routes to
market.
· Further balances received post year end due to the phasing of shipments in Q4,
increasing the total cash position to £11.2m at 22 May 2026.
· Proposed final dividend of 0.68p per share. Total of 0.99p per share for FY26
(FY25: 0.95p).
Operational Highlights
· Diversification strategy gaining traction, with increased contribution from
newer growth markets, reducing reliance on traditional telecoms markets.
Highlights include:
- a significant repeat order from a leading hyperscaler in H2,
demonstrating scalability and relevance of Calnex's solutions in data centre
environments and digital infrastructure.
- growing momentum in government and defence, with increased
opportunities within US federal programmes.
· Continued product development, including strong customer interest in our SNE
network emulation product, continued development of next-generation Sentry
offering for data centre assurance, and ongoing investment in 1.6Tb/s
synchronisation technology.
· Strengthened routes to market, through the expansion of the Group's global
partner network and a partnership with Viavi.
· Senior hires across sales, marketing and partner management strengthening our
commercial operations.
Outlook
· Targeted investment in FY27 in key product launches and continued development
of market and customer relationships will position the Group for further
growth in FY28 as new products are commercialised.
· Strongly positioned to benefit from the continued global investment across
structural growth markets of digital infrastructure, government and defence,
supported by a strong balance sheet, robust product roadmap and diversified
market footprint.
Tommy Cook, Chief Executive Officer and founder of Calnex, said: "This has
been a strong year for Calnex, delivering double-digit revenue growth,
improved profitability and material progress against our diversification
strategy, with increasing traction across a broader set of infrastructure and
assurance markets. Our focus now is firmly on execution, advancing key
development programmes and converting early engagement into commercial wins,
supported by improved market access.
As this year marked our 20(th) year of operations, the milestone is an
opportunity to reflect on how far the business has come in the last two
decades; years defined by innovation, customer-focus and resilience. From this
foundation we enter FY27 with confidence, supported by a robust product
roadmap, strong balance sheet, and a more diversified market footprint. In a
period of rapid technological and geopolitical change, the importance of
high-performance network testing continues to grow, and as we move into the
next decade of Calnex's journey, we are excited by the opportunities ahead."
For more information, please contact:
Calnex Solutions plc Via Alma
Tommy Cook, Chief Executive Officer
Ashleigh Greenan, Chief Financial Officer
Cavendish Capital Markets Limited - NOMAD and Broker +44 (0)131 220 6939
Derrick Lee, Peter Lynch
Alma + 44(0) 20 3405 0213
Caroline Forde, Joe Pederzolli, Emma Thompson
Overview of Calnex
Calnex Solutions designs, produces and markets innovative test and measurement
instrumentation that enables customers to validate the performance of critical
network technologies and applications. Our solutions support customers from
R&D and pre‑deployment through to in‑service testing, providing
confidence that networks and applications operate as intended in increasingly
complex and performance‑critical environments.
To date, Calnex has secured and delivered orders in 68 countries across the
world. Customers include BT, China Mobile, NTT, Ericsson, Nokia, Intel,
Qualcomm, IBM, Nvidia and Meta.
Founded in 2006, Calnex is headquartered in Linlithgow, Scotland, with
additional locations in Belfast, Northern Ireland, Stevenage, England and
California in the US, supported by sales teams in China and India. Calnex has
a global network of partners, providing worldwide distribution and market
access.
Chair's Statement
Overview
FY26 marked a year of strong progress for Calnex Solutions. The Group
delivered double-digit revenue growth alongside a meaningful improvement in
profitability, closing the year slightly ahead of market expectations. This
performance reflects both the agility of the business and the disciplined
execution of our strategy in a challenging macroeconomic environment.
Growth was driven by continued momentum in our newer end markets of government
and defence, and digital infrastructure (cloud computing and data centres).
This underlines the increasing relevance of Calnex's capabilities across
adjacent markets and the early success of our diversification strategy.
The Board sees significant opportunity as demand for robust digital
infrastructure testing continues to grow. While still at an early stage, we
are encouraged by increasing engagement and adoption across data centres,
cloud computing and the government and defence markets - areas well aligned to
the Group's technical strengths and offering substantial long‑term growth
potential.
Product innovation remains central to the business, with continued investment
during the year, alongside enhancements to our channel and operations
capabilities, strengthening market access. In FY27, we will focus on targeted
investment to support key product launches and the further development of
market and customer relationships. This will position the Group to
accelerate growth in FY28 as new products are commercialised and begin to make
a more meaningful contribution to revenue.
Financial strength supporting continued investment
Revenue increased by 19% to £21.9m (FY25: £18.4m), and PBT increased by 73%
to £1.2m (FY25: £0.7m). This performance was supported by increased orders
within the government and defence markets for both our NAA and Sync products,
alongside a significant repeat Sentry order with a hyperscaler, contributing
to growth in H2.
Calnex maintained strong gross margins and effective cost discipline, with
increased revenue volumes driving improved profitability and demonstrating the
operational leverage inherent in the business model. Cash at year end was
£9.3m (31 March 2025: £10.9m), with a further £1.9m of cash secured
post-period end due to the timing of shipments through the final quarter.
This financial strength provides flexibility to invest in innovation, people
and routes to market, while maintaining a scalable and controlled cost base.
ESG
The Board recognises the importance of strong environmental, social and
governance practices in supporting sustainable long‑term growth. Calnex's
solutions enable more efficient and resilient digital infrastructure, while
our focus on governance, ethical standards and investment in our people
underpins the Group's long‑term success.
During the year, the Group began to formalise its environmental reporting,
voluntarily reporting Scope 1 and Scope 2 emissions for the first time - an
important step in better understanding and managing our environmental impact.
Outlook
The Board is increasingly confident in the Group's long‑term prospects.
Diversification across products and end markets, strengthened partner
channels, and enhanced commercial capability provide a solid platform for
sustainable growth.
Calnex is well positioned to benefit from the major structural investment
taking place across the data centre, cloud computing and government and
defence markets, supported by its strong technical expertise and
market-leading solutions.
Looking ahead, the Board believes the Group's balanced approach - combining
financial discipline with selective investment - will continue to deliver
long‑term value for shareholders.
Margaret-Rice Jones has indicated her intention to retire from the Board of
Calnex at the Company's Annual General Meeting in September 2026. On behalf of
the Board, we thank Margaret for her contribution and wish her well.
Finally, I would like to thank our customers, partners and employees for their
continued support, commitment and innovation throughout the year.
Stephen Davidson
Non-Executive Chair
22 May 2026
CEO's Statement and Operational Review
Strong progress in FY26
FY26 was a year of strong operational and strategic progress for Calnex,
delivering double‑digit revenue growth and improved profitability. It also
marked the 20(th) year of business operations - a milestone that reflects the
resilience, innovation and customer focus that have underpinned our
development and will continue to shape our future.
Our performance demonstrates the value of long-term customer relationships,
the strength of our technology, and the increasing relevance of our solutions
across multiple end markets. While rooted in telecoms, Calnex has successfully
expanded into adjacent markets where high-performance network infrastructure
is critical, adapting our products to meet evolving customer needs. This
progress reflects the agility and commitment of our team.
Looking ahead, we will continue to invest in market access, product
development and our people to support the next phase of Calnex's growth.
Long-term customer relationships
Calnex serves a broad and expanding customer base across multiple sectors,
with over 700 customer sites across 68 countries, spanning equipment vendors,
service providers, hyperscalers, enterprises, and participants in
semiconductor as well as aerospace and defence markets.
The specialised nature of our solutions and the strength of our customer
relationships underpin high levels of repeat business, with 79% of orders
coming from existing customers (FY25: 77%) on a 3-year average basis. Our top
10 customers accounted for 55% of orders (FY25: 45%) on a 3-year average basis
reflecting a well-established and diversified customer base.
Government and defence sector customers represented 21% of orders by value
(FY25: 15%), with digital infrastructure remaining strong at 49% (FY25: 49%).
The reported regional revenue split for FY26 was: Americas 31% (FY25: 40%),
North Asia 16% (FY25: 18%), and ROW 53% (FY25: 42%). A significant repeat
order for Sentry was booked through the ROW region, the quantum of which is
driving the increase in the percentage of revenues allocated to that that
region. A large proportion of this order, although derived in ROW on an orders
received basis, will ultimately be deployed by the customer in the US. An
underlying reflection of business across all three regions, adjusting for this
order large order, would show a more consistent year on year percentage volume
of revenues coming from the Americas.
Diversification strategy gaining traction
Our diversification strategy continued to deliver progress, reducing reliance
on traditional telecoms and increasing exposure to higher-growth markets
requiring digital infrastructure testing. Both our Network & Application
Assurance and Synchronisation products contributed to growth in our newer end
markets, while telecoms remained stable.
Telecoms
The telecoms market remained steady. While market conditions have yet to
return to previous peaks, long‑term growth drivers remain intact as
operators and equipment vendors continue to invest in network evolution and
standards development. The move towards higher speeds, increasing timing
accuracy requirements and ongoing work around next‑generation standards
continue to support demand for standards‑driven test and measurement.
Digital infrastructure
Digital infrastructure represents a significant growth opportunity, driven by
hyperscaler investment, network upgrades and the rapid expansion of
AI‑driven workloads.
As AI environments scale, network performance becomes a critical determinant
of overall system efficiency, increasing the need for controlled validation.
Our solutions are well positioned to support this, enabling customers to
validate synchronisation and network behaviour in increasingly complex
environments.
In H2 Calnex secured a significant repeat order for Sentry from a leading
hyperscaler, to monitor network sync, a testament to the relevance of our
products in this space as well as the opportunity to scale. Accelerated by AI,
testing solutions are increasingly important in a rapidly evolving market.
Government and Defence
The government and defence sector provides an increasingly significant market
opportunity for Calnex, driven by modernisation of digital infrastructure and
the need for assured performance in mission‑critical environments.
While sales cycles can be longer and routes to market differ from other
sectors, FY26 provided validation of growing traction and strengthened
understanding of the government and defence market dynamics, supporting our
long‑term confidence in this market as a growth pillar. We have established
that our solutions are applicable across a wide range of systems and
equipment, including testing private government networks; supporting the
validation of architectures associated with new platforms, in particular the
secure implementation of data storage within the specific application
environment; and training and evaluation of systems for real-world scenarios.
Highlights this year include the adoption of SNE-X for training and
cyber-range simulations across key government programmes, ongoing satellites
and non-terrestrial network programmes, and a significant multi-product order
in the US federal market. These developments prove our capabilities and
highlight the relevance and value of both our NAA and Sync products in this
space, providing a strong foundation for further growth.
Product innovation underpins growth and market expansion
Product innovation remains central to Calnex's differentiation and enables us
to address customers' specific needs and expand into new applications. Our
portfolio supports customers across the full lifecycle, from R&D and
pre‑deployment through to in‑service testing.
Lab synchronisation
In synchronisation testing, our Paragon‑Neo‑S 800Gb/s platform continues
to perform strongly across telecoms and data centres. Demand is being driven
by the need for higher‑speed validation and standards‑driven testing
across sectors.
In H2 we secured a partnership with Viavi Solutions Inc. to deliver a suite of
Open RAN testing solutions that enable simple, cost‑effective pre‑testing
ahead of formal validation. Early customer feedback has been encouraging,
reinforcing Calnex's position as a leader in telecoms infrastructure
innovation and highlighting Open RAN as a growing area within the sector.
Building on this momentum, we have been investing in the next evolution of
synchronisation testing, 1.6Tb/s, for delivery in FY28, to address the next
wave of interface speeds. We are progressing development through close
alignment with key customers and next‑generation chipset technology,
positioning Calnex to support future technology transitions as standards and
customer requirements evolve.
Network and Application Assurance (NAA)
Our NAA portfolio continues to evolve in response to customer demand for
real-world validation of networks and applications.
Our Network emulation products support infrastructure validation requirements
across cloud computing and data centres as well as government and defence.
Post-period end, we made a significant advancement in network emulation for AI
infrastructure, demonstrating that we can realistically simulate very
high‑speed (400G) networks to test and check large AI computing systems that
rely on congestion‑free Ethernet connections, before they are deployed in
the real world. This capability supports controlled, repeatable lab validation
of congestion, microbursts and latency effects that can materially impact
efficiency in large‑scale AI environments. Looking ahead we see significant
scope from our SNE emulation network range to scale demand, such as SNE X
supporting 400GbE interfaces.
We are also progressing development of next‑generation capabilities within
our data centre assurance offering, including enhancements to our Sentry
product designed to better align to data centre operational requirements. This
is attracting keen interest from hyperscaler and data centre customers, with
anticipated revenue generation in late FY27.
Strong financial performance
Group revenues increased by approximately 19% to £21.9m (FY25: £18.4m), with
PBT improving to £1.2m (FY25: £0.7m).
