Queens award
Calnex Solutions receives two Queen’s awards for Enterprise

Calnex Solutions plc (AIM: CLX), a leading provider of test and measurement solutions for the global telecommunications sector, today announces it has been honoured with two Queen’s Awards for Enterprise in recognition of its outstanding contribution to Innovation and International Trade as the Group continues to develop a world leading range of test and measurement solutions for the global telecommunications sector. Calnex is one of only seven companies in the UK to be recognised with two Queen’s Awards for Enterprise in 2022. This is the second time Calnex has been awarded the UK’s highest accolade for business success, after winning the Queen’s Award for Enterprise for International Trade in 2015, acknowledging the Company’s global reputation for innovative products and sales achievements. Now in its 56th year, the Queen’s Awards for Enterprise are the UK’s most prestigious business awards to recognise and encourage achievements in the fields of Innovation, International Trade, Sustainable Development and Promoting Opportunity through social mobility. Employing 122 people, and founded in 2006, Calnex designs and produces test instrumentation for network synchronisation, enabling its customers to validate the performance of the critical infrastructure associated with telecoms networks. Calnex now has over 600 customer sites in 68 countries across the world and customers include the likes of BT, Qualcomm, IBM and Facebook. Calnex completed its successful IPO on the AIM market of the London Stock Exchange in October 2020, providing the Group with the funds to invest in its continued success as the Company seeks to capitalise on the long-term transition of the telecoms market to 5G and the growth of cloud computing. Commenting on the award, CEO Tommy Cook, said: “We are honoured to receive two such prestigious awards, in Innovation and International Trade, and Calnex is proud to be representing Scottish innovation globally. The significance of the Queen’s Award is known worldwide and being awarded this accolade twice in one year is an indication of the good progress we have made over the past few years. During this time we have successfully become a public company and continued to invest in the growth of the Company and the development of our team and these awards are a testament to the dedication and expertise of our staff and quality of our expanding offering. Britain has always been at the forefront of innovation across the telecommunications sector and these awards further validate our leading position in the marketplace.” For more information, please contact: Calnex Solutions plc Via Alma PR: Tommy Cook, Chief Executive Officer. Ashleigh Greenan, Chief Financial Officer. Cenkos Securities plc – NOMAD: +44 (0)131 220 6939 Derrick Lee, Peter Lynch Alma PR: + 44(0) 20 3405 0213 Caroline Forde, Hannah Campbell, Joe Pederzolli Overview of Calnex: Calnex designs, produces and markets test instrumentation and solutions for network synchronization and network emulation, enabling its customers to validate the performance of the critical infrastructure associated with telecoms networks. To date, Calnex has secured and delivered orders to over 600 customer sites in 68 countries across the world. Customers include BT, China Mobile, NTT, Ericsson, Nokia, Intel, Qualcomm, IBM and Meta. Founded in 2006, Calnex is headquartered in Linlithgow, Scotland, with additional locations in Belfast, Northern Ireland and California in the US, supported by sales teams in China and India. Calnex has a global network of partners, providing a worldwide distribution capability.

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Acquisition of iTrinegy and Update on Trading

