Codan shares were a rare bright spot on Tuesday, surging 17% after the company announced a trading update for the first-half of FY22.
The supplier of communications, metal detection, and mining technology said it finished the first half strongly and as a result its expects profit figures will be a record first half result.
The company acquire two businesses acquired at the end of last financial year, DTC and Zetron, and both have exceeded Codan’s first half profit expectations.
The unaudited sales achieved in the first half of FY22 were $257 million, representing an increase of 32% over the prior corresponding period. While net profit after tax is expected to be around $50 million, an increase of 21%.
Despite the global shortages of electronic components and the well-publicised global supply chain disruptions, Codan said they were able to successfully maintain supply to customers and increase inventory holdings. In addition, a conscious decision to invest in increased levels of inventory places the group in a strong position as they enter the second half of FY22.
Codan expects to provide further detailed information regarding the first half FY22 performance and the outlook for the second half FY22 on 17 February 2022.