The Group maintained a strong balance sheet, with cash as at 31 March 2026 of
£9.3m (31 March 2025: £10.9m), and further cash received post-period end due
to the phasing of shipments through the final quarter, taking the closing cash
balance to £11.2m at 22 May 2026.
Strengthening market access
In FY26 we continued to strengthen our routes to market and internal execution
capability. The change in our channel strategy resulted in a transitional
period as we moved away from Spirent Communications and was therefore a
process we undertook with extreme rigour.
Our global partner network across North America, Europe, India, and
Asia-Pacific, expanded and improved our sales coverage further, in line with
our strategy, with new partners onboarded in North America and increased focus
on partner enablement and internal processes. We have been pleased with how
the business has navigated this significant shift in operations and expect to
see the full benefit of this transition in FY27 and beyond.
Our partnership with Viavi Solutions Inc. continues to progress, providing
access to a broader installed base and enhanced go-to-market reach.
People
Our team remains the engine of the business. The headcount at 31 March 2026
increased to 163 from 155 at the start of the year. We have enhanced our
global sales and marketing teams to underpin ongoing growth, with senior hires
across sales, marketing and partner management including a Sales Operations
manager in H2 to oversee partner onboarding and enablement. These hires are
already strengthening and supporting growth in newer markets.
Targeted investment in FY27 to drive accelerated growth in FY28
FY27 will be a year of targeted investment, focused on key product launches,
market expansion and customer relationships to underpin future growth. Our
confidence in accelerated growth in FY28 is based on multiple initiatives
progressing in parallel, focused on both market access and product
developments, with investment in FY27 intended to translate into more
meaningful revenue contribution as new products are launched and
commercialised. Our key product innovation programmes are progressing well,
with strong customer interest in our SNE network emulation product, continued
next‑generation development of Sentry in data centre assurance, and ongoing
investment in 1.6Tb/s synchronisation technology. In addition, we are
increasing investment in our go‑to‑market capability, with a stronger
focus on channel partners supported by a recent senior hire to lead partner
onboarding, enablement and execution.
These investments, alongside continued focus on AI‑driven infrastructure
validation and assurance, will increase R&D and go‑to‑market spend in
FY27, but are expected to support a step‑change in growth in FY28 as they
are commercialised.
Confident long‑term outlook
We enter FY27 with confidence, supported by a strong balance sheet, a robust
product roadmap and a more diversified market footprint.
Our focus will be on execution, advancing key development programmes and
converting early engagement into commercial wins, underpinned by improved
market access, to drive a step-change in growth in FY28 and beyond. The
investments we are making today reflect a clear long-term vision for Calnex,
as technological innovation supports the evolution of the business into one
that addresses a broader set of infrastructure and assurance markets.
We remain committed to structured execution and long-term value creation, as
Calnex continues to evolve into a broader digital infrastructure and assurance
business. In times of rapid change on both a global geopolitical level and in
our end markets, testing solutions are increasingly relevant, and I look
forward to seeing what comes next as we step into the next decade of Calnex's
journey.
Tommy Cook
Chief Executive Officer
22 May 2026
Chief Financial Officer's Statement
Financial KPIs
£000 FY26 FY25
Revenue 21,875 18,386
Gross Profit 16,584 13,763
Gross Margin 76% 75%
Underlying EBITDA (1) 1,756 1,151
Underlying EBITDA % 8% 6%
Profit before tax 1,244 720
Profit before tax % 6% 4%
Closing cash 9,306 10,912
Capitalised R&D 6,343 4,836
Basic EPS (pence) 0.83 0.38
Diluted EPS (pence) 0.80 0.36
(1) Refer to note 32 for explanation of the alternative performance measures
calculations. A full reconciliation between Underlying EBITDA and the
statutory measures is also shown below.
Reconciliation of statutory figures to alternative performance measures -
Income Statement
FY26 FY25
£000 £000
Revenue 21,875 18,386
Cost of sales (5,291) (4,623)
Gross Profit 16,584 13,763
Other income 962 913
Administrative expenses (excluding depreciation & amortisation) (11,148) (9,254)
EBITDA 6,398 5,422
Amortisation of development costs (4,642) (4,271)
Underlying EBITDA 1,756 1,151
Other depreciation & amortisation (707) (714)
Operating Profit 1,049 437
Interest received 265 320
Finance costs (70) (37)
Profit before tax 1,244 720
Tax (516) (383)
Profit for the year 728 337
Revenue
Calnex achieved strong revenue growth on the prior year, with revenues
increasing by 19% to £21.9m (FY24: £18.4m), as a result of improved trading
into our increasingly diversified end markets.
Revenues generated in EMEA, India, South East Asia and Australasia are
classified in the Company's Rest of World (ROW) region. The region has a broad
mix of end customers and sectors, helping to manage trading risk within any
single sector. Revenues recorded in the region grew by 48% on the prior
year, largely attributable to a significant repeat order from a hyperscaler
customer with global activities. We understand that the customer will deploy
the Calnex product largely in the US. Allowing for that factor, underlying
revenues in this ROW region grew year on year, driven by growth in telecoms
orders in EMEA and by digital infrastructure orders across EMEA and India.
Revenues recorded in the Americas region declined by 8% year-on-year. However,
adjusting for the significant repeat hyperscaler order, underlying performance
appears broadly stable on a year-on-year basis. Our strategic focus in the
Americas has been on government and defence sector opportunities as well as
digital infrastructure growth, while the telecoms sector was subdued. In
FY26, the Americas region contributed the majority of the increase in
government and defence orders across the Group, as a result of FY25 targeted
hires to support the expansion of our US federal customer base.
Within North Asia, revenues have grown by 8% despite China remaining a
challenging environment for trading due to the impact of US restrictions and
higher levels of competition for our NAA products. We continue our focus on
business in the other countries in the region as a priority. The business
saw growth in digital infrastructure and telecoms orders, benefitting from the
investments in cloud computing and data centres within the region.
From a product line perspective, Lab Sync (Paragon-neo and Paragon-X)
experienced growth, increased trading within the government and defence sector
in the Americas and the telecoms sector in ROW. Our Network Sync product
revenues grew significantly in the year, driven by the repeat order from a
major hyperscaler mentioned above. Our NAA network emulation product for
infrastructure testing, SNE, also experienced revenue growth, particularly
within Government and Defence sector in Americas and across all sectors in the
ROW region. NE-ONE, our NAA network emulation for testing of applications
product, experienced slight growth in orders and we continue with our focus on
returning this product line to revenue growth in FY27.
Revenue model
Calnex generates revenues through the sale of bundled hardware and software,
alongside the provision of software support and extended warranty programmes.
The Group's core sales model is bundled hardware and software. Sales pricing
is dependent on the product type and the complexity of the software
configuration built into the product package. Calnex also sells stand-alone
software upgrades under licence.
Each of Calnex's units comes with a standard warranty period including
maintenance and software upgrade cover in the event of any software upgrades
being released for the options purchased. Calnex also sells software support
programmes which provide customers with access to future software upgrades
which are not included as part of the standard warranty. The Group also offers
extended warranty programmes to cover repairs falling outside of the standard
warranty period.
Bundled hardware and software revenues are recognised when the product is
delivered to the customer, with stand-alone software revenues recognised in
line with the length of the licence period. Revenues from software support and
extended warranty programmes are typically recognised on a straight-line basis
over the term of the contract.
Many of the products and services developed and deployed by Calnex's customers
are interlinked and need to be tested independently, such as the individual
components which are then built into the equipment used in telecoms networks.
Calnex's test products can be used by a combination of equipment vendors,
component manufacturers and network operators, to carry out testing during a
new product development cycle. Products verified utilising Calnex's test
solutions can be used in the knowledge that they will deliver consistent
performance.
Sources of Revenue
Revenue streams
FY26 FY25
£000
£000
Warranty support revenue - recognised over the life of cover 3,745 3,870
Hardware and software revenue - recognised on despatch/delivery 18,130 14,516
Total revenue 21,875 18,386
In FY26, 83% (FY25: 79%) of the Group's revenues were generated from the sale
of bundled hardware and software products, with 17% (FY25: 21%) from software
support and extended warranty programmes.
Bundled hardware and software revenues grew 25% on the prior year in line with
increased demand for our products, revenues from software support and extended
warranty programmes remained in line with prior year revenues.
Geographical split (revenues)
FY26 FY25
% of revenue % of revenue
3-year average revenues:
Americas 34% 35%
North Asia 18% 21%
Rest of World 48% 44%
In-year revenues:
Americas 31% 40%
North Asia 16% 18%
Rest of World 53% 42%
The Group's customers are located across the world. Our global customer base
and distributor network enables the Group to spread risk across our three key
regions: the Americas, North Asia and Rest of the World (ROW).
On a three-year average basis, the split of revenues across the three key
regions was 48% for ROW (FY25: 44%), 34% for Americas (FY25: 35%) and 18%
(FY25: 21%) for North Asia. The repeat hyperscaler order contributed to the
strong performance in the ROW region, together with a general increase in
overall revenues coming from the EMEA region, predominantly across telecoms
and digital infrastructure. Although the Americas region saw a slight decline
in trading in FY26, it is experiencing a growth in government and defence
opportunities as a result of enhanced sales and marketing focus within that
sector. North Asia has been experiencing a steady decrease since FY20
reflecting the ongoing US-China geopolitical tensions, although FY26 revenues
in the region saw a slight increase compared with the prior year, despite the
trading challenges.
Top 10 customer orders (3 year order average)
FY26
% of orders
Top 10 customer orders 51%
Other customer orders 49%
In FY25, Calnex received orders from 244 customers, with the number of
customers declining slightly on the prior year (FY25: 274 customers) and the
order value per customer increasing in the year.
The Group's top ten customers accounted for 51% of total orders on average
over the last three years (FY25: 45%). In FY26, as a stand alone year,
orders from the top ten customers totalled 56% of total orders (FY25: 46%).
In FY26, 25% of Calnex's total orders (and 22% of revenues) can be attributed
to one customer, with no other customers accounting for more than 7% of total
orders. The Group continues efforts to diversify its customer base to reduce
the percentage of business from this account in future years.
Repeat customers (3 year order average)
FY26
% of orders
Repeat orders 79%
New orders 21%
The average length of customer relationship across the top ten customers in
FY26 is 13 years (FY25: 10 years), demonstrating our high levels of repeat
demand from our customers, whilst new customers are also being added to the
top ten list. In addition, the Group typically experiences a high level of
repeat business from its total customer base. In FY26, using a three-year
order average, 79% of orders were generated from existing customers (FY25:
77%).
Customer orders by market sector
FY26 FY25
% of orders
Telecoms 30% 36%
Digital Infrastructure 49% 49%
Government and Defence 21% 15%
Calnex's sales have previously been predominantly derived from telecoms
customers where the end-application is a telecoms (fixed and mobile) network.
More recently, Calnex has seen an increase in customers from the digital
infrastructure markets (which include hyperscale/data centre providers and
enterprise customers) and the government and defence industry. As a result
of this change in the end markets that the business sells into, there was need
to show a more granular split of the company's performance by market sector,
compared to the previous telecoms/cloud computing split shown in prior year
reports.
Equipment vendors who initially developed product for use in telecom
applications are now selling the same products into other data network
applications where the same technology is implemented, and these new
applications are becoming a significant market opportunity for our customer's
products, which is contributing to the large proportion of Calnex's business
attributed to the digital infrastructure market. The increased diversification
of our revenue streams into government and defence customers has also driven a
need for a more granular split of revenue by market sector.
Gross Profit
Gross profit grew by 20% to £16.6m (FY25: £13.8m), driven by the growth in
revenue volumes and a 1 percentage point increase in gross margin. Gross
margin, which is net of commissions payable to our channel partners, improved
from 75% in the prior year to 76%. Gross margin can fluctuate by 1-2% through
the year depending on the mix and timing of the hardware and software bundles
shipped.
Change in accounting policy for RDEC
During the year, the Group changed its accounting policy in respect of
Research and Development Expenditure Credits ('RDEC'), recognised within the
other income within the Income Statement. Previously recognised in the
period incurred, RDEC income will now be recognised in line with the
amortisation of related capitalised development costs.
This change reflects the growing scale and ongoing nature of the Group's UK
R&D investment, as well as recent UK HMRC reforms merging the SME and RDEC
schemes. The revised approach enhances comparability and better aligns income
recognition with the underlying economic benefits of R&D activity,
providing greater transparency over financial performance as the Group's
R&D activities increase over time.
The policy has been applied retrospectively from 1 April 2024. The impact of
the change to other income was to reduce the current year recognised RDEC
income from £1.2m to £0.8m. The £0.4m unrecognised RDEC income has been
included within the RDEC credit balance within trade & other payables.
Refer to note 31 of the financial statements for more information.
Underlying EBITDA
Underlying EBITDA, including R&D amortisation, increased to £1.8m (FY25:
£1.2m), driven by the higher revenues and improved gross margin.