Complementary technology provides access into adjacent applications and transformation testing market. Calnex Solutions plc (AIM: CLX), a leading provider of test and measurement solutions for the global telecommunications sector, today announces the acquisition of iTrinegy Limited (“iTrinegy”), a leading developer of Software Defined Test Networks technology for the software application and digital transformation testing market. The consideration, calculated on a cash-free, debt-free basis, is £2.5m in cash on completion with up to a further £1.0m dependent on achievement of agreed financial targets. Founded in 2006 and headquartered in Stevenage, UK, iTrinegy’s NE-ONE hardware and software based Network Emulation platforms provide organisations, primarily across the technology, financial, gaming and military / government sectors, with the ability to accurately recreate complex, real-world network test environments in which to analyse and verify the performance of applications, before deployment. The NE-ONE platform provides users with insight which enables them to reduce deployment costs and risk while at the same time improving quality. The iTrinegy NE-ONE platform is also applicable for cloud-based and virtual development and testing environments, a rapidly growing sub-sector of the application development market. Many software vendors around the world are repurposing their on-premise hosted applications and solutions in order to deliver these services via cloud-based hosting. iTrinegy’s software includes analytics that allow customers to analyse and predict an application’s performance when deployed in the cloud or running over distributed networks. iTrinegy’s customer base includes organisations such as Juniper Networks, JPMorgan Chase, Ubisoft Games and the Government and Military in the UK and US. In 2021, iTrinegy was awarded the prestigious Queens Award for Export Achievement. Calnex plans to scale the business by using its sales and marketing capabilities to build, support and grow a reseller network, particularly into the US, to accelerate sales. iTrinegy generated revenues of approximately £1.4m in the year to 30 September 2021, with a gross margin of around 80%. Approximately 60% of iTrinegy’s revenue was from North American customers. The business is being acquired on a cash free, debt free basis. The consideration comprises an initial cash payment of £2.5m, with up to a further £1.0m potentially payable in a combination of new ordinary shares in Calnex and cash (the “Earn-out Payment”). The Earn-out Payment is subject to the achievement of certain sales targets from iTrinegy products in the year to 31 March 2024. A maximum of 322,579 new shares will be issued under the Earn-out Payment. Update on Trading Calnex has made solid progress on delivering its strategy in the 12 months to 31 March 2022 (“FY22”) and continues to experience high demand for its range of test and measurement solutions. The Company recently noted, in the Trading Update issued on 1 March 2022, that it had experienced reduced availability of certain components in the final quarter of FY22, in line with the well documented and ongoing global semiconductor shortages. The Company has successfully managed these constraints and has shipped all orders scheduled for March as planned. As a result of this, the Board is pleased to confirm that the results for FY22 will be slightly ahead of current market expectations. Calnex’s order book continues to build and currently sits at record levels heading into FY23 which provides the Board with confidence in the Group’s ability to deliver significant, sustainable growth over the coming years. The Company expects to release Final Results for the year ended 31 March 2022 on 24 May 2022 and will provide further guidance on prospects for FY23 and FY24 at that time. The acquisition of iTrinegy is anticipated to be earnings accretive in FY23 and to be an important contributor to Calnex Group profit in subsequent years. Tommy Cook, Founder and CEO of Calnex, said: “We are delighted to welcome the iTrinegy team to Calnex. With both businesses developing high quality, complex, technical testing solutions, trusted by some of the world’s most demanding organisations, we are particularly excited by the strategic fit of the two organisations. The cloud migration taking place across multiple sectors and the growth in internet-based applications is fuelling demand for test solutions that can analyse, predict and verify application performance over complex, distributed networks. We see great opportunity ahead for the NE-ONE technology and look forward to working together to accelerate iTrinegy’s growth and open up new customer segments for Calnex. Following a strong FY22 and a record order book heading into the new financial year, we look to the future with confidence.”

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Tommy Cook : Founder and CEO, Calnex Solutions plc

Be Inspired: by London Stock Exchange Behind the scenes with CEOs and senior leaders of London’s listed companies. We’re thrilled to finally introduce the highly anticipated Be Inspired CEO series, where we go behind the scenes with some of the most successful CEO’s and senior leaders of listed companies on our London markets. Captured from some of the true trailblazers in business today, they are all succeeding in a role which brings its own pressures, expectations – and a most commonly perceived inaccessible persona, however we are fortunate and very excited to have this opportunity to now share their inspirational journey’s with you today. Founder and CEO Tommy Cook has experienced an incredible journey – from listing the business only 15 months ago with a market cap of £42m, to the £100m it is valued at today… yet a public listing was never part of the plan. Find out what drivers changed his mind, why he chose to list in London and how the company has continued to go from strength to strength.

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Deals: Dealmakers awards 2021
Deals: Dealmakers Award

Calnex wins Transformational Deal of the Year award. The panel felt this deal was something to look up to and a worthy winner that’s sending the right message to the rest of the market. ‘Tis the season for Calnex awards it seems! To find out more check out the insider.co.uk article here and an article form Business Growth Fund (BGF) here.

