Telecoms testing specialist Calnex Solutions will start the new financial year with record orders, with revenues and profits in the coming 12 months likely to be “materially ahead” of market expectations.
Issuing an update for the year to the end of March, Linlithgow-based Calnex said strong levels of trading carried through into the second half of the year even though it experienced reduced availability of some components from the start of 2022. Subject to fulfilment of certain orders scheduled to be shipped in March, financial performance “will be in line with market expectations”.
“Furthermore, the company will begin FY23 with a record order book across all product lines and it is anticipated that revenue and operating profit for FY23 will be materially ahead of market expectations,” Calnex said.
READ MORE: Calnex rings up maiden dividend payment as 5G demand rolls on
This includes a “significant order” from a large data centre customer for delivery of a new emerging market application. Directors are currently assessing the opportunities this may create for Calnex in the data centre market.
Since its flotation in October 2020, revenues at Calnex have been driven by demand for its testing equipment amid the continuing roll-out of 5G mobile networks. In the first half of this year the company posted a double-digit increase in both revenues and pre-tax profits, which rose to £9.3 million and £2.3m respectively.
Chief executive Tommy Cook, who set up Calnex in 2006, said the company is “highly encouraged” by order levels.
“We anticipate next year will see revenue and profits considerably ahead of initial forecasts, with the potential for further growth should the supply chain issues ease and we are able to capitalise on the significant opportunities within our markets,” he added.
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