Administrative expenses (excluding depreciation & amortisation) were
£11.1m in FY26 (FY25: £9.2m). Alongside inflationary cost increases in the
year, the administrative cost increases were driven by planned targeted
headcount increases, predominantly in the sales, product and marketing teams
to support our growth and channel enhancement goals in our diversified end
markets, increased recruitment costs to support these hires and other
replacement hires through the year, increased legal costs to support contract
reviews with new partners, and a small increase in the share-based payments
charge as result of an additional award participant added in the year.
Performance bonuses and company profit share were accrued at the end of the
year as the Group's FY26 budgeted profit share triggers were achieved. In the
prior year, there was no bonus cost accounted for as a result of the FY25
budgeted profit targets not being achieved. This also contributed to the
increase in administration costs in the year.
Amortisation of R&D costs increased by £0.3m to £4.6m (FY25: £4.3m) due
to increased R&D investment in the current and previous years to support
the product roadmap. R&D spend is capitalised and amortised to the
P&L over five years.
Positive operational gearing drove the underlying EBITDA margin to 8% from 6%
in FY25 as a result of the higher revenue volumes and improved gross margin.
Profit before tax
The Group generated a profit before tax of £1.2m in the year (FY25: £0.7m)
with the improvement in profitability attributable to growth in revenue
performance and the maintenance of strong margins. Profit before tax margin
was 6% in the year (FY25: 4%).
Tax
The tax charge in the year was £0.5m (FY25: £0.4m), representing an
effective tax rate of 41% (FY25: 53%), principally driven by prior year
adjustments, the majority of which relate to the effects of the new RDEC
accounting policy. The normalised run rate range for the business' effective
tax rate going forward will be closer to the applicable tax rate, which is
currently 25%.
The difference between the applicable rate of tax of 25% and the effective
rate in FY26 is largely due to the following:
· Adjustments in respect of prior periods (increasing the effective
rate by 12%);
· Overseas tax (increasing the effective rate by 4%);
· Timing differences not recognised in the computation (increasing
the effective rate by 3%); and
· Other differences, such as disallowable expenses, and deferred
tax charged to equity (decreasing the effective rate by 3%).
Earnings per share
Basic earnings per share was 0.83 pence in the year (FY25: 0.38 pence) and
diluted earnings per share was 0.80 pence (FY25: 0.36 pence), with the
increases in both metrics reflecting the improved profitability in the year.
Cashflows
The Group experienced a cash outflow of £1.6m in the year (FY25: £1.0m
outflow) with the improved trading performance being offset by timing of trade
receivables receipts at the end of the year, due to the increased trading in
Q4 and the timing of shipments towards the year end.
Net cash from operating activities was £5.6m (FY25: 4.4m) reflecting the
increased trading levels in the year, lower working capital movements compared
to the prior year and an increase in R&D tax credits received in the year.
Working capital in the year increased by £1.1m (FY25: £1.8m increase) driven
predominantly by increases in trade receivables in the period as a result of
the increased volume of orders and timing of shipments towards the year end.
Cash used in investing activities is principally spent on R&D activities,
which is capitalised and amortised over five years. Investment in R&D in
the year was £6.4m (FY25: £4.8m). During the year, the Company took the
decision to secure early access to new silicon technology to enable the timely
development of our next‑generation 1.6Tb/s Lab Sync solution and £0.8m of
the increase in R&D investment spend in the year can be attributed to
this. Other increases are resulted from inflationary increases in salary
costs across the R&D staff base and slightly higher equipment purchases in
H2 as the Paragon 1.6Tb/s project commenced.
There is no debt on the balance sheet, leading to no borrowings related
cashflows in the current or prior periods. Closing cash at 31 March 2026 was
£9.3m (31 March 2025: £10.9m). The closing cash balance on 21 May was
£11.2m after a large proportion of year end trade receivables were collected
after the reporting date.
Dividend
The directors are proposing a final dividend with respect to the financial
year ended 31 March 2026 of 0.68p per share. The final dividend will be
proposed for approval at the Annual General Meeting in September 2026 and, if
approved, will be paid on 8 September 2026 to all shareholders on the register
as at close of business on 14 August 2026, the record date. The ex-dividend
date will be 13 August 2026.
Ashleigh Greenan
Chief Financial Officer
22 May 2026
Consolidated Statement of Comprehensive Income
_________________________________________________________________________________________________________________
31 March 31 March
2026 2025
Note £'000 £'000
Revenue 4,5 21,875 18,386
Cost of sales (5,291) (4,623)
Gross profit 16,584 13,763
Other income 6 962 913
Administrative expenses (16,497) (14,239)
Operating profit 7 1,049 437
Interest received 265 320
Finance costs 10 (70) (37)
Profit before taxation 1,244 720
Taxation 11 (516) (383)
Profit and total comprehensive
income for the year 728 337
Basic earnings per share 27 0.83 0.38
Diluted earnings per share 27 0.80 0.36
Consolidated and Company Statement of Financial Position
__________________________________________________________________________________________________________________
Group Company
*Restated *Restated
31 March 31 March 31 March 31 March
2026 2025 2026 2025
£'000 £'000 £'000 £'000
Non-current assets Note
Intangible assets 12 13,699 12,255 13,446 11,750
Goodwill 13 2,000 2,000 - -
Plant and equipment 14 133 187 133 187
Right-of-use assets 19 843 1,115 843 1,115
Deferred tax asset 20 711 591 711 591
17,386 16,148 15,133 13,643
Current assets
Inventories 15 5,445 5,358 5,445 5,358
Trade and other receivables 16 8,734 5,669 8,755 5,843
Corporation tax receivable 882 684 914 713
Cash and cash equivalents 17 9,306 10,912 9,225 10,757
24,367 22,623 24,339 22,671
Total assets 41,753 38,771 39,472 36,314
Current liabilities
Trade and other payables 18 8,413 5,895 8,388 5,866
Lease liabilities 19 301 289 301 289
8,714 6,184 8,689 6,155
Non-current liabilities
Trade and other payables 18 2,158 2,148 2,158 2,148
Lease liabilities 19 627 928 627 928
Deferred tax liabilities 20 3,185 2,940 3,122 2,814
5,970 6,016 5,907 5,890
Total liabilities 14,684 12,200 14,596 12,045
Net assets 27,069 26,571 24,876 24,269
Equity
Share capital 26 110 110 110 110
Share premium 7,719 7,671 7,719 7,671
Share option reserve 24 2,304 1,764 2,304 1,764
Retained earnings 16,936 17,026 14,743 14,724
Total equity 27,069 26,571 24,876 24,269
The profit for the financial year of the parent company is £837,066 (2025:
£527,721). As provided for by section 408 of the Companies Act 2006, no
income statement is presented in respect of the parent company.
The accounts were approved by the Board of Directors and authorised for issue
on 22 May 2026. The accounts are signed on their behalf by:
………………………………………………………..
Ashleigh Greenan
Director
*Prior year comparatives have been restated as a result of a change in
accounting policy. Please refer to note 31 for details.
Consolidated Statement of Changes in Equity
_________________________________________________________________________________________________________________
Share
Share Share option Retained Total
capital premium reserve earnings equity
£'000 £'000 £'000 £'000 £'000
Balance at 31 March 2024 as previously stated 109 7,511 1,414 18,304 27,338
Impact of change in RDEC accounting policy (note 31) - - - (873) (873)
Balance as 1 April 2024 as restated 109 7,511 1,414 17,431 26,465
Transactions with owner in their capacity as owners
Share options exercised 1 160 (72) 72 161
Share options - - 422 - 422
Dividends paid - - - (814) (814)
Total transactions with owner in their capacity as owners 1 160 350 (742) (231)
Total comprehensive income for the year - - - 337 337
Balance at 31 March 2025 as restated 110 7,671 1,764 17,026 26,571
Transactions with owner in their capacity as owners
Share options exercised - 48 - - 48
Share options - - 540 - 540
Dividends paid - - - (818) (818)
Total transactions with owner in their capacity as owners - 48 540 (818) (230)
Total comprehensive income for the year - - - 728 728
Balance at 31 March 2026 110 7,719 2,304 16,936 27,069
Company Statement of Changes in Equity
__________________________________________________________________________________________________________________
Share
Share Share option Retained Total
capital premium reserve earnings equity
£'000 £'000 £'000 £'000 £'000
Balance at 31 March 2024 as previously stated 109 7,511 1,414 15,811 24,845
Impact of change in RDEC accounting policy (note 31) - - - (873) (873)
Balance as 1 April 2024 as restated 109 7,511 1,414 14,938 23,972
Transactions with owner in their capacity as owners
Share options exercised 1 160 (72) 72 161
Share options - - 422 - 422
Dividends paid - - - (814) (814)
Total transactions with owner in their capacity as owners 1 160 350 (742) (231)
Total comprehensive income for the year - - - 528 528
Balance at 31 March 2025 110 7,671 1,764 14,724 24,269
Transactions with owner in their capacity as owners
Share options exercised - 48 - - 48
Share options - - 540 - 540
Dividends paid - - - (818) (818)
Total transactions with owner in their capacity as owners - 48 540 (818) (230)
Total comprehensive income for the year - - - 837 837
Balance at 31 March 2026 110 7,719 2,304 14,743 24,876
Consolidated and Company Cash Flow Statement
__________________________________________________________________________________________________________________
Group Company
31 March 31 March 31 March 31 March
2026 2025 2026 2025
£'000 £'000 £'000 £'000
Cashflows from operating activities
Profit before tax from continuing operations 1,244 720 1,367 868
Adjusted for:
Finance costs 10 70 37 70 37
Interest received (265) (320) (265) (320)
Government grant income 6 (173) (200) (173) (200)
R&D tax credit income 6 (789) (713) (789) (713)
Share-based payment transactions 23 551 432 551 432
Depreciation 14 158 182 158 182
Amortisation 12,19 5,191 4,803 4,939 4,535
Impairment of intangibles - 167 - 167
Movement in inventories 15 44 (405) 44 (405)
Movement in obsolescence provision 15 (131) 421 (131) 421
Movement in trade and other receivables (3,062) (2,334) (2,913) (2,272)
Movement in trade and other payables 2,090 538 2,097 548
Cash generated from operations 4,928 3,328 4,955 3,280
Movement in provisions - (15) - (15)
Corporation & foreign tax payments (75) 635 (28) 713
R&D tax credit refunds received 698 435 698 435
Net cash from operating activities 5,551 4,383 5,625 4,413
Investing activities
Purchase of intangible assets 12 (6,362) (4,864) (6,362) (4,864)
Purchase of property and equipment 14 (104) (28) (104) (28)
Government grant income 173 200 173 200
Interest received 265 320 265 320
Net cash used in investing activities (6,028) (4,372) (6,028) (4,372)
Financing activities
Payment of lease obligations 19 (359) (314) (359) (314)
Dividends paid 30 (818) (814) (818) (814)
Share options proceeds 48 161 48 161
Net cash used in financing activities (1,129) (967) (1,129) (967)
Net decrease in cash and cash equivalents (1,606) (956) (1,532) (926)
Cash and cash equivalents at beginning of the year 10,912 11,868 10,757 11,683
Cash and cash equivalents at end of the year 17 9,306 10,912 9,225 10,757
Notes to the financial statements
__________________________________________________________________________________________________________________
1. General information
Calnex Solutions plc ("the Company") is a public limited company, limited by
shares, domiciled and incorporated in Scotland. The registered office is
Oracle Campus, Linlithgow, West Lothian, EH49 7LR.
The Company (together with its subsidiary, the "Group") was under the control
of the directors throughout the period covered in the financial statements.
The list of the subsidiaries consolidated in the financial statements is shown
in Note 25.
The principal activity of the Group is the design, production and marketing of
test instrumentation and solutions for network synchronisation and network
emulation, enabling its customers to validate the performance of critical
infrastructure associated with telecoms networks, enterprise networks and data
centres.
The financial statements were authorised for issue, in accordance with a
resolution of directors, on 22 May 2026. The directors have the power to amend
and reissue the financial statements.
2. Basis of preparation
(a) Statement of compliance
The financial reporting framework that has been applied in their preparation
is applicable law and UK-adopted International Accounting Standards and, as
regards the parent company financial statements, as applied in accordance with
the provisions of the Companies Act 2006.
The financial information does not include all information required for full
annual financial statements and therefore does not constitute statutory
accounts within the meaning of section 435(1) and (2) of the Companies Act
2006 or contain sufficient information to comply with the disclosure
requirements of UK-adopted International Accounting Standards. These should be
read in conjunction with the Financial Statements of the Company for the year
ended 31 March 2026 which were approved by the Board of Directors on 22 May
2026. The report of the auditors for the year ended 31 March 2026 was (i)
unqualified, (ii) did not include a reference to any matters to which the
auditors drew attention by way of emphasis without qualifying their report,
and (iii) did not contain a statement under section 498 (2) or (3) of the
Companies Act 2006.
(b) Basis of accounting
The financial statements have been prepared under the historical cost
convention, except for certain financial assets and liabilities including
financial instruments, which are stated at their fair values.