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Small Cap Awards Winners
IPO of the Year 2021

Drum roll please… The winner of @SCE_Club IPO of the Year at the Small Cap Awards is @CalnexSolutions. Calnex also wins Best Newcomer at the AIM Awards (below). Winning becoming a habit it seems!

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Tommy Cook Herald article
An ‘accidental entrepreneur’ taking Calnex up the ranks

Tommy Cook is, by his own admission, an “accidental entrepreneur”. After more than 23 years as an electrical engineer employed by global technology corporations, he was a few years past his 40th birthday when he was persuaded to set up Calnex Solutions, which in October became the first Scottish company in more than two years to achieve a listing on the London Stock Exchange. “If you had told me then that it would get to this point – a floated company with a £40 million-plus valuation – that would have spooked me,” he admits with easy candour. The son of a farmer from Port Logan in the south-west of Scotland, he let go of his childhood dream of becoming a fighter pilot when it became apparent that his “physical prowess” was lacking. With a head for maths and physics, he decided instead to join what was then the emerging field of electronics, and set off to Paisley College of Technology to earn himself a degree. A summer job with Hewlett Packard in South Queensferry led to a permanent post as a research and development design engineer. From there, over the course of the next 18 years, he worked his way up to project manager and then R&D programme manager. READ MORE: Calnex founder reaps financial reward as AIM flotation beckons Coming up through the test and measurement division, Mr Cook describes HP as a place that “really understood” how to build a culture and a team, elements which he has aimed to ingrain within Calnex. But the latter years were more difficult. The 1999 spin-off of HP’s testing and measurement business into Agilent – the largest IPO in the history of Silicon Valley at that time – was quickly followed by the collapse of the dot-com bubble that took a swathe of investment out of the tech and communications sectors. As part of what had become Agilent’s Scottish operation at South Queensferry, Mr Cook experienced first-hand the dramatic shift that took place within an organisation that had “never laid off anybody” before. As a culture they really struggled to deal with that,” he said. “It was a difficult time. I guess I went through about five years where we were almost constantly cutting back on the team. “What I learned from that is that when you have good times you have got to enjoy them, because when the bad times come there is nothing given for how you performed last quarter or last year.” As a manager, he admits it was difficult to keep his team motivated through this period, and by 2005 Mr Cook was also at the sharp end of redundancy. In a bid to expand his network in the hunt for new employment, he was introduced via a friend to Campbell Murray, a member of the high growth team supporting start-ups at Scottish Enterprise. READ MORE: Calnex ends the drought of Scots flotations Almost a decade before his untimely death in 2014, Mr Murray convinced Mr Cook that rather than find a new employer, he should instead set up his own business. With the help of the development agency man, Mr Cook successfully applied for a start-up grant, turned down a job offer in Southampton, and founded Calnex in January 2006. “Campbell was so enthusiastic,” Mr Cook recalls. “After five years of living with downsizing, I thought it all sounded quite exciting, and it seemed like it would be a lot of fun.” As is the way for virtually all start-ups, the business survived pretty much hand-to-mouth for the first 18 months while Mr Cook worked on developing his first product, which remains a key part of the business today. It’s a testing system that proves that a mobile network operator’s equipment is passing telephone connections from one station to another – while, for example, driving along the M8 from Edinburgh to Glasgow – at a synchronisation down to one billionth of a second. Such fine margins might seem a bit over-kill, but across a breadth of hundreds of thousands of devices covered by any single station, this degree of efficiency is required to ensure maximum connection capacity. Otherwise, callers get hit with the dreaded “no signal” message. READ MORE: Calnex tops up flotation proceeds by £3m As part of last month’s £42m listing on the Alternative Investment Market, Mr Cook sold down part of his stake in Calnex, earning a £2.8m windfall. He continues to own 21 per cent of the equity in the business, which has paid down some of its more expensive historic debt while retaining £6m from the flotation proceeds. That has been further topped up by a £3m credit facility agreed with Barclays, giving Calnex what Mr Cook reckons to be comfortable scope for acquisitions in the range of £2m to £5m. Should a bigger opportunity come along, the plan is to go back to the market to raise further funding. With demand for the company’s equipment being driven by the migration of mobile networks to 5G, which will allow far more mobile devices to access the internet at the same time, the 60-year-old believes there is plenty of scope for growth. Calnex currently employs 95 people supplying equipment to giants such as BT, China Mobile and Facebook, generating revenues of £13.7m last year. “I really want to keep driving Calnex,” he said. “If there is a glass ceiling it will only be because we have put one there. “I don’t see any end game here. I believe we can keep growing and growing.” Q&A What countries have you most enjoyed travelling to, for business or leisure, and why? Japan. While we think we are all different in Europe, and in the West, we are all variation on a theme. The Japanese culture is very different and I always enjoy experiencing the differences. They are so polite and respectful with so many cultural rules that are always fascinating to experience. And the food is awesome! When you were a child, what

