Calnex Solutions PLC said on Tuesday that it anticipates a solid revenue and profit performance in line with market expectations in the second half of its financial year, which ends March 31, despite market-driven delays.

However, Calnex shares plunged 30% to 120.45 pence in London on Tuesday afternoon as it issued a warning on its future performance in financial 2024.

The telecommunications equipment company, based in Linlithgow, Scotland, said it expects to deliver double-digit growth in annual revenue and profit in financial 2023.

This is due to progress made in developing business in the data-centre sector, as well as the integration of iTringey, a software company, which has opened up opportunities in the applications testing sector, the firm said.

Calnex designs, produces and markets test instrumentation and solutions for the telecommunications sector.

However, looking ahead, Calnex says its macroeconomic outlook remains ‘challenging’ with growth slowing globally in the telecoms sector as a result of a general softening of demand for products and services. This has meant that Calnex customers are being more cautious with investments, meaning the timing of orders is unclear for the company, it explained.

Calnex added that market-driven delays are likely to have an impact on the group’s performance in the following financial year, with its financial 2024 performance expected to be lower than that achieved in financial 2023.

Nonetheless, the company said it remains ‘well-placed to capitalize on the underlying long-term growth drivers in the telecoms and cloud computing markets’.

Chief Executive Director Tommy Cook said: ‘We are pleased to anticipate delivering financial results for FY23 in line with market expectations, with this solid performance demonstrating the positive response from customers to our expanding product set and our ability to successfully navigate the supply chain challenges. While the global macro environment is influencing order growth in the short-term, our expanded offering and strong financial footing mean we are well-placed to return to a growth trajectory once market confidence returns.’

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