FY25 Trading Update and Notice of Results

This announcement contains inside information.

08 April 2025

Calnex Solutions plc

("Calnex", the "Company" or the "Group")

FY25 Trading Update and Notice of Results

Calnex Solutions plc (AIM: CLX), a leading provider of test and measurement solutions for the global telecommunications and cloud computing markets, is pleased to provide an update on trading for the year to 31 March 2025 ("FY25") and the outlook for FY26.

Calnex has returned to growth in FY25, in line with market expectations, despite the ongoing challenging telecoms market. Financial performance steadily improved throughout the year, achieving 12% growth in revenues to approximately £18.3m (FY24: £16.3m) and an improved gross margin, reflecting the increased revenue volumes and product mix in the year. Cost control measures taken through the year have also contributed to the Group's return to profit. The Group's balance sheet remains robust, with cash as at 31 March 2025 of £10.9m, £2.3m ahead of the cash position at the half year, reflecting strong H2 cash generation. 

Growth has been driven by successful execution of the product expansion strategy, having adjusted engineering programmes to focus on areas of the telecoms, cloud computing and defence markets showing the most near-term growth potential. The major launch in early H2 of the new Paragon-neo product, focused on the area of 800Gb/s synchronisation testing, has stimulated revenue growth, pointing to early signs of recovery in the telecommunications sector. Orders for Calnex's Network and Applications Assurance products have increased on the prior year, driven by demand from the cloud computing, defence and government, satellite and enterprise sectors, which continue to offer significant opportunities for Calnex and are expected to be a driver of growth in FY26.

In line with the implementation of its sales channel strategy, Calnex has successfully onboarded new partners covering North America, Europe, India, and Asia-Pacific. Broadening our partner base has given us the opportunity to expand the sales coverage previously enjoyed with Spirent Communications. The Board is monitoring the effects of proposed US tariff arrangements and will work with our customers and partners to navigate the new landscape effectively.

The Company is confident in continued growth in FY26 driven by further demand for Calnex's recently launched products.

Notice of Results

The Company intends to announce audited results for the year ended 31 March 2025 on 20 May 2025.

Tommy Cook, Chief Executive Officer and founder of Calnex, said:

"We are pleased to report a return to growth in FY25, driven by execution of our product expansion strategy and progress into new markets. The successful launch of Paragon-neo and increasing demand across the cloud computing and defence markets highlight the strength of our product portfolio and market positioning. With a newly established partner network that is working well, a healthy balance sheet and order momentum building, we are well-placed to capitalise on our near-term growth opportunities."

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Overview of Calnex

Calnex Solutions designs, produces and markets test and measurement instrumentation and solutions for the telecoms and cloud computing industries. Calnex's portfolio enables R&D, pre-deployment and in-service testing for network technologies and networked applications, enabling its customers to validate the performance of the critical infrastructure associated with telecoms and cloud computing networks and the applications that run on it.

To date, Calnex has secured and delivered orders in 68 countries across the world. Customers include BT, China Mobile, NTT, Ericsson, Nokia, Intel, Qualcomm, IBM, Nvidia and Meta.

Founded in 2006, Calnex is headquartered in Linlithgow, Scotland, with additional locations in Belfast, Northern Ireland, Stevenage, England and California in the US, supported by sales teams in China and India. Calnex has a global network of partners, providing a worldwide distribution capability.