Linlithgow-based telecoms testing and measurement firm Calnex Solutions plc said its loss before tax more than doubled to £1.3 million in the six months to September 30, 2024, “driven by lower trading volumes and an expected increase in R&D amortisation after increased investment in product development in prior years.”

Calnex said revenue for the six months fell 6% to £7.4 million.

The firm’s closing cash position fell 36% to £8.6 million”due to working capital timing and further investment in inventory.”

Cash increased to £10.3 million at the end of October, driven predominantly by a £1.1 million corporation tax refund and R&D tax credit receipt.

Proposed interim dividend is maintained at 0.31p per share.

Calnex said it entered H2 with an increased order backlog balance compared with the opening position for the period, following improved Q2 order performance after a subdued Q1.

“The board expects to close the year in line with current market expectations, although uncertainties in the wider economic environment persist,” said Calnex.

“Product expansion strategy provides confidence in a return to growth during H2 FY25 and beyond.”

Calnex shares fell about 3%. The firm went public at 48p per share in October 2020 and its shares soared as high as £1.95 in January 2023. However, the Linlithgow firm’s shares have since fallen to around 62p, reducing its stock market value to about £54 million.

Calnex CEO and founder Tommy Cook said: “In a challenging telecoms market, Calnex has traded resiliently. We have entered the second half with an increased order backlog compared with the start of the first half and our new channel strategy is tracking well.

“While challenges across the telecoms market are expected to remain for the duration of the year, good progress with our product expansion strategy provides confidence in a return to growth during H2 FY25 and into FY26.

“As previously highlighted, the fundamental drivers that underpin the build out of the mobile network and the expansion of the data centres and cloud computing capacity have not changed.

“The need for reliable testing solutions is synonymous with investment and advancements of network infrastructure in the telecoms sector and beyond.

“We remain well positioned to convert the telecoms sales pipeline once the sector returns to normal market conditions.”