(Alliance News) – Calnex Solutions PLC on Tuesday reported a wider interim pre-tax loss due to lower trading volumes.
Calnex, based in Linlithgow, Scotland, produces equipment for the telecommunications and cloud computing industries.
The pre-tax loss increased to £1.3m in the six months to September 30, from £599,000 a year ago.
Revenue fell by 6.2%, from £7.8 million to £7.4 million.
Calnex cited a decline in trading volumes and an increase in depreciation due to investment in product development in previous years.
The company said order performance improved during the second quarter, noting an increase in the order backlog balance for the second financial half.
Calnex announced an interim dividend of 0.31 pence per share, unchanged from the previous year.
The company expects to meet current market expectations at the end of the financial year, although it noted “uncertainties in the broader economic environment.” She said a product expansion strategy “allows us to look confidently toward a return to growth” in the second half of the year and beyond.
Managing Director and Founder Tommy Cook said: “In a challenging telecommunications market, Calnex has demonstrated resilience… While challenges in the telecommunications market are expected to persist throughout the year, progress made in the framework of our product expansion strategy allows us to confidently look forward to a return to growth in the second half of FY25 and early FY26.
“As we have highlighted previously, the fundamental factors driving mobile network development and the expansion of data centers and cloud computing capacity have not changed… We remain well positioned to convert the telecom sales pipeline once the sector returns to normal market conditions,” he said.
Calnex shares were down 4.7% at 61.00 pence per share in London on Tuesday afternoon.
By Michael Hennessey, Alliance News reporter
Comments and questions to [email protected]
Copyright 2024 Alliance News Ltd. All rights reserved.
