Calnex Solutions, the Linlithgow-based telecoms testing company, cut its losses after investing in growth markets, including the US defence sector.

Revenue grew 9% to £8 million for the six months ended 30 September as its loss before tax fell to £0.94 million from £1.3m in the prior year. Its cash balance strengthened to £10.3m.

The company saw growth across all regions and resilient gross margins of 76%.

It has maintained its interim dividend at 0.31 pence per share, reflecting confidence in future prospects and expecting full-year performance to be in line with market expectations.

The company said the telecoms market remains stable and investment in test equipment is increasing, with substantial medium term growth drivers.

It said it is well positioned to convert the telecoms sales pipeline once the trading environment improves, but not reliant on this for a return to growth.

Expansion into the new market of US defence is a strategic focus, where the company sees significant opportunity for growth in the long-term.

Tommy Cook, chief executive and founder of Calnex, said: “Calnex is making solid progress as we continue to evolve in line with the shifting market dynamics across our markets.

“Our heritage in telecoms standards puts us at the forefront of innovation that is increasingly relevant across diverse end markets, with traction building in defence & government and cloud computing & datacentre markets as we look to understand the market dynamics and discover new opportunities.

“We enter the second half with encouraging momentum and a clear strategy to drive growth. Our strong balance sheet enables us to continue investing in our products, team and routes to market to capture the growing demand for network infrastructure testing solutions, and we remain confident in delivering a full year performance in line with market expectations.”