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Tommy Cook Ashleigh Greenan
Listed life is suiting Calnex chief Cook down to ground

Tommy Cook did not receive any celebration cards or congratulatory phone calls when the company he founded had its first anniversary on the stock market recently. But he was unperturbed by the lack of fuss. “It was a year yesterday, but to be honest I forgot myself!” laughed the chief executive of Calnex, the Linlithgow-based mobile network testing company he established in 2006. Life would have been interesting enough for Calnex in its maiden year on the Alternative Investment Market without the stresses of a pandemic thrown in. But the challenge of running a newly listed business during a global health crisis – one that continues to limit the ability of the Calnex team to meet colleagues and clients in person around the world – has not hampered progress. Its share price closed at 123p on Friday, more than double the 54p at which it debuted on the market in October last year, and in a trading update for the six months to the end of September upped its full-year profit guidance amid continuing strong demand for its equipment. The upgrade came after Calnex reported a 31 per cent rise in revenue to £18 million for the year to the end of March, with profits up 22% at £3.6m. One of the reasons for Mr Cook’s sunny outlook is the “evolution” of 5G network. Speaking to The Herald, Mr Cook said 5G is much more than just the latest “spot technology” for consumers, as 3G and text messaging were in their day. “It is way bigger than that,” he said. “To me it is a euphemism for the evolution of the mobile network to meet the needs of the future smart cities. The change that has to happen is quite dramatic.” The 5G network will have to support the roll-out of new services that need higher quality connections, such as autonomous vehicles, as well as mobile phones and smart devices. “To achieve that, you have to almost transform the network to support it,” Mr Cook explained. “And it is going to go on for years.” He added: “That is really where our opportunity comes, because new technology needs more testing, and new test equipment. It just looks it is going to be never-ending for us, until I get my retirement plan kicked into action, and long beyond it. “They are already talking about 6G… and what the network is going to be in 10 years. It is just going to keep evolving. That’s a huge driver for our traditional industry.” Mr Cook said current levels of connectivity across Scotland are “not great”. He feels it is good within individual cities, but significantly inferior between them. “You do need that continuous [connectivity]…but it’s not great up here. It really needs to move forward,” he said. “I guess it is a difficult country to get connectivity in because the population is crammed in [to a small number of centres].” But he noted that achieving continuous connectivity will create the conditions for new applications and technology to come in. “At the end of the day it is not the telecoms network that creates these new services,” Mr Cook said. “We are just the infrastructure; we create the infrastructure. It is your Facebooks, your Googles and many more yet to be developed that create the applications that change your life.” One other area of opportunity identified by Calnex is serving the huge data centres being developed by “hyper-scaled” companies such as Facebook and Amazon. “There’s at least 250 or more in the world already, and there is probably a lot more, because some of them are quite secretive,” Mr Cook said. “These massive warehouses are almost like mini-networks inside, and they are shoving huge amounts of data about. We are really trying to get better engagement with these guys. We’ve already got some opportunities with these guys, and potentially new opportunities with them. That’s an area of focus for us.” Mr Cook said he is currently satisfied with the response that Calnex’s products are receiving and the level of traction among customers. But the challenge has “always been” finding the next opportunity. “That was one of the reasons we floated the company – better access to funding,” he said. “There was money available, but it was [a case of] how much are you willing to pay for that money. That was always the question.” That access to capital the listing has brought could lead to the acquisition of larger companies than Calnex would previously have targeted, for example enterprises with 15 to 20 people. “We are continually looking for new things, as well as continuing to build contacts ourselves to identify opportunities ourselves,” he said. In the nearer term, Mr Cook said Calnex was now in the process of moving its 115 staff to a hybrid working model. Home working had more successful than could have been hoped from a technical perspective, but some of the softer, “intangible” aspects of working life have been missed. Mr Cook said Calnex is planning to add to its team, and hopes to have increased its headcount to 120 by the end of the year, having managed to recruit around 35 people during the pandemic thus far. Around 75 of its employees are based at its head office in Linlithgow, with the company also having teams in Belfast, China, India and the US. Most of the development occurs in Scotland and Northern Ireland, supported by the manufacturing capability of Kelvinside Electronics here. Asked if the company was currently facing any difficulties recruiting staff, at a time when so many sectors are dealing with skills shortages due to Brexit and the pandemic, Mr Cook said: “It’s tough at the moment. “We are finding people, but it is tough.” READ MORE: Small Cap Awards Winners Announced

