Linlithgow telecoms firm Calnex Solutions to float on stock market

Chief executive Tommy Cook said Calnex Solutions had enjoyed a sustained period of growth

A Linlithgow firm that tests telecoms equipment for major business clients is the first Scottish company to float on the London stock market for two years.

Calnex Solutions was founded in 2006 and is valued at £42m under the plans.

The float, known as an Initial Public Offering, seeks investors on the Alternative Investment Market.

It could raise £16m for existing shareholders, including Ann Budge, chairwoman of Heart of Midlothian FC and a technology investor.

Tommy Cook, the founder and chief executive of Calnex Solutions, said new capital would provide the flexibility to expand by acquiring other firms in telecom testing.

Growing market

He said: "The telecommunications industry is going through unprecedented levels of change, presenting exciting opportunities for the expansion of the business.

"Having demonstrated sustained growth since inception, the move on to the public markets will provide us with new capital, a raised profile and enhanced ability to execute on acquisitions, as we seek to capture an increased share of the growing market for telecoms test solutions."

The firm's current customers include BT, China Mobile, NTT, Ericsson, Nokia, Intel, Qualcomm, IBM and Facebook. It also provides for non-telecom firms including Facebook.

Some 80% of business is from repeat custom. While headquartered in West Lothian, it has offices in Belfast and California, and sales teams in China and India.