Codan Ignites on Positive Sentiment

After an abysmal start to the year, tech company Codan Limited has started the week as the market leader with a very positive announcement.

By the end of the Monday trading day, the metal detector technology company’s shares were up over 14% to $7.73.

Codan released a trading update from the company. According to the announcement, the company increased is guidance to anticipate record FY 2022 first half profit of $50 million to be matched in the second half of the financial year as well.

However, management advised that the timing of project sales or unforeseen challenges in supply chains could still impact revenues and profit. This represents a 56% increase on FY 2021’s profit to a record full year profit of almost 100 million for Codan.

Codan’s Communications division has continued during the second half thanks to positive performances from various acquisitions such as DTC and Zetron.

Management expects the Minelab’s business to form a new base which will underpin future growth. There is continued penetration of new geographic markets and new product releases that will drive further market share increases.

Finally, Codan revealed that its inventory management has been successful. It explained that its “decision to invest in inventory rather than let customers down has proven to be the correct one.”

$41 million of cash was generated from operating activities so far in the second half. Which represents a massive improvement on its operating cash outflow of $13 million during the first half.