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Calnex in UK5G’s Best of British

UK5G (www.uk5g.org) is the UK’s National Innovation Network dedicated to the promotion of research, collaboration and the industrial application of 5G in the UK. In it’s latest Innovation Briefing publication, Calnex was featured in the Best of British section for our Test & Measurement solutions. The article highlights Calnex’s accomplishments in targeting 5G’s demanding test needs with our Paragon-Neo and Sentinel solutions. Read the full Issue 6 of UK5G’s Innovation Briefing here. (Page 17 for the Calnex reference). UK5G (www.uk5g.org) is the UK’s National Innovation Network dedicated to the promotion of research, collaboration and the industrial application of 5G in the UK. In it’s latest Innovation Briefing publication, Calnex was featured in the Best of British section for our Test & Measurement solutions. The article highlights Calnex’s accomplishments in targeting 5G’s demanding test needs with our Paragon-Neo and Sentinel solutions. Read the full Issue 6 of UK5G’s Innovation Briefing here. (Page 17 for the Calnex reference).

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Calnex SNE flyer
Latest Calnex SNE enhancements

Real-life networks are a complex system of changing conditions, flexible routes and competing applications. And the only way to get predictable infrastructure performance is to test before deployment. The Calnex SNE provides industry-leading flexibility in building and modelling these complex real-life systems enabling you to simulate networks and emulate the real world conditions under which applications and platforms need to perform. The SNE now has a web-based User Interface so that you can control your SNE from your PC’s web browser. Print or view article as single page PDF.

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Investors in People (IIP) award

We are delighted to announce that Calnex Solutions has achieved Gold standard accreditation from Investors in People. Organizations that meet the world-recognised IIP standard reflect the very best in people management excellence. Underpinning the Standard is the IIP framework. Based on 25 years of leading practice, the latest research and workplace trends, the IIP framework is organized around nine key indicators of high performance each with three underpinning themes. To achieve accreditation, organizations are assessed against these themes and indicators, leading to an award level of standard, Silver, Gold or Platinum that represents the level of performance achieved, or the level of ‘maturity’, from a fundamental ‘developed’ level to ‘high performing’. Assessment is carried out using surveys, interviews, meetings and observation. To quote our IIP assessor “The survey results coupled with the discussions I had provide evidence that Calnex employees feel valued and appreciated and through regular conversations with their managers understand what is expected of them and how their contribution fits with the overall business strategy. They enjoy challenging and interesting work and believe there are opportunities for progression. Overall, your results are very positive and above the IIP average in every indicator”. To hear this from an external assessor fits with our overall business strategy and is at the essence of what we are trying to achieve at Calnex as an employer. Providing a supportive and positive working environment which encourages autonomy, innovation and creativity is what we set out to do and will continue to do as we move forward. Claire WishartHead of HR

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