AGM Statement

Calnex Solutions plc (AIM: CLX), a leading provider of test and measurement solutions for global telecommunications, digital infrastructure and government & defence markets, provides an update on operations and trading ahead of its Annual General Meeting ("AGM") taking place at 9.00 a.m. today.

Highlights

• Trading in the year to date is in line with market expectations
• Continued diversification across digital infrastructure and government & defence is driving growth
• Our well-established telecoms business maintains its leadership position, albeit in anticipated lower growth markets
• The Group's key product development programmes are progressing well
• As planned, targeted investment in FY27 is expected to support accelerated growth in FY28

Operational update

Calnex has made an encouraging start to FY27, with its increasingly diversified product portfolio continuing to drive growth and broaden the Group's opportunities, exemplified by a recently secured digital infrastructure win with a major US financial institution, reinforcing the benefits of the diversification strategy.

As previously outlined, FY27 represents a year of targeted investment into key product launches and development of the market and customer relationships which are expected to underpin future growth.

The Group's key product development programmes are progressing well. The discovery work to identify new applications and growth opportunities in the digital infrastructure market is gaining momentum, with proof-of-concept evaluations underway with key customers. The opportunity funnel for the SNE network emulation product continues to grow, supported by positive early customer engagement as Calnex focuses on the areas of greatest commercial potential.

Customer engagement around the next-generation Sentry data centre assurance offering continues to develop positively. Development of the Group's 1.6Tb/s synchronisation testing product is also progressing towards its planned launch in FY28, building on the success of Paragon Neo-S 800 Gb/s.

The partnership with Viavi continues to gain traction and has been expanded, providing access to a broader installed base and strengthening Calnex's go-to-market reach. Together with the Group's wider partner network and enhanced go-to-market capabilities, this is strengthening market access across end markets.

Market outlook and trading

As anticipated, the telecoms market has remained stable during the year to date, with Calnex well-positioned to benefit as demand recovers. In parallel, the Group continues to see attractive opportunities across digital infrastructure and government & defence.

Trading in the year to date has been in line with market expectations. Supported by a strong balance sheet, differentiated product roadmap and growing customer opportunities, the Board remains confident in the Group's prospects for FY27 and continues to expect the targeted investment being made this year to support accelerated growth in FY28.