Calnex shares up 14% amid record order book

Calnex CEO Tommy Cook

Shares of Linlithgow-based telecoms testing and measurement firm Calnex Solutions plc rose about 14% on Tuesday after it published a positive update on trading for the year ending March 31, 2022, and an outlook for the following year to March 31, 2023.

Calnex said it will begin FY23 with a record order book across all its product lines and it is anticipated that revenue and operating profit for FY23 will be “materially ahead” of market expectations.

The company said the order book includes “a significant order from a large data centre customer for delivery of a new, emerging market application in FY23” and that it is currently assessing “the opportunities this may create for Calnex within the data centre market.”

Calnex went public at 48p per share in October 2020 and rose as high as £1.48 in November 2021. On Tuesday, Calnex shares were trading around £1.35 to give the firm a current stock market value of roughly £118 million.

Customers of Calnex include BT, China Mobile, NTT, Ericsson, Nokia, Intel, Qualcomm, IBM and Facebook.

“The board is pleased to report that the strong levels of trading in the first six months of FY22 have continued and it anticipates that, subject to the fulfilment of scheduled orders in March, the group’s performance in FY22 will be in line with market expectations,” said Calnex.

“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 has continued to make good progress on delivering its strategy in FY22. 

“The company has experienced high demand for its range of test and measurement solutions, and the introduction of new regulation and standards for the telecoms industry continues to drive demand for Calnex’s products.  

“The company has successfully managed the challenges of ongoing global semiconductor shortages during the year to minimise the impact on Calnex’s ability to manufacture and ship product; however, the company has experienced reduced availability of certain components in the final quarter of FY22, partly as a result of the level of orders Calnex is being asked to fulfil.  

“Subject to the fulfilment of certain orders currently scheduled to be shipped in March, the board expects that the group’s FY22 financial performance will be in line with market expectations.

“The strong order book leaves the company well positioned going into FY23 and the board expects that revenue and operating profit for FY23 is likely to be materially ahead of current market expectations.

“The order book includes a significant order from a large data centre customer for delivery of a new, emerging market application in FY23.

“The board is currently assessing the opportunities this may create for Calnex within the data centre market.

“The board will provide further guidance on FY23 with the release of its Final Results in May 2022.”

Calnex CEO and founder Tommy Cook said: “We are highly encouraged by the record level of orders we have received across our customer base, demonstrating the quality of our solutions and their applicability.

“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.

“We remain highly profitable and cash generative and will continue to invest in our offering and people to ensure we are well positioned to continue to capitalise on the growth in the telecoms and cloud computing markets.”

About the Author

Mark McSherry
Dalriada Media LLC sites are edited by veteran news journalist Mark McSherry, a former staff editor and reporter with Reuters, Bloomberg and major newspapers including the South China Morning Post, London's Sunday Times and The Scotsman. McSherry's journalism has also appeared in The Washington Post, The Guardian, The Independent, The New York Times, London's Evening Standard and Forbes. McSherry is also a professor of journalism and communication arts in universities and colleges in New York City. Scottish-born McSherry has an MBA from the University of Edinburgh and a Certificate in Global Affairs from New York University.