By Kristy Dorsey
Scotland’s newest listed company has bolstered its expansion firepower via a £3 million banking agreement to top up proceeds from its listing on the Alternative Investment Market (AIM) earlier this month.
Telecoms technology specialist Calnex Solutions has secured the revolving credit facility with Barclays on the heels of its oversubscribed placing in which it became the first Scottish company to achieve a London listing in more than two years. The flotation raised £22.5m before expenses, of which £6m has been earmarked to drive both acquisitions and organic growth.
Set up in 2006 by chief executive Tommy Cook, Calnex employs 95 people in the production of telecoms testing equipment for clients such as BT, China Mobile and Facebook. It services customers in 68 countries internationally.
READ MORE: Calnex ends the drought of Scots flotations
In addition to the funding package, Calnex has moved its full operational banking facilities to Barclays.
“We are in an exciting period of growth and development for the business and we needed a banking partner supportive of our ambitions,” Mr Cook said.
“Like many technology-based sectors, the telecommunications industry is seeing fast-paced change and a wealth of innovation. Our deal with Barclays offers us flexible access to capital to take advantage of opportunities like acquisitions that will help us grow our market share.”
READ MORE: Calnex founder reaps financial reward as AIM flotation beckons
In its latest financial year to the end of March, Calnex made a pre-tax profit of £1.7m on revenues of £13.7m. The company has previously signalled its interest in niche acquisitions such as last year’s deal to take over Berlin’s Luceo Technologies, and the 2018 purchase of JAR Technologies of Belfast.
Jamie Grant, head of corporate banking in Scotland at Barclays added: “The management team has grown a successful operation headquartered in Scotland and has a clear plan to further expand market share and increase investment in developing new technology.”
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