The preparation of the financial statements in conformity with UK-adopted IAS
requires the directors to make judgements, estimates and assumptions that
affect the application of policies and reported amounts of assets and
liabilities, income and expense. The estimates and judgements are based on
historical experience and various other factors that are believed to be
reasonable under the circumstances, the results of which form the basis of
making judgements about carrying amounts of assets and liabilities that are
not readily apparent from other sources. Actual results may differ from
these estimates. The accounting policies set out below have, unless otherwise
stated, been applied consistently to all periods presented.
(c) Functional and presentation currency
The financial statements are presented in pounds Sterling, which is the
functional and presentation currency of the Group. Results in these financial
statements have been prepared to the nearest thousand.
(d) Basis of consolidation
The consolidated financial statements incorporate those of Calnex Solutions
plc, and all its subsidiaries. A subsidiary is an entity controlled by the
Group, i.e. the Group is exposed to, or has the rights, to variable returns
from its involvement with the entity and has the ability to affect those
returns through its current ability to direct the entity's relevant activities
(power over the investee). All intra-Group transactions, balances, and
unrealised gains on transactions between Group companies are eliminated on
consolidation. Unrealised losses are also eliminated unless the transaction
provides evidence of an impairment of the asset transferred. The total
comprehensive income, assets and liabilities of the entities are amended,
where necessary, to align the accounting policies.
The Group applies the acquisition method to account for all acquired
businesses, whereby the identifiable assets acquired and the liabilities
assumed are measured at their acquisition date fair values (with a few
exceptions as required by IFRS 3 Business Combinations).
The cost of a business combination is the fair value at the acquisition date
of the assets given, equity instruments issued and liabilities incurred or
assumed, plus costs directly attributable to the business combination. The
excess of the cost of a business combination over the fair value of the
identifiable assets, liabilities and contingent liabilities is recognised as
goodwill.
The acquisition of assets that falls outside the scope of IFRS 3 are accounted
for by bringing the assets and liabilities of the acquired entity into the
financial statements at their nominal value from the date of acquisition.
Comparative information is not restated.
2. Basis of preparation (continued)
(e) Going Concern
The financial information for the year to 31 March 2026 has been prepared on
the basis that the Group and the Company will continue as a going concern.
The Board has approved financial forecasts for the current and succeeding
financial years to 31 March 2028. Based on this review, along with regular
oversight of the Group's risk management framework the Board has concluded
that the Group will continue to trade as a going concern.
3 Significant accounting policies
(a) Revenue recognition
Revenue is measured at the fair value of the consideration received or
receivable and represents amounts receivable for goods and services provided
in the normal course of business, net of sales related taxes and discounts and
is recognised at the point in time when the relevant performance obligation is
satisfied.
Where revenue contracts have multiple elements, all aspects of the transaction
are considered to determine whether these elements can be separately
identified. Where transaction elements can be separately identified and
revenue can be allocated between them on a fair and reliable basis, revenue
for each element is accounted for according to the relevant policy below.
The Group recognises revenue from the following major sources:
Hardware & software revenue
Revenue from the sale of bundled hardware and software, is recognised when the
Group transfers the risk and rewards to the customer, and the bundled product
is delivered to the customer. Each unit sale comes with a standard warranty
period during which the Group agrees to provide warranty cover, maintenance
cover and software upgrade cover in the event of any software upgrades being
released. This is recognised as a separately identifiable obligation from the
provision of the hardware and is recognised over the life of the cover
provided, being a year.
For the sale of stand-alone software, the licence period and therefore the
revenue recognition, is upon delivery.
Extended warranty programme
The Group enters into agreements with purchasers of its equipment to perform
necessary repairs falling outside the Group's standard warranty period. As
this service involves an indeterminate number of acts, the Group is required
to 'stand ready' to perform whenever a request falling within the scope of the
program is made by a customer. Revenue is recognised on a straight-line basis
over the term of the contract.
This method best depicts the transfer of services to the customer as:
i) The Group's historical experience demonstrates no statistically
significant variation in the quantum of services provided in each year of a
multi-year contract; and
ii) no reliable prediction can be made as to if and when any
individual customer will require service.
3. Significant accounting policies (continued)
Software support programme
The Group enters into agreements with purchasers of its equipment to provide
software support and access to future software updates. Revenue is recognised
on a straight-line basis over the term of the contract.
Grant income
The Group has obtained grant funding from the Scottish Government in prior
years in the form of reimbursement for research and development costs eligible
for reclaim under the grant agreement. Costs were incurred before they were
reclaimed under the grant agreement and revenue only recognised after receipt
of the funds from the government. Grant funds received are recognised over
five years, in line with the amortisation policy on capitalised research and
development costs.
(b) Retirement benefit costs
Payments to defined contribution schemes are charged to the Statement of
Comprehensive Income as an expense as they fall due.
(c) Share-based payments
Equity-settled and cash settled share-based compensation benefits are provided
to some employees. Equity-settled transactions are awards of shares, or
options over shares that are provided to employees in exchange for the
rendering of services.
The cost of equity-settled transactions is measured at fair value on grant
date. Fair value is independently determined using the Black-Scholes option
pricing model, or a Monte-Carlo analysis that takes into account the exercise
price, the term of the option, the impact of dilution, the share price at
grant date and expected price volatility of the underlying share, the expected
dividend yield and the risk free interest rate for the term of the option,
together with non-vesting conditions that do not determine whether the Group
receives the services that entitle the employees to receive payment. There are
no other vesting conditions.
The cost of equity-settled transactions is recognised as an expense with a
corresponding increase in equity over the vesting period. The cumulative
charge to profit or loss is calculated based on the grant date fair value of
the award, the best estimate of the number of awards that are likely to vest
and the expired portion of the vesting period. The amount recognised in profit
or loss for the period is the cumulative amount calculated at each reporting
date less amounts already recognised in previous periods.
The cost of cash-settled transactions is initially, and at each reporting date
until vested, determined by applying the Black-Scholes option pricing model,
taking into consideration the terms and conditions on which the award was
granted. The cumulative charge to profit or loss until settlement of the
liability is calculated as follows:
● during the vesting period, the liability at each reporting
date is the fair value of the award at that date multiplied by the expired
portion of the vesting period.
● from the end of the vesting period until settlement of the
award, the liability is the full fair value of the liability at the reporting
date.
All changes in the liability are recognised in profit or loss. The ultimate
cost of cash-settled transactions is the cash paid to settle the liability.
If equity-settled awards are modified, as a minimum an expense is recognised
as if the modification has not been made. An additional expense is recognised,
over the remaining vesting period, for any modification that increases the
total fair value of the share-based compensation benefit as at the date of
modification.
If the non-vesting condition is within the control of the Group or employee,
the failure to satisfy the condition is treated as a cancellation. If the
condition is not within the control of the Group or employee and is not
satisfied during the vesting period, any remaining expense for the award is
recognised over the remaining vesting period, unless the award is forfeited.
If equity-settled awards are cancelled, it is treated as if it has vested on
the date of cancellation, and any remaining expense is recognised immediately.
If a new replacement award is substituted for the cancelled award, the
cancelled and new award is treated as if they were a modification.
Deferred tax is calculated at the tax rates that are expected to apply in the
period when the liability is settled, or the asset is realised. Deferred tax
is charged or credited in the income statement, except when it relates to
items charged or credited directly to equity, in which case the deferred tax
is also dealt with in equity.
Deferred tax assets and liabilities are offset when the relevant requirements
of IAS 12 are satisfied.
3. Significant accounting policies (continued)
(d) Taxation
The tax expense represents the sum of the current tax and deferred tax charge
for the year. The tax currently payable is based on taxable profit for the
year. The Group's liability for current tax is calculated using the tax rates
that have been enacted or substantively enacted by the balance sheet date.
Deferred tax is measured on differences between the carrying amounts of assets
and liabilities in the financial statements and the corresponding tax bases,
as used in the computation of taxable profit, and is accounted for using the
balance sheet liability method. Deferred tax liabilities are generally
recognised for all taxable temporary differences and deferred tax assets are
recognised to the extent that it is probable that taxable profits will be
available. Such assets and liabilities are not recognised if the temporary
difference arises from goodwill or from the initial recognition (other than in
a business combination) of financial assets and liabilities in a transaction
that affects neither the taxable profit nor the accounting profit.
(e) Intangible assets
Intangible assets acquired as part of a business combination, other than
goodwill, are initially measured at their fair value at the date of the
acquisition. Intangible assets acquired separately are initially recognised at
cost. Indefinite life intangible assets are not amortised and are subsequently
measured at cost less any impairment. Finite life intangible assets are
subsequently measured at cost less amortisation and any impairment. The method
and useful lives of finite life intangible assets are reviewed annually.
Changes in the expected pattern of consumption or useful life are accounted
for prospectively by changing the amortisation method or period.
Research costs are expensed in the period in which they are incurred.
Development costs are capitalised when it is probable that the project will be
a success considering its commercial and technical feasibility; the Group is
able to use or sell the asset; the Group has sufficient resources and intent
to complete the development; and its costs can be measured reliably.
Capitalised development costs are amortised on a straight-line basis over the
period of their expected benefit, being their finite life of 5 years.
Significant costs associated with patents and trademarks are deferred and
amortised on a straight-line basis over the period of their expected benefit,
being their finite life of 10 years. Amortisation is charged to
administrative expenses in the Statement of Comprehensive Income.
Goodwill and other intangible assets that have an indefinite useful life are
not subject to amortisation and are tested annually for impairment, or more
frequently if events or changes in circumstances indicate that they might be
impaired. Other non-financial assets are reviewed for impairment whenever
events or changes in circumstances indicate that the carrying amount may not
be recoverable. An impairment loss is recognised for the amount by which the
asset's carrying amount exceeds its recoverable amount. The recoverable amount
is the higher of an asset's fair value less costs of disposal and
value-in-use. The value-in-use is the present value of the estimated future
cash flows relating to the asset using a pre-tax discount rate specific to the
asset or cash-generating unit to which the asset belongs. Assets that do not
have independent cash flows are grouped together to form a cash-generating
unit.
(f) Financial assets
Where there is no publicly quoted market value, other investments, including
subsidiaries, are shown at cost less provisions for impairment.
(g) Plant and equipment
Plant and equipment are shown at cost, net of depreciation and any provision
for impairment. Depreciation is provided on all property, plant and
equipment at varying rates calculated to write off cost less residual value
over the useful lives. Depreciation is charged to administrative expenses in
the Statement of Comprehensive Income. The principal rates employed are:
Plant and
machinery
25-33% straight line
The carrying values of property, plant and equipment are reviewed for
impairment when events or changes in circumstances indicate these values may
not be recoverable. If there is an indication that impairment does exist,
the carrying values are compared to the estimated recoverable amounts of the
assets concerned.
The recoverable amount is the greater of an asset's value in use and its fair
value less the cost of selling it. Value in use is calculated by discounting
the future cash flows expected to be derived from the asset. Where the
carrying value of an asset exceeds its recoverable amount, the asset is
considered impaired and is written down through the income statement to its
recoverable amount.
An item of property, plant and equipment is written off either on disposal or
when there is no expected future economic benefit from its continued use.
Any gain or loss (calculated as the difference between the net disposal
proceeds and the carrying value of the asset) is included in the income
statement in the year.
(h) Right-of-use assets
A right-of-use asset is recognised at the commencement date of a lease. The
right-of-use asset is measured at cost, which comprises the initial amount of
the lease liability, adjusted for, as applicable, any lease payments made at
or before the commencement date net of any lease incentives received, any
initial direct costs incurred, and, except where included in the cost of
inventories, an estimate of costs expected to be incurred for dismantling and
removing the underlying asset, and restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the
unexpired period of the lease or the estimated useful life of the asset,
whichever is the shorter. Where the Group expects to obtain ownership of the
leased asset at the end of the lease term, the depreciation is over its
estimated useful life. Right-of use assets are subject to impairment or
adjusted for any re-measurement of lease liabilities.
(i) Inventories
Inventories are valued at the lower of cost and net realisable value. In
determining the cost of raw materials, consumables and goods for resale, the
average purchase price is used. For work in progress and finished goods,
cost is taken as production cost which includes an appropriate proportion of
overheads.
Inventories are assessed for indicators of impairment at each year end and
where a provision is required the income statement is charged directly.
(j) Trade and other receivables
Trade receivables are initially recognised at fair value and subsequently
measured at amortised cost using the effective interest method, less any
allowance for expected credit losses.
The simplified approach to measuring expected credit losses has been applied,
this uses a lifetime expected loss allowance. To measure the expected credit
losses, trade receivables have been grouped based on days overdue.
Other receivables are recognised at amortised cost, less any allowance for
expected credit losses.
(k) Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand,
deposits held at call with banks, other short-term liquid investments with
original maturities of 95 days or less.
