Calnex experiences 'continued strong levels of trading' in H1

Telecommunications equipment company Calnex Solutions said on Tuesday that it had experienced "continued strong levels of trading" in the first half of the year, a trend it expects to continue through the second half.

As a result of its strong performance, Calnex now anticipates that full-year revenue and profits will be "materially ahead of previous expectations", with its "robust cash position" allowing the group to bring forward planned investment into its team and operational capability in order to keep up with order growth.

The AIM-listed group noted it had seen a return to pre-Covid customer spending patterns in all regions, other than in China where demand was in line with that seen in 2020.

Calnex also highlighted that it had not experienced any negative impact from the ongoing global semiconductor shortage on its ability to manufacture and ship products, although it said the board was continuing to monitor the situation closely.

Chief executive Tommy Cook said: "We have seen most of our customers return to pre-Covid spending patterns and have experienced demand from both new and existing customers for our latest product enhancements.

"Whilst we remain cautious with regards to the ongoing global semiconductor shortages, the strength in customer orders in the first half of the year provides us with confidence that the full-year revenue and profits will exceed that of the record prior year and mark another considerable step forward for Calnex, as we continue to capitalise on the industry's transitions to 5G and the growth of cloud computing."

As of 1000 BST, Calnex shares were up 8.46% at 124.19p.