Calnex Solutions has reported a 25% increase in revenue from £22m to £27.4m and profit before tax rising 21% from £6m to £7.2m.
The Linlithgow-based telecommunications test and measurement solutions company posted its audited results for the 12 months ended 31 March 2023, revealing performance driven by growth in cloud computing and the roll out of 5G networks.
Trading in the first quarter of this year has continued as anticipated, with the board stating confidence in delivering results in line with market expectations, as revised this March.
"Whilst customer budgets continue to be restricted in the near term, the breadth of Calnex’s customer base across multiple regions, expanding product portfolio and strong balance sheet, alongside the market’s structural growth drivers, provide continued confidence in the future," read a statement
The company's closing cash position, including fixed term deposits, was £19.1m - up from £15.4m at the same stage last year.
The board has therefore proposed a final dividend of 0.62 pence per share, making a total of 0.93 pence per share for 2023 - up from 0.84 pence in 2022.
The trading update also noted successful mitigation of "well-documented supply chain challenges", delivering all orders as planned.
This led to a growing relationship with "hyperscale customers", securing one significant contract and seed unit sales into two other companies at this level during the year.
There was also "encouraging early uptake" of Sentry, the company's network synchronisation product, which was launched during the second half, alongside the full integration of iTrinegy - acquired last April - which is expected to be an important contributor to future profit.
Calnex is increased staffing levels across business development, sales, research, developing and support roles, in order to support growing customer demand, new product development and maximise exposure in new and existing territories.
Chief executive Tommy Cook commented: "We are confident the market’s structural growth drivers will continue to drive long-term growth opportunities for Calnex.
"These include the need to build out new mobile networks to support the transition to 5G, and ongoing data centre investment to support the demand for cloud computing coupled with the need to be more energy efficient."
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