(l) Trade and other payables
Trade payables are non-interest-bearing and are measured at amortised cost.
(m) Financial liabilities
Financial liabilities are recognised on the Group's Statement of financial
position when the Group becomes a party to the contractual provisions of that
instrument.
(n) Lease liabilities
A lease liability is recognised at the commencement date of a lease. The lease
liability is initially recognised at the present value of the lease payments
to be made over the term of the lease, discounted using the interest rate
implicit in the lease or, if that rate cannot be readily determined, the
Group's incremental borrowing rate. The lease term is the non-cancellable
period of the lease plus extension periods that the group is reasonably
certain to exercise and termination periods that the group is reasonably
certain not to exercise. Lease payments comprise of fixed payments less any
lease incentives receivable, variable lease payments that depend on an index
or a rate, amounts expected to be paid under residual value guarantees,
exercise price of a purchase option when the exercise of the option is
reasonably certain to occur, and any anticipated termination penalties. The
variable lease payments that do not depend on an index or a rate are expensed
in the period in which they are incurred.
Lease liabilities are measured at amortised cost using the effective interest
method. The carrying amounts are re-measured if there is a change in the
following: future lease payments arising from a change in an index or a rate
used; residual guarantee; lease term; certainty of a purchase option and
termination penalties. When a lease liability is re-measured, an adjustment is
made to the corresponding right-of use asset, or to profit or loss if the
carrying amount of the right-of-use asset is fully written down.
The Group has elected not to recognise a right-of-use asset and corresponding
lease liability for short-term leases with terms of 12 months or less and
leases of low-value assets. Lease payments on these assets are expensed to
profit or loss as incurred.
(o) Foreign currency
In preparing the financial statements, transactions in currencies other than
pounds sterling are recorded at the exchange rate ruling at the date of the
transaction. Monetary assets and liabilities denominated in foreign
currencies at the balance sheet date are translated to sterling at the foreign
exchange rate ruling at that date. Exchange differences arising on
translation are recognised in the consolidated Statement of comprehensive
income for the period.
Non-monetary assets and liabilities denominated in foreign currencies that are
stated at fair value are translated at the rates prevailing at the dates when
the fair value was determined. Non-monetary assets and liabilities that are
measured at historical cost in a foreign currency (e.g. property, plant and
equipment purchased in a foreign currency) are translated using the exchange
rate prevailing at the date of the transaction. Exchange differences arising
on the translation of net assets are affected through the Statement of
Comprehensive Income.
For the purpose of presenting consolidated financial statements, the assets
and liabilities of the Group's foreign operations are translated at exchange
rates prevailing on the balance sheet date. Income and expense items are
translated at the average exchange rates for the period and recognised in the
Statement of Comprehensive Income.
(p) Dividends
Dividends are recognised when declared during the financial year. The
declaration of dividends is at the discretion of the directors.
(q) Value Added Tax
Revenues, expenses and assets are recognised net of the amount of associated
VAT, unless the VAT incurred is not recoverable from the tax authority. In
this case it is recognised as part of the cost of the acquisition of the asset
or as part of the expense.
Receivables and payables are stated inclusive of the amount of VAT receivable
or payable. The net amount of VAT recoverable from, or payable to, the tax
authority is included in other receivables or other payables in the statement
of financial position.
Commitments and contingencies are disclosed net of the amount of VAT
recoverable from, or payable to, the tax authority.
(r) Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to
the shareholders, excluding any costs of servicing equity other than ordinary
shares, by the weighted average number of ordinary shares outstanding during
the financial year, adjusted for bonus elements in ordinary shares issued
during the financial year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of
basic earnings per share to take into account dilutive potential ordinary
shares and the weighted average number of shares assumed to have been issued
for no consideration in relation to dilutive potential ordinary shares.
(s) Research and Development Expenditure Credit (RDEC)
The Company claims Research and Development Expenditure Credits (RDEC) in
respect of qualifying research and development expenditure. Management has
determined that RDEC is appropriately accounted for as a government grant in
accordance with IAS 20 Accounting for Government Grants and Disclosure of
Government Assistance, as the credit represents government assistance provided
in respect of qualifying R&D activity.
RDEC is recognised when there is reasonable assurance that the Company will
comply with the conditions attaching to the credit and that the credit will be
received. Amounts recognised are initially recorded as deferred income and
subsequently recognised in profit or loss on a systematic basis over the
periods in which the related R&D expenditure is recognised as an expense.
Where development expenditure is capitalised in accordance with IAS 38
Intangible Assets, the related RDEC is recognised in profit or loss over the
same period as the amortisation of the associated intangible asset.
RDEC income is presented within other operating income in the income statement
and is not included within the income tax expense.
(t) Critical judgements in applying the Groups accounting
estimates
In the process of applying the Group's accounting policies, the directors have
made the following estimates that have the most significant effect on the
amounts recognised in the financial statements.
Share-based payment transactions
The Group measures the cost of equity-settled transactions with employees by
reference to the fair value of the equity instruments at the date at which
they are granted. The fair value is determined by using the Black-Scholes
model or a Monte-Carlo analysis taking into account the terms and conditions
upon which the instruments were granted. The accounting estimates and
assumptions relating to equity-settled share-based payments would have no
impact on the carrying amounts of assets and liabilities within the next
annual reporting period but may impact profit or loss and equity.
(u) Critical judgements in applying the Groups accounting estimates
Useful lives
The Group uses forecast cash flow information and estimates of future growth
to assess whether goodwill and other intangible fixed assets are impaired, and
to determine the useful economic lives of its intangible assets. If the
results of operations in a future period are adverse to the estimates used a
reduction in useful economic life may be required.
Intangible assets
Intangible assets acquired as part of a business combination, other than
goodwill, are initially measured at their fair value at the date of the
acquisition. Intangible assets acquired separately are initially recognised at
cost. Indefinite life intangible assets are not amortised and are subsequently
measured at cost less any impairment. Finite life intangible assets are
subsequently measured at cost less amortisation and any impairment. The method
and useful lives of finite life intangible assets are reviewed annually.
Changes in the expected pattern of consumption or useful life are accounted
for prospectively by changing the amortisation method or period.
Research costs are expensed in the period in which they are incurred.
Development costs are capitalised when it is probable that the project will be
a success considering its commercial and technical feasibility; the Group is
able to use or sell the asset; the Group has sufficient resources and intent
to complete the development; and its costs can be measured reliably.
Capitalised development costs are amortised on a straight-line basis over the
period of their expected benefit, being their finite life of 5 years.
Significant costs associated with patents and trademarks are deferred and
amortised on a straight-line basis over the period of their expected benefit,
being their finite life of 10 years. Amortisation is charged to
administrative expenses in the Statement of Comprehensive Income.
Goodwill and other intangible assets that have an indefinite useful life are
not subject to amortisation and are tested annually for impairment, or more
frequently if events or changes in circumstances indicate that they might be
impaired. Other non-financial assets are reviewed for impairment whenever
events or changes in circumstances indicate that the carrying amount may not
be recoverable. An impairment loss is recognised for the amount by which the
asset's carrying amount exceeds its recoverable amount. The recoverable amount
is the higher of an asset's fair value less costs of disposal and
value-in-use. The value-in-use is the present value of the estimated future
cash flows relating to the asset using a pre-tax discount rate specific to the
asset or cash-generating unit to which the asset belongs. Assets that do not
have independent cash flows are grouped together to form a cash-generating
unit.
(v) New accounting standards
There have been no applicable new standards, amendments to standards and
interpretations effective from 1 April 2025 that have been applied by the
Group which have or are expected to result in a significant impact on its
consolidated results or financial position.
The following new standards and amendments will be relevant to the Group,
however have not been applied in these accounts:
• Amendments to the Classification and Measurement of Financial Instruments
- Amendments to IFRS 9 and IFRS 7 (effective date 1 January 2026).
• IFRS 18 Presentation and Disclosure in Financial Statements (effective
date 1 January 2027).
The adoption of the IFRS 9 and IFRS 7 new standards and amendments are not
expected to have a material effect on the accounts, the impact of the IFRS 18
is currently being evaluated.
4 Operating Segments
Operating segments are based on the internal reports that are reviewed and
used by the Board (who are identified as the Chief Operating Decision Makers)
in assessing performance and determining the allocation of resources. As the
Group has a central cost structure and a central pool of assets and
liabilities, the Board does not consider segmentation in their review of costs
or the statement of financial position. The only operating segment information
reviewed, and therefore disclosed, are the revenues derived from different
geographies.
31 March 31 March
2026 2025
£'000 £'000
Americas 6,689 7,258
North Asia 3,617 3,333
Rest of World 11,569 7,795
Total revenue 21,875 18,386
5 Revenue
31 March 31 March
2026 2025
£'000 £'000
Sale of goods - recognised on transfer of ownership 18,130 14,516
Rendering of services - recognised over life of contract 3,745 3,870
Total revenue 21,875 18,386
Reconciliation of unearned income on software and warranty contracts.
Unearned proportion of software and warranty contracts: balance brought 4,510 4,556
forward
Amounts invoiced in year 3,175 3,824
Revenue recognised on rendering of services (3,745) (3,870)
Unearned proportion of software and warranty contracts: balance carried 3,940 4,510
forward.
For the year ended 31 March 2026, one customer accounted for 22% of the Groups
revenue (2025: 17%)
6 Other income
31 March 31 March
2026 2025
£'000 £'000
Government grant income 173 200
RDEC tax credit 789 713
962 913
During the year, the Group changed its accounting policy in respect of
Research and Development Expenditure Credits ("RDEC") full details can be
found in note 31.
The impact of the change to other income was to reduce the current year
recognised RDEC tax credit from £1.2m to £0.8m. The £0.4m unrecognised RDEC
tax credit has been included in the RDEC credit balance within Trade &
other payables.
A reconciliation of the RDEC remaining to be realised is included below.
31 March 31 March
2026 2025
£'000 £'000
RDEC deferred revenue
RDEC deferred credit brought forward 1,165 1,165
RDEC credit deferred 1,219 713
RDEC credit released (789) (713)
RDEC deferred credit carried forward 1,595 1,165
RDEC deferred credit to be recognised within 1 year 551 428
RDEC deferred credit to be recognised between 1-2 years 474 336
RDEC deferred credit to be recognised between 2-5 years 570 401
1,595 1,165
7 Material operating profit items
31 March 31 March
2026 2025
£'000 £'000
Operating profit for the year is stated after charging/(crediting):
Equity settled share-based payments 546 445
Inventory recognised as an expense 3,993 3,186
Non R&D depreciation and amortisation 707 714
Amortisation of R&D asset 4,642 4,271
Auditor's remuneration
Fees payable to the Group's auditor and its associates for the audit of the 57 53
Group's annual accounts
Total fees payable for audit services 57 53
No fees were payable to the Group's auditor and its associates for other
services.
8 Employee benefits costs
Group Company
31 March 31 March 31 March 31 March
2026 2025 2026 2025
Development staff 80 78 80 78
Administrative staff 78 73 65 62
Management staff 11 11 11 11
169 162 156 151
Group Company
31 March 31 March 31 March 31 March
2026 2025 2026 2025
Wages and salaries 11,090 9,269 9,395 7,821
Social security costs 1,093 833 1,093 833
Defined contribution pension 389 351 389 351
Share incentive scheme 179 142 179 142
Equity-settled share-based payment 546 445 546 445
Cash-settled share-based payment 5 (13) 5 (13)
13,302 11,027 11,607 9,579
Total gross wages and salaries capitalised 5,125 4,677 5,125 4,677
9 Key management personnel emoluments
Group and company
31 March 31 March
2026 2025
£'000 £'000
Wages and salaries 784 535
Social security costs 72 61
Defined contribution pension 9 8
Equity-settled share-based payment 88 61
953 665
The number of directors who accrued benefits under the company pension plans:
Defined contribution plans 1 1
Remuneration of the highest paid director in respect of qualifying services:
Aggregate remuneration 309 171
Key management refers to the directors of the Group.
10 Finance costs
31 March 31 March
2026 2025
£'000 £'000
Interest expense on lease liabilities 70 37
11 Taxation
31 March 31 March
2026 2025
£'000 £'000
Current taxation
UK corporation tax on profits for the year 278 160
Foreign current tax expense 55 30
Adjustments relating to prior years 39 (794)
372 (604)
Deferred taxation
Origination and reversal of temporary differences 33 27
Adjustments relating to prior periods 111 960
144 987
Total taxation charge 516 383
31 March 31 March
2026 2025
£'000 £'000
Profit before tax for the year 1,244 720
Tax thereon at 25% (2025 25%) 311 180
Effects of:
Items disallowable for tax purposes (97) (63)
Adjustments in respect of prior periods - current tax 39 (872)
Adjustments in respect of prior periods - deferred tax 111 960
R&D credit 72 59
Timing differences not recognised in the computation 32 64
Deferred tax (charged)/credited directly to equity (7) (23)
Overseas tax 55 78
Taxation charge 516 383
12 Intangible assets
Included within intangible assets are the following significant items:
· Acquired intellectual property from business combinations, cost
of patent applications and on-going patent maintenance fees.
