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(Sharecast News) - Calnex Solutions reported higher annual revenue and profit, as growth in newer markets helped support its strategy to reduce reliance on traditional telecoms customers.
The AIM-traded test and measurement specialist said revenue rose 19% to 21.9m for the year ended 31 March, from 18.4m a year earlier.
Gross profit increased 20% to 16.6m, while gross margin improved to 76% from 75%.
Underlying EBITDA rose 53% to 1.8m and pre-tax profit increased 73% to 1.2m.
Basic earnings per share more than doubled to 0.83p from 0.38p.
Calnex ended the year with cash of 9.3m, compared with 10.9m a year earlier.
It said further payments received after the year end, reflecting the phasing of fourth-quarter shipments, had increased cash to 11.2m by 22 May.
The board proposed a final dividend of 0.68p per share, taking the total dividend for the year to 0.99p, up from 0.95p in 2025.
The company said its diversification strategy was gaining traction, with increased contributions from newer growth markets including digital infrastructure, government and defence.
Calnex highlighted a significant repeat order from a leading hyperscaler in the second half, which it said demonstrated the scalability and relevance of its products in data centre and digital infrastructure environments.
It also reported growing momentum in government and defence, including increased opportunities in US federal programmes.
Product development continued during the year, including customer interest in its SNE network emulation product, further work on its next-generation Sentry offering for data centre assurance, and investment in 1.6Tb/s synchronisation technology.
The group also strengthened routes to market through expansion of its global partner network and a partnership with Viavi, while making senior hires across sales, marketing and partner management.
Chief executive and founder Tommy Cook said it had been a strong year for Calnex, with double-digit revenue growth, improved profitability and progress in diversification.
"Our focus now is firmly on execution, advancing key development programmes and converting early engagement into commercial wins, supported by improved market access," he said.
Calnex said targeted investment in the 2027 financial year in key product launches, market development and customer relationships would position the group for further growth in 2028 as new products are commercialised.
The company said it was well placed to benefit from continued global investment across digital infrastructure, government and defence, supported by a strong balance sheet, product roadmap and diversified market footprint.
At 1114 BST, shares in Calnex Solutions were up 4.85% at 75.49p.
Reporting by Josh White for Sharecast.com.
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