Shares in Calnex Solutions have fallen by nearly a third this morning after the firm warned of a "challenging" outlook amid slowing global growth in the telecoms market.
The Linlithgow-based company, which produces an array of technology for testing network equipment, said "good progress" has been made in developing its business. The integration of iTrinegy, acquired last year in a £3.5 million deal, was also said to be going well.
Though the company expects to report a strong performance for the year to March 31, it added that many global equipment manufacturers have recently reported a general softening of demand for their products and services. As a result, some are taking a "more cautious approach" to investment decisions.
READ MORE: Calnex says confidence still intact despite disruptions
"Whilst these customers remain committed to the delivery of projects which will rely on Calnex's test instrumentation and solutions, the timing of these orders is less certain and market-driven delays are likely to have an impact on the group's performance in [the coming financial year]," Calnex said.
"Based on short-term order run-rates, the board believes that the financial performance in FY24 will be below that achieved in FY23, with the company's revenues more heavily weighted to [second half] of FY24."
As of mid-day shares inCalnex were trading 51.5p lower at 119.5p, a decline of more than 30 per cent.
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