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Calnex boss rings up return from share sale

Founder sells 1 per cent of his holding
June 16, 2022

Money pouring into the cloud computing market and new 5G networks has bolstered the outlook for Calnex Solutions (CLX), which makes equipment for testing telecoms and IT infrastructure. The Linlithgow-based company’s equipment is used in 68 countries by customers including BT, China Mobile, Ericsson, Nokia, Intel and IBM. Repeat orders make up about 80 per cent of its revenue.

Calnex was founded by chief executive Tommy Cook in 2006 and brought to market in 2020, raising an initial £6mn in a deal that valued the company at £42mn. Anyone who bought in at that time has made a tidy profit – it has since trebled in value and had a market cap of just below £149mn at the end of last week.

It operates in a sector that is growing at a compound rate of 11.5 per cent a year, according to Frost & Sullivan, but has managed to outperform this. Revenue for the year to 31 March grew by 23 per cent to £22mn, while pre-tax profit widened by 64 per cent to £6mn. 

Post year-end it also made its first acquisition as a public company, buying Stevenage-based iTrinegy for up to £3.5mn in April. iTrinegy has developed hardware and software to test IT networks run by gaming, financial, technology and military/government customers in the UK and the US. 

House broker Cenkos Securities thinks the deal will add about £1.3mn to this year’s revenue and £200,000 to its bottom line. It is forecasting a 22 per cent increase in revenue and a 21 per cent uplift in earnings per share to 6.3p, meaning the company currently trades at about 27 times forecast earnings. 

Cook has seized the opportunity to cash in some of his chips, selling 1 per cent of the company for almost £1.6mn at the start of the month. He remains the largest shareholder, though, with a stake of just below 20 per cent. 

 

Buys     
CompanyDirector/PDMRDatePrice (p)Aggregate value (£)Stake size
Adriatic MetalsPaul Cronin (ce)02 Jun 22139 †138,576 †n/d
Chapel DownJamie Brooke06-07 Jun 223099,6700.22%
ConduitTrevor Carvey (ce)06 Jun 2234895,6750.15%
ConduitNeil Eckert (ch)09 Jun 22348102,7120.39%
DP EurasiaShyam Bhartia/Hari Bhartia/Pratik Pota *01 Jun 225376,78442.80%
GSKDr Hal Barron (PDMR)07 Jun 223,515 (ADS) †40,918 †n/d
John WoodRoy Franklin (ch)01 Jun 2222048,510n/d
KingfisherCatherine Bradley07 Jun 2226226,1700.00%
KingspanÉimear Moloney07 Jun 226,443 †128,861 †n/d
Literacy CapitalOlly Cox (PDMR)07 Jun 2239053,816n/d
Omega Diagnostics Simon Douglas (ch) **08 Jun 22420,0000.21%
Omega Diagnostics Jag Grewal (ce) **08 Jun 22420,0000.31%
Omega Diagnostics Chris Lea (cfo) **08 Jun 22420,0000.21%
Omega Diagnostics Jeremy Millard **08 Jun 22420,0000.43%
Peel HuntMaria Bentley09 Jun 2211424,0590.02%
Pure Gold MiningMark O'Dea (ce)25 May 229 †745,295 †n/d
Pure Gold MiningGraeme Currie (ch)25 May 229 †93,162 †n/d
Pure Gold MiningRobert Pease (PDMR)25 May 229 †62,108 †n/d
Pure Gold MiningTroy Fierro (PDMR)25 May 229 †62,108 †n/d
Pure Gold MiningLenard Boggio (PDMR)25 May 229 †93,162 †n/d
Pure Gold MiningMaryse Belanger (PDMR)25 May 229 †62,108 †n/d
Pure Gold MiningChristopher Haubrich (PDMR)25 May 229 †93,162n/d
Pure Gold MiningPhilip Smerchanski (PDMR)25 May 229 †24,843n/d
Pure Gold MiningBryan Wilson (PDMR)25 May 229 †62,108n/d
RedcentricNick Bate (ch)07 Jun 2212449,5000.03%
SoftlineIgor Borovikov (ch)07 Jun 22556 † (GDRs)927,889 †n/d
Sound EnergyGraham Lyon (ch) **08 Jun 22220,0000.11%
Sound EnergyMarco Fumagalli **08 Jun 22220,0000.30%
Speedy HireDavid Shearer (ch)06 Jun 224848,005n/d
Speedy Hire David Garman *06 Jun 224884,035n/d
Speedy HireShatish Dasani07 Jun 224824,084n/d
SuperSeed CapitalMads Jensen (PDMR) *01 Jun 228369,50184.83%
Symphony InternationalAnil Thadani (PDMR)07-09 Jun 2243 †527,706 †n/d
UP Global SourcingChris Dent (cfo) *01 Jun 2213022,5220.06%
Venture LifePaul McGreevy (ch)10 Jun 223548,5000.23%
Wizz AirRobert Carey (PDMR)09 Jun 222,37749,988n/d
Sells     
CompanyDirector/PDMRDatePrice (p)Aggregate value (£)Stake size
Adriatic MetalsPeter Bilbe01 Jun 22137 †412,111 †n/d
Calnex SolutionsTommy Cook (ce)01 Jun 221591,592,00019.90%
CompassRobin Mills (PDMR)07 Jun 221,79143,682n/d
Quartix TechnologiesDaniel Mendis (PDMR)1-8 Jun 22318122,1640.00%
SageAaron Harris (PDMR)07 Jun 22657196,9500.03%
Travis PerkinsRobin Miller (PDMR) *06 Jun 221,228241,941n/d
Wheaton Precious MetalsEduardo Luna (PDMR)19-23 May 223,331 †999,418  †n/d
*Spouse/Family/Close Associate. ** placing / open offer  † Converted from € / $ / A$ / C$