Calnex Solutions Plc · LSE:CLX
Calnex Solutions — FY2025 Earnings Presentation
28 slides from Calnex Solutions's earnings presentation, May 22, 2025
Slide 1: Final Results FY25
Final Results FY25 Tommy Cook, CEO Ashleigh Greenan, CFO
Slide 2: Calnex Solutions: test solutions for the world's telecoms and cloud computing industries
Calnex Solutions A selection of our customers Test solutions for the world’s telecoms and cloud computing industries • Established position at the forefront of the global test and measurement industry. • Our portfolio enables our customers to validate the performance of the critical infrastructure a
Slide 3: Why we are needed
Why we are needed New product development lifecycle R&D Design Validation and Conformance Maintenance Testing post deployment Monitoring networks Testing ▪ Deep insight is required to identify and rectify ▪ Monitor all end points to identify when faults occur. complex maintenance issues. ▪ Collate d
Slide 4: Review of the year
Insight and Innovation
Slide 5: FY25 overview
FY25 overview A return to growth, with Positive impact of R&D Successful execution of Stabilised telecoms financial performance investment and product sales channel strategy trading with product notably improved in H2 expansion strategy development momentum • £18.4m • Successful launch in H2 of • On
Slide 6: Long-term telecoms market drivers intact and growth opportunity in cloud computing, defence and space
Long-term telecoms market drivers intact and growth opportunity in cloud computing, defence and space Growing need Evolution of networking for infrastructure and techniques, technology cloud-based Application and standards to meet test future demands Growth in AI will increase data Increasing teleco
Slide 7: Extended channel partner network performing well
Extended channel partner network performing well Providing increased sales reach in key markets • Sales have successfully transitioned to new partners across Americas, EMEA, N.Asia. • 64 partners now active, (40 a year ago). • In FY25 Spirent accounted for 43% of orders (FY24: 64%), reducing to 24%
Slide 8: Financial review
Insight and Innovation
Slide 9: Stable customer metrics
Stable customer metrics Contribution from Cloud Computing markets continues to grow Revenue Streams (£'000) Geographic Split Cloud Computing / Telecoms (year on year) (%) Americas North Asia Rest of World Hardware & Software Revenue Warranty Support Revenue Cloud Computing Market Telecoms Top 10 Cus
Slide 10: Return to profit
Return to profit • Order and revenue levels improved in H2 following Final dividend Cash position as at challenging first half. 30 April • FY25 revenues grew 13% on prior year. 0.62p £12.7m FY24: 0.62p • Return to positive profit margins. Underlying EBITDA margin 6% (FY24: 0%). • Return to growth in
Slide 11: Revenue analysis
Revenue analysis Region • Americas: Most impacted by the telecoms slow down in prior years. Focus in FY25 on cloud-based infrastructure, applications and government opportunities proved successful. Revenues increased 44% year on year. We are monitoring the effects of the US tariffs. • ROW: Demand le
Slide 12: Revenue growth in challenging market environments
Revenue growth in challenging market environments Margin improvements; positive operational gearing benefits Period ending 31 March FY25 FY24 • Revenue growth of 13% despite continuing challenges in our £000 £000 end markets. Revenue 18,386 16,274 Cost of sales (4,623) (4,327) • Gross margin 75%, im
Slide 13: Robust cash position
Robust cash position Increased further, post period end, to £12.7m • Net cash inflow from operating activities £4.6m (FY24: £0.8m Period ending 31 March FY25 FY24 outflow). £000 £000 EBITDA 5,422 3,860 • Working capital cash outflow predominantly due to timing of Add back non cash items (314) (55) r
Slide 14: A strong platform to execute our growth strategy
A strong platform to execute our growth strategy Gross margin We will continue to Diversification of our Confident we will improvement, positive invest in R&D customer base and continue to see operational gearing programmes where end markets provides improvement in and tight cost control we see reve
Slide 15: Strategy and market opportunity
Strategy and market opportunity
Slide 16: Three-Pillar Strategy
Three-Pillar Strategy Consistent Strategic Focus Continued product innovation to capitalise on Expand within the cloud growth of built out of the computing, defence & space Target select acquisition and mobile network sectors. strategic partnership infrastructure Infrastructure and applications/end
Slide 17: Evolving product portfolio
Evolving product portfolio Synchronisation Testing synchronisation Network emulation for testing in the lab performance of networks real-world testing in the lab LAB SYNC NETWORK SYNC NETWORK AND APPLICATION ASSURANCE Telecom Telecom Data Centre Infrastructure Validation Applications Testing Prove c
Slide 18: Track record of successfully launching new products
Track record of successfully launching new products Through R&D and M&A Major Releases Network Emulation, Data Centre Network 400GbE Network 5G O-RAN Timing Performance 800Gb/s Lab acquisition of iTrinegy Synchronisation Emulator Network Emulator Monitoring solution Synchronisation Multi-sector Hype
Slide 19: Lab Sync innovation
Lab Sync innovation Further Lab Sync innovation in FY26 Paragon-neo driving a return to growth with 800Gb/s testing Our innovation approach: track the higher speeds and standards within the telecoms market – whose robust standards and technology are then adopted by other sectors using networking tec
Slide 20: NAA market
NAA market NAA innovation in FY26 Unlocking opportunity in US Defence, enterprise and satellite Tailoring our core products to specific user cases and SNE-X 400G, expansion of using partners to reach potential customer base, e.g. bandwidth capability in defence. SNE SNE-Ignite, enhancement of • We h
Slide 21: Confident outlook
Confident outlook • Confident in continued growth in FY26, in line with forecasts, due to stabilised trading within the telecoms market, longstanding customer relationships and a widening footprint in a variety of end markets. • We enter FY26 with a healthy order backlog, strong cash balance and inc
Slide 22: Q&A
——<— Calnex Insight and Innovation Q&A
Slide 23: Well positioned for continued growth
Well positioned for continued growth High quality, growing, Proven track record of Globally established provider customer base developing innovative and of test solutions Over 680 customer sites in 68 advanced test solutions With reputation for winning countries R&D investment driving order products
Slide 24: Appendix
Insight and Innovation
Slide 25: Balance sheet
Balance sheet Mar-25 Mar-24 £000 £000 Non-current assets Intangible assets 12,255 12,110 Goodwill 2,000 2,000 Tangible & right of use assets 1,302 628 Deferred tax asset 299 1,246 15,856 15,984 Current assets Inventories 5,358 5,373 Trade and other receivables 6,353 3,775 Cash and cash equivalents 1
Slide 26: The Board
The Board Tommy Cook Ashleigh Greenan Stephen Davidson Graeme Bissett Margaret Rice-Jones Helen Kelisky CEO CFO Non-Exec Chairman Non-Exec Director Non-Exec Director Non-Exec Director Tommy is the founder and Ashleigh qualified as a Stephen joined the Board of Graeme is an experienced Margaret has o
Slide 27: General information
General information ▪ Share Price 50p (at 16.05.2025) Major Shareholders ▪ Market AIM % of Issued Share Shareholder Capital ▪ Ticker CLX Thomas (Tommy) Cook (CEO) 19.9% ▪ Market Cap. £43.95m BGF Investment Management Limited 12.0% Scottish Enterprise 9.0% ▪ Ord. shares in issue 87.56m Close Brothers
Slide 28: Financial structure
Financial structure • Two revenue streams: Revenue • Bundled hardware & software recognised on delivery • Warranty and software support recognised over life of product • Gross margin: approx. 73-76% net of discounts given to channel partners Telecoms Customer Case Study Gross • Cost of sales: approx