Calnex Solutions, the Linlithgow-based telecoms testing company, returned to profit and has entered the new financial year with an increased order backlog and growing engagement across key sectors.

Financial performance improved notably in H2, driven by a higher proportion of high-value sales and increasing demand across cloud computing, defence and satellite markets.

The company posted a pre-tax profit of £720,000 for the year to the end of March against a £384,000 loss last time. Revenue rose 13% to £18.4m from £16.3m. Underlying EBITDA rose from £80,000 to £1.15m.

It has proposed a final dividend of 0.62p per share, making a total of 0.93p per share for FY25 (FY24: 0.93p).

Tommy Cook, chief executive, said: “We have made strong progress this year across key sectors, despite the ongoing challenging telecoms market.

“Both the implementation of our sales network and our product expansion strategy have progressed materially this year.

“We enter FY26 with a healthy order backlog, strong cash balance and increasing customer engagement.

“Momentum from product development is building into FY26, which, with stabilised trading in the telecoms market, longstanding customer relationships across all territories and a widening footprint in a variety of end markets, leaves us well-positioned to convert our sales pipeline and deliver another year of growth and FY26 performance in line with market expectations.”

Speaking to Daily Business, he said new markets were opening up, not least in data centres, and there had been a positive response to new product development.

“Our strategy of getting into new markets is working,” he said. He added that recruitment had become easier and the quality of candidates has risen.

In a note issued this morning, Cavendish said the company “remains in the early stages in growth recovery but with early signs of improvement in the telecoms sector and ongoing expansion into other markets we expect further growth”