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Calnex Solutions PLC on Tuesday reported a widened interim pretax loss amid lower trading volumes. Linlithgow, Scotland-based Calnex produces equipment for the telecommunications and cloud computing industries. Pretax loss increased to £1.3 million in the six months to September 30 from £599,000 a year ago. Revenue fell by 6.2% to £7.4 million from £7.8 million. Calnex cited lower trading volumes and an increase in amortisation due to investment in product development in previous years. The company said order performance improved in the second quarter, noting an increased order backlog balance for the second financial half. Calnex announced an interim dividend of 0.31 pence per share, unchanged from a year ago. The company expects to meet current market expectations at the end of the financial year, although it noted ‘uncertainties in the wider economic environment’. It said a product expansion strategy ‘provides confidence in a return to growth’ in the second half and beyond. Chief Executive Officer & Founder Tommy Cook said: ‘In a challenging telecoms market, Calnex has traded resiliently... While challenges across the telecoms market are expected to remain for the duration of the year, good progress with our product expansion strategy provides confidence in a return to growth during H2 FY25 and into FY26. ‘As previously highlighted, the fundamental drivers that underpin the build out of the mobile network and the expansion of the data centres and cloud computing capacity have not changed... We remain well positioned to convert the telecoms sales pipeline once the sector returns to normal market conditions,’ he said. Calnex shares were down 4.7% to 61.00 pence per share in London on Tuesday afternoon. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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