· Capitalised internal development costs representing expenditure
relating to technological advancements on the core product base of the Group.
These costs meet the requirement of IAS 38 (Intangible Assets) and will be
amortised over the future commercial life of the related product. Amortisation
is charged to administrative expenses.
Intellectual Development Group
property Costs Total
£'000 £'000 £'000
Cost
At 1 April 2024 3,545 34,260 37,805
Additions 28 4,836 4,864
Disposals (14) (2,343) (2,357)
Impairments - (229) (229)
At 31 March 2025 3,559 36,524 40,083
Amortisation
At 1 April 2024 2,756 22,939 25,695
Charge for the year 281 4,271 4,552
Eliminated on disposal (14) (2,343) (2,357)
Impairments - (62) (62)
At 31 March 2025 3,023 24,805 27,828
Net book value
31 March 2024 789 11,321 12,110
31 March 2025 536 11,719 12,255
Intellectual Development Company
property Costs Total
£'000 £'000 £'000
Cost
At 1 April 2024 2,237 34,260 36,497
Additions 28 4,836 4,864
Disposals (14) (2,343) (2,357)
Impairments - (229) (229)
At 31 March 2025 2,251 36,524 38,775
Amortisation
At 1 April 2024 2,221 22,939 25,160
Charge for the year 13 4,271 4,284
Eliminated on disposal (14) (2,343) (2,357)
Impairments - (62) (62)
At 31 March 2025 2,220 24,805 27,025
Net book value
31 March 2024 16 11,321 11,337
31 March 2025 31 11,719 11,750
12 Intangible assets (continued)
Intellectual Development Group
property Costs Total
£'000 £'000 £'000
Cost
At 1 April 2025 3,559 36,524 40,083
Additions 19 6,343 6,362
Disposals - (2,889) (2,889)
At 31 March 2026 3,578 39,978 43,556
Amortisation
At 1 April 2025 3,023 24,805 27,828
Charge for the year 276 4,642 4,918
Eliminated on disposal - (2,889) (2,889)
At 31 March 2026 3,299 26,558 29,857
Net book value
31 March 2025 536 11,719 12,255
31 March 2026 279 13,420 13,699
Intellectual Development Company
property Costs Total
£'000 £'000 £'000
Cost
At 1 April 2025 2,251 36,524 38,775
Additions 19 6,343 6,362
Disposals - (2,889) (2,889)
At 31 March 2026 2,270 39,978 42,248
Amortisation
At 1 April 2025 2,220 24,805 27,025
Charge for the year 24 4,642 4,666
Eliminated on disposal - (2,889) (2,889)
At 31 March 2026 2,244 26,558 28,802
Net book value
31 March 2025 31 11,719 11,750
31 March 2026 26 13,420 13,446
During the year, a review of the carried development costs brought forward has
resulted in a disposal of £2,888,762 (2025: £2,342,833), and elimination of
amortisation of £2,888,762 (2024: £2,342,833 ) resulting in a net book value
impact of £nil (2025: £nil). This reflects removal of aged spend on product
features that are now considered to be superseded by current product
developments.
Following the impairment review of the R&D development costs, no R&D
assets were impaired.
In the prior period, capitalised R&D of £229,321 with accompanying
amortisation of £61,917 and NBV £167,404 was fully impaired and removed from
the intangible asset base.
13 Goodwill
The goodwill arising in a business combination is allocated, at acquisition,
to the cash generating units that are expected to benefit from the business
combination. The Board consider the Group to consist of a single cash
generating unit, reflective of not only the manner in which the Board (who
operate as the Chief Operating Decision Makers) assess and review performance
and resource allocation of the group, but also the centralised cost structure
and pooled assets and liabilities which are critical to revenue generation
across all platforms. The determination of a single cash generating unit
within the group therefore reflects accurately the way the Group manages its
operations and with which goodwill would naturally be associated.
Group
£'000
Cost
As at 31 March 2024 2,000
As at 31 March 2025 2,000
As at 31 March 2026 2,000
The Group test goodwill for impairment annually, or more frequently if there
are indications that the goodwill has been impaired. Goodwill is tested for
impairment by comparing the carrying amount of the cash generating unit,
including goodwill, with the recoverable amount. The recoverable amounts are
determined based on value-in-use calculations which require assumptions. The
calculations use cashflow projections based on financial budgets approved by
the Board covering a two year period, together with management forecasts for a
further three year period. These budgets and forecasts have regard to
historical financial performance and knowledge of the current market, together
with the Group's views on the future achievable growth and the impact of
committed cashflows. Cashflows beyond this are extrapolated using estimated
growth rates.
Key assumptions used in the value in use calculation:
· The terminal cash flows are extrapolated in perpetuity using a growth
rate of 2%, (2025: 2%) which has been based on management judgement reflecting
sector and industry experience. This is not considered to be higher than the
average long-term industry growth rate.
· The discount rate is based on the weighted average cost of capital
(WACC) of 12.7% (2025: 12.7%), which would be anticipated for a market
participant investing in the Group. WACC was tested for materiality based on
movement of up to +/- 1.5% and there remained no indications of impairment.
Management has performed sensitivity analysis on the key assumptions both with
other variables held constant and with the other variables simultaneously
changed. Management has concluded that there are no reasonable changes in the
key assumptions that would cause the carrying amount of goodwill to exceed the
value in use for the cash generating unit.
No evidence of impairment was found at the balance sheet date.
14 Plant and equipment
The Group annually reviews the carrying value of tangible fixed assets taking
recognition of the expected working lives of the plant and equipment available
to the Group and known requirements. Depreciation is charged to administrative
expenses.
Group Company
Plant and Plant and
equipment equipment
Total Total
£'000 £'000
Cost
At 1 April 2024 676 676
Additions 28 28
Disposals (4) (4)
At 31 March 2025 700 700
Depreciation
At 1 April 2024 335 335
Charge for the year 182 182
Eliminated on disposal (4) (4)
At 31 March 2025 513 513
Net book value
31 March 2024 341 341
31 March 2025 187 187
Group Company
Plant and Plant and
equipment equipment
Total Total
£'000 £'000
Cost
At 1 April 2025 700 700
Additions 104 104
Disposals (61) (61)
At 31 March 2026 743 743
Depreciation
At 1 April 2025 513 513
Charge for the year 158 158
Eliminated on disposal (61) (61)
At 31 March 2026 610 610
Net book value
31 March 2025 187 187
31 March 2026 133 133
15 Inventories
Group Company
31 March 31 March 31 March 31 March
2026 2025 2026 2025
£'000 £'000 £'000 £'000
Finished goods 6,237 6,281 6,237 6,281
Provision for obsolescence (792) (923) (792) (923)
5,445 5,358 5,445 5,358
Cost of inventories recognised as an expense 3,993 3,186 3,993 3,186
Group inventories reflect the following movement in provision for
obsolescence:
At start of the financial year 923 502 923 502
Utilised (131) - (131) -
Provided - 421 - 421
At end of the financial year 792 923 792 923
16 Trade and other receivables
Group Company
31 March 31 March 31 March 31 March
2026 2025 2026 2025
£'000 £'000 £'000 £'000
Amounts due within one year
Trade receivables 7,656 5,313 7,656 5,314
Other receivables 470 - 470 -
Amounts owed by group companies - - 22 173
Prepayments and accrued income 608 356 607 356
8,734 5,669 8,755 5,843
Trade receivables are consistent with trading levels across the Group and are
also affected by exchange rate fluctuations.
No interest is charged on the trade receivables. The Group has reviewed for
estimated irrecoverable amounts in accordance with its accounting policy.
The Group's credit risk is primarily attributable to its trade and other
receivables. Management has a credit policy in place and the exposure to
credit risk is monitored on an ongoing basis. Credit evaluations are
performed on customers as appropriate to the level of credit extended. In
addition, credit insurance would be sought for major areas of exposure,
although this has not been required in the year under review.
The Group reviews trade receivables past due but not impaired on a regular
basis and considers, based on experience, that the credit quality of these
amounts at the balance sheet date has not deteriorated since the date of the
transaction.
Included in the Group's trade receivables balance are debtors with a carrying
amount of £1,315,356 (2025: £1,383,956), which are past due at the reporting
date but for which the Group has not provided against. As there has not been a
significant change in credit quality, the Group believes that all amounts
remain recoverable.
Ageing of past due but not impaired trade receivables
Group Company
31 March 31 March 31 March 31 March
2026 2025 2026 2025
£'000 £'000 £'000 £'000
Overdue by
0-30 days 1,094 1,181 1,094 1,181
30-60 days 24 191 24 191
60+ days 197 12 197 12
1,315 1,384 1,315 1,384
16 Trade and other receivables
The Directors consider that the carrying amount of trade and other receivables
approximates their fair value.
Note 21 includes disclosures relating to the credit risk exposures and
analysis relating to the allowance for expected credit losses.
The calculated credit risk is £31,100 (2025: £24,739). Due to the immaterial
nature of the balance, no provision has been recognised.
Whilst trade receivables are elevated at the year end, this reflects timing on
the shipment completion of a large contract, rather than an indication of
detrimental recovery performance.
17 Cash and cash equivalents
Cash and cash equivalent amounts included in the Consolidated Statement of
Cashflows comprise the following:
Group Company
31 March 31 March 31 March 31 March
2026 2025 2026 2025
£'000 £'000 £'000 £'000
Cash at bank 9,306 10,786 9,225 10,631
Cash on short term deposit - 126 - 126
Total cash and cash equivalents 9,306 10,912 9,225 10,757
Short term cash deposits of £nil (2025: £126,034) are callable on a notice
of 95 days.
The directors consider that the carrying value of cash and cash equivalents
and short-term investments approximates their fair value. Details of the
Group's credit risk management are included in note 21.
18 Trade and other payables
Group Company
*Restated *Restated
31 March 31 March 31 March 31 March
2026 2025 2026 2025
£'000 £'000 £'000 £'000
Amounts due within one year
Trade payables 2,674 987 2,657 969
Other taxes and social security 265 226 265 226
Other payables 111 88 111 88
Accruals 1,832 739 1,825 731
Deferred RDEC credit 552 428 551 428
Deferred income 2,979 3,427 2,979 3,424
8,413 5,895 8,388 5,866
Amounts due after one year
Deferred RDEC credit 1,043 737 1,043 737
Deferred income 1,115 1,411 1,115 1,411
2,158 2,148 2,158 2,148
Total amounts due 10,571 8,043 10,546 8,014
Trade and other payables are consistent with trading levels across the Group
but are also affected by exchange rate fluctuations.
Trade payables and accruals principally comprise amounts outstanding for trade
purchases and ongoing costs. The Group has financial risk management
policies in place to ensure all payables are paid within the agreed credit
terms.
The directors consider that the carrying amount of trade and other payables
approximates their fair value.
19 Leases
Right of use assets
The Group leases land and buildings for its head office in Linlithgow,
Scotland. The current lease was agreed on 1 December 2024 and will run for the
5 year period to 30 November 2029. On 4 March 2022 the Group agreed an
additional premises lease for office space in Belfast. This lease has an
initial 5 year term and will run until 4 March 2027.
The Group leases IT equipment with contract terms ranging between 1 to 2
years. The Group has recognised right-of use assets and lease liabilities
for these leases.
The carrying value of right of use assets, and lease obligations recognised
with respect to these leases are shown below:
Building Group Company
Lease IT equipment Total Total
£'000 £'000 £'000 £'000
Cost
At 1 April 2025 1,362 79 1,441 1,441
Additions - - - -
Disposals - -
At 31 March 2026 1,362 79 1,441 1,441
Amortisation
At 1 April 2025 247 79 326 326
Charge for the year 272 - 272 272
Eliminated on disposal - - - -
At 31 March 2026 519 79 598 598
Net book value
31 March 2025 1,115 - 1,115 1,115
31 March 2026 843 - 843 843
Right-of-use assets Group Company
31 March 31 March 31 March 31 March
2026 2025 2026 2025
£'000 £'000 £'000 £'000
Balance at 1 April 1,115 287 1,115 287
Additions to right of use assets - 1,079 - 1,079
Disposals of right of use assets - (852) - (852)
Amortisation charge for the year (272) (251) (272) (251)
Amortisation eliminated on disposal - 852 - 852
Balance at 31 March 843 1,115 843 1,115
19 Leases (continued)
Lease liabilities
Group Company
31 March 31 March 31 March 31 March
2026 2025 2026 2025
£'000 £'000 £'000 £'000
Balance at 1 April 1,217 415 1,217 415
Acquisition of new leases - 1,079 - 1,079
Payment of lease liabilities (359) (314) (359) (314)
Interest expense on lease liabilities 70 37 70 37
Balance at 31 March 928 1,217 928 1,217
Disclosed as
Current 301 289 301 289
Non-current 627 928 627 928
928 1,217 928 1,217
Amounts recognised in the income statement
Group Company
31 March 31 March 31 March 31 March
2026 2025 2026 2025
£'000 £'000 £'000 £'000
Depreciation charge - building lease 272 236 272 236
Depreciation charge - IT equipment - 15 - 15
Interest on lease liabilities 70 37 70 37
Low value lease rental 222 180 222 180
Amounts recognised in statement of cashflows
Group Company
31 March 31 March 31 March 31 March
2026 2025 2026 2025
£'000 £'000 £'000 £'000
Total cash outflow for leases (359) (314) (359) (314)
A maturity analysis of contractual cashflows relating to lease liabilities is
included in note 21 (d).
