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Metal detector boom drives record Codan profit

Business

Adelaide-based technology company Codan has announced a record profit of $64 million, causing its share price to jump more than 17 per cent this morning.

 

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The result caps an outstanding financial year for the metal detector manufacturer and communications company, which has almost tripled its market capitalisation to more than $1.9 billion in the past five months.

Codan reported record sales in its metal detection and communications divisions totalling $348 million and will pay shareholders an annual dividend of 18.5 cents per share, which is up 32 per cent.

Chief Executive Donald McGurk said Codan had this year launched its second simultaneous multi-frequency coin and treasure detector series, Vanquish; expanded its market share in the defence communications sector; successfully delivered multiple large-scale systems projects in communications; and, significantly increased its Minelab retail footprint across North America, Europe and Asia Pacific to expand the geographic reach of its gold detectors.

“Despite the pandemic challenges in FY20, Codan has had a very strong 12 months and has delivered another record profit year,” he said.

“This was driven by the strength of gold detector sales into the artisanal gold mining market, continued growth in sales of our recreational metal detectors and several major contracts delivered by the communications business.

“As a result of our strategy to further diversify our revenues by releasing more new products, transitioning to a full solutions provider and broadening our geographic footprint, we were pleased to see that demand across all of our international markets was more evenly distributed.

“Through the pandemic, we validated that we have the right manufacturing systems and processes in place which enabled us to maintain supply in very challenging circumstances.”

Headquartered in Adelaide, Codan has offices in North America, Europe, Asia, Africa, Australia and the Middle East and manufacturing operations in South Australia, Canada, the United States and Malaysia.

Codan’s share price has more than doubled from a low of $3.97 on March 23. It opened today at $8.98 but has jumped more than 17 per cent following the profit announcement to be $10.60 at 1pm.

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