Calnex Solutions swings to profit amid higher sales and order backlog

Calnex Solutions PLC shares climbed on Tuesday as it said it swung to a profit while revenue grew, driven by a high proportion of high-value sales.

Linlithgow, Scotland-based Calnex produces equipment for the telecommunications and cloud computing industries.

It swung to a pretax profit of £720,000 in the 12 months to the end of March from a loss of £384,000 a year ago.

Basic earnings per share multiplied to 0.38 pence from 0.05 pence in the prior year.

Shares in Calnex were up 9.9% to 54.95 pence in London on Tuesday morning.

Revenue climbed 13% to £18.4 million from £16.3 million, while cost of sales increased less sharply, by 6.8%, to £4.6 million from £4.3 million.

Administrative expenses were up 6.6% to £14.2 million from £13.4 million.

Calnex said its financial performance ‘improved notably’ in the second half of the year with a higher proportion of high-value sales and increased demand in the cloud computing, defence and satellite markets.

The company proposed a final dividend of 0.62 pence per share, taking its total dividend for the year to 0.93p, unchanged from the prior year.

‘We have made strong progress this year across key sectors, despite the ongoing challenging telecoms market,’ said Chief Executive Officer Tommy Cook.

Looking ahead, Calnex said it started financial 2026 with an increased order backlog and ‘growing engagement across key sectors’.

The firm said it is well positioned to convert its telecoms sales pipeline once the trading environment improves, but it is not reliant on that for a positive trading performance.

It said it is confident of continued growth in the 2026 financial year, in line with market expectations.

‘Momentum from product development is building into FY26, which, with stabilised trading in the telecoms market, longstanding customer relationships across all territories and a widening footprint in a variety of end markets, leaves us well-positioned to convert our sales pipeline and deliver another year of growth and FY26 performance in line with market expectations,’ said CEO Cook.

‘While macro uncertainty remains, particularly with geopolitical developments, the telecoms industry’s continued innovation around 1.6 [terabytes per second] and high-speed application testing presents further long-term growth opportunity for Calnex,’ Cook concluded.

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