REG - Calnex Solutions PLC - FY25 Trading Update and Notice of Results

Calnex SolutionsAnnouncement

08/04/2025 07:00

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RNS Number : 0111E  Calnex Solutions PLC  08 April 2025

This announcement contains inside information.

 

08 April 2025

Calnex Solutions plc

("Calnex", the "Company" or the "Group")

FY25 Trading Update and Notice of Results

Calnex Solutions plc (AIM: CLX), a leading provider of test and measurement
solutions for the global telecommunications and cloud computing markets, is
pleased to provide an update on trading for the year to 31 March 2025 ("FY25")
and the outlook for FY26.

Calnex has returned to growth in FY25, in line with market expectations,
despite the ongoing challenging telecoms market. Financial performance
steadily improved throughout the year, achieving 12% growth in revenues to
approximately £18.3m (FY24: £16.3m) and an improved gross margin, reflecting
the increased revenue volumes and product mix in the year. Cost control
measures taken through the year have also contributed to the Group's return to
profit.  The Group's balance sheet remains robust, with cash as at 31 March
2025 of £10.9m, £2.3m ahead of the cash position at the half year,
reflecting strong H2 cash generation.

Growth has been driven by successful execution of the product expansion
strategy, having adjusted engineering programmes to focus on areas of the
telecoms, cloud computing and defence markets showing the most near-term
growth potential. The major launch in early H2 of the new Paragon-neo product,
focused on the area of 800Gb/s synchronisation testing, has stimulated revenue
growth, pointing to early signs of recovery in the telecommunications sector.
Orders for Calnex's Network and Applications Assurance products have increased
on the prior year, driven by demand from the cloud computing, defence and
government, satellite and enterprise sectors, which continue to offer
significant opportunities for Calnex and are expected to be a driver of growth
in FY26.

In line with the implementation of its sales channel strategy, Calnex has
successfully onboarded new partners covering North America, Europe, India, and
Asia-Pacific. Broadening our partner base has given us the opportunity to
expand the sales coverage previously enjoyed with Spirent Communications. The
Board is monitoring the effects of proposed US tariff arrangements and will
work with our customers and partners to navigate the new landscape
effectively.

The Company is confident in continued growth in FY26 driven by further demand
for Calnex's recently launched products.

Notice of Results

The Company intends to announce audited results for the year ended 31 March
2025 on 20 May 2025.

Tommy Cook, Chief Executive Officer and founder of Calnex, said:

"We are pleased to report a return to growth in FY25, driven by execution of
our product expansion strategy and progress into new markets. The successful
launch of Paragon-neo and increasing demand across the cloud computing and
defence markets highlight the strength of our product portfolio and market
positioning. With a newly established partner network that is working well, a
healthy balance sheet and order momentum building, we are well-placed to
capitalise on our near-term growth opportunities."

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      +44 (0)131 220 6939
 Derrick Lee, Peter Lynch

 Alma Strategic Communications                  + 44(0) 20 3405 0213
 Caroline Forde, Joe Pederzolli, Emma Thompson

Overview of Calnex

Calnex Solutions designs, produces and markets test and measurement
instrumentation and solutions for the telecoms and cloud computing industries.
Calnex's portfolio enables R&D, pre-deployment and in-service testing for
network technologies and networked applications, enabling its customers to
validate the performance of the critical infrastructure associated with
telecoms and cloud computing networks and the applications that run on it.

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 a worldwide distribution capability.

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