Via Kristy Dorsey
With a £ 3 million bank facility, Scotland’s newly listed company improved its growth credentials to top up sales from its Alternative Investment Market (AIM) listing earlier this month.
After its oversubscribed placement, telecoms technology specialist Calnex Solutions secured the revolving credit facility with Barclays after the firm became the first Scottish company to be listed on the London Stock Exchange in over two years. The IPO raised £ 22.5 million in proceeds before expenses, of which £ 6 million was earmarked for acquisitions and organic development.
Created in 2006 by CEO Tommy Cook, Calnex employs 95 people in the manufacture of telecom testing equipment for clients including BT, China Mobile and Facebook. Customers in 68 foreign countries are supplied by the company.
Scottish IPO drought ends with Calnex
Calnex has transferred all of its operating banking facilities to Barclays, in addition to the funding bundle.
“We are at an exciting stage in the growth and development of the business and we needed a banking partner to support our ambitions,” Mr. Cook said.
“Like many technology-based sectors, the telecommunications industry is experiencing rapid change and a wealth of innovation. Our agreement with Barclays provides us with flexible access to capital to take advantage of opportunities like acquisitions that will help us grow our market share.”
The founder of Calnex earns financial incentives for the upcoming Target IPO
Calnex made a pre-tax profit of £1.7 million on sales of £13.7 million in the last financial year to the end of March. In the past, the company has indicated its interest in niche acquisitions, such as the takeover of Berlin-based Luceo Technologies last year and the acquisition of Belfast-based JAR Technologies in 2018.
“The management team has built a successful business headquartered in Scotland and has a clear plan to continue to grow market share and increase investment in new technology development.” added Jamie Grant, head of corporate banking in Scotland at Barclays.