Telecoms testing company Calnex Solutions has posted a strong year and says it has growing momentum.

Improved profitability at the Linlithgow-based company was driven by revenue growth, disciplined cost control and sustained gross margins.

Pre-tax profit for the year to the end of March was up sharply to £1.2m from £700,000 on a 9% rise in revenue to £21.9m (FY25: £18.4m).

The company has a strong balance sheet with cash of £9.3m at year end (2025: £10.9m), providing flexibility to invest in product innovation, people and routes to market.

Further balances received post year end due to the phasing of shipments in Q4, increasing the total cash position to £11.2m at 22 May 2026.

The board has proposed a final dividend of 0.68p per share, making a total of 0.99p per share for FY26 (FY25: 0.95p).

The company’s diversification strategy has been gaining traction, with increased contribution from newer growth markets, reducing reliance on traditional telecoms markets.

It is targeting investment in FY27 in key product launches and continued development of market and customer relationships which aim to position the group for further growth in FY28 as new products are commercialised.

Tommy Cook, chief executive and founder of Calnex, said: “This has been a strong year for Calnex, delivering double-digit revenue growth, improved profitability and material progress against our diversification strategy, with increasing traction across a broader set of infrastructure and assurance markets.

“Our focus now is firmly on execution, advancing key development programmes and converting early engagement into commercial wins, supported by improved market access.

“As this year marked our 20th year of operations, the milestone is an opportunity to reflect on how far the business has come in the last two decades; years defined by innovation, customer-focus and resilience.

“From this foundation we enter FY27 with confidence, supported by a robust product roadmap, strong balance sheet, and a more diversified market footprint.

“In a period of rapid technological and geopolitical change, the importance of high-performance network testing continues to grow, and as we move into the next decade of Calnex’s journey, we are excited by the opportunities ahead.”

Speaking to Daily Business, he explained how the rapid growth of data centres had stimulated demand for larger capacity devices as companies feared being left behind.

“I sometimes worry there is too much money in this market forcing people to make peculiar decisions,” he said.

“They are racing to do things and for us it is about managing the situation.”

Shares in Calnex Solutions closed 2.5p, or 3.47%, higher at 74.5p.