20 Deferred tax
Deferred tax asset
Group Company
*Restated *Restated
31 March 31 March 31 March 31 March
2026 2025 2026 2025
£'000 £'000 £'000 £'000
Opening balance 591 1,538 591 1,538
Recognised in statement of comprehensive income 120 (947) 120 (947)
Closing balance 711 591 711 591
Deferred tax assets arise as follows:
Unused tax losses 205 248 205 248
Deferred RDEC credit 399 292 399 292
Share-based remuneration 80 29 80 29
Other timing differences 27 22 27 22
Total deferred tax asset 711 591 711 591
Deferred tax liability
Group Company
31 March 31 March 31 March 31 March
2026 2025 2026 2025
£'000 £'000 £'000 £'000
Opening liability 2,940 2,877 2,814 2,683
Recognised in statement of comprehensive income 238 41 301 109
Recognised in equity 7 22 7 22
Closing liability 3,185 2,940 3,122 2,814
Deferred tax liabilities arise as follows:
Deferred tax on acquisition 63 126 - -
Timing differences on development costs 3,073 2,793 3,073 2,793
Accelerated capital allowances 49 21 49 21
Total deferred tax liability 3,185 2,940 3,122 2,814
21 Financial instruments
The Group's activities expose it to a variety of financial risks: market risk
(including foreign currency risk, price risk and interest rate risk), credit
risk and liquidity risk. The Group's overall risk management program focuses
on the unpredictability of financial markets and seeks to minimise potential
adverse effects on the financial performance of the Group. When required, the
Group uses derivative financial instruments in the form of forward foreign
exchange contracts to hedge certain risk exposures. Derivatives are
exclusively used for hedging purposes, and not as trading or other speculative
instruments. The Group uses different methods to measure different types of
risk to which it is exposed. These methods include sensitivity analysis in the
case of interest rate, foreign exchange and other price risks and ageing
analysis for credit risk.
Capital management
The Board's policy is to maintain a strong capital base so as to cover all
liabilities and to maintain the business and to sustain its development. The
Board defines capital as total equity, as recognised in the statement of
financial position, plus net debt. Net debt is calculated as total borrowings
less cash and cash equivalents. In order to maintain or adjust the capital
structure, the Group may return capital to shareholders, issue new shares or
sell assets to reduce debt.
There were no changes in the Group's approach to capital management during the
year.
Neither the Company nor any of its subsidiaries are subject to externally
imposed capital requirements.
(a) Categories of financial instruments
Group Company
31 March 31 March 31 March 31 March
2026 2025 2026 2025
£'000 £'000 £'000 £'000
Financial assets (current and non-current) at amortised cost
Trade and other receivables 7,656 5,313 7,656 5,314
Cash and cash equivalents 9,306 10,912 9,225 10,757
Financial liabilities (current and non-current) at amortised cost
Lease liabilities 928 1,217 928 1,217
Trade and other payables 4,617 1,815 4,593 1,788
21 Financial instruments (continued)
Financial risk management objectives
The Group's senior management team manage the financial risks relating to the
operations of each department. These risks include market risk, credit risk
and liquidity risk.
Where appropriate, the Group seeks to minimise the effects of market risks by
using financial instruments to mitigate these risk exposures as appropriate.
The Group does not enter into or trade in financial instruments for
speculative purposes.
(b) Market risks
Foreign currency risk
The Group's activities expose it primarily to the financial risks of changes
in foreign currency exchange rates.
As at 31 March 2026 Sterling Euro US Dollar Total
£'000 £'000 £'000 £'000
Trade receivables 278 3,520 3,858 7,656
Lease liabilities (928) - - (928)
Trade payables (2,181) (9) (484) (2,674)
Cash and cash equivalents 7,786 187 1,333 9,306
4,955 3,698 4,707 13,360
Based on this exposure, had Pound Sterling weakened by 5% the Group's profit
before tax would have been £420,250 lower. The percentage change is based on
management's assessment of reasonable possible fluctuations.
As at 31 March 2025 Sterling Euro US Dollar Total
£'000 £'000 £'000 £'000
Trade receivables 286 84 4,943 5,313
Lease liabilities (1,217) - - (1,217)
Trade payables (946) - (41) (987)
Cash and cash equivalents 7,490 229 3,193 10,912
5,613 313 8,095 14,021
Based on this exposure had Pound Sterling weakened by 5% the Group's profit
before tax would have been £420,400 lower. The percentage change is based on
management's assessment of reasonable possible fluctuations.
Interest rate risk
The Group is not exposed to any significant interest rate risk as borrowings
are obtained at fixed rates.
Other market price risk
The Group is not exposed to any other significant market price risks.
21 Financial instruments (continued)
(c) Credit risk management
Credit risk is the risk of financial loss to the Group if a customer or
counterparty to a financial instrument fails to meet its contractual
obligations and arises principally from the Group's receivables from
customers.
The Group's principal financial assets, other than business assets, are trade
and other receivables and cash and cash equivalents. These represent the
Group's maximum exposure to credit risk in relation to financial assets.
Group Company
31 March 31 March 31 March 31 March
2026 2025 2026 2025
£'000 £'000 £'000 £'000
Trade and other receivables 7,656 5,313 7,656 5,314
Cash and cash equivalents 9,306 10,912 9,225 10,757
16,962 16,225 16,881 16,071
Trade and other receivables
The Group's exposure to credit risk is influenced mainly by the individual
characteristics of each customer.
The balance presented in the balance sheet is net of allowances for doubtful
receivables and returns, estimated by the Group's management based on prior
experience and their assessment in the current economic climate. No adjustment
has been estimated for the allowance for credit loss.
The Group's main concentration of credit risk relates to where a credit risk
management approach is employed, including strict retention of title, customer
stock holding visibility and the use of credit insurance.
The Group applies the IFRS 9 Financial Instruments simplified model of
recognising lifetime expected credit losses for all trade receivables as these
items do not have a significant financing component.
In measuring the expected credit losses, the trade receivables have been
assessed on a collective basis as they possess shared credit risk
characteristics. They have been grouped based on the days past due.
The expected credit loss for trade receivables as at 31 March 2026 and 31
March 2025 were determined as follows:
Days past due 0 1-30 31-60 >60 Total
2026
Balance outstanding (£'000) 6,341 1,094 24 197 7,656
Historic loss rate 0% 0% 0% 0%
Estimated credit loss provision 0.25% 1% 1.5% 2%
Potential credit loss allowance (£'000) 16 11 0 4 31
Days past due 0 1-30 31-60 >60 Total
2025
Balance outstanding (£'000) 3,930 1,181 191 12 5,314
Historic loss rate 0% 0% 0% 0%
Estimated credit loss provision 0.25% 1% 1.5% 2%
Potential credit loss allowance (£'000) 10 12 3 0 25
Due to the immaterial nature of the assessed credit risk, no provision has
been recognised for 31 March 2026 or 31 March 2025.
21 Financial instruments (continued)
(c) Credit risk management (continued)
Cash
Cash is held with banks in the UK and US with high credit ratings and no
financial loss due to the banks' failure to meet their contractual obligations
is expected.
(d) Liquidity risk management
The Group manages liquidity risk through the monitoring of forecast cash flows
and through the use of bank loans when required, thereby maintaining
sufficient liquid assets to fund its contractual obligations and maintain the
ongoing development of the Group.
The table below provides an analysis of the Group's financial liabilities to
be settled on a gross basis by relevant maturity categories from the balance
sheet date to the contractual settlement date. The table includes both
interest and principal cash flows disclosed as remaining contractual
maturities and therefore these totals may differ from their carrying amount in
the statement of financial position.
1 year or 1 to 2 to Over 5 Total
less 2 years 5 years years liabilities
31 March 2026 £'000 £'000 £'000 £'000 £'000
Trade payables 2,674 - - - 2,674
Other payables 1,943 - - - 1,943
Lease liabilities 279 222 427 - 928
5,161 222 427 - 5,810
1 year or 1 to 2 to Over 5 Total
less 2 years 5 years years liabilities
31 March 2025 £'000 £'000 £'000 £'000 £'000
Trade payables 987 - - - 987
Other payables 1,044 - - - 1,044
Lease liabilities 289 312 278 338 1,217
2,320 312 278 338 3,248
22 Retirement benefits
Contributions by Group companies are charged to the income statement as an
expense as they fall due. The amount recognised as an expense in relation to
defined contributions plans was £389,388 (2025: £351,251).
23 Share-based payments
31 March 31 March
2026 2025
£'000 £'000
Charged to administration expenses:
Equity settled share-based payments 546 445
Cash settled share-based payments 5 (13)
Total share-based payments 551 432
During the year 395,000 share options were granted (2025: 386,000) exclusive
of the management LTIP. The fair value of share options granted has been
estimated at the date of the grant using the Black-Scholes model. Expected
volatility in the current year was determined by calculating the historical
volatility of the Group's share price over the previous year, which the Board
consider to be representative of future volatility.
The following table gives the assumptions made in arriving at the share-based
payment charge and the fair value:
31 March 31 March
2026 2025
Options issued 395,000 386,000
Weighted average share price (pence) 46 57
Weighted average exercise price (pence) 1 1
Expected volatility (%) 39%-51% 43%-67%
Vesting period (years) 3-5 3-5
Option life (years) 10 10
Risk free rate (%) 4.5 5.0
Dividend yield (%) 1.5 1.25
Fair value at grant date (£'000) 143 175
Equity options in issue brought forward 4,863,850 5,191,183
Equity options issued in the year 395,000 386,000
Equity options realised in the year (100,000) (333,334)
Equity options forfeited in the year (206,000) (379,999)
Equity options in issue carried forward 4,952,850 4,863,850
As at 31 March 2026 Tranche Tranche Tranche Tranche
Number of option awards in issue 675,000 1,854,300 2,368,550 55,000
Exercise price (pence) 1 48 112-118 155-158
Share price as at 31 March 2026 (pence) 46 46 46 46
Weighted average share price for year ended 31 March 2026 (pence) 51 51 51 51
Number of options available to exercise at 31 March 2026 - 1,854,300 1,610,667 18,333
Average period remaining of options in issue (months) - 103 111 112
23 Share-based payments (continued)
During the year 20,000 cash settled options were granted (2025: 25,000). The
fair value has been measured at the reporting date using the Black-Scholes
model. Due to the proximity of the reporting date to the issue of equity
settled share options granted, the model assumptions on volatility, risk free
rate, and dividend yield used for the cash settled options do not materially
differ from those in the table above.
31 March 31 March
2026 2025
Options issued 20,000 25,000
Weighted average share price (pence) 42 46
Weighted average exercise price (pence) 1 1
Vesting period (years) 3-5 3-5
Option life (years) 10 10
Fair value at reporting date (£'000) 7 9
As at 31 March 2026
Number of awards in issue 45,000 25,000
Exercise price (pence) 1 1
Share price as at 31 March 2026 (pence) 46 46
Weighted average share price for year ended 31 March 2026 (pence) 46 42
Number of options available to exercise at 31 March 2026 nil nil
During the year a further management long term incentive plan ('LTIP') was
created inclusive of market based vesting conditions. To determine fair value,
a Black-Scholes model was utilised for the EPS tranche, and a Monte Carlo
valuation for the TSR tranche. Further details can be found on the LTIP
vesting criteria within the Remuneration Committee report. The cumulative
charge to overhead for the year from the management LTIPs in issue was
£237,282 (2025: £111,549).
Due to the inclusion of performance-based measures beyond only the passage of
time, these performance-based employee share options have been treated as
contingently issuable shares in the calculation of both basic and diluted
earnings per share. The performance measures will be assessed (based on
audited data) by the Remuneration Committee at the end of the 3-year period.
