By Kristy Dorsey

Shares in Calnex continued their strong run since their market debut in October of last year after the company said yesterday that revenues for the 12 months to the end of March will be ahead of previous expectations.

The Linlithgow-based provider of telecoms testing equipment said the strong levels of customer spending reported in the first half of its financial year had continued into the second six months, with “no deterioration in operational performance” from external factors. In fact, board members said the Covid pandemic appeared to bring forward spending plans by some customers.

In addition to increased revenues, Calnex said profit margins for the full year will be higher than anticipated because of lower travel and event costs due to virus restrictions.

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Responding to the company’s trading update, nominated advisors Cenkos raised its revenue forecast for the full year by more than 12 per cent to £17.3 million. Profits of £5.1m, up nearly 19% on previous estimates, have been pencilled in.

Chief executive Tommy Cook said the company was beginning to see some signs that the early pull-through of orders is reverting to more normal levels. Even so, Calnex expects to start the new financial year with a healthy order book.

“We continue to make good progress executing on our growth strategy, investing in our product offering and people to capitalise on the growth of the telecoms testing market as the industry transitions to 5G and the cloud computing sector continues to grow,” Mr Cook said.

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“We are delighted to have delivered this strong performance in our first period as a PLC and continue to look to the future with confidence.”

Founded in 2006 by Mr Cook, Calnex reported its maiden set of results in November, when it posted a 71% increase in first half profits to £2m on revenues that rose by 36%. Shares in the company, which listed on the Alternative Investment Market at 48p, closed 6p higher yesterday at 124p.