Calnex Solutions: Final Results

25th May 2021 | Calnex Solutions PLC

Calnex Solutions plc (AIM: CLX) provides test and measurement solutions for the global telecommunications sector and is pleased to announce its audited results for the 12 months ended 31 March 2021 (“FY21” or the “Period”).

  • Revenue growth of 31% to £18.0m (FY20: £13.7m) as a result of a robust trading performance, exceeding initial expectations for the year.
  • Underlying EBITDA growth of 32% to £5.5m (FY20: £4.2m) and 43% growth in adjusted profit before tax to £5.1m (FY20: £3.5m) reflects the strong revenue growth and reduced travel and events costs as a result of COVID-19.
  • Successful fundraise of £22.5m in total funds including net funds of £4.9m for the business on admission to AIM on 5th October 2020.
  • Total outstanding debt of £1.9m was fully repaid with IPO proceeds in October 2020. A £3.0m Revolving Credit Facility was put in place post admission to AIM and is currently undrawn.
  • £9.0m total cash generated as a result of solid trading performance (FY20: £1.8m), supplemented by receipt of IPO proceeds.
  • Closing cash position of £12.7m (31 March 2020: £3.7m) provides strong basis for expansion.

Operational Highlights

  • Strong order levels across the board with all regional and product line targets exceeded.
  • Continued high levels of repeat revenue, supplemented by growth in customer numbers.
  • Expansion of Calnex’s Business Development and R&D teams accelerated, to support the growth of the Company’s product offering and capitalise on available opportunities.
  • Little negative impact from COVID-19 on business, customer base or supply chain, although a change in spending patterns from some key customers, with some orders brought forward into FY21.

Outlook

  • The business continues to benefit from the evolutionary trends affecting the telecoms sector, notably in 5G and cloud computing, which in turn drive growth in the need for test and measurement instrumentation and solutions. The Board is looking forward with confidence to the Group continuing to make further progress in the current financial year and beyond.

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

“In what has been an exceptional year for Calnex, I am delighted to present the Group’s maiden full year results. Not only did the Group experience growth across all product lines and achieve sales of £18.0m, exceeding our initial expectations for the year, but we succeeded in delivering this strong performance whilst navigating the global pandemic and starting our next chapter as a public company.

“As demonstrated this year, as well as in previous years, our growth strategy and business model provide a strong platform for sustainable growth. Looking ahead, the underlying market growth drivers provide us with confidence that the long-term demand for telecoms test and measurement instrumentation and solutions will continue to expand.

“We are confident that our breadth of product offering, depth of customer relationships and the strong underlying market drivers mean Calnex is well positioned and we anticipate that results in FY22 will be consistent with FY21, representing further growth when taking into account the impact of COVID-19 on FY21 through accelerated revenues and travel savings. We see a significant opportunity for both organic and acquisitive growth in the medium term and look to the future with confidence.”

In the interview below CEO Tommy Cook provides an overview of the business, the market within which they operate and future growth plans

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