2026 LTIP 2026 LTIP 2025 LTIP 2025 LTIP
EPS Tranche TSR Tranche EPS Tranche TSR Tranche
Options issued 475,317 475,317 393,173 393,172
Share price at grant date (pence) 55 55 48 48
Exercise price (pence) 1 1 1 1
Risk free rate - 4% - 4%
Dividend yield 2% 2% 2% 2%
Expected term (years) 3 3 3 3
Volatility (simulating TSR performance) - 37% - 37%
As at 31 March 2026 - Open LTIP options
TSR Tranche EPS Tranche Revenue Tranche Total
Options in issue FY24 Management LTIP 157,181 314,361 157,181 628,723
Fair value (£'000) 72 340 170 582
Exercise price (pence) 1 1 1
Options available to exercise at 31 March 26 Nil Nil Nil
Options in issue FY25 Management LTIP 393,172 393,173 - 786,345
Fair value (£'000) 24 177 - 201
Exercise price (pence) 1 1 -
Options available to exercise at 31 March 26 Nil Nil -
Options in issue FY26 Management LTIP 475,317 475,317 - 950,634
Fair value (£'000) 242 71 - 313
Exercise price (pence) 1 1 -
Options available to exercise at 31 March 26 Nil Nil Nil
24 Share option reserve
Share option reserve reconciliation 31 March 31 March
2026 2025
£'000 £'000
Opening balance 1,764 1,414
Equity settled share-based payments 546 445
Share options realised or forfeited 1 (72)
Deferred taxation on share options: charge recognised in equity (7) (23)
Total share option reserve 2,304 1,764
25 Group companies
Country of registration
% of direct shares held
Subsidiary undertakings or
incorporation Principal
activity
2026 2025
Calnex Americas Corporation USA
Sales and
marketing
100% 100%
Registered office:
Support services to
7736 Main street PA 18051
Calnex Solutions plc
26 Called up share capital
As at 31 March 2026, the Company had 87,991,636 (2025: 87,891,636) issued and
fully paid Ordinary Shares held at a nominal value of 0.125p. During the year,
exercise of share options resulted in 100,000 shares being issued.
Group and Company
31 March 31 March
2026 2025
£'000 £'000
Ordinary shares of 0.125p each 110 110
In issue at the start of the financial year 110 109
Share options exercised - 1
In issue at end of the financial year 110 110
27 Earnings per share
Basic earnings per share is calculated by dividing the earnings attributable
to ordinary shareholders by the weighted average number of Ordinary Shares in
issue during the year.
Diluted earnings per share is calculated by dividing the earnings attributable
to ordinary shareholders by the total of the weighted average number of
Ordinary Shares in issue during the year and adjusting for the dilutive
potential Ordinary Shares relating to share options and warrants.
31 March 31 March
2026 2025
£'000 £'000
Profit after tax attributable to shareholders 728 337
Weighted average number of ordinary shares used in calculating:
Basic earnings per share 87,947 87,614
Diluted earnings per share 90,592 92,852
Earnings per share - basic (pence) 0.83 0.38
Earnings per share - diluted (pence) 0.80 0.36
At 31 March 2026 2,423,550 (2025 2,423,550) share options were outstanding
with an exercise price between £1.12-£1.58 per share (note 23). These
options have been excluded from the calculation of diluted earnings per share
as they were anti-dilutive in the current period, the exercise price being
materially above the average market price of the Company's ordinary shares
during the year. These options could be dilutive in future periods.
There are currently 2,635,702 (2025: 1,415,068) contingently issuable shares
on the management LTIP that have not yet met the performance measures for
recognition (note 23). These options have been excluded from the calculation
of diluted earnings per share but also could be dilutive in future periods.
28 Notes to the Statement of Cashflow
Reconciliation of changes in liabilities to cashflows arising from financing
activities
Lease
liabilities Total
£'000 £'000
Balance at 31 March 2025 1,217 415
Lease repayment (359) (314)
Interest payments 70 37
Total changed from financing cashflows (289) (277)
Acquisition of new lease - 1,079
Total other changes - 1,079
Balance at 31 March 2026 928 1,217
29 Share incentive plans
The company operates a number of share incentive plans on behalf of its
employees, details of which can be found in the Remuneration Committee
report. Included in these are the UK Share Incentive Plan and a cash settled
phantom plan for Non-UK employees:
UK Employee Share Incentive Plan (UK SIP)
The UK SIP is an all-employee HMRC approved share plan open to employees based
in the UK. Employees can elect to invest up to £150 each month (£1,800 per
year), deducted from their gross salary, which is used to purchase shares at
market value as "partnership" shares. The Company offers participants
"matching" shares, which are subject to forfeiture for three years, on the
basis of one free matching share for each partnership share purchased.
Non-UK Employee Incentive Plan
Under the UK SIP Plan, shares may only be awarded to UK based employees of the
Group. As the Board also wanted to have the discretion to grant awards to
contractors and overseas employees, it was necessary to set up a separate
Non-UK Employee Incentive Plan under the rules of the Notional Plan (refer to
the Remuneration Committee Report for more detail). This Plan acts as a
non-tax advantaged shadow equity interest plan to the UK SIP, mirroring the UK
SIP awards for overseas employees and contractors with equity ownership being
replaced by cash settlement. The non-UK Employee Incentive plan is therefore
available to employees in countries other than the UK, on a cash-settled
basis. Employees can elect to save funds up to £150 each month (£1,800 per
year), deducted from their pre-tax salary, for a 12-month period, and matched
by the Group. In the cash settled model, these savings are then returned to
the participant at the prevailing market share price at the end of the savings
period, had the funds been used to purchase Calnex Solutions plc shares
(returns being fully funded by the Group). Employees participating in this
scheme during the period under review included those based in China, Hong Kong
and India and the USA. The fair value assessment of this obligation at the
year-end was £95,000 (2025: £70,000) and is included within other creditors.
30 Dividends
All dividends are determined and paid in Pound Sterling.
31 March 31 March
2026 2025
£'000 £'000
Declared and paid in the year
Final dividend 2024: 0.62p per share - 543
Interim dividend 2025: 0.31p per share - 271
Final dividend 2025: 0.62p per share 545 -
Interim dividend 2026 0.31p per she 273 -
Proposed for approval at the Annual General Meeting (not recognised as a
liability at 31 March 2026)
Final dividend 2026: 0.68 per share
The directors are proposing a final dividend with respect to the financial
year ended 31 March 2026 of 0.68p per share, which will represent £598,343 of
a dividend payment. The final dividend will be proposed for approval at the
Annual General Meeting in September 2026 and, if approved, will be paid on 8
September 2026 to all shareholders on the register as at close of business on
14 August 2026, the record date. The ex-dividend date will be 13 August 2026.
31 Change in accounting policy
In prior periods, RDEC income was recognised in the financial year in which
the related research and development expenditure was incurred. This treatment
was appropriate given the nature of the Group's research and development
activities at that time and the relative materiality of this income. Given the
increasing levels of RDEC income, the Directors have concluded that a change
in accounting policy is appropriate, to recognise RDEC income which is in
respect of capitalised costs over the amortisation profile of related
capitalised assets associated with this spend.
The Directors deem this appropriate following the recent changes in UK HMRC
legislation merging the SME & RDEC schemes together, coupled with the
Groups ongoing commitment to UK R&D activities, forecast to increase the
future materiality of the RDEC claim to the Group.
The Directors believe that this change in policy maintains the faithful
representation of financial performance of the Group but also results in
improved alignment between the recognition of RDEC income and the pattern of
consumption of the underlying R&D expenditure to which it relates,
providing increased clarity to the users of the financial statements.
The change has been applied retrospectively from 1 April 2024. The impact to
the financial statements has been detailed below.
Due to immateriality, there is no impact to the Group or Company Statement of
Comprehensive Income.
The following changes have been processed through the Group and Company
Statement of Financial Position.
31 Change in accounting policy
Group Company
Restated Original Delta Restated Original Delta
31 March 31 March 31 March 31 March 31 March 31 March
2025 2025 2025 2025 2025 2025
£'000 £'000 £'000 £'000 £'000 £'000
Non current assets
Intangible assets 12,255 12,255 - 11,750 11,750 -
Goodwill 2,000 2,000 - - - -
Plant and equipment 187 187 - 187 187 -
Right of use assets 1,115 1,115 - 1,115 1,115 -
Deferred tax asset 591 299 292 591 299 292
16,148 15,856 292 13,643 13,351 292
Current assets
Inventories 5,358 5,358 - 5,358 5,358 -
Trade and other receivables 5,669 5,669 - 5,843 5,843 -
Corporation tax receivable 684 684 - 713 713 -
Cash and cash equivalents 10,912 10,912 - 10,757 10,757 -
22,623 22,623 - 22,671 22,671 -
Total assets 38,771 38,479 292 36,314 36,022 292
Current liabilities
Trade & other payables 5,895 5,467 428 5,866 5,438 428
Lease liabilities 289 289 - 289 289 -
Total current liabilities 6,184 5,756 428 6,155 5,727 428
Non-current liabilities
Trade & other payables 2,148 1,411 737 2,148 1,411 737
Lease liabilities 928 928 - 928 928 -
Deferred tax liabilities 2,940 2,940 - 2,814 2,814 -
Total non-current liabilities 6,016 5,279 737 5,890 5,153 737
Total liabilities 12,200 11,035 1,165 12,045 10,880 1,165
Net assets 26,571 27,444 (873) 24,269 25,142 (873)
Equity
Share capital 110 110 - 110 110 -
Share premium 7,671 7,671 - 7,671 7,671 -
Share option reserve 1,764 1,764 - 1,764 1,764 -
Retained earnings 17,026 17,899 (873) 14,724 15,597 (873)
Total equity 26,571 27,444 (873) 24,269 25,142 (873)
31 Change in accounting policy (continued)
Group Company
Restated Original Delta Restated Original Delta
31 March 31 March 31 March 31 March 31 March 31 March
2024 2024 2024 2024 2024 2024
£'000 £'000 £'000 £'000 £'000 £'000
Non current assets
Intangible assets 12,110 12,110 - 11,337 11,337 -
Goodwill 2,000 2,000 - - - -
Plant and equipment 341 341 - 341 341 -
Right of use assets 287 287 - 287 287 -
Deferred tax asset 1,538 1,246 292 1,538 1,246 292
16,276 15,984 292 13,503 13,211 292
Current assets
Inventories 5,373 5,373 - 5,373 5,373 -
Trade and other receivables 3,340 3,340 - 3,570 3,570 -
Corporation tax receivable 435 435 - 435 435 -
Cash and cash equivalents 11,868 11,868 - 11,683 11,683 -
21,016 21,016 - 21,061 21,061 -
Total assets 37,292 37,000 292 34,564 34,272 292
Current liabilities
Trade & other payables 4,845 4,845 - 4,804 4,804 -
Lease liabilities 220 220 - 220 220 -
Total current liabilities 5,065 5,065 - 5,024 5,024 -
Non-current liabilities
Trade & other payables 2,675 1,510 1,165 2,675 1,510 1,165
Lease liabilities 195 195 - 195 195 -
Deferred tax liabilities 2,877 2,877 - 2,683 2,683 -
Provisions 15 15 15 15
Total non-current liabilities 5,762 4,597 1,165 5,568 4,403 1,165
Total liabilities 10,827 9,662 1,165 10,592 9,427 1,165
Net assets 26,465 27,338 (873) 23,972 24,845 (873)
Equity
Share capital 109 109 - 109 109 -
Share premium 7,511 7,511 - 7,511 7,511 -
Share option reserve 1,414 1,414 - 1,414 1,414 -
Retained earnings 17,431 18,304 (873) 14,938 15,811 (873)
Total equity 26,465 27,338 (873) 23,972 24,845 (873)
32 Alternative performance measures (APMs)
The performance of the Group is assessed using a variety of performance
measures, including APMs which are presented to provide users with additional
financial information that is regularly reviewed by the Board. These APMs are
not defined under IFRS and therefore may not be directly comparable with
similarly identified measures used by other companies.
31 March 31 March
2026 2025
£'000 £'000
Underlying EBITDA 1,756 1,151
Underlying EBITDA % 8% 6%
Capitalised R&D 6,343 4,836
Key performance measures:
· Underlying EBITDA: EBITDA after charging R&D amortisation
Reconciliation of statutory figures to alternative performance measures -
Income Statement
FY26 FY25
£000 £000
Revenue 21,875 18,386
Cost of sales (5,291) (4,623)
Gross Profit 16,584 13,763
Other income 962 913
Administrative expenses (excluding depreciation & amortisation) (11,148) (9,254)
EBITDA 6,398 5,422
Amortisation of development costs (4,642) (4,271)
Underlying EBITDA 1,756 1,151
Other depreciation & amortisation (707) (714)
Operating Profit 1,049 437
Interest received 265 320
Finance costs (70) (37)
Profit before tax 1,244 720
Tax (516) (383)
Profit for the year 728 337
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END FR SEFEFEEMSESI
Copyright 2019 Regulatory News Service, all rights reservedRecent news on Calnex Solutions
See all newsREG - Calnex Solutions PLC - Final Results
AnnouncementREG - Calnex Solutions PLC - Notice of Presentations
AnnouncementREG - Calnex Solutions PLC - FY26 Trading Update and Notice of Results
AnnouncementREG - Calnex Solutions PLC - Holding(s) in Company
AnnouncementREG - Calnex Solutions PLC - Director Dealing
Announcement