Calnex Solutions PLC on Tuesday reported ‘solid progress’ for the company, as annual revenue and profit grew.

Shares in Calnex were up 10% at 109.00 pence each in London on Tuesday morning.

The West Lothian, Scotland-based company provides test and measurement solutions to the telecommunications sector.

Pretax profit was £7.2 million in the financial year that ended March 31, up 21% from £6.0 million the year before, as revenue rose by 25% to £27.4 million from £22.0 million.

Revenue growth was driven by continued strong demand for telecoms testing equipment across Calnex’s core markets, it said, with the Americas accounting for 35% of total revenue, North Asia 24% and the rest of world 41%.

Calnex declared a final dividend of 0.62 pence per share, up 16% from 0.56p last year, bringing the total dividend for financial 2023 to 0.93p per share, up 11% from 0.84p in financial 2022.

Looking ahead, Calnex said trading at the start of financial 2024 has continued as anticipated. Back in March, the company said market-driven delays were likely to have an impact on the group’s performance, with its financial 2024 performance expected to be lower than that achieved in financial 2023.

Nevertheless, Calnex remains optimistic, as its customer base, product portfolio and balance sheet continue to grow.

Chief Executive Officer Tommy Cook said: ‘We are confident the market’s structural growth drivers will continue to drive long-term growth opportunities for Calnex.

‘The breadth of our customer base across multiple regions, expanding product portfolio and strong balance sheet, mean we look to the future with continued confidence.’

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