Calnex Solutions PLC (AIM:CLX) shares plummeted by over 30% in early trade on Tuesday after the provider of test and measurement solutions for the telecoms sector warned that order delays will lead to a drop in results for the year to end-March 2024.
Although the figures for the current year to 31 March 2023 are expected to meet market expectations, with double-digit growth in revenue and profit, macroeconomic headwinds are impacting the global telecoms industry, resulting in the postponement of projects and consequently in order delays, Calnext said in a trading update.
“Based on short-term order run-rates, the board believes that the financial performance in FY24 will be below that achieved in FY23, with the company's revenues more heavily weighted to H2 of FY24,” it warned.
The company said it is confident that it will see an uplift in orders once the industry spending cycle normalises.
Calnex chief executive officer Tommy Cook said in the statement: "We are pleased to anticipate delivering financial results for FY23 in line with market expectations, with this solid performance demonstrating the positive response from customers to our expanding product set and our ability to successfully navigate the supply chain challenges.
“While the global macro environment is influencing order growth in the short-term, our expanded offering and strong financial footing mean we are well-placed to return to a growth trajectory once market confidence returns."
At 9.45am, Calnex shares were down 31.